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H.B. 302 Enrolled






Sponsor: Ron Bigelow

                  This act modifies provisions on the Privatization Policy Board by increasing the
                  membership of the board and allowing the board to review local government agencies
                  regarding privatization issues. The act removes the $2,000,000 maximum requirement
                  for an agency to independently privatize a service or function.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                      63-55a-1, as enacted by Chapter 221, Laws of Utah 1989
                      63-55a-2, as last amended by Chapters 18, 194 and 243, Laws of Utah 1996
                      63-55a-3, as last amended by Chapter 18, Laws of Utah 1996
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 63-55a-1 is amended to read:
                       63-55a-1. Definitions.
                      (1) (a) "Agency" means a department, division, office, bureau, board, commission, or
                  other administrative unit of the state.
                      (b) "Agency" includes departments, divisions, offices, bureaus, boards, commissions,
                  and other administrative units of the state's counties and municipalities.
                      (2) "Agency head" means the chief administrative officer of an agency.
                      (3) "Privatization" means action by a state agency to contract with the private sector or
                  with another state agency to perform functions or services currently being performed by it.
                      Section 2. Section 63-55a-2 is amended to read:
                       63-55a-2. Privatization Policy Board -- Created -- Membership -- Operations --
                      (1) (a) There is created a Privatization Policy Board composed of [13] 15 members.
                      (b) The governor shall appoint:

                      (i) two senators, one each from the majority and minority political parties, from names
                  recommended by the president of the Senate;
                      (ii) two representatives, one each from the majority and minority political parties, from
                  names recommended by the speaker of the House;
                      (iii) two members representing public employees, from names recommended by the
                  largest public employees' association;
                      (iv) one member from state management;
                      (v) five members from the private business community; [and]
                      (vi) one member representing education[.];
                      (vii) one member representing the Utah League of Cities and Towns from names
                  recommended by the league; and
                      (viii) one member representing the Utah Association of Counties from names
                  recommended by the association.
                      (2) (a) Except as required by Subsection (b), board members shall serve four-year terms.
                      (b) Notwithstanding the requirements of Subsection (a), the governor shall, at the time of
                  appointment or reappointment, adjust the length of terms to ensure that the terms of board
                  members are staggered so that approximately half of the board is appointed every two years.
                      (3) (a) Each board member shall hold office until his successor has been appointed and
                      (b) When a vacancy occurs in the membership for any reason, the replacement shall be
                  appointed for the unexpired term.
                      (c) [Seven] Eight members of the board are a quorum for the purpose of organizing the
                  board and conducting the business of the board.
                      (d) The vote of a majority of members voting when a quorum is present is necessary for
                  the board to take action.
                      (4) (a) At the initial meeting of the board, the board shall select one of their number to
                  serve as chair of the board.
                      (b) The chief procurement officer or his designee is the nonvoting secretary to the board

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                  and is responsible for scheduling quarterly meetings.
                      (c) The board shall meet at least quarterly and at the call of the chair.
                      (5) (a) (i) Members who are not government employees shall receive no compensation or
                  benefits for their services, but may receive per diem and expenses incurred in the performance of
                  the member's official duties at the rates established by the Division of Finance under Sections
                  63A-3-106 and 63A-3-107 .
                      (ii) Members may decline to receive per diem and expenses for their service.
                      (b) (i) State government officer and employee members who do not receive salary, per
                  diem, or expenses from their agency for their service may receive per diem and expenses incurred
                  in the performance of their official duties from the board at the rates established by the Division
                  of Finance under Sections 63A-3-106 and 63A-3-107 .
                      (ii) State government officer and employee members may decline to receive per diem
                  and expenses for their service.
                      (c) Legislators on the committee shall receive compensation and expenses as provided by
                  law and legislative rule.
                      Section 3. Section 63-55a-3 is amended to read:
                       63-55a-3. Privatization Policy Board -- Duties.
                      (1) [The] Except as otherwise provided in Subsection (5), the board shall:
                      (a) review whether or not certain services performed by existing state agencies could be
                  privatized to provide the same types and quality of services that would result in cost savings;
                      (b) review particular requests for privatization of services and issues concerning agency
                  competition with the private sector and determine whether privatization would be feasible and
                  would result in cost savings and ways to eliminate any unfair competition;
                      (c) recommend privatization to the agency head when the proposed privatization is
                  demonstrated to provide a more cost efficient and effective manner of providing existing
                  governmental services;
                      (d) comply with the provisions of Title 63, Chapter 46a, the Utah Administrative
                  Rulemaking Act, in making rules establishing privatization standards, procedures, and

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                      (e) maintain communication with and access information from, other entities promoting
                      (f) prepare an annual report that contains:
                      (i) information about the board's activities; and
                      (ii) recommendations on privatizing government services; and
                      (g) submit the annual report to the Legislature and the governor.
                      (2) In addition to filing copies of its recommendations for privatization with the relevant
                  agency head, the board shall file copies of its recommendations for privatization with:
                      (a) the governor's office; and
                      (b) the Office of Legislative Fiscal Analyst for submission to the relevant Legislative
                  Appropriation Subcommittee.
                      (3) (a) The board may appoint advisory groups to conduct studies, research, analyses, and
                  make reports and recommendations with respect to subjects or matters within the jurisdiction of
                  the board.
                      (b) At least one member of the board shall serve on each advisory group.
                      (4) This chapter does not preclude any agency from privatizing any service or function
                  independently of the board if[: (a) the contract is expending less than $2,000,000 of the agency
                  budget in a fiscal year;(b)], as part of the contract that privatizes the function, the contractor
                  assumes all liability to perform the privatizated function[; and].
                      [(c) the agency notifies the board at least 120 days before the privatization occurs of their
                  intent to privatize the function.]
                      (5) The board may not exercise its authority under Subsection (1) over an agency referred
                  to in Subsection 63-55a-1 (b), unless requested by the agency.

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