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H.B. 31






Sponsor: David Clark

             7      LONG TITLE
             8      General Description:
             9          This bill requires the director of the Division of Information Technology Services to
             10      review information technology and telecommunications purchases for the division to
             11      determine if the purchase is practical, efficient, and economically beneficial to the state.
             12      Highlighted Provisions:
             13          This bill:
             14          .    clarifies that the director of the Division of Information Technology Services must
             15      follow the State Procurement Code when making purchases;
             16          .    requires the director of the Division of Information Technology Services to conduct
             17      a business case analysis before purchasing certain information technology services
             18      or equipment, and to certify that the business case analysis was conducted;
             19          .    requires the state's chief procurement officer to develop policies to ensure that the
             20      director of the Division of Information Technology Services verifies that a business
             21      case analysis was conducted; and
             22          .    requires the executive director of the Department of Administrative Services to
             23      develop a policy requiring a business case analysis for certain information
             24      technology purchases and to report that policy to the Legislature.
             25      Monies Appropriated in this Bill:
             26          None
             27      Other Special Clauses:

             28          None
             29      Utah Code Sections Affected
             30      AMENDS:
             31          63-56-9, as last amended by Chapter 13, Laws of Utah 1998
             32          63-56-13, as last amended by Chapter 270, Laws of Utah 1998
             33          63A-1-110, as renumbered and amended by Chapter 212, Laws of Utah 1993
             34          63A-6-105, as last amended by Chapters 16 and 209, Laws of Utah 2003
             36      Be it enacted by the Legislature of the state of Utah:
             37          Section 1. Section 63-56-9 is amended to read:
             38           63-56-9. Duties of chief procurement officer.
             39          Except as otherwise specifically provided in this chapter, the chief procurement officer
             40      serves as the central procurement officer of the state and shall:
             41          (1) adopt office policies governing the internal functions of the Division of Purchasing
             42      and General Services;
             43          (2) procure or supervise the procurement of all supplies, services, and construction
             44      needed by the state;
             45          (3) exercise general supervision and control over all inventories or supplies belonging
             46      to the state;
             47          (4) establish and maintain programs for the inspection, testing, and acceptance of
             48      supplies, services, and construction;
             49          (5) prepare statistical data concerning the procurement and usage of all supplies,
             50      services, and construction;
             51          (6) before June 1, 1990, notify all public procurement units of the requirements of
             52      Section 63-56-20.7 regarding purchases of recycled paper and recycled paper products,
             53      recycling requirements, and provide guidelines on the availability of recycled paper and paper
             54      products, including the sources of supply and the potential uses of various grades of recycled
             55      paper; [and]
             56          (7) before July 1, 1992:
             57          (a) establish standards and specifications for determining which supplies are
             58      considered recycled, based upon his review of current definitions and standards employed by

             59      national procurement, product recycling, and other relevant organizations and the federal
             60      Environmental Protection Agency;
             61          (b) compile and update as necessary the specifications, a list of recycled supplies
             62      available on state contract, and sources where the supplies may be obtained;
             63          (c) make the compiled information under Subsection (7)(b) available to:
             64          (i) all local government entities under Section 11-37-101 ;
             65          (ii) all local health departments under Section 26A-1-108.7 ;
             66          (iii) all procurement officers or other persons responsible for purchasing supplies
             67      within the public school system under Title 53A, State System of Public Education;
             68          (iv) all procurement officers or other persons responsible for purchasing supplies
             69      within the state system of higher education under Title 53B, State System of Higher Education;
             70      and
             71          (v) all procurement officers or other persons responsible for purchasing supplies for all
             72      public procurement units as defined in Section 63-56-5 ; and
             73          (d) present a written report to the Natural Resources, Agriculture, and Environment
             74      Interim Committee annually prior to November 30 regarding the purchases of recycled goods
             75      on state contracts during the prior fiscal year[.]; and
             76          (8) ensure that:
             77          (a) before approving a purchase, lease, or rental not covered by an existing statewide
             78      contract for information technology or telecommunications supplies or services under the
             79      provisions of Section 63A-6-105 , the director of the Division of Information Technology
             80      Services has provided in writing to the chief procurement officer that the analysis required by
             81      Subsection 63A-6-105 (7) was completed; and
             82          (b) the oversight authority required by Subsection (8)(a) is not delegated outside the
             83      Division of Purchasing and General Services.
             84          Section 2. Section 63-56-13 is amended to read:
             85           63-56-13. Specific statutory authority.
             86          (1) The authority to procure certain supplies, services, and construction given the
             87      public procurement units governed by the following provisions shall be retained:
             88          (a) Title 53B, State System of Higher Education;
             89          (b) Title 63A, [Chapters 5 and 6] Chapter 5, State Building Board - Division of

             90      Facilities Construction and Management;
             91          [(c) Title 64, Chapter 1, General Provisions;]
             92          [(d)] (c) Title 67, Chapter 5, Attorney General;
             93          [(e)] (d) Title 72, Transportation; and
             94          [(f)] (e) Title 78, Chapter 3, District Courts.
             95          (2) This authority extends only to supplies, services, and construction to the extent
             96      provided in the cited chapters. Except as otherwise provided in Sections 63-56-2 and 63-56-3 ,
             97      the respective purchasing agencies shall procure supplies, services, and construction in
             98      accordance with this chapter.
             99          (3) (a) The Department of Transportation may make rules governing the procurement
             100      of highway construction or improvement.
             101          (b) This Subsection (3) supersedes Subsections (1) and (2).
             102          (4) The Legislature may procure supplies and services for its own needs.
             103          Section 3. Section 63A-1-110 is amended to read:
             104           63A-1-110. Needs assessment -- Policy.
             105          (1) [(a)] The executive director shall [appoint an advisory committee composed of
             106      representatives of user agencies. (b) The advisory committee shall recommend policies and
             107      practices for the efficient and effective delivery of administrative services. (2) The executive
             108      director shall, upon the recommendation of the appropriate division directors and the advisory
             109      committee, make rules consistent with state and federal law governing: (a) administrative
             110      services; and (b) the provision and use of administrative services furnished to state agencies
             111      and institutions.] adopt policies to implement the needs assessment for information technology
             112      purchases required by Section 63A-6-105 .
             113          (2) The executive director shall report to the Utah Technology Commission created in
             114      Section 63D-1a-201 and to the Capital Facilities and Administrative Services Legislative
             115      Appropriations Subcommittee regarding the policy adopted under Subsection (1) and any
             116      changes to that policy.
             117          Section 4. Section 63A-6-105 is amended to read:
             118           63A-6-105. Duties of director -- Fees -- Rate Committee -- Advisory committee.
             119          (1) The director shall:
             120          (a) at the lowest practical cost, manage the delivery of efficient and cost-effective

             121      information technology and telecommunication services for:
             122          (i) all executive branch agencies; and
             123          (ii) entities that subscribe to the services in accordance with Section 63A-6-106 ; and
             124          (b) provide priority service to public safety agencies.
             125          (2) The director may negotiate the purchase, lease, or rental of private or public
             126      information technology or telecommunication services or facilities in accordance with
             127      Subsection (7).
             128          (3) Where practical, efficient, and economically beneficial, the director shall use
             129      existing private and public information technology or telecommunication resources.
             130          (4) (a) In accordance with Section 63D-1a-303 , the director shall provide the chief
             131      information officer a written analysis of any agency information technology plan provided to
             132      the division.
             133          (b) In accordance with Section 63D-1a-307 , the division shall submit the division's
             134      agency information technology plan for approval by the chief information officer.
             135          (5) (a) In accordance with this Subsection (5), the director shall prescribe a schedule of
             136      fees for all services rendered by the division to:
             137          (i) an executive branch entity; or
             138          (ii) an entity that subscribes to services rendered by the division in accordance with
             139      Section 63A-6-106 .
             140          (b) Each fee included in the schedule of fees required by Subsection (5)(a) shall be:
             141          (i) equitable; and
             142          (ii) sufficient to recover all the costs of operation, including the cost of capital
             143      equipment and facilities.
             144          (c) Before charging a fee to an executive branch agency, the director shall obtain
             145      approval of the schedule of fees described in Subsection (5)(a) from the Rate Committee
             146      created in Subsection (5)(d).
             147          (d) (i) There is created a Rate Committee which shall consist of:
             148          (A) the executive director;
             149          (B) the director of the Division of Finance;
             150          (C) the director of the Governor's Office of Planning and Budget;
             151          (D) the chief information officer;

             152          (E) a representative of executive branch agencies:
             153          (I) appointed by the Rate Committee; and
             154          (II) nominated by the governor; and
             155          (F) a representative of the executive branch agencies' administrative services managers:
             156          (I) appointed by the Rate Committee; and
             157          (II) nominated by the agencies' administrative services managers coordination group.
             158          (ii) In appointing the agency representatives listed in Subsections (5)(d)(i)(E) and (F),
             159      the Rate Committee shall appoint:
             160          (A) (I) one representative from a large agency; and
             161          (II) one representative from a small agency; and
             162          (B) the representatives described in Subsection (5)(d)(ii)(A) to four-year terms of
             163      office, except that initially one of the appointments shall be for a two-year term in order to
             164      stagger the appointments.
             165          (iii) In the event of a vacancy for any reason for a representative described in
             166      Subsection (5)(d)(i)(E) or (F), the entity responsible for nominating the person who is vacating
             167      the position shall provide new nominations to the Rate Committee to fill the unexpired term.
             168          (e) Before charging a fee to a subscriber of services other than an executive branch
             169      agency, the director shall provide a copy of the schedule of fees to the commission at least 60
             170      days before the day on which the fee is charged.
             171          (f) When modifying a fee, the director shall attempt to provide sufficient notice to the
             172      entities that will be charged the modified fee so that the entities may reflect those fee changes
             173      in the entities' budgets.
             174          (6) (a) The director shall create advisory committees composed of representatives of
             175      user agencies.
             176          (b) Those advisory committees may recommend policies and practices for the efficient
             177      and effective operation of the division.
             178          (7) Before negotiating a purchase, lease, or rental under Subsection (2) for an amount
             179      that exceeds the value established by policy in accordance with Section 63A-1-110 , the director
             180      shall:
             181          (a) conduct an analysis of the needs of executive branch agencies and subscribers of
             182      services and the ability of the proposed information technology or telecommunications services

             183      or supplies to meet those needs; and
             184          (b) for purchases, leases, or rentals not covered by an existing statewide contract,
             185      provide in writing to the chief procurement officer in the Division of Purchasing and General
             186      Services that:
             187          (i) the analysis required in Subsection (7)(a) was completed; and
             188          (ii) based on the analysis, the proposed purchase, lease, rental, or master contract of
             189      services, products, or supplies is practical, efficient, and economically beneficial to the state
             190      and the executive branch agency or subscriber of services.

Legislative Review Note
    as of 11-25-03 12:23 PM

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

Office of Legislative Research and General Counsel

Mixed Membership Committee Note
    as of 12-10-03 3:28 PM

The Utah Technology Commission recommended this bill.
    Membership:        8 legislators    5 non-legislators
    Legislative Vote:    7 voting for    0 voting against    1 absent

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