First Substitute H.B. 141

Representative David M. Jones proposes to substitute the following bill:

1 MITIGATION TO BUSINESSES IMPACTED
2 BY MAJOR HIGHWAY CONSTRUCTION
3 1998 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: David M. Jones
6 AN ACT RELATING TO STATE AFFAIRS IN GENERAL; DEFINING AND PROVIDING
7 FOR DESIGNATION OF SERIOUSLY IMPACTED BUSINESSES; CREATING A BOARD;
8 PROVIDING FOR AN INVENTORY OF SUPPLIES AND SERVICES OFFERED BY
9 SERIOUSLY IMPACTED BUSINESSES; PROVIDING FOR TECHNICAL ASSISTANCE
10 RELATED TO PROCUREMENT; AND MAKING TECHNICAL CORRECTIONS.
11 This act affects sections of Utah Code Annotated 1953 as follows:
12 AMENDS:
13 63-56-9, as last amended by Chapter 252, Laws of Utah 1997
14 ENACTS:
15 9-2-1801, Utah Code Annotated 1953
16 9-2-1802, Utah Code Annotated 1953
17 9-2-1803, Utah Code Annotated 1953
18 9-2-1804, Utah Code Annotated 1953
19 9-2-1805, Utah Code Annotated 1953
20 9-2-1806, Utah Code Annotated 1953
21 Be it enacted by the Legislature of the state of Utah:
22 Section 1. Section 9-2-1801 is enacted to read:
23 Part 18. Major Highway Construction Business Impact
24 9-2-1801. Title.
25 This part is known as the "Major Highway Construction Business Impact Act."

1 Section 2. Section 9-2-1802 is enacted to read:
2 9-2-1802. Definitions.
3 As used in this part:
4 (1) "Board" means the Major Highway Construction Business Impact Advisory Board
5 created under Section 9-2-1803.
6 (2) "Branch" means a location of a business other than its main office at which the
7 business conducts business activities.
8 (3) "Business" means a person that for compensation provides goods or services for lawful
9 purposes.
10 (4) "Chief procurement officer" means the person appointed under Section 63-56-8.
11 (5) "Major highway construction" means construction, as defined by Section 27-12-2:
12 (a) on a state highway, as defined in Section 27-12-2; and
13 (b) having a total budget equal to or exceeding $1,000,000.
14 (6) "Seriously impacted business" means a business designated as seriously impacted
15 under Section 9-2-1804.
16 (7) "Threshold period" means the period specified under Subsection 9-2-1804(4).
17 Section 3. Section 9-2-1803 is enacted to read:
18 9-2-1803. Major Highway Construction Business Impact Advisory Board.
19 (1) There is created within the department the "Major Highway Construction Business
20 Impact Advisory Board" consisting of:
21 (a) two representatives of local Chambers of Commerce appointed by the Utah Association
22 of Chambers of Commerce;
23 (b) a representative of seriously impacted businesses appointed by the governor;
24 (c) the executive director of the department or the executive director's designee; and
25 (d) the chief procurement officer.
26 (2) The governor shall appoint the chair of the board. The chair shall call meetings of the
27 board.
28 (3) (a) Except as required by Subsection (3)(b), a member appointed under Subsection
29 (1)(a) or (b) shall serve for a four-year term.
30 (b) Notwithstanding Subsection (3)(a), the governor shall, at the time of appointment or
31 reappointment, adjust the length of terms to ensure that the terms of board members are staggered

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1 so that at least one member of the board is appointed every two years.
2 (c) When a vacancy occurs in the membership for any reason, the replacement shall be
3 appointed for the unexpired term.
4 (4) (a) (i) Members who are not government employees shall receive no compensation or
5 benefits for their services, but may receive per diem and expenses incurred in the performance of
6 the member's official duties at the rates established by the Division of Finance under Sections
7 63A-3-106 and 63A-3-107.
8 (ii) Members may decline to receive per diem and expenses for their service.
9 (b) (i) State government officer and employee members who do not receive salary, per
10 diem, or expenses from their agency for their service may receive per diem and expenses incurred
11 in the performance of their official duties from the board at the rates established by the Division
12 of Finance under Sections 63A-3-106 and 63A-3-107.
13 (ii) State government officer and employee members may decline to receive per diem and
14 expenses for their service.
15 (5) The department shall provide clerical and professional staff and services to the board.
16 (6) The board shall:
17 (a) advise the department concerning issues unique to seriously impacted businesses;
18 (b) recommend any regulatory or statutory changes needed to encourage the stability of
19 seriously impacted businesses; and
20 (c) provide a public forum at which the views of seriously impacted businesses may be
21 represented to state government.
22 Section 4. Section 9-2-1804 is enacted to read:
23 9-2-1804. Designation of business as seriously impacted.
24 (1) A business seeking designation of the business as a whole or any of its branches as a
25 seriously impacted business shall file an application with the department that:
26 (a) specifies whether the business is seeking designation as a seriously impacted business
27 of:
28 (i) the business as a whole; or
29 (ii) a branch of the business;
30 (b) verifies that:
31 (i) if the business seeks designation of the business as whole, the business meets the

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1 criteria described in Subsection (2); or
2 (ii) if the business seeks designation of a branch of the business, the branch meets the
3 criteria described in Subsection (3);
4 (c) is in the form and filed in accordance with procedures established by the department;
5 (d) lists the products and services that the business or branch can provide the state; and
6 (e) includes any information required by the department.
7 (2) The department shall designate a business as a seriously impacted business if the
8 business meets the following criteria:
9 (a) the gross revenue of the business for the six-month period preceding the month in
10 which the business files its application is 30% lower than the gross revenue of the business for the
11 threshold period;
12 (b) the traffic count on the road that provides access to the business or a branch of the
13 business is significantly reduced from the traffic count as of the beginning of the threshold period;
14 and
15 (c) the reduction in traffic count is likely the result of major highway construction.
16 (3) The department shall designate a branch of a business as a seriously impacted business
17 if the branch meets the following criteria:
18 (a) the branch files an individual income tax or a corporate franchise or income tax return
19 separate from the business;
20 (b) the gross revenue of the branch for the six-month period preceding the month in which
21 the business files its application is 30% lower than the gross revenue of the branch for the
22 threshold period;
23 (c) the traffic count on the road that provides access to the branch is significantly reduced
24 from the traffic count as a beginning of the threshold period; and
25 (d) the reduction in traffic count is likely the result of major highway construction.
26 (4) (a) If a business seeks designation as a seriously impacted business because of a major
27 highway construction project, the department shall designate a six-month period as the threshold
28 period for the major highway construction project.
29 (b) The threshold period shall be the six-month period preceding substantial
30 commencement of construction on the major highway construction project.
31 (c) The department shall use the identical threshold period for all applicants seeking

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1 designation as a seriously impacted business because of the same major highway construction
2 project.
3 Section 5. Section 9-2-1805 is enacted to read:
4 9-2-1805. List of products and services provided by seriously impacted businesses.
5 (1) The department shall:
6 (a) compile the information provided to the department under Subsection 9-2-1804(1)(d)
7 by seriously impacted businesses into a single document or database;
8 (b) update the document or database compiled under Subsection (1)(a) at least quarterly;
9 and
10 (c) provide the document or database as updated to the chief procurement officer.
11 (2) The department and the chief procurement officer shall jointly develop the format of
12 the document or database described in Subsection (1).
13 Section 6. Section 9-2-1806 is enacted to read:
14 9-2-1806. Technical assistance related to procurement.
15 (1) The department shall provide seriously impacted businesses technical assistance related
16 to bidding or offering supplies, services, or construction to state, local, and federal governments
17 as part of government procurement programs.
18 (2) The technical assistance described in Subsection (1) shall include educating seriously
19 impacted businesses concerning:
20 (a) what procurement opportunities are available on a state, local, and federal level; and
21 (b) the process a seriously impacted business can follow in bidding or offering supplies,
22 services, or construction as part of state, local, and federal procurement programs.
23 Section 7. Section 63-56-9 is amended to read:
24 63-56-9. Duties of chief procurement officer.
25 Except as otherwise specifically provided in this chapter, the chief procurement officer
26 serves as the central procurement officer of the state and shall:
27 (1) adopt office policies governing the internal functions of the Division of Purchasing and
28 General Services;
29 (2) procure or supervise the procurement of all supplies, services, and construction needed
30 by the state;
31 (3) exercise general supervision and control over all inventories or supplies belonging to

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1 the state;
2 (4) establish and maintain programs for the inspection, testing, and acceptance of supplies,
3 services, and construction;
4 (5) prepare statistical data concerning the procurement and usage of all supplies, services,
5 and construction;
6 (6) before June 1, 1990, notify all public procurement units of the requirements of Section
7 63-56-20.7 regarding purchases of recycled paper and recycled paper products, recycling
8 requirements, and provide guidelines on the availability of recycled paper and paper products,
9 including the sources of supply and the potential uses of various grades of recycled paper; [and]
10 (7) before July 1, 1992:
11 (a) establish standards and specifications for determining which supplies are considered
12 recycled, based upon his review of current definitions and standards employed by national
13 procurement, product recycling, and other relevant organizations and the federal Environmental
14 Protection Agency;
15 (b) compile and update as necessary the specifications, a list of recycled supplies available
16 on state contract, and sources where the supplies may be obtained;
17 (c) make the compiled information under Subsection (7)(b) available to:
18 (i) all local government entities under Section 11-37-101;
19 (ii) all local health departments under Section 26A-1-108.7;
20 (iii) all procurement officers or other persons responsible for purchasing supplies within
21 the public school system under Title 53A, State System of Public Education;
22 (iv) all procurement officers or other persons responsible for purchasing supplies within
23 the state system of higher education under Title 53B, State System of Higher Education; and
24 (v) all procurement officers or other persons responsible for purchasing supplies for all
25 public procurement units as defined in Section 63-56-5; and
26 (d) present a written report to the Health and Environment Interim Committee annually
27 prior to November 30 regarding the purchases of recycled goods on state contracts during the prior
28 fiscal year[.]; and
29 (8) by no later than January 1, 1999:
30 (a) compile and update as necessary:
31 (i) a list of supplies and services of seriously impacted businesses, as defined in Title 9,

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1 Chapter 2, Part 18, Major Highway Construction Business Impact Act, available on state contract;
2 and
3 (ii) sources where the supplies and services listed under Subsection (8)(a)(i) may be
4 obtained;
5 (b) make the information compiled under Subsection (8)(a) available to:
6 (i) all local government entities under Section 11-37-101;
7 (ii) all local health departments under Section 26A-1-108.7;
8 (iii) all procurement officers or other persons responsible for purchasing supplies and
9 services within the public school system under Title 53A, State System of Public Education;
10 (iv) all procurement officers or other persons responsible for purchasing supplies and
11 services within the state system of higher education under Title 53B, State System of Higher
12 Education; and
13 (v) all procurement officers or other persons responsible for purchasing supplies and
14 services for all public procurement units as defined in Section 63-56-5; and
15 (c) beginning in 1999, present a written report regarding state purchases of supplies and
16 services from seriously impacted businesses to:
17 (i) the Business, Labor, and Economic Development Interim Committee by no later than
18 November 30; and
19 (ii) the Executive Appropriations Committee by no later than December 31.

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