S.B. 228

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PROCUREMENT CODE REQUIREMENT OF
2 HEALTH CARE BENEFITS FOR CONTRACTORS
3 1997 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Ed P. Mayne
6 AN ACT RELATING TO STATE AFFAIRS IN GENERAL; REQUIRING A BUSINESS TO
7 OFFER HEALTH INSURANCE TO ITS EMPLOYEES AS A CONDITION FOR
8 CONTRACTING WITH THE STATE.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 63-56-40, as enacted by Chapter 75, Laws of Utah 1980
12 63-56-48, as enacted by Chapter 75, Laws of Utah 1980
13 ENACTS:
14 63-56-20.1, Utah Code Annotated 1953
15 Be it enacted by the Legislature of the state of Utah:
16 Section 1. Section 63-56-20.1 is enacted to read:
17 63-56-20.1. Health insurance requirement.
18 A business shall provide health insurance to its employees, as defined in 35A-3-104, at a
19 level at least consistent with Subsection 31A-22-605(4)(b) to be eligible to enter into a contract
20 with the state or a local public procurement unit under this chapter.
21 Section 2. Section 63-56-40 is amended to read:
22 63-56-40. Required contract clauses -- Computation of price adjustments -- Use of
23 rules and regulations.
24 (1) Rules and regulations shall require for state construction contracts and may permit or
25 require for state contracts for supplies and services the inclusion of clauses providing for
26 adjustments in prices, time of performance, or other appropriate contract provisions, and covering
27 the following subjects:

1 (a) the unilateral right of the state to order in writing changes in the work within the scope
2 of the contract and changes in the time of performance of the contract that do not alter the scope
3 of the contract work;
4 (b) variations occurring between estimated quantities of work in a contract and actual
5 quantities;
6 (c) suspension of work ordered by the state; and
7 (d) site conditions differing from those indicated in the construction contract, or ordinarily
8 encountered, except that differing site conditions clauses required by the rules and regulations need
9 not be included in a construction contract when the contract is negotiated, when the contractor
10 provides the site or design, or when the parties have otherwise agreed with respect to the risk of
11 differing site conditions.
12 (2) Adjustments in price pursuant to clauses promulgated under Subsection (1) shall be
13 computed in one or more of the following ways:
14 (a) by agreement on a fixed price adjustment before commencement of the pertinent
15 performance or as soon thereafter as practicable;
16 (b) by unit prices specified in the contract or subsequently agreed upon;
17 (c) by the costs attributable to the events or situations under the clauses with adjustment
18 of profit or fee, all as specified in the contract or subsequently agreed upon;
19 (d) in any other manner as the contracting parties may mutually agree; or
20 (e) in the absence of agreement by the parties, by a unilateral determination by the state
21 of the costs attributable to the events or situations under the clauses with adjustment of profit or
22 fee, all as computed by the state in accordance with applicable sections of the rules and regulations
23 issued under Subsection 63-56-28(1) and subject to the provisions of Part H of this chapter.
24 (3) A contractor shall be required to submit cost or pricing data if any adjustment in
25 contract price is subject to the provisions of Section 63-56-28.
26 (4) Rules and regulations shall require for state construction contracts and may permit or
27 require for state contracts for supplies and services the inclusion of clauses providing for
28 appropriate remedies and covering at least the following subjects:
29 (a) liquidated damages as appropriate;
30 (b) specified excuses for delay or nonperformance;
31 (c) termination of the contract for default; and

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1 (d) termination of the contract in whole or in part for the convenience of the state.
2 (5) A contract for construction, supplies, or service shall include the health insurance
3 requirement of Section 63-56-20.1.
4 [(5)] (6) The contract clauses promulgated under this section shall be set forth in rules and
5 regulations. However, the chief procurement officer or the head of a purchasing agency may
6 modify the clauses for inclusion in any particular contract. Any variations shall be supported by
7 a written determination that describes the circumstances justifying the variations, and notice of any
8 material variation shall be included in the invitation for bids or request for proposals.
9 Section 3. Section 63-56-48 is amended to read:
10 63-56-48. Debarment from consideration for award of contracts -- Causes for
11 debarment.
12 (1) After reasonable notice to the person involved and reasonable opportunity for that
13 person to be heard, the chief procurement officer or the head of a purchasing agency, after
14 consultation with the using agency and the attorney general, shall have authority to debar a person
15 for cause from consideration for award of contracts. The debarment shall not be for a period
16 exceeding three years. The same officer, after consultation with the using agency and the attorney
17 general, shall have authority to suspend a person from consideration for award of contracts if there
18 is probable cause to believe that the person has engaged in any activity which might lead to
19 debarment. The suspension shall not be for a period exceeding three months unless an indictment
20 has been issued for an offense which would be a cause for debarment under Subsection (2) of this
21 section, in which case the suspension shall, at the request of the attorney general, remain in effect
22 until after the trial of the suspended person.
23 (2) The causes for debarment include the following:
24 (a) conviction of a criminal offense as an incident to obtaining or attempting to obtain a
25 public or private contract or subcontract or in the performance of such contract or subcontract;
26 (b) conviction under state or federal statutes of embezzlement, theft, forgery, bribery,
27 falsification or destruction of records, receiving stolen property, or any other offense indicating
28 a lack of business integrity or business honesty which currently, seriously, and directly affects
29 responsibility as a state contractor;
30 (c) conviction under state or federal antitrust statutes;
31 (d) failure without good cause to perform in accordance with the terms of the contract; [or]

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1 (e) violation of the health insurance requirement of Section 63-56-20.1; or
2 [(e)] (f) any other cause the chief procurement officer, or the head of a purchasing agency
3 determines to be so serious and compelling as to affect responsibility as a state contractor,
4 including debarment by another governmental entity for any cause listed in rules and regulations.




Legislative Review Note
as of 2-17-97 2:17 PM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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