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First Substitute H.B. 302

This document includes House Committee Amendments incorporated into the bill on Mon, Feb 17, 2003 at 10:47 AM by kholt. -->

Representative Ron Bigelow proposes the following substitute bill:





Sponsor: Ron Bigelow

             6      This act modifies provisions on the Privatization Policy Board by increasing the
             7      membership of the board and allowing the board to review local government agencies
             8      regarding privatization issues. The act removes the $2,000,000 maximum requirement
             9      for an agency to independently privatize a service or function.
             10      This act affects sections of Utah Code Annotated 1953 as follows:
             11      AMENDS:
             12          63-55a-1, as enacted by Chapter 221, Laws of Utah 1989
             13          63-55a-2, as last amended by Chapters 18, 194 and 243, Laws of Utah 1996
             14          63-55a-3, as last amended by Chapter 18, Laws of Utah 1996
             15      Be it enacted by the Legislature of the state of Utah:
             16          Section 1. Section 63-55a-1 is amended to read:
             17           63-55a-1. Definitions.
             18          (1) (a) "Agency" means a department, division, office, bureau, board, commission, or
             19      other administrative unit of the state.
             20          (b) "Agency" includes departments, divisions, offices, bureaus, boards, commissions,
             21      and other administrative units of the state's counties and municipalities.
             22          (2) "Agency head" means the chief administrative officer of an agency.
             23          (3) "Privatization" means action by a state agency to contract with the private sector or
             24      with another state agency to perform functions or services currently being performed by it.
             25          Section 2. Section 63-55a-2 is amended to read:

             26           63-55a-2. Privatization Policy Board -- Created -- Membership -- Operations --
             27      Expenses.
             28          (1) (a) There is created a Privatization Policy Board composed of [13] 15 members.
             29          (b) The governor shall appoint:
             30          (i) two senators, one each from the majority and minority political parties, from names
             31      recommended by the president of the Senate;
             32          (ii) two representatives, one each from the majority and minority political parties, from
             33      names recommended by the speaker of the House;
             34          (iii) two members representing public employees, from names recommended by the
             35      largest public employees' association;
             36          (iv) one member from state management;
             37          (v) five members from the private business community; [and]
             38          (vi) one member representing education[.];
             39          (vii) one member representing the Utah League of Cities and Towns from names
             40      recommended by the league; and
             41          (viii) one member representing the Utah Association of Counties from names
             42      recommended by the association.
             43          (2) (a) Except as required by Subsection (b), board members shall serve four-year
             44      terms.
             45          (b) Notwithstanding the requirements of Subsection (a), the governor shall, at the time
             46      of appointment or reappointment, adjust the length of terms to ensure that the terms of board
             47      members are staggered so that approximately half of the board is appointed every two years.
             48          (3) (a) Each board member shall hold office until his successor has been appointed and
             49      qualified.
             50          (b) When a vacancy occurs in the membership for any reason, the replacement shall be
             51      appointed for the unexpired term.
             52          (c) [Seven] Eight members of the board are a quorum for the purpose of organizing the
             53      board and conducting the business of the board.
             54          (d) The vote of a majority of members voting when a quorum is present is necessary
             55      for the board to take action.
             56          (4) (a) At the initial meeting of the board, the board shall select one of their number to

             57      serve as chair of the board.
             58          (b) The chief procurement officer or his designee is the nonvoting secretary to the
             59      board and is responsible for scheduling quarterly meetings.
             60          (c) The board shall meet at least quarterly and at the call of the chair.
             61          (5) (a) (i) Members who are not government employees shall receive no compensation
             62      or benefits for their services, but may receive per diem and expenses incurred in the
             63      performance of the member's official duties at the rates established by the Division of Finance
             64      under Sections 63A-3-106 and 63A-3-107 .
             65          (ii) Members may decline to receive per diem and expenses for their service.
             66          (b) (i) State government officer and employee members who do not receive salary, per
             67      diem, or expenses from their agency for their service may receive per diem and expenses
             68      incurred in the performance of their official duties from the board at the rates established by the
             69      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             70          (ii) State government officer and employee members may decline to receive per diem
             71      and expenses for their service.
             72          (c) Legislators on the committee shall receive compensation and expenses as provided
             73      by law and legislative rule.
             74          Section 3. Section 63-55a-3 is amended to read:
             75           63-55a-3. Privatization Policy Board -- Duties.
             76          (1) h [ The ] EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (5), THE h board shall:
             77          (a) review whether or not certain services performed by existing state agencies could
             78      be privatized to provide the same types and quality of services that would result in cost
             79      savings;
             80          (b) review particular requests for privatization of services and issues concerning
             81      agency competition with the private sector and determine whether privatization would be
             82      feasible and would result in cost savings and ways to eliminate any unfair competition;
             83          (c) recommend privatization to the agency head when the proposed privatization is
             84      demonstrated to provide a more cost efficient and effective manner of providing existing
             85      governmental services;
             86          (d) comply with the provisions of Title 63, Chapter 46a, the Utah Administrative
             87      Rulemaking Act, in making rules establishing privatization standards, procedures, and

             88      requirements;
             89          (e) maintain communication with and access information from, other entities
             90      promoting privatization;
             91          (f) prepare an annual report that contains:
             92          (i) information about the board's activities; and
             93          (ii) recommendations on privatizing government services; and
             94          (g) submit the annual report to the Legislature and the governor.
             95          (2) In addition to filing copies of its recommendations for privatization with the
             96      relevant agency head, the board shall file copies of its recommendations for privatization with:
             97          (a) the governor's office; and
             98          (b) the Office of Legislative Fiscal Analyst for submission to the relevant Legislative
             99      Appropriation Subcommittee.
             100          (3) (a) The board may appoint advisory groups to conduct studies, research, analyses,
             101      and make reports and recommendations with respect to subjects or matters within the
             102      jurisdiction of the board.
             103          (b) At least one member of the board shall serve on each advisory group.
             104          (4) This chapter does not preclude any agency from privatizing any service or function
             105      independently of the board if[: (a) the contract is expending less than $2,000,000 of the agency
             106      budget in a fiscal year;(b)] as part of the contract that privatizes the function, the contractor
             107      assumes all liability to perform the privatizated function[; and].
             108          [(c) the agency notifies the board at least 120 days before the privatization occurs of
             109      their intent to privatize the function.]

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