S.B. 249

1

REORGANIZATION OF DEPARTMENT OF
2 ADMINISTRATIVE SERVICES
3 1997 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: George Mantes
6 AN ACT RELATING TO STATE AFFAIRS IN GENERAL; MERGING THE DIVISION OF
7 PURCHASING AND THE DIVISION OF GENERAL SERVICES; DEFINING ITS
8 STRUCTURE, POWERS, AND DUTIES; MOVING THE SURPLUS PROPERTY
9 PROGRAM TO THE DIVISION OF FLEET OPERATIONS; MAKING TECHNICAL
10 CORRECTIONS; AND PROVIDING AN EFFECTIVE DATE.
11 This act affects sections of Utah Code Annotated 1953 as follows:
12 AMENDS:
13 63-56-4, as last amended by Chapter 259, Laws of Utah 1991
14 63-56-5, as last amended by Chapter 260, Laws of Utah 1996
15 63-56-8, as last amended by Chapter 136, Laws of Utah 1985
16 63-56-9, as last amended by Chapter 232, Laws of Utah 1993
17 63-56-11, as last amended by Chapter 232, Laws of Utah 1993
18 63-56-47, as last amended by Chapter 295, Laws of Utah 1983
19 63A-2-101, as renumbered and amended by Chapters 118 and 212, Laws of Utah 1993
20 63A-2-102, as last amended by Chapter 12, Laws of Utah 1994
21 63A-2-103, as last amended by Chapters 334 and 336, Laws of Utah 1996
22 63A-2-104, as renumbered and amended by Chapters 118 and 212, Laws of Utah 1993
23 63A-2-105, as renumbered and amended by Chapter 12, Laws of Utah 1994
24 63A-9-301, as enacted by Chapter 334, Laws of Utah 1996
25 RENUMBERS AND AMENDS:
26 63A-9-801 (Effective 07/01/97), (Renumbered from 63A-2-301 (Effective 07/01/97), as last
27 amended by Chapter 240, Laws of Utah 1996)

1 63A-9-801 (Superseded 07/01/97), (Renumbered from 63A-2-301 (Superseded 07/01/97), as
2 last amended by Chapter 127, Laws of Utah 1995)
3 63A-9-802, (Renumbered from 63A-2-301.5, as enacted by Chapter 101, Laws of Utah 1994)
4 63A-9-803, (Renumbered from 63A-2-302, as renumbered and amended by Chapters 118 and
5 138, Laws of Utah 1993)
6 63A-9-804, (Renumbered from 63A-2-303, as renumbered and amended by Chapters 118 and
7 138, Laws of Utah 1993)
8 63A-9-805, (Renumbered from 63A-2-304, as renumbered and amended by Chapters 118 and
9 138, Laws of Utah 1993)
10 63A-9-806, (Renumbered from 63A-2-305, as renumbered and amended by Chapters 118 and
11 138, Laws of Utah 1993)
12 63A-9-807, (Renumbered from 63A-2-306, as renumbered and amended by Chapters 118 and
13 138, Laws of Utah 1993)
14 63A-9-808, (Renumbered from 63A-2-307, as renumbered and amended by Chapters 118 and
15 138, Laws of Utah 1993)
16 63A-9-809, (Renumbered from 63A-2-308, as renumbered and amended by Chapters 118 and
17 138, Laws of Utah 1993)
18 Be it enacted by the Legislature of the state of Utah:
19 Section 1. Section 63-56-4 is amended to read:
20 63-56-4. Records.
21 (1) All procurement records shall be retained and disposed of in accordance with Title 63,
22 Chapter 2, Government Records Access and Management Act.
23 (2) Written determinations required by this chapter shall also be retained in the appropriate
24 official contract file of the [purchasing division] Division of Purchasing and General Services or
25 the purchasing agency.
26 Section 2. Section 63-56-5 is amended to read:
27 63-56-5. Definitions.
28 As used in this chapter:
29 (1) "Architect-engineer services" are those professional services within the scope of the
30 practice of architecture as defined in Section 58-3a-102, or professional engineering as defined in
31 Section 58-22-102.

- 2 -

1 (2) "Business" means any corporation, partnership, individual, sole proprietorship, joint
2 stock company, joint venture, or any other private legal entity.
3 (3) "Change order" means a written order signed by the procurement officer, directing the
4 contractor to suspend work or make changes, which the appropriate clauses of the contract
5 authorize the procurement officer to order without the consent of the contractor or any written
6 alteration in specifications, delivery point, rate of delivery, period of performance, price, quantity,
7 or other provisions of any contract accomplished by mutual action of the parties to the contract.
8 (4) (a) "Construction" means the process of building, renovation, alteration, improvement,
9 or repair of any public building or public work.
10 (b) "Construction" does not mean the routine operation, routine repair, or routine
11 maintenance of existing structures, buildings, or real property.
12 (5) "Contract" means any state agreement for the procurement or disposal of supplies,
13 services, or construction.
14 (6) "Cooperative purchasing" means procurement conducted by, or on behalf of, more than
15 one public procurement unit, or by a public procurement unit with an external procurement unit.
16 (7) "Cost-reimbursement contract" means a contract under which a contractor is
17 reimbursed for costs which are allowed and allocated in accordance with the contract terms and
18 the provisions of this chapter, and a fee, if any.
19 (8) "Established catalogue price" means the price included in a catalogue, price list,
20 schedule, or other form that:
21 (a) is regularly maintained by a manufacturer or contractor;
22 (b) is either published or otherwise available for inspection by customers; and
23 (c) states prices at which sales are currently or were last made to a significant number of
24 any category of buyers or buyers constituting the general buying public for the supplies or services
25 involved.
26 (9) "External procurement unit" means any buying organization not located in this state
27 which, if located in this state, would qualify as a public procurement unit. An agency of the
28 United States is an external procurement unit.
29 (10) "Grant" means the furnishing by the state or by any other public or private source
30 assistance, whether financial or otherwise, to any person to support a program authorized by law.
31 It does not include an award whose primary purpose is to procure an end product, whether in the

- 3 -

1 form of supplies, services, or construction. A contract resulting from the award is not a grant but
2 a procurement contract.
3 (11) "Invitation for bids" means all documents, whether attached or incorporated by
4 reference, utilized for soliciting bids.
5 (12) "Local public procurement unit" means any political subdivision or institution of
6 higher education of the state or public agency of any subdivision, public authority, educational,
7 health, or other institution, and to the extent provided by law, any other entity which expends
8 public funds for the procurement of supplies, services, and construction, but not counties,
9 municipalities, political subdivisions created by counties or municipalities under the Interlocal
10 Cooperation Act, the Utah Housing Finance Agency, the Utah Technology Finance Corporation,
11 or the Legislature and its staff offices. It includes two or more local public procurement units
12 acting under legislation which authorizes intergovernmental cooperation.
13 (13) "Person" means any business, individual, union, committee, club, other organization,
14 or group of individuals, not including a state agency or a local public procurement unit.
15 (14) "Policy board" means the procurement policy board created by Section 63-56-6.
16 (15) "Preferred bidder" means a bidder that is entitled to receive a reciprocal preference
17 under the requirements of this chapter.
18 (16) "Procurement" means buying, purchasing, renting, leasing, leasing with an option to
19 purchase, or otherwise acquiring any supplies, services, or construction. It also includes all
20 functions that pertain to the obtaining of any supply, service, or construction, including description
21 of requirements, selection, and solicitation of sources, preparation, and award of a contract, and
22 all phases of contract administration.
23 (17) "Procurement officer" means any person or board duly authorized to enter into and
24 administer contracts and make written determinations with respect thereto. It also includes an
25 authorized representative acting within the limits of authority.
26 (18) "Public procurement unit" means either a local public procurement unit or a state
27 public procurement unit.
28 (19) "Purchase description" means the words used in a solicitation to describe the supplies,
29 services, or construction to be purchased, and includes specifications attached to or made a part
30 of the solicitation.
31 (20) "Purchasing agency" means any state agency other than the [purchasing division

- 4 -

1 which] Division of Purchasing and General Services that is authorized by this chapter or its
2 implementing regulations, or by [way of] delegation from the chief procurement officer, to enter
3 into contracts.
4 (21) "Request for proposals" means all documents, whether attached or incorporated by
5 reference, [utilized] used for soliciting proposals.
6 (22) "Responsible bidder or offeror" means a person who has the capability in all respects
7 to perform fully the contract requirements and who has the integrity and reliability which will
8 assure good faith performance.
9 (23) "Responsive bidder" means a person who has submitted a bid which conforms in all
10 material respects to the invitation for bids.
11 (24) "Services" means the furnishing of labor, time, or effort by a contractor, not involving
12 the delivery of a specific end product other than reports which are merely incidental to the required
13 performance. It does not include employment agreements or collective bargaining agreements.
14 (25) "Specification" means any description of the physical or functional characteristics,
15 or of the nature of a supply, service, or construction item. It may include a description of any
16 requirement for inspecting, testing, or preparing a supply, service, or construction item for
17 delivery.
18 (26) "State agency" means any department, division, commission, council, board, bureau,
19 committee, institution, government corporation, or other establishment or official of this state.
20 (27) "State public procurement unit" means the [purchasing division] Division of
21 Purchasing and General Services and any other purchasing agency of this state.
22 (28) "Supplies" means all property, including equipment, materials, and printing.
23 (29) "Using agency" means any state agency which utilizes any supplies, services, or
24 construction procured under this chapter.
25 Section 3. Section 63-56-8 is amended to read:
26 63-56-8. Chief procurement officer -- Appointment -- Qualifications.
27 [A Purchasing Division, headed by the chief procurement officer, is created in the
28 Department of Administrative Services.] (1) The executive director of the Department of
29 Administrative Services, with the consent of the governor, shall appoint the chief procurement
30 officer after considering recommendations from the policy board.
31 (2) The chief procurement officer shall:

- 5 -

1 (a) have a minimum of eight years' experience in the large-scale procurement of supplies
2 and services or services and construction, at least five years of which shall have been in public or
3 comparable private procurement within 12 years preceding the date of appointment[,]; and [shall]
4 (b) be a person with demonstrated executive and organizational ability.
5 (3) The chief procurement officer is also the director of the Division of Purchasing and
6 General Services.
7 Section 4. Section 63-56-9 is amended to read:
8 63-56-9. Duties of chief procurement officer.
9 Except as otherwise specifically provided in this chapter, the chief procurement officer
10 serves as the central procurement officer of the state and shall:
11 (1) adopt office policies governing the internal functions of the [purchasing division]
12 Division of Purchasing and General Services;
13 (2) procure or supervise the procurement of all supplies, services, and construction needed
14 by the state;
15 (3) exercise general supervision and control over all inventories or supplies belonging to
16 the state;
17 (4) establish and maintain programs for the inspection, testing, and acceptance of supplies,
18 services, and construction;
19 (5) prepare statistical data concerning the procurement and usage of all supplies, services,
20 and construction;
21 (6) before June 1, 1990, notify all public procurement units of the requirements of Section
22 63-56-20.7 regarding purchases of recycled paper and recycled paper products, recycling
23 requirements, and provide guidelines on the availability of recycled paper and paper products,
24 including the sources of supply and the potential uses of various grades of recycled paper; and
25 (7) before July 1, 1992:
26 (a) establish standards and specifications for determining which supplies are considered
27 recycled, based upon his review of current definitions and standards employed by national
28 procurement, product recycling, and other relevant organizations and the federal Environmental
29 Protection Agency;
30 (b) compile and update as necessary the specifications, a list of recycled supplies available
31 on state contract, and sources where the supplies may be obtained;

- 6 -

1 (c) make the compiled information under Subsection (b) available to:
2 (i) all local government entities under Section 11-37-101;
3 (ii) all local health departments under Section 26A-1-108.7;
4 (iii) all procurement officers or other persons responsible for purchasing supplies within
5 the public school system under Title 53A, State System of Public Education;
6 (iv) all procurement officers or other persons responsible for purchasing supplies within
7 the state system of higher education under Title 53B, State System of Higher Education; and
8 (v) all procurement officers or other persons responsible for purchasing supplies for all
9 public procurement units as defined in Section 63-56-5; and
10 (d) present a written report to the Health and Environment Interim Committee annually
11 prior to November 30 regarding the purchases of recycled goods on state contracts during the prior
12 fiscal year.
13 Section 5. Section 63-56-11 is amended to read:
14 63-56-11. Transfer of power to policy board.
15 Except as otherwise provided in this chapter, all rights, powers, duties, and authority
16 relating to the procurement of supplies, services, and construction, and the management, control,
17 warehousing, and sale of supplies, services, and construction vested in or exercised by any state
18 agency on the effective date are transferred to the policy board as they relate to its duties and to
19 the [purchasing division] Division of Purchasing and General Services as they relate to its duties.
20 Section 6. Section 63-56-47 is amended to read:
21 63-56-47. Costs to or against protestor.
22 (1) When a protest is sustained administratively or upon administrative or judicial review
23 and the protesting bidder or offeror should have been awarded the contract under the solicitation
24 but is not, the protestor, in addition to any other relief, shall be entitled, as a claim against the state,
25 to the reasonable costs incurred in connection with the solicitation, including bid preparation and
26 appeal costs.
27 (2) When a protest is not sustained by the Procurement Appeals Board, the protestor shall
28 reimburse the Division of Purchasing and General Services for the per diem and expenses paid by
29 the division to witnesses or appeals board members and any additional expenses incurred by the
30 state agency staff who have provided materials and administrative services to the board for that
31 case.

- 7 -

1 Section 7. Section 63A-2-101 is amended to read:
2 63A-2-101. Creation.
3 There is created the Division of Purchasing and General Services within the Department
4 of Administrative Services.
5 Section 8. Section 63A-2-102 is amended to read:
6 63A-2-102. Director of division -- Appointment.
7 (1) The executive director of the department shall appoint the director of the Division of
8 Purchasing and General Services with the approval of the governor.
9 (2) The director of the Division of Purchasing and General Services is also the state's chief
10 procurement officer.
11 Section 9. Section 63A-2-103 is amended to read:
12 63A-2-103. General services provided -- Subscription by state departments and
13 agencies and certain local governmental entities -- Fee schedule.
14 (1) (a) The director of the Division of Purchasing and General Services shall operate and
15 maintain:
16 (i) a central mailing service; and
17 [(ii) a fuel dispensing services program that meets the requirements of Subsection (3);]
18 [(iii) a surplus property program that meets the requirements of this part and is qualified
19 to receive federal surplus property under the provisions of Section 203(j) of the Federal Property
20 and Administrative Services Act of 1949; and]
21 [(iv)] (ii) a central store for all state departments and agencies.
22 (b) The director may establish microfilming, duplicating, printing, addressograph, and
23 other central services.
24 (2) (a) [Except as provided in Subsection (3)(a), all] All state departments and agencies
25 shall subscribe to all of the services described in Subsection (1), unless the director delegates the
26 director's authority to a department or agency under Section 63A-2-104.
27 (b) [Except as provided in Subsection (3)(a), an] An institution of higher education may
28 subscribe to one or more of the services described in Subsection (1), if, and to the extent that, the
29 president of the institution recommends and the State Board of Regents determines that the
30 performance of the services by the director of the Division of General Services will result in
31 substantial cost savings or increased efficiency to the institution.

- 8 -

1 [(3) (a) (i) Each state agency and each higher education institution shall subscribe to the
2 fuel dispensing services provided by the division.]
3 [(ii) A state agency may not provide or subscribe to any other fuel dispensing services,
4 systems, or products other than those provided by the division.]
5 [(b) Counties, municipalities, school districts, special districts, and federal agencies may
6 subscribe to the fuel dispensing services provided by the division if:]
7 [(i) the county or municipal legislative body, or the school district, or the special district
8 board recommends that the county, municipality, school district, or special district subscribe to the
9 fuel dispensing services of the division; and]
10 [(ii) the division approves participation in the program by that government unit.]
11 [(4)] (3) (a) The director shall prescribe a schedule of fees to be charged for all services
12 rendered by the division to any department or agency after receiving prior approval of the fee
13 schedule from the director of the Division of Finance.
14 (b) When practicable, fees prescribed by the director of the Division of Purchasing and
15 General Services shall be commensurate with the cost of providing the services.
16 Section 10. Section 63A-2-104 is amended to read:
17 63A-2-104. Delegation of general services to departments or agencies -- Writing
18 required -- Contents -- Termination.
19 (1) [(a)] The director of the Division of Purchasing and General Services, with the
20 approval of the executive director, may delegate, in writing, his authority to perform or control any
21 general services function [except fuel dispensing and surplus property] to other state agencies and
22 institutions by contract or other means authorized by law, if:
23 [(i)] (a) in the judgment of the executive director, the state department or agency has
24 requested the authority; and
25 [(ii)] (b) the state department or agency has the necessary resources and skills to perform
26 or control the functions.
27 [(b) The director may not delegate fuel dispensing and surplus property functions to
28 another state agency or institution.]
29 (2) The director may delegate his authority only when the delegation would result in net
30 cost savings or improved service delivery to the state as a whole.
31 (3) The written delegation shall contain the following:

- 9 -

1 (a) a precise definition of each function to be delegated;
2 (b) a clear description of the standards to be met in performing each function delegated;
3 (c) a provision for periodic administrative audits by the department; and
4 (d) a date on which the agreement shall terminate if not previously terminated or renewed.
5 (4) An agreement to delegate functions to a state agency or institution may be terminated
6 by the department if the results of administrative audits conducted by the department reveal lack
7 of compliance with the terms of the agreement.
8 Section 11. Section 63A-2-105 is amended to read:
9 63A-2-105. Director to approve certain purchases.
10 (1) Each agency that intends to purchase any mail-related equipment or copy machine shall
11 submit a purchase request to the director of the Division of General Services.
12 (2) The director shall review those requests to ensure that:
13 (a) the authority to perform those functions has been appropriately delegated to the agency
14 under this part;
15 (b) the equipment meets proper specifications; and
16 (c) the benefits from the agency's purchase of the equipment outweigh the benefits of
17 having the same functions performed by the Division of Purchasing and General Services.
18 Section 12. Section 63A-9-301 is amended to read:
19 63A-9-301. Motor Vehicle Review Committee -- Composition.
20 (1) There is created a Motor Vehicle Review Committee to advise the division.
21 (2) The committee shall be composed of nine members as follows:
22 (a) the executive director of the Department of Administrative Services or his designee;
23 (b) the director of the Division of Finance or his designee;
24 (c) the director of the Division of Purchasing and General Services or his designee;
25 (d) the executive director of the Department of Transportation or his designee;
26 (e) the Commissioner of Public Safety or his designee;
27 (f) the Commissioner of Higher Education or his designee;
28 (g) the executive director of the Department of Natural Resources or his designee; and
29 (h) two public members from the automotive industry with expertise in fleet operations
30 and maintenance appointed by the governor.
31 (3) (a) Except as required by Subsection (1)(b), the governor shall appoint each public

- 10 -

1 member to a four-year term.
2 (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the time
3 of appointment, adjust the length of terms to ensure that the terms of public members are staggered
4 so that approximately one half of the public members are appointed every two years.
5 (c) When a vacancy occurs in the membership for any reason, the replacement shall be
6 appointed for the unexpired term.
7 (4) (a) (i) Members who are not government employees shall receive no compensation or
8 benefits for their services, but may receive per diem and expenses incurred in the performance of
9 the member's official duties at the rates established by the Division of Finance under Sections
10 63A-3-106 and 63A-3-107.
11 (ii) Members may decline to receive per diem and expenses for their service.
12 (b) (i) State government members who do not receive salary, per diem, or expenses from
13 their agency for their service may receive per diem and expenses incurred in the performance of
14 their official duties from the committee at the rates established by the Division of Finance under
15 Sections 63A-3-106 and 63A-3-107.
16 (ii) State government members may decline to receive per diem and expenses for their
17 service.
18 (c) (i) Higher education members who do not receive salary, per diem, or expenses from
19 the entity that they represent for their service may receive per diem and expenses incurred in the
20 performance of their official duties from the committee at the rates established by the Division of
21 Finance under Sections 63A-3-106 and 63A-3-107.
22 (ii) Higher education members may decline to receive per diem and expenses for their
23 service.
24 (5) Five members of the committee are a quorum.
25 (6) The executive director of the Department of Administrative Services is chair of the
26 committee.
27 Section 13. Section 63A-9-801 (Effective 07/01/97), which is renumbered from Section
28 63A-2-301 (Effective 07/01/97) is renumbered and amended to read:
29 [63A-2-301 (Effective 07/01/97)]. 63A-9-801 (Effective 07/01/97). State surplus
30 property program -- Administration.
31 (1) As used in this section:

- 11 -

1 (a) "Agency" means:
2 (i) the Utah Departments of Administrative Services, Agriculture, Alcoholic Beverage
3 Control, Commerce, Community and Economic Development, Corrections, Workforce Services,
4 Health, Human Resource Management, Human Services, Insurance, Natural Resources, Public
5 Safety, and Transportation;
6 (ii) the Utah Offices of the Auditor, Attorney General, Court Administrator, Crime Victim
7 Reparations, Rehabilitation, and Treasurer;
8 (iii) the Public Service Commission and State Tax Commission;
9 (iv) the State Boards of Education, Pardons and Parole, and Regents;
10 (v) the Career Service Review Board and the Citizens' Council on Alcoholic Beverage
11 Control; and
12 (vi) other state agencies designated by the governor;
13 (vii) the legislative branch, the judicial branch, and the State Board of Regents; and
14 (viii) an institution of higher education, its president, and its board of trustees for purposes
15 of Section [63A-2-301.5] 63A-9-802.
16 (b) "Division" means the Division of [General Services] Fleet Operations.
17 (c) "Information technology equipment" means any equipment that is designed to
18 electronically manipulate, store, or transfer any form of data.
19 (d) "Inventory property" means property in the possession of the division that is available
20 for purchase by an agency or the public.
21 (e) "Judicial district" means the geographic districts established by Section 78-1-2.1.
22 (f) (i) "Surplus property" means property purchased by, seized by, or donated to, an agency
23 that the agency wishes to dispose of.
24 (ii) "Surplus property" does not mean real property.
25 (g) "Transfer" means transfer of surplus property without cash consideration.
26 (2) (a) The division shall make rules establishing a state surplus property program that
27 meets the requirements of this chapter by following the procedures and requirements of Title 63,
28 Chapter 46a, Utah Administrative Rulemaking Act.
29 (b) Those rules shall include:
30 (i) a requirement prohibiting the transfer of surplus property from one agency to another
31 agency without written approval from the division;

- 12 -

1 (ii) procedures and requirements governing division administration requirements that an
2 agency must follow;
3 (iii) requirements governing purchase priorities;
4 (iv) requirements governing accounting, reimbursement, and payment procedures;
5 (v) procedures for collecting bad debts;
6 (vi) requirements and procedures for disposing of firearms;
7 (vii) the elements of the rates or other charges assessed by the division for services and
8 handling;
9 (viii) procedures governing the timing and location of public sales of inventory property;
10 and
11 (ix) procedures governing the transfer of information technology equipment by state
12 agencies directly to public schools.
13 (c) The division shall report all transfers of information technology equipment by state
14 agencies to public schools to the state's Information Technology Commission and to the
15 Legislative Interim Education Committee at the end of each fiscal year.
16 (3) In creating and administering the program, the division shall:
17 (a) when conditions, inventory, and demand permit:
18 (i) establish facilities to store inventory property at geographically dispersed locations
19 throughout the state; and
20 (ii) hold public sales of property at geographically dispersed locations throughout the state;
21 (b) establish, after consultation with the agency requesting the sale of surplus property, the
22 price at which the surplus property shall be sold; and
23 (c) transfer proceeds arising from the sale of state surplus property to the agency
24 requesting the sale in accordance with the Budgetary Procedures Act, less an amount established
25 by the division by rule to pay the costs of administering the surplus property program.
26 (4) Unless specifically exempted from this chapter by explicit reference to this chapter,
27 each state agency shall dispose of and acquire surplus property only by participating in the
28 division's program.
29 Section 14. Section 63A-9-801 (Superseded 07/01/97), which is renumbered from Section
30 63A-2-301 (Superseded 07/01/97) is renumbered and amended to read:
31 [63A-2-301 (Superseded 07/01/97)]. 63A-9-801 (Superseded 07/01/97). State

- 13 -

1 surplus property program -- Administration.
2 (1) As used in this section:
3 (a) "Agency" means:
4 (i) the Utah Departments of Administrative Services, Agriculture, Alcoholic Beverage
5 Control, Commerce, Community and Economic Development, Corrections, Employment Security,
6 Health, Human Resource Management, Human Services, Insurance, Natural Resources, Public
7 Safety, and Transportation;
8 (ii) the Utah Offices of the Auditor, Attorney General, Court Administrator, Crime Victim
9 Reparations, Rehabilitation, and Treasurer;
10 (iii) the Industrial Commission, Public Service Commission, and State Tax Commission;
11 (iv) the State Boards of Education, Pardons and Parole, and Regents;
12 (v) the Career Service Review Board and the Citizens' Council on Alcoholic Beverage
13 Control; and
14 (vi) other state agencies designated by the governor;
15 (vii) the legislative branch, the judicial branch, and the board of regents; and
16 (viii) an institution of higher education, its president, and its board of trustees for purposes
17 of Section [63A-2-301.5] 63A-9-802.
18 (b) "Division" means the Division of [General Services] Fleet Operations.
19 (c) "Information technology equipment" means any equipment that is designed to
20 electronically manipulate, store, or transfer any form of data.
21 (d) "Inventory property" means property in the possession of the division that is available
22 for purchase by an agency or the public.
23 (e) "Judicial district" means the geographic districts established by Section 78-1-2.1.
24 (f) (i) "Surplus property" means property purchased by, seized by, or donated to, an agency
25 that the agency wishes to dispose of.
26 (ii) "Surplus property" does not mean real property.
27 (g) "Transfer" means transfer of surplus property without cash consideration.
28 (2) (a) The division shall make rules establishing a state surplus property program that
29 meets the requirements of this chapter by following the procedures and requirements of Title 63,
30 Chapter 46a, Utah Administrative Rulemaking Act.
31 (b) Those rules shall include:

- 14 -

1 (i) a requirement prohibiting the transfer of surplus property from one agency to another
2 agency without written approval from the division;
3 (ii) procedures and requirements governing division administration requirements that an
4 agency must follow;
5 (iii) requirements governing purchase priorities;
6 (iv) requirements governing accounting, reimbursement, and payment procedures;
7 (v) procedures for collecting bad debts;
8 (vi) requirements and procedures for disposing of firearms;
9 (vii) the elements of the rates or other charges assessed by the division for services and
10 handling;
11 (viii) procedures governing the timing and location of public sales of inventory property;
12 and
13 (ix) procedures governing the transfer of information technology equipment by state
14 agencies directly to public schools.
15 (c) The division shall report all transfers of information technology equipment by state
16 agencies to public schools to the state's Information Technology Commission and to the
17 Legislative Interim Education Committee at the end of each fiscal year.
18 (3) In creating and administering the program, the division shall:
19 (a) when conditions, inventory, and demand permit:
20 (i) establish facilities to store inventory property at geographically dispersed locations
21 throughout the state; and
22 (ii) hold public sales of property at geographically dispersed locations throughout the state;
23 (b) establish, after consultation with the agency requesting the sale of surplus property, the
24 price at which the surplus property shall be sold; and
25 (c) transfer proceeds arising from the sale of state surplus property to the agency
26 requesting the sale in accordance with the Budgetary Procedures Act, less an amount established
27 by the division by rule to pay the costs of administering the surplus property program.
28 (4) Unless specifically exempted from this chapter by explicit reference to this chapter,
29 each state agency shall dispose of and acquire surplus property only by participating in the
30 division's program.
31 Section 15. Section 63A-9-802, which is renumbered from Section 63A-2-301.5 is

- 15 -

1 renumbered and amended to read:
2 [63A-2-301.5]. 63A-9-802. State surplus property program -- Participation by
3 institutions of higher education.
4 The Board of Regents shall:
5 (1) implement a policy requiring each institution of higher education to submit to the
6 division a listing of surplus property available for sale outside the institution, at least 15 days prior
7 to the intended sale date;
8 (2) supervise and assist compliance by the institutions of higher education with the
9 requirement of this part; and
10 (3) encourage institutions of higher education to acquire federal surplus property from the
11 division to reduce expenditures.
12 Section 16. Section 63A-9-803, which is renumbered from Section 63A-2-302 is
13 renumbered and amended to read:
14 [63A-2-302]. 63A-9-803. Methods of disposition of surplus authorized.
15 The division may dispose of state surplus property by public auction, sealed bids, or by
16 other means established by rule.
17 Section 17. Section 63A-9-804, which is renumbered from Section 63A-2-303 is
18 renumbered and amended to read:
19 [63A-2-303]. 63A-9-804. Annual report to Legislature.
20 The division shall prepare an annual report to the Legislature that includes:
21 (1) the costs of administering the surplus property program;
22 (2) the amount retained by each state agency requesting the sale of any surplus property;
23 (3) each direct transfer of property from one state agency to another that was approved by
24 the division under Section [63A-2-301] 63A-9-801; and
25 (4) the estimated fair market value of each item of property transferred.
26 Section 18. Section 63A-9-805, which is renumbered from Section 63A-2-304 is
27 renumbered and amended to read:
28 [63A-2-304]. 63A-9-805. Acquisition of federal surplus property -- Powers
29 and duties -- Advisory boards and committees -- Expenditures and contracts --
30 Clearinghouse of information -- Reports.
31 (1) As used in this section:

- 16 -

1 (a) "Property" includes equipment, materials, books, and other supplies.
2 (b) "Property act" means Section 203(j) of the Federal Property and Administrative
3 Services Act of 1949.
4 (2) The division may:
5 (a) acquire from the United States of America under and in conformance with the property
6 act any property under the control of any department or agency of the United States that is usable
7 and necessary for any purposes authorized by federal law;
8 (b) warehouse that property if it is not real property; and
9 (c) distribute that property within Utah to:
10 (i) tax-supported medical institutions, hospitals, clinics, and health centers;
11 (ii) school systems, schools, colleges, and universities;
12 (iii) other nonprofit medical institutions, hospitals, clinics, health centers, schools,
13 colleges, and universities that are exempt from taxation under Section 501(c)(3) of the United
14 States Internal Revenue Code of 1954;
15 (iv) civil defense organizations;
16 (v) political subdivisions; and
17 (vi) any other types of institutions or activities that are eligible to acquire the property
18 under federal law.
19 (3) The division may:
20 (a) receive applications from eligible health and educational institutions for the acquisition
21 of federal surplus real property;
22 (b) investigate the applications;
23 (c) obtain opinions about those applications from the appropriate health or educational
24 authorities of Utah;
25 (d) make recommendations about the need of the applicant for the property, the merits of
26 the applicant's proposed use of the property, and the suitability of the property for those purposes;
27 and
28 (e) otherwise assist in the processing of those applications for acquisition of real and
29 related personal property of the United States under the property act.
30 (4) The division may appoint advisory boards or committees.
31 (5) If required by law or regulation of the United States in connection with the disposal

- 17 -

1 of surplus real property and the receipt, warehousing, and distribution of surplus personal property
2 received by the division from the United States, the division may:
3 (a) make certifications, take action, and make expenditures;
4 (b) enter into contracts, agreements, and undertakings for and in the name of the state
5 including cooperative agreements with the federal agencies providing for use by and exchange
6 between them of the property, facilities, personnel, and services of each by the other;
7 (c) require reports; and
8 (d) make investigations.
9 (6) The division shall act as clearinghouse of information for public and private nonprofit
10 institutions, organizations, and agencies eligible to acquire federal surplus real property to:
11 (a) locate both real and personal property available for acquisition from the United States;
12 (b) ascertain the terms and conditions under which that property may be obtained;
13 (c) receive requests from those institutions, organizations, and agencies and transmit to
14 them all available information in reference to that property; and
15 (d) aid and assist those institutions, organizations, and agencies in every way possible in
16 those acquisitions or transactions.
17 (7) The division shall:
18 (a) cooperate with the departments or agencies of the United States;
19 (b) file a state plan of operation;
20 (c) operate according to that plan;
21 (d) take the actions necessary to meet the minimum standards prescribed by the property
22 act;
23 (e) make any reports required by the United States or any of its departments or agencies;
24 and
25 (f) comply with the laws of the United States and the regulations of any of the departments
26 or agencies of the United States governing the allocation of, transfer of, use of, or accounting for
27 any property donated to the state.
28 Section 19. Section 63A-9-806, which is renumbered from Section 63A-2-305 is
29 renumbered and amended to read:
30 [63A-2-305]. 63A-9-806. Bonds.
31 The executive director of the Department of Administrative Services may bond any person

- 18 -

1 employed by the division who handles money, signs checks, or receives or distributes surplus
2 property.
3 Section 20. Section 63A-9-807, which is renumbered from Section 63A-2-306 is
4 renumbered and amended to read:
5 [63A-2-306]. 63A-9-807. Charges and fees assessed for surplus property.
6 (1) The division may assess charges and fees for the acquisition, warehousing, distribution,
7 or transfer of any property of the United States for educational, public health, or civil defense
8 purposes, including research, only if those charges and fees are reasonably related to the division's
9 care and handling costs of acquiring, receipting, warehousing, distributing, or transferring the
10 property.
11 (2) The division may reduce or eliminate charges on property that is found not to be usable
12 for the purpose for which it was procured.
13 (3) The division shall limit the charges and fees assessed against real property to the
14 reasonable administrative costs that the division incurred in effecting transfer.
15 Section 21. Section 63A-9-808, which is renumbered from Section 63A-2-307 is
16 renumbered and amended to read:
17 [63A-2-307]. 63A-9-808. Priority to state and local agencies in purchasing
18 surplus property.
19 The division shall make rules giving priority to state and local agencies in purchasing
20 surplus property for a 30-day period.
21 Section 22. Section 63A-9-809, which is renumbered from Section 63A-2-308 is
22 renumbered and amended to read:
23 [63A-2-308]. 63A-9-809. Authority of state or local subdivision to receive
24 property -- Revocation of authority of officer.
25 (1) Notwithstanding any other provision of law, the governing board or the executive
26 director of any state department, instrumentality, or agency or the legislative body of any city,
27 county, school district, or other political subdivision may by order or resolution give any officer
28 or employee the authority to:
29 (a) secure the transfer to it of surplus property through the division under the provisions
30 of Section 203(j) of the Federal Property and Administrative Services Act of 1949, as amended;
31 and

- 19 -

1 (b) obligate the state or political subdivision and its funds to the extent necessary to
2 comply with the terms and conditions of those transfers.
3 (2) The authority conferred upon any officer or employee by an order or resolution
4 remains in effect until:
5 (a) the order or resolution is revoked; and
6 (b) the division has received written notice of the revocation.
7 Section 23. Effective date.
8 If approved by two-thirds of all the members elected to each house, this act takes effect
9 upon approval by the governor, or the day following the constitutional time limit of Utah
10 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the
11 date of veto override.




Legislative Review Note
as of 2-19-97 3:52 PM

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

Office of Legislative Research and General Counsel

- 20 -