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H.B. 19

             1     

PROCUREMENT CODE RENUMBERING

             2     
2005 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Ron Bigelow

             5     
             6      LONG TITLE
             7      General Description:
             8          This bill renumbers the Utah Procurement Code.
             9      Highlighted Provisions:
             10          This bill:
             11          .    renumbers the Utah Procurement Code to comply with current numbering practices;
             12      and
             13          .    makes technical changes.
             14      Monies Appropriated in this Bill:
             15          None
             16      Other Special Clauses:
             17          None
             18      Utah Code Sections Affected:
             19      AMENDS:
             20          7-1-323, as enacted by Chapter 49, Laws of Utah 1995
             21          10-3-1304, as last amended by Chapter 92, Laws of Utah 1998
             22          10-3-1305, as last amended by Chapter 92, Laws of Utah 1998
             23          10-7-87, as enacted by Chapter 32, Laws of Utah 1992
             24          11-37-101, as last amended by Chapter 90, Laws of Utah 2004
             25          11-39-107, as enacted by Chapter 259, Laws of Utah 2003
             26          14-1-18, as enacted by Chapter 218, Laws of Utah 1987
             27          17-15-24, as enacted by Chapter 32, Laws of Utah 1992


             28          17-16a-4, as last amended by Chapter 92, Laws of Utah 1998
             29          17A-1-801, as enacted by Chapter 123, Laws of Utah 1997
             30          17A-2-328, as last amended by Chapter 365, Laws of Utah 1999
             31          26-8a-405.2, as last amended by Chapter 277, Laws of Utah 2004
             32          26A-1-108.7, as enacted by Chapter 32, Laws of Utah 1992
             33          53A-20-101, as last amended by Chapters 86 and 123, Laws of Utah 2000
             34          63A-5-208, as last amended by Chapter 347, Laws of Utah 2004
             35          63B-2-102, as enacted by Chapter 304, Laws of Utah 1993
             36          63B-3-102, as last amended by Chapter 171, Laws of Utah 2003
             37          63B-4-102, as last amended by Chapter 171, Laws of Utah 2003
             38          63B-5-102, as last amended by Chapter 391, Laws of Utah 1997
             39          63B-6-102, as last amended by Chapter 199, Laws of Utah 2002
             40          63B-6-402, as enacted by Chapter 391, Laws of Utah 1997
             41          63B-7-102, as last amended by Chapter 327, Laws of Utah 2000
             42          63B-7-402, as enacted by Chapter 67, Laws of Utah 1998
             43          63B-8-102, as enacted by Chapter 309, Laws of Utah 1999
             44          63B-8-402, as last amended by Chapter 327, Laws of Utah 2000
             45          63B-9-103, as last amended by Chapter 233, Laws of Utah 2003
             46          63B-11-202, as enacted by Chapter 252, Laws of Utah 2002
             47          67-16-4, as last amended by Chapter 276, Laws of Utah 2000
             48          67-16-5, as last amended by Chapters 13 and 92, Laws of Utah 1998
             49          67-16-5.3, as enacted by Chapter 108, Laws of Utah 2000
             50          67-16-6, as last amended by Chapter 92, Laws of Utah 1998
             51          72-6-107, as last amended by Chapter 28, Laws of Utah 2001
             52          73-10-27, as last amended by Chapter 365, Laws of Utah 1999
             53      RENUMBERS AND AMENDS:
             54          63-56-101, (Renumbered from 63-56-1, as enacted by Chapter 75, Laws of Utah 1980)
             55          63-56-102, (Renumbered from 63-56-2, as last amended by Chapter 80, Laws of Utah
             56      2002)
             57          63-56-103, (Renumbered from 63-56-3, as last amended by Chapter 365, Laws of Utah
             58      1999)


             59          63-56-104, (Renumbered from 63-56-4, as last amended by Chapter 252, Laws of Utah
             60      1997)
             61          63-56-105, (Renumbered from 63-56-5, as last amended by Chapters 159 and 178,
             62      Laws of Utah 2002)
             63          63-56-201, (Renumbered from 63-56-6, as last amended by Chapter 36, Laws of Utah
             64      2003)
             65          63-56-202, (Renumbered from 63-56-7, as last amended by Chapter 232, Laws of Utah
             66      1993)
             67          63-56-203, (Renumbered from 63-56-8, as last amended by Chapter 252, Laws of Utah
             68      1997)
             69          63-56-204, (Renumbered from 63-56-9, as last amended by Chapter 35, Laws of Utah
             70      2004)
             71          63-56-205, (Renumbered from 63-56-10, as enacted by Chapter 75, Laws of Utah 1980)
             72          63-56-206, (Renumbered from 63-56-11, as last amended by Chapter 252, Laws of
             73      Utah 1997)
             74          63-56-207, (Renumbered from 63-56-13, as last amended by Chapter 35, Laws of Utah
             75      2004)
             76          63-56-208, (Renumbered from 63-56-14, as last amended by Chapter 232, Laws of
             77      Utah 1993)
             78          63-56-209, (Renumbered from 63-56-15, as enacted by Chapter 75, Laws of Utah 1980)
             79          63-56-301, (Renumbered from 63-56-16, as enacted by Chapter 75, Laws of Utah 1980)
             80          63-56-302, (Renumbered from 63-56-17, as enacted by Chapter 75, Laws of Utah 1980)
             81          63-56-303, (Renumbered from 63-56-19, as enacted by Chapter 75, Laws of Utah 1980)
             82          63-56-401, (Renumbered from 63-56-20, as last amended by Chapter 142, Laws of
             83      Utah 1998)
             84          63-56-402, (Renumbered from 63-56-20.1, as enacted by Chapter 305, Laws of Utah
             85      2001)
             86          63-56-403, (Renumbered from 63-56-20.3, as enacted by Chapter 32, Laws of Utah
             87      1992)
             88          63-56-404, (Renumbered from 63-56-20.5, as last amended by Chapter 2, Laws of Utah
             89      1988, Second Special Session)


             90          63-56-405, (Renumbered from 63-56-20.6, as enacted by Chapter 2, Laws of Utah
             91      1988, Second Special Session)
             92          63-56-406, (Renumbered from 63-56-20.7, as last amended by Chapter 13, Laws of
             93      Utah 1998)
             94          63-56-407, (Renumbered from 63-56-20.8, as enacted by Chapter 114, Laws of Utah
             95      1996)
             96          63-56-408, (Renumbered from 63-56-21, as last amended by Chapter 232, Laws of
             97      Utah 1993)
             98          63-56-409, (Renumbered from 63-56-22, as enacted by Chapter 75, Laws of Utah 1980)
             99          63-56-410, (Renumbered from 63-56-23, as last amended by Chapter 342, Laws of
             100      Utah 1998)
             101          63-56-411, (Renumbered from 63-56-24, as enacted by Chapter 75, Laws of Utah 1980)
             102          63-56-412, (Renumbered from 63-56-25, as enacted by Chapter 75, Laws of Utah 1980)
             103          63-56-413, (Renumbered from 63-56-26, as enacted by Chapter 75, Laws of Utah 1980)
             104          63-56-414, (Renumbered from 63-56-27, as enacted by Chapter 75, Laws of Utah 1980)
             105          63-56-415, (Renumbered from 63-56-28, as last amended by Chapter 259, Laws of
             106      Utah 1981)
             107          63-56-416, (Renumbered from 63-56-29, as enacted by Chapter 75, Laws of Utah 1980)
             108          63-56-417, (Renumbered from 63-56-30, as enacted by Chapter 75, Laws of Utah 1980)
             109          63-56-418, (Renumbered from 63-56-31, as enacted by Chapter 75, Laws of Utah 1980)
             110          63-56-419, (Renumbered from 63-56-32, as enacted by Chapter 75, Laws of Utah 1980)
             111          63-56-420, (Renumbered from 63-56-33, as enacted by Chapter 75, Laws of Utah 1980)
             112          63-56-421, (Renumbered from 63-56-34, as last amended by Chapter 259, Laws of
             113      Utah 1991)
             114          63-56-422, (Renumbered from 63-56-35.5, as last amended by Chapter 178, Laws of
             115      Utah 1986)
             116          63-56-423, (Renumbered from 63-56-35.6, as enacted by Chapter 201, Laws of Utah
             117      1985)
             118          63-56-424, (Renumbered from 63-56-35.7, as last amended by Chapter 232, Laws of
             119      Utah 1993)
             120          63-56-425, (Renumbered from 63-56-35.8, as last amended by Chapter 135, Laws of


             121      Utah 1993)
             122          63-56-501, (Renumbered from 63-56-36, as last amended by Chapter 167, Laws of
             123      Utah 2004)
             124          63-56-502, (Renumbered from 63-56-36.1, as last amended by Chapter 167, Laws of
             125      Utah 2004)
             126          63-56-503, (Renumbered from 63-56-37, as last amended by Chapter 80, Laws of Utah
             127      2002)
             128          63-56-504, (Renumbered from 63-56-38, as last amended by Chapter 80, Laws of Utah
             129      2002)
             130          63-56-505 (Effective 05/01/05), (Renumbered from 63-56-38.1 (Effective 05/01/05), as
             131      last amended by Chapters 30 and 250, Laws of Utah 2004)
             132          63-56-506, (Renumbered from 63-56-39, as enacted by Chapter 75, Laws of Utah 1980)
             133          63-56-601, (Renumbered from 63-56-40, as enacted by Chapter 75, Laws of Utah 1980)
             134          63-56-602, (Renumbered from 63-56-41, as enacted by Chapter 75, Laws of Utah 1980)
             135          63-56-701, (Renumbered from 63-56-42, as enacted by Chapter 75, Laws of Utah 1980)
             136          63-56-702, (Renumbered from 63-56-43, as enacted by Chapter 75, Laws of Utah 1980)
             137          63-56-703, (Renumbered from 63-56-43.1, as enacted by Chapter 89, Laws of Utah
             138      1997)
             139          63-56-704, (Renumbered from 63-56-44, as enacted by Chapter 75, Laws of Utah 1980)
             140          63-56-705, (Renumbered from 63-56-44.5, as enacted by Chapter 21, Laws of Utah
             141      2000)
             142          63-56-801, (Renumbered from 63-56-45, as enacted by Chapter 75, Laws of Utah 1980)
             143          63-56-802, (Renumbered from 63-56-46, as last amended by Chapter 92, Laws of Utah
             144      1987)
             145          63-56-803, (Renumbered from 63-56-47, as last amended by Chapter 178, Laws of
             146      Utah 2002)
             147          63-56-804, (Renumbered from 63-56-48, as enacted by Chapter 75, Laws of Utah 1980)
             148          63-56-805, (Renumbered from 63-56-49, as enacted by Chapter 75, Laws of Utah 1980)
             149          63-56-806, (Renumbered from 63-56-50, as enacted by Chapter 75, Laws of Utah 1980)
             150          63-56-807, (Renumbered from 63-56-51, as last amended by Chapter 243, Laws of
             151      Utah 1996)


             152          63-56-808, (Renumbered from 63-56-52, as enacted by Chapter 75, Laws of Utah 1980)
             153          63-56-809, (Renumbered from 63-56-53, as enacted by Chapter 75, Laws of Utah 1980)
             154          63-56-810, (Renumbered from 63-56-54, as enacted by Chapter 75, Laws of Utah 1980)
             155          63-56-811, (Renumbered from 63-56-55, as enacted by Chapter 75, Laws of Utah 1980)
             156          63-56-812, (Renumbered from 63-56-56, as enacted by Chapter 75, Laws of Utah 1980)
             157          63-56-813, (Renumbered from 63-56-57, as enacted by Chapter 75, Laws of Utah 1980)
             158          63-56-814, (Renumbered from 63-56-58, as last amended by Chapter 47, Laws of Utah
             159      1986)
             160          63-56-815, (Renumbered from 63-56-59, as last amended by Chapter 267, Laws of
             161      Utah 2004)
             162          63-56-816, (Renumbered from 63-56-60, as last amended by Chapter 92, Laws of Utah
             163      1987)
             164          63-56-817, (Renumbered from 63-56-61, as last amended by Chapter 259, Laws of
             165      Utah 1981)
             166          63-56-818, (Renumbered from 63-56-62, as enacted by Chapter 75, Laws of Utah 1980)
             167          63-56-819, (Renumbered from 63-56-63, as enacted by Chapter 75, Laws of Utah 1980)
             168          63-56-820, (Renumbered from 63-56-64, as last amended by Chapter 79, Laws of Utah
             169      1989)
             170          63-56-901, (Renumbered from 63-56-65, as enacted by Chapter 75, Laws of Utah 1980)
             171          63-56-902, (Renumbered from 63-56-66, as enacted by Chapter 75, Laws of Utah 1980)
             172          63-56-903, (Renumbered from 63-56-67, as enacted by Chapter 75, Laws of Utah 1980)
             173          63-56-904, (Renumbered from 63-56-68, as enacted by Chapter 75, Laws of Utah 1980)
             174          63-56-905, (Renumbered from 63-56-69, as last amended by Chapter 92, Laws of Utah
             175      1987)
             176          63-56-906, (Renumbered from 63-56-70, as enacted by Chapter 75, Laws of Utah 1980)
             177          63-56-907, (Renumbered from 63-56-71, as enacted by Chapter 75, Laws of Utah 1980)
             178          63-56-1001, (Renumbered from 63-56-72, as enacted by Chapter 75, Laws of Utah
             179      1980)
             180          63-56-1002, (Renumbered from 63-56-73, as enacted by Chapter 75, Laws of Utah
             181      1980)
             182     


             183      Be it enacted by the Legislature of the state of Utah:
             184          Section 1. Section 7-1-323 is amended to read:
             185           7-1-323. Regulation of interstate operations -- Coordination of efforts.
             186          (1) The commissioner may:
             187          (a) examine, supervise, and regulate a branch operated in this state by a depository
             188      institution chartered by another state and take any action or issue any order with regard to that
             189      branch;
             190          (b) examine, supervise, and regulate a branch operated in another state by a depository
             191      institution chartered by this state and take any action or issue any order with regard to that
             192      branch; and
             193          (c) coordinate these activities with any other state or federal agency that shares
             194      jurisdiction over the institution.
             195          (2) The commissioner may coordinate the examination, supervision, and regulation of
             196      any depository institution chartered by this state with the examination, supervision, and
             197      regulation of an affiliated depository institution operating in another state.
             198          (3) The commissioner may take any reasonable and lawful action in furtherance of
             199      coordinating the regulation of interstate operations, including:
             200          (a) negotiating and entering into cooperative agreements with an agency of another
             201      state or of the federal government;
             202          (b) sharing information and reports in accordance with Section 7-1-802 with an agency
             203      that shares jurisdiction over the institution;
             204          (c) accepting as sufficient, if appropriate, examination reports and other information
             205      compiled or generated by or for an agency that shares jurisdiction over the institution;
             206          (d) contracting with an agency that shares jurisdiction over the institution to engage the
             207      services of its examiners at a reasonable rate of compensation;
             208          (e) offering the services of the department's examiners at a reasonable rate of
             209      compensation to an agency that shares jurisdiction over the institution;
             210          (f) collecting fees on behalf of, or receiving payment of fees through, an agency that
             211      shares jurisdiction over the institution; and
             212          (g) cooperating in any other way with other supervisory agencies and professional
             213      associations to promote the efficient, safe, and sound operation and regulation of interstate


             214      depository institution activities, including the formulation of interstate examination policies
             215      and procedures and the drafting of model laws, rules, and agreements.
             216          (4) A contract between the department and an agency that shares jurisdiction over a
             217      depository institution to provide examiners to aid in interstate examination and regulation is
             218      considered a sole source contract under Section [ 63-56-23 ] 63-56-410 .
             219          Section 2. Section 10-3-1304 is amended to read:
             220           10-3-1304. Use of office for personal benefit prohibited.
             221          (1) As used in this section, "economic benefit tantamount to a gift" includes:
             222          (a) a loan at an interest rate that is substantially lower than the commercial rate then
             223      currently prevalent for similar loans; and
             224          (b) compensation received for private services rendered at a rate substantially
             225      exceeding the fair market value of the services.
             226          (2) It is an offense for an elected or appointed officer or municipal employee, under
             227      circumstances not amounting to a violation of Section [ 63-56-72 ] 63-56-1001 or 76-8-105 , to:
             228          (a) disclose or improperly use private, controlled, or protected information acquired by
             229      reason of his official position or in the course of official duties in order to further substantially
             230      the officer's or employee's personal economic interest or to secure special privileges or
             231      exemptions for himself or others;
             232          (b) use or attempt to use his official position to:
             233          (i) further substantially the officer's or employee's personal economic interest; or
             234          (ii) secure special privileges for himself or others; or
             235          (c) knowingly receive, accept, take, seek, or solicit, directly or indirectly, for himself or
             236      another a gift of substantial value or a substantial economic benefit tantamount to a gift that:
             237          (i) would tend improperly to influence a reasonable person in the person's position to
             238      depart from the faithful and impartial discharge of the person's public duties; or
             239          (ii) the person knows or that a reasonable person in that position should know under
             240      the circumstances is primarily for the purpose of rewarding the person for official action taken.
             241          (3) Subsection (2)(c) does not apply to:
             242          (a) an occasional nonpecuniary gift having a value of less than $50;
             243          (b) an award publicly presented in recognition of public services;
             244          (c) any bona fide loan made in the ordinary course of business; or


             245          (d) a political campaign contribution.
             246          Section 3. Section 10-3-1305 is amended to read:
             247           10-3-1305. Compensation for assistance in transaction involving municipality --
             248      Public disclosure and filing required.
             249          (1) As used in this section, "municipal body" means any public board, commission,
             250      committee, or other public group organized to make public policy decisions or to advise
             251      persons who make public policy decisions.
             252          (2) It is an offense for an elected officer, or appointed officer, who is a member of a
             253      public body, under circumstances not amounting to a violation of Section [ 63-56-72 ]
             254      63-56-1001 or 76-8-105 , to receive or agree to receive compensation for assisting any person or
             255      business entity in any transaction involving the municipality in which he is an officer unless he:
             256          (a) files with the mayor a sworn statement giving the information required by this
             257      section; and
             258          (b) discloses the information required by Subsection (5) in an open meeting to the
             259      members of the body of which he is a member immediately before the discussion.
             260          (3) It is an offense for an appointed officer who is not a member of a public body or a
             261      municipal employee to receive or agree to receive compensation for assisting any person or
             262      business entity in any transaction involving the municipality by which he is employed unless
             263      the officer or employee:
             264          (a) files with the mayor a sworn statement giving the information required by this
             265      section; and
             266          (b) discloses the information required by Subsection (5) to:
             267          (i) his immediate supervisor; and
             268          (ii) any other municipal officer or employee who may rely upon the employee's
             269      representations in evaluating or approving the transaction.
             270          (4) (a) The officer or employee shall file the statement required to be filed by this
             271      section ten days before the date of any agreement between the elected or appointed officer or
             272      municipal employee and the person or business entity being assisted or ten days before the
             273      receipt of compensation by the officer or employee, whichever is earlier.
             274          (b) The statement is public information and shall be available for examination by the
             275      public.


             276          (5) The statement and disclosure shall contain:
             277          (a) the name and address of the officer or municipal employee;
             278          (b) the name and address of the person or business entity being or to be assisted or in
             279      which the appointed or elected official or municipal employee has a substantial interest; and
             280          (c) a brief description of the transaction as to which service is rendered or is to be
             281      rendered and of the nature of the service performed or to be performed.
             282          Section 4. Section 10-7-87 is amended to read:
             283           10-7-87. Procurement -- Use of recycled goods.
             284          The procurement officer or other person responsible for purchasing supplies for each
             285      municipality shall:
             286          (1) maintain for reference a copy of the current listing of recycled items available on
             287      state contracts as issued by the chief procurement officer under Section [ 63-56-9 ] 63-56-204 ;
             288      and
             289          (2) give recycled items consideration when inviting bids and purchasing supplies, in
             290      compliance with Section 11-37-101 .
             291          Section 5. Section 11-37-101 is amended to read:
             292           11-37-101. Definition -- Procurement -- Use of recycled goods.
             293          (1) "Local government entity" means:
             294          (a) municipalities, cities, and counties;
             295          (b) entities created under Title 26A, Chapter 1, Local Health Departments; and
             296          (c) political subdivisions created by cities or counties, including entities created under:
             297          (i) Title 9, Chapter 4, Part 9, Utah Housing Corporation Act; and
             298          (ii) Title 11, Chapter 13, Interlocal Cooperation Act.
             299          (2) The procurement officer or other person responsible for purchasing supplies for
             300      each local government entity shall:
             301          (a) maintain for reference a copy of the current listing of recycled items available on
             302      state contract as issued by the chief procurement officer under Section [ 63-56-9 ] 63-56-204 ;
             303      and
             304          (b) give recycled items consideration when inviting bids and purchasing supplies.
             305          Section 6. Section 11-39-107 is amended to read:
             306           11-39-107. Procurement code.


             307          (1) This chapter may not be construed to:
             308          (a) prohibit a county legislative body from adopting the procedures of the procurement
             309      code; or
             310          (b) limit the application of the procurement code to a special district or local district.
             311          (2) (a) In seeking bids and awarding a contract for a building improvement or public
             312      works project, a county legislative body may elect to follow the provisions of the procurement
             313      code, as the county legislative body considers appropriate under the circumstances, for
             314      specification preparation, source selection, or contract formation.
             315          (b) A county legislative body's election to adopt the procedures of the procurement
             316      code may not excuse the county from complying with the requirements to award a contract for
             317      work in excess of the bid limit and to publish notice of the intent to award.
             318          (c) An election under Subsection (2)(a) may be made on a case-by-case basis, unless
             319      the county has previously adopted the procurement code as permitted by Subsection [ 63-56-2 ]
             320      63-56-102 (3)(e).
             321          (d) The county legislative body shall:
             322          (i) make each election under Subsection (2)(a) in an open meeting; and
             323          (ii) specify in its action the portions of the procurement code to be followed.
             324          (3) If the estimated cost of the building improvement or public works project proposed
             325      by a special district or local district exceeds the bid limit, the legislative body of the special
             326      district or local district may, if it determines to proceed with the building improvement or
             327      public works project, use the competitive procurement procedures of the procurement code in
             328      place of the comparable provisions of this chapter.
             329          Section 7. Section 14-1-18 is amended to read:
             330           14-1-18. Definitions -- Application of Procurement Code to payment and
             331      performance bonds.
             332          (1) (a) For purposes of this chapter, "political subdivision" means any county, city,
             333      town, school district, public transit district, special district, redevelopment agency, public
             334      corporation, institution of higher education of the state, public agency of any political
             335      subdivision, and, to the extent provided by law, any other entity which expends public funds
             336      for construction.
             337          (b) For purposes of applying Section [ 63-56-38 ] 63-56-504 to a political subdivision,


             338      "state" includes "political subdivision."
             339          (2) Section [ 63-56-38 ] 63-56-504 applies to all contracts for the construction,
             340      alteration, or repair of any public building or public work of the state or a political subdivision
             341      of the state.
             342          Section 8. Section 17-15-24 is amended to read:
             343           17-15-24. Procurement -- Use of recycled goods.
             344          The procurement officer or other person responsible for purchasing supplies for each
             345      county and each entity created by a county or joined by a county shall:
             346          (1) maintain for reference a copy of the current listing of recycled items available on a
             347      state contract as issued by the chief procurement officer appointed under Section [ 63-56-9 ]
             348      63-56-204 ; and
             349          (2) give recycled items consideration when inviting bids and purchasing supplies, in
             350      compliance with Section 11-37-101 .
             351          Section 9. Section 17-16a-4 is amended to read:
             352           17-16a-4. Prohibited use of official position.
             353          (1) It is an offense for an elected or appointed officer, under circumstances not
             354      amounting to a violation of Section [ 63-56-72 ] 63-56-1001 or 76-8-105 , to:
             355          (a) disclose confidential information acquired by reason of his official position or use
             356      that information to secure special privileges or exemptions for himself or others;
             357          (b) use or attempt to use his official position to secure special privileges for himself or
             358      others; or
             359          (c) knowingly receive, accept, take, seek or solicit, directly or indirectly, any gift or
             360      loan for himself or another if the gift or loan tends to influence him in the discharge of his
             361      official duties.
             362          (2) This section is inapplicable to:
             363          (a) an occasional nonpecuniary gift having a value of less than $50;
             364          (b) an award publicly presented;
             365          (c) any bona fide loan made in the ordinary course of business; or
             366          (d) political campaign contributions actually used in a political campaign.
             367          Section 10. Section 17A-1-801 is amended to read:
             368           17A-1-801. Hiring of professional architect, engineer, or surveyor.


             369          Notwithstanding Subsection [ 63-56-2 ] 63-56-102 (3)(d), each special district board that
             370      engages the services of a professional architect, engineer, or surveyor and considers more than
             371      one such professional for the engagement:
             372          (1) shall consider, as a minimum, in the selection process:
             373          (a) the qualifications, experience, and background of each firm submitting a proposal;
             374          (b) the specific individuals assigned to the project and the time commitments of each to
             375      the project; and
             376          (c) the project schedule and the approach to the project that the firm will take; and
             377          (2) may engage the services of a professional architect, engineer, or surveyor based on
             378      the criteria under Subsection (1) rather than solely on lowest cost.
             379          Section 11. Section 17A-2-328 is amended to read:
             380           17A-2-328. Powers of municipalities -- Collection -- System for collection,
             381      retention, and disposition of storm and flood waters -- Power of district to make contracts
             382      -- Retainage.
             383          (1) (a) If an improvement district under this part contracts with a municipality to supply
             384      sewage treatment or disposal service, the municipality's legislative body may:
             385          (i) impose an appropriate service charge to each party connected with the
             386      municipality's sewer system for the services provided by the improvement district, as the
             387      municipality's legislative body considers reasonable and proper; and
             388          (ii) require industrial and commercial establishments to pretreat certain wastes and
             389      sewage when the wastes and sewage would otherwise impose an unreasonable burden upon the
             390      collection system or the treatment facility of the improvement district.
             391          (b) If the municipality operates a waterworks system, the charge under Subsection
             392      (1)(a)(i) may be combined with the charge made for water furnished by the water system and
             393      may be collected and the collection thereof secured in the same manner as that specified in
             394      Section 10-8-38 .
             395          (2) (a) An improvement district acquiring a system for the collection, retention, and
             396      disposition of storm and flood waters may contract with a municipality or other political
             397      subdivision or a person, firm, or corporation for the collection of storm and flood waters by any
             398      of the contracting parties.
             399          (b) Some or all of the parties to a contract under Subsection (2)(a) may agree to joint


             400      acquisition, ownership, construction, operation, or maintenance of all or part of the system for
             401      the collection of storm and flood waters.
             402          (c) (i) In exercising the power to acquire and operate a system for the collection of
             403      storm and flood waters, an improvement district may contract for the construction of storm
             404      sewers, drainage channels, dams, dikes, levees, reservoirs, and other pertinent improvements.
             405          (ii) As a local public procurement unit as defined in Subsection [ 63-56-5 ]
             406      63-56-105 (14), each improvement district contracting as provided in Subsection (2)(c)(i) shall
             407      comply with the provisions applicable to local public procurement units under Title 63,
             408      Chapter 56, Utah Procurement Code.
             409          (3) If any payment on a contract with a private person, firm, or corporation to construct
             410      storm sewers, drainage canals, dams, dikes, levees, reservoirs, and other pertinent
             411      improvements is retained or withheld, it shall be retained or withheld and released as provided
             412      in Section 13-8-5 .
             413          Section 12. Section 26-8a-405.2 is amended to read:
             414           26-8a-405.2. Selection of provider -- Public bid -- Public convenience and
             415      necessity.
             416          (1) (a) A political subdivision may contract with an applicant approved under Section
             417      26-8a-404 to provide 911 ambulance or paramedic services for the geographic service area that
             418      is approved by the department in accordance with Subsection (2), if the political subdivision
             419      complies with the provisions of this section.
             420          (b) The provisions of this section and Section 26-8a-405.1 do not require a political
             421      subdivision to issue a request for proposal for ambulance or paramedic services. If a political
             422      subdivision does not contract with an applicant in accordance with this section, the provisions
             423      of Sections 26-8a-406 through 26-8a-409 apply to the issuance of a license for ambulance or
             424      paramedic services in the geographic service area that is within the boundaries of the political
             425      subdivision.
             426          (c) (i) For purposes of this Subsection (1)(c):
             427          (A) "local district" and "county service area" are defined in Subsection
             428      26-8a-405.1 (1)(b)(iii);
             429          (B) "participating municipality" means a city or town whose area is partly or entirely
             430      included within a county service area or local district; and


             431          (C) "participating county" means a county whose unincorporated area is partly or
             432      entirely included within a county service area or local district.
             433          (ii) A participating municipality or participating county may contract with a provider
             434      for 911 ambulance or paramedic service as provided in this section.
             435          (iii) If the participating municipality or participating county contracts with a provider
             436      for 911 ambulance or paramedic services under this section:
             437          (A) the county service area or local district is not obligated to provide the ambulance or
             438      paramedic services that are included in the contract between the participating municipality or
             439      the participating county and the 911 ambulance or paramedic provider;
             440          (B) the county service area and local district may impose taxes and obligations within
             441      the county service area or local district in the same manner as if the participating municipality
             442      or participating county were receiving all services offered by the local district or county service
             443      area; and
             444          (C) the participating municipality's and participating county's obligations to the local
             445      district or county service area are not diminished.
             446          (2) (a) The political subdivision shall submit the request for proposal and the exclusive
             447      geographic service area to be included in the request for proposal to the department for
             448      approval prior to issuing the request for proposal. The department shall approve the request for
             449      proposal and the exclusive geographic service area:
             450          (i) unless the geographic service area creates an orphaned area; and
             451          (ii) in accordance with Subsections (2)(b) and (c).
             452          (b) The exclusive geographic service area may:
             453          (i) include the entire geographic service area that is within the political subdivision's
             454      boundaries;
             455          (ii) include islands within or adjacent to other peripheral areas not included in the
             456      political subdivision that governs the geographic service area; or
             457          (iii) exclude portions of the geographic service area within the political subdivision's
             458      boundaries if another political subdivision or licensed provider agrees to include the excluded
             459      area within their license.
             460          (c) The proposed geographic service area for 911 ambulance or paramedic service must
             461      demonstrate that non-911 ambulance or paramedic service will be provided in the geographic


             462      service area, either by the current provider, the applicant, or some other method acceptable to
             463      the department. The department may consider the effect of the proposed geographic service
             464      area on the costs to the non-911 provider and that provider's ability to provide only non-911
             465      services in the proposed area.
             466          (3) (a) (i) A political subdivision may select an applicant approved by the department
             467      under Section 26-8a-404 to provide 911 ambulance or paramedic services by contract let to the
             468      lowest, responsive, and responsible bidder after publication of notice at least once a week for
             469      three consecutive weeks in a newspaper of general circulation published in the county, or if
             470      there is no such newspaper, then after posting such notice for at least 20 days in at least five
             471      public places in the county.
             472          (ii) The applicants who are approved under Section 26-8a-405 and who are selected
             473      under Subsection (3)(a)(i) may be the political subdivision issuing the request for proposal, or
             474      any other public entity or entities, any private person or entity, or any combination thereof.
             475          (b) A political subdivision may reject all of the bids.
             476          (4) In seeking bids and awarding contracts under this section, a political subdivision:
             477          (a) shall follow the provisions of Section [ 63-56-20 ] 63-56-401 ;
             478          (b) shall consider the public convenience and necessity factors listed in Subsections
             479      26-8a-408 (2), (3), and (4);
             480          (c) shall require the applicant responding to the bid to disclose how the applicant will
             481      meet performance standards in the request for proposal;
             482          (d) may not require or restrict an applicant to a certain method of meeting the
             483      performance standards; and
             484          (e) (i) shall require an applicant to submit the bid based on full cost accounting in
             485      accordance with generally accepted accounting principals; and
             486          (ii) if the applicant is a governmental entity, in addition to the requirements of
             487      Subsection (4)(e)(i), in accordance with generally accepted government auditing standards and
             488      in compliance with the State of Utah Legal Compliance Audit Guide.
             489          Section 13. Section 26A-1-108.7 is amended to read:
             490           26A-1-108.7. Procurement -- Use of recycled goods.
             491          The procurement officer or other person responsible for purchasing supplies for each
             492      local health department shall:


             493          (1) maintain for reference a copy of the current listing of recycled items available on
             494      state contract as issued by the chief procurement officer under Section [ 63-56-9 ] 63-56-204 ;
             495      and
             496          (2) give recycled items consideration when inviting bids and purchasing supplies, in
             497      compliance with Section 11-37-101 .
             498          Section 14. Section 53A-20-101 is amended to read:
             499           53A-20-101. Construction and alteration of schools and plants -- Advertising for
             500      bids -- Payment and performance bonds -- Contracts -- Bidding limitations on local
             501      school boards -- Interest of local school board members.
             502          (1) As used in this section, the word "sealed" does not preclude acceptance of
             503      electronically sealed and submitted bids or proposals in addition to bids or proposals manually
             504      sealed and submitted.
             505          (2) (a) Prior to the construction of any school or the alteration of any existing school
             506      plant, if the total estimated accumulative building project cost exceeds $80,000, a local school
             507      board shall advertise for bids on the project at least ten days before the bid due date.
             508          (b) The board shall have the advertisement published in a newspaper having general
             509      circulation throughout the state and in appropriate construction trade publications that offer
             510      free listings.
             511          (c) A similar advertisement is required in a newspaper published or having general
             512      circulation in any city or county that would be affected by the proposed project.
             513          (d) The advertisement shall:
             514          (i) require sealed proposals for the building project in accordance with plans and
             515      specifications furnished by the local school board;
             516          (ii) state where and when the proposals will be opened and shall reserve the right of the
             517      board to reject any and all proposals; and
             518          (iii) require a certified check or bid bond of not less than 5% of the bid to accompany
             519      the bid.
             520          (3) (a) The board shall meet at the time and place specified in the advertisement and
             521      publicly open and read all received proposals.
             522          (b) If satisfactory bids are received, the board shall award the contract to the lowest
             523      responsible bidder.


             524          (c) If none of the proposals are satisfactory, all shall be rejected.
             525          (d) The board shall again advertise in the manner provided in this section.
             526          (e) If, after advertising a second time no satisfactory bid is received, the board may
             527      proceed under its own direction with the required project.
             528          (4) (a) The check or bond required under Subsection (2)(d) shall be drawn in favor of
             529      the local school board.
             530          (b) If the successful bidder fails or refuses to enter into the contract and furnish the
             531      additional bonds required under this section, then the bidder's check or bond is forfeited to the
             532      district.
             533          (5) A local school board shall require payment and performance bonds of the
             534      successful bidder as required in Section [ 63-56-38 ] 63-56-504 .
             535          (6) (a) A local school board may require in the proposed contract that at least 10% of
             536      the contract price be withheld until the project is completed and accepted by the board.
             537          (b) If money is withheld, the board shall place it in an interest bearing account, and the
             538      interest accrues for the benefit of the contractor and subcontractors.
             539          (c) This money shall be paid upon completion of the project and acceptance by the
             540      board.
             541          (7) (a) A local school board may not bid on projects within the district if the total
             542      accumulative estimated cost exceeds $80,000.
             543          (b) The board may use its resources if no satisfactory bids are received under this
             544      section.
             545          (8) If the local school board determines in accordance with Section [ 63-56-36 ]
             546      63-56-501 to use a construction manager/general contractor as its method of construction
             547      contracting management on projects where the total estimated accumulative cost exceeds
             548      $80,000, it shall select the construction manager/general contractor using one of the source
             549      selection methods provided for in Sections [ 63-56-20 ] 63-56-401 through [ 63-56-36 ]
             550      63-56-501 .
             551          (9) A local school board member may not have a direct or indirect financial interest in
             552      the construction project contract.
             553          Section 15. Section 63-56-101 , which is renumbered from Section 63-56-1 is
             554      renumbered and amended to read:


             555     
Part 1. General Provisions

             556           [63-56-1].     63-56-101. Purpose of chapter.
             557          The underlying purposes and policies of this chapter are:
             558          (1) to simplify, clarify, and modernize the law governing procurement by this state;
             559          (2) to ensure the fair and equitable treatment of all persons who deal with the
             560      procurement system of this state;
             561          (3) to provide increased economy in state procurement activities; and
             562          (4) to foster effective broad-based competition within the free enterprise system.
             563          Section 16. Section 63-56-102 , which is renumbered from Section 63-56-2 is
             564      renumbered and amended to read:
             565           [63-56-2].     63-56-102. Application of chapter.
             566          (1) This chapter applies only to contracts solicited or entered into after the effective
             567      date of this chapter unless the parties agree to its application to a contract solicited or entered
             568      into prior to the effective date.
             569          (2) Except as provided in Section [ 63-56-3 ] 63-56-103 , this chapter shall apply to
             570      every expenditure of public funds irrespective of their source, including federal assistance, by
             571      any state agency under any contract.
             572          (3) (a) Only the following sections shall apply to local public procurement units:
             573      Sections [ 63-56-3 ] 63-56-103 , [ 63-56-5 ] 63-56-105 , [ 63-56-16 ] 63-56-301 , [ 63-56-19 ]
             574      63-56-303 through [ 63-56-33 ] 63-56-420 , [ 63-56-35.5 ] 63-56-422 , [ 63-56-36 ] 63-56-501
             575      through [ 63-56-41 ] 63-56-602 , [ 63-56-45 ] 63-56-801 through [ 63-56-50 ] 63-56-806 , and
             576      [ 63-56-59 ] 63-56-815 through [ 63-56-63 ] 63-56-819 ; provided, however, that, except as
             577      provided in Sections [ 63-56-70 ] 63-56-906 and [ 63-56-71 ] 63-56-907 , the jurisdiction of the
             578      procurement appeals board is limited to matters involving state agencies.
             579          (b) Subsections [ 63-56-14 ] 63-56-208 (1)(b), [ 63-56-37 ] 63-56-503 (4), and [ 63-56-38 ]
             580      63-56-504 (2) also apply to local public procurement units.
             581          (c) For the purpose of application of those sections and subsections to a local public
             582      procurement unit, "state" shall mean "local public procurement unit," "chief procurement
             583      officer" or "head of a purchasing agency" shall mean any person conducting procurement for a
             584      local public procurement unit, and "rules and regulations" shall mean ordinances and rules and
             585      regulations promulgated by a local public procurement unit to implement or supplement those


             586      sections.
             587          (d) In addition to the sections and subsections listed above and except as provided in
             588      Section 17A-1-801 relating to special districts, each local public procurement unit shall adopt
             589      ordinances relating to the procurement of architect-engineer services not inconsistent with the
             590      provisions of Part [G of this chapter] 7.
             591          (e) Any other section of this chapter, or its implementing regulations, may be adopted
             592      by any local public procurement unit.
             593          (f) Any other implementing regulations adopted by local public procurement units may
             594      not be inconsistent with the provisions of this chapter.
             595          (4) Unless otherwise provided by statute, this chapter does not apply to procurement of
             596      real property.
             597          Section 17. Section 63-56-103 , which is renumbered from Section 63-56-3 is
             598      renumbered and amended to read:
             599           [63-56-3].     63-56-103. Exemptions from chapter -- Compliance with federal
             600      law.
             601          (1) This chapter is not applicable to funds administered under the Percent-for-Art
             602      Program of the Utah Percent-for-Art Act.
             603          (2) This chapter is not applicable to grants awarded by the state or contracts between
             604      the state and local public procurement units except as provided in Part [I of this chapter] 9,
             605      Intergovernmental Relations.
             606          (3) This chapter shall not prevent the state or a local public procurement unit from
             607      complying with the terms and conditions of any grant, gift, or bequest that is otherwise
             608      consistent with law.
             609          (4) When a procurement involves the expenditure of federal assistance or contract
             610      funds, the chief procurement officer or head of a purchasing agency shall comply with
             611      mandatory applicable federal law and regulations not reflected in this chapter.
             612          (5) This chapter may not supersede the requirements for retention or withholding of
             613      construction proceeds and release of construction proceeds as provided in Section 13-8-5 .
             614          Section 18. Section 63-56-104 , which is renumbered from Section 63-56-4 is
             615      renumbered and amended to read:
             616           [63-56-4].     63-56-104. Records.


             617          (1) All procurement records shall be retained and disposed of in accordance with Title
             618      63, Chapter 2, Government Records Access and Management Act.
             619          (2) Written determinations required by this chapter shall also be retained in the
             620      appropriate official contract file of the Division of Purchasing and General Services or the
             621      purchasing agency.
             622          Section 19. Section 63-56-105 , which is renumbered from Section 63-56-5 is
             623      renumbered and amended to read:
             624           [63-56-5].     63-56-105. Definitions.
             625          As used in this chapter:
             626          (1) "Architect-engineer services" are those professional services within the scope of the
             627      practice of architecture as defined in Section 58-3a-102 , or professional engineering as defined
             628      in Section 58-22-102 .
             629          (2) "Business" means any corporation, partnership, individual, sole proprietorship,
             630      joint stock company, joint venture, or any other private legal entity.
             631          (3) "Change order" means a written order signed by the procurement officer, directing
             632      the contractor to suspend work or make changes, which the appropriate clauses of the contract
             633      authorize the procurement officer to order without the consent of the contractor or any written
             634      alteration in specifications, delivery point, rate of delivery, period of performance, price,
             635      quantity, or other provisions of any contract accomplished by mutual action of the parties to the
             636      contract.
             637          (4) (a) "Construction" means the process of building, renovation, alteration,
             638      improvement, or repair of any public building or public work.
             639          (b) "Construction" does not mean the routine operation, routine repair, or routine
             640      maintenance of existing structures, buildings, or real property.
             641          (5) (a) "Construction Manager/General Contractor" means any contractor who enters
             642      into a contract for the management of a construction project when that contract allows the
             643      contractor to subcontract for additional labor and materials that were not included in the
             644      contractor's cost proposal submitted at the time of the procurement of the Construction
             645      Manager/General Contractor's services.
             646          (b) "Construction Manager/General Contractor" does not mean a contractor whose only
             647      subcontract work not included in the contractor's cost proposal submitted as part of the


             648      procurement of construction is to meet subcontracted portions of change orders approved
             649      within the scope of the project.
             650          (6) "Contract" means any state agreement for the procurement or disposal of supplies,
             651      services, or construction.
             652          (7) "Cooperative purchasing" means procurement conducted by, or on behalf of, more
             653      than one public procurement unit, or by a public procurement unit with an external
             654      procurement unit.
             655          (8) "Cost-reimbursement contract" means a contract under which a contractor is
             656      reimbursed for costs which are allowed and allocated in accordance with the contract terms and
             657      the provisions of this chapter, and a fee, if any.
             658          (9) (a) "Design-build" means the procurement of architect-engineer services and
             659      construction by the use of a single contract with the design-build provider.
             660          (b) This method of design and construction can include the design-build provider
             661      supplying the site as part of the contract.
             662          (10) "Established catalogue price" means the price included in a catalogue, price list,
             663      schedule, or other form that:
             664          (a) is regularly maintained by a manufacturer or contractor;
             665          (b) is either published or otherwise available for inspection by customers; and
             666          (c) states prices at which sales are currently or were last made to a significant number
             667      of any category of buyers or buyers constituting the general buying public for the supplies or
             668      services involved.
             669          (11) "External procurement unit" means any buying organization not located in this
             670      state which, if located in this state, would qualify as a public procurement unit. An agency of
             671      the United States is an external procurement unit.
             672          (12) "Grant" means the furnishing by the state or by any other public or private source
             673      assistance, whether financial or otherwise, to any person to support a program authorized by
             674      law. It does not include an award whose primary purpose is to procure an end product, whether
             675      in the form of supplies, services, or construction. A contract resulting from the award is not a
             676      grant but a procurement contract.
             677          (13) "Invitation for bids" means all documents, whether attached or incorporated by
             678      reference, utilized for soliciting bids.


             679          (14) "Local public procurement unit" means any political subdivision or institution of
             680      higher education of the state or public agency of any subdivision, public authority, educational,
             681      health, or other institution, and to the extent provided by law, any other entity which expends
             682      public funds for the procurement of supplies, services, and construction, but not counties,
             683      municipalities, political subdivisions created by counties or municipalities under the Interlocal
             684      Cooperation Act, the Utah Housing Corporation, the Utah Technology Finance Corporation, or
             685      the Legislature and its staff offices. It includes two or more local public procurement units
             686      acting under legislation which authorizes intergovernmental cooperation.
             687          (15) "Person" means any business, individual, union, committee, club, other
             688      organization, or group of individuals, not including a state agency or a local public
             689      procurement unit.
             690          (16) "Policy board" means the procurement policy board created by Section [ 63-56-6 ]
             691      63-56-201 .
             692          (17) "Preferred bidder" means a bidder that is entitled to receive a reciprocal preference
             693      under the requirements of this chapter.
             694          (18) "Procurement" means buying, purchasing, renting, leasing, leasing with an option
             695      to purchase, or otherwise acquiring any supplies, services, or construction. It also includes all
             696      functions that pertain to the obtaining of any supply, service, or construction, including
             697      description of requirements, selection, and solicitation of sources, preparation, and award of a
             698      contract, and all phases of contract administration.
             699          (19) "Procurement officer" means any person or board duly authorized to enter into and
             700      administer contracts and make written determinations with respect thereto. It also includes an
             701      authorized representative acting within the limits of authority.
             702          (20) "Public procurement unit" means either a local public procurement unit or a state
             703      public procurement unit.
             704          (21) "Purchase description" means the words used in a solicitation to describe the
             705      supplies, services, or construction to be purchased, and includes specifications attached to or
             706      made a part of the solicitation.
             707          (22) "Purchasing agency" means any state agency other than the Division of Purchasing
             708      and General Services that is authorized by this chapter or its implementing regulations, or by
             709      delegation from the chief procurement officer, to enter into contracts.


             710          (23) "Request for proposals" means all documents, whether attached or incorporated by
             711      reference, used for soliciting proposals.
             712          (24) "Responsible bidder or offeror" means a person who has the capability in all
             713      respects to perform fully the contract requirements and who has the integrity and reliability
             714      which will assure good faith performance.
             715          (25) "Responsive bidder" means a person who has submitted a bid which conforms in
             716      all material respects to the invitation for bids.
             717          (26) "Sealed" does not preclude acceptance of electronically sealed and submitted bids
             718      or proposals in addition to bids or proposals manually sealed and submitted.
             719          (27) "Services" means the furnishing of labor, time, or effort by a contractor, not
             720      involving the delivery of a specific end product other than reports which are merely incidental
             721      to the required performance. It does not include employment agreements or collective
             722      bargaining agreements.
             723          (28) "Specification" means any description of the physical or functional characteristics,
             724      or of the nature of a supply, service, or construction item. It may include a description of any
             725      requirement for inspecting, testing, or preparing a supply, service, or construction item for
             726      delivery.
             727          (29) "State agency" or "the state" means any department, division, commission,
             728      council, board, bureau, committee, institution, government corporation, or other establishment,
             729      official, or employee of this state.
             730          (30) "State public procurement unit" means the Division of Purchasing and General
             731      Services and any other purchasing agency of this state.
             732          (31) "Supplies" means all property, including equipment, materials, and printing.
             733          (32) "Using agency" means any state agency which utilizes any supplies, services, or
             734      construction procured under this chapter.
             735          Section 20. Section 63-56-201 , which is renumbered from Section 63-56-6 is
             736      renumbered and amended to read:
             737     
Part 2. Procurement Organization

             738           [63-56-6].     63-56-201. Creation of procurement policy board.
             739          (1) (a) There is created a state procurement policy board.
             740          (b) The policy board shall consist of eight members who shall be appointed as follows:


             741          (i) an employee of a state institution of higher education, appointed by the board of
             742      regents;
             743          (ii) an employee of the Department of Human Services, appointed by the executive
             744      director of that department;
             745          (iii) an employee of the Department of Transportation, appointed by the executive
             746      director of that department;
             747          (iv) an employee of a school district appointed by a cooperative purchasing entity for
             748      school districts;
             749          (v) an employee of the Division of Facilities Construction and Management appointed
             750      by the director of that division;
             751          (vi) an employee of a county, appointed by the Utah Association of Counties;
             752          (vii) an employee of a city, appointed by the Utah League of Cities and Towns; and
             753          (viii) an employee of a special district, appointed by the Utah Association of Special
             754      Districts.
             755          (c) Members of the policy board shall be knowledgeable and experienced in, and have
             756      supervisory responsibility for, procurement in their official positions.
             757          (2) Members shall be appointed to four-year staggered terms.
             758          (3) When a vacancy occurs in the membership for any reason, the replacement shall be
             759      appointed for the unexpired term.
             760          (4) (a) The policy board shall:
             761          (i) adopt rules of procedure for conducting its business; and
             762          (ii) elect a chair to serve for one year.
             763          (b) The chair may be elected to succeeding terms.
             764          (c) The chief procurement officer shall serve as the nonvoting secretary to the policy
             765      board.
             766          (5) (a) (i) Members who are not government employees shall receive no compensation
             767      or benefits for their services, but may receive per diem and expenses incurred in the
             768      performance of the member's official duties at the rates established by the Division of Finance
             769      under Sections 63A-3-106 and 63A-3-107 .
             770          (ii) Members may decline to receive per diem and expenses for their service.
             771          (b) (i) State government officer and employee members who do not receive salary, per


             772      diem, or expenses from their agency for their service may receive per diem and expenses
             773      incurred in the performance of their official duties from the board at the rates established by the
             774      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             775          (ii) State government officer and employee members may decline to receive per diem
             776      and expenses for their service.
             777          (c) (i) Higher education members who do not receive salary, per diem, or expenses
             778      from the entity that they represent for their service may receive per diem and expenses incurred
             779      in the performance of their official duties from the committee at the rates established by the
             780      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             781          (ii) Higher education members may decline to receive per diem and expenses for their
             782      service.
             783          (d) (i) Local government members who do not receive salary, per diem, or expenses
             784      from the entity that they represent for their service may receive per diem and expenses incurred
             785      in the performance of their official duties at the rates established by the Division of Finance
             786      under Sections 63A-3-106 and 63A-3-107 .
             787          (ii) Local government members may decline to receive per diem and expenses for their
             788      service.
             789          Section 21. Section 63-56-202 , which is renumbered from Section 63-56-7 is
             790      renumbered and amended to read:
             791           [63-56-7].     63-56-202. Powers and duties of board.
             792          (1) Except as otherwise provided in Sections [ 63-56-2 ] 63-56-102 and [ 63-56-14 ]
             793      63-56-208 , the policy board shall:
             794          (a) make rules, consistent with this chapter, governing the procurement, management,
             795      and control of any and all supplies, services, and construction to be procured by the state; and
             796          (b) consider and decide matters of policy within the provisions of this chapter,
             797      including those referred to it by the chief procurement officer.
             798          (2) (a) The policy board may:
             799          (i) audit and monitor the implementation of its rules and the requirements of this
             800      chapter;
             801          (ii) upon the request of a local public procurement unit, review that procurement unit's
             802      proposed rules to ensure that they are not inconsistent with the provisions of this chapter; and


             803          (iii) approve the use of innovative procurement methods proposed by local public
             804      procurement units.
             805          (b) The policy board may not exercise authority over the award or administration of:
             806          (i) any particular contact; or
             807          (ii) over any dispute, claim, or litigation pertaining to any particular contract.
             808          Section 22. Section 63-56-203 , which is renumbered from Section 63-56-8 is
             809      renumbered and amended to read:
             810           [63-56-8].     63-56-203. Chief procurement officer -- Appointment --
             811      Qualifications.
             812          (1) The executive director of the Department of Administrative Services, with the
             813      consent of the governor, shall appoint the chief procurement officer after considering
             814      recommendations from the policy board.
             815          (2) The chief procurement officer shall:
             816          (a) have a minimum of eight years' experience in the large-scale procurement of
             817      supplies and services or services and construction, at least five years of which shall have been
             818      in public or comparable private procurement within 12 years preceding the date of
             819      appointment; and
             820          (b) be a person with demonstrated executive and organizational ability.
             821          (3) The chief procurement officer is also the director of the Division of Purchasing and
             822      General Services.
             823          Section 23. Section 63-56-204 , which is renumbered from Section 63-56-9 is
             824      renumbered and amended to read:
             825           [63-56-9].     63-56-204. Duties of chief procurement officer.
             826          Except as otherwise specifically provided in this chapter, the chief procurement officer
             827      serves as the central procurement officer of the state and shall:
             828          (1) adopt office policies governing the internal functions of the Division of Purchasing
             829      and General Services;
             830          (2) procure or supervise the procurement of all supplies, services, and construction
             831      needed by the state;
             832          (3) exercise general supervision and control over all inventories or supplies belonging
             833      to the state;


             834          (4) establish and maintain programs for the inspection, testing, and acceptance of
             835      supplies, services, and construction;
             836          (5) prepare statistical data concerning the procurement and usage of all supplies,
             837      services, and construction;
             838          (6) before June 1, 1990, notify all public procurement units of the requirements of
             839      Section [ 63-56-20.7 ] 63-56-406 regarding purchases of recycled paper and recycled paper
             840      products, recycling requirements, and provide guidelines on the availability of recycled paper
             841      and paper products, including the sources of supply and the potential uses of various grades of
             842      recycled paper;
             843          (7) before July 1, 1992:
             844          (a) establish standards and specifications for determining which supplies are
             845      considered recycled, based upon his review of current definitions and standards employed by
             846      national procurement, product recycling, and other relevant organizations and the federal
             847      Environmental Protection Agency;
             848          (b) compile and update as necessary the specifications, a list of recycled supplies
             849      available on state contract, and sources where the supplies may be obtained;
             850          (c) make the compiled information under Subsection (7)(b) available to:
             851          (i) all local government entities under Section 11-37-101 ;
             852          (ii) all local health departments under Section 26A-1-108.7 ;
             853          (iii) all procurement officers or other persons responsible for purchasing supplies
             854      within the public school system under Title 53A, State System of Public Education;
             855          (iv) all procurement officers or other persons responsible for purchasing supplies
             856      within the state system of higher education under Title 53B, State System of Higher Education;
             857      and
             858          (v) all procurement officers or other persons responsible for purchasing supplies for all
             859      public procurement units as defined in Section [ 63-56-5 ] 63-56-105 ; and
             860          (d) present a written report to the Natural Resources, Agriculture, and Environment
             861      Interim Committee annually prior to November 30 regarding the purchases of recycled goods
             862      on state contracts during the prior fiscal year; and
             863          (8) ensure that:
             864          (a) before approving a purchase, lease, or rental not covered by an existing statewide


             865      contract for information technology or telecommunications supplies or services under the
             866      provisions of Section 63A-6-105 , the director of the Division of Information Technology
             867      Services has provided in writing to the chief procurement officer that the analysis required by
             868      Subsection 63A-6-105 (7) was completed; and
             869          (b) the oversight authority required by Subsection (8)(a) is not delegated outside the
             870      Division of Purchasing and General Services.
             871          Section 24. Section 63-56-205 , which is renumbered from Section 63-56-10 is
             872      renumbered and amended to read:
             873           [63-56-10].     63-56-205. Delegation of authority.
             874          Subject to rules and regulations, the chief procurement officer may delegate authority to
             875      designees or to any department, agency, or official.
             876          Section 25. Section 63-56-206 , which is renumbered from Section 63-56-11 is
             877      renumbered and amended to read:
             878           [63-56-11].     63-56-206. Transfer of power to policy board.
             879          Except as otherwise provided in this chapter, all rights, powers, duties, and authority
             880      relating to the procurement of supplies, services, and construction, and the management,
             881      control, warehousing, and sale of supplies, services, and construction vested in or exercised by
             882      any state agency on the effective date are transferred to the policy board as they relate to its
             883      duties and to the Division of Purchasing and General Services as they relate to its duties.
             884          Section 26. Section 63-56-207 , which is renumbered from Section 63-56-13 is
             885      renumbered and amended to read:
             886           [63-56-13].     63-56-207. Specific statutory authority.
             887          (1) The authority to procure certain supplies, services, and construction given the
             888      public procurement units governed by the following provisions shall be retained:
             889          (a) Title 53B, State System of Higher Education;
             890          (b) Title 63A, Chapter 5, State Building Board - Division of Facilities Construction
             891      and Management;
             892          (c) Title 67, Chapter 5, Attorney General;
             893          (d) Title 72, Transportation; and
             894          (e) Title 78, Chapter 3, District Courts.
             895          (2) This authority extends only to supplies, services, and construction to the extent


             896      provided in the cited chapters. Except as otherwise provided in Sections [ 63-56-2 ] 63-56-102
             897      and [ 63-56-3 ] 63-56-103 , the respective purchasing agencies shall procure supplies, services,
             898      and construction in accordance with this chapter.
             899          (3) (a) The Department of Transportation may make rules governing the procurement
             900      of highway construction or improvement.
             901          (b) This Subsection (3) supersedes Subsections (1) and (2).
             902          (4) The Legislature may procure supplies and services for its own needs.
             903          Section 27. Section 63-56-208 , which is renumbered from Section 63-56-14 is
             904      renumbered and amended to read:
             905           [63-56-14].     63-56-208. Rules and regulations of policy board and building
             906      board.
             907          (1) (a) Except as provided in Subsection (2), the policy board shall make rules
             908      governing state procurement by complying with the procedures and requirements of Title 63,
             909      Chapter 46a, the Utah Administrative Rulemaking Act.
             910          (b) The procurement rules adopted by the policy board under this section apply to all
             911      local public procurement units unless the local public procurement unit's legislative body has
             912      adopted separate rules governing procurement.
             913          (2) The State Building Board rules governing procurement of construction,
             914      architect-engineer services, and leases apply to the procurement of construction,
             915      architect-engineer services, and leases of real property by the Division of Facilities
             916      Construction and Management.
             917          Section 28. Section 63-56-209 , which is renumbered from Section 63-56-15 is
             918      renumbered and amended to read:
             919           [63-56-15].     63-56-209. Procurement Advisory Council.
             920          (1) The policy board may establish a Procurement Advisory Council, which shall meet
             921      at least once a year for the discussion of problems and recommendations for improvement of
             922      the procurement process. When requested by the policy board, the Procurement Advisory
             923      Council may conduct studies, research, analyses, and make reports and recommendations with
             924      respect to subjects or matters within the jurisdiction of the policy board. The Procurement
             925      Advisory Council shall consist of representatives of state and local government and any other
             926      persons the policy board [deems] considers desirable.


             927          (2) The chief procurement officer may appoint advisory groups to provide advice
             928      regarding any matters within the authority of the chief procurement officer.
             929          (3) Members of the Procurement Advisory Council and other advisory groups may be
             930      reimbursed for expenses incurred in the performance of their duties, as provided by the policy
             931      board.
             932          Section 29. Section 63-56-301 , which is renumbered from Section 63-56-16 is
             933      renumbered and amended to read:
             934     
Part 3. Specifications

             935           [63-56-16].     63-56-301. Rules and regulations for specifications of supplies.
             936          Rules and regulations shall be promulgated to govern the preparation, maintenance, and
             937      content of specifications for supplies, services, and construction required by the state. Rules
             938      and regulations shall determine the extent to which a nonemployee who has prepared
             939      specifications for use by the state may participate in any state procurement using such
             940      specifications.
             941          Section 30. Section 63-56-302 , which is renumbered from Section 63-56-17 is
             942      renumbered and amended to read:
             943           [63-56-17].     63-56-302. Duty of chief procurement officer in maintaining
             944      specifications of supplies.
             945          The chief procurement officer shall prepare, issue, revise, maintain, and monitor the use
             946      of specifications for supplies, services, and construction required by the state. The chief
             947      procurement officer shall obtain expert advice and assistance from personnel of using agencies
             948      in the development of specifications and may delegate in writing to a using agency the
             949      authority to prepare and utilize its own specifications.
             950          Section 31. Section 63-56-303 , which is renumbered from Section 63-56-19 is
             951      renumbered and amended to read:
             952           [63-56-19].     63-56-303. Purpose of specifications.
             953          All specifications shall seek to promote overall economy and best use for the purposes
             954      intended and encourage competition in satisfying the state's needs, and shall not be unduly
             955      restrictive. The requirements of this part regarding the purposes and nonrestrictiveness of
             956      specifications shall apply to all specifications, including, but not limited to, those prepared by
             957      architects, engineers, designers, and draftsmen for public contracts.


             958          Section 32. Section 63-56-401 , which is renumbered from Section 63-56-20 is
             959      renumbered and amended to read:
             960     
Part 4. Source Selections and Contract Formation

             961           [63-56-20].     63-56-401. Contracts awarded by sealed bidding -- Procedure.
             962          (1) Contracts shall be awarded by competitive sealed bidding except as otherwise
             963      provided by this chapter.
             964          (2) (a) An invitation for bids shall be issued when a contract is to be awarded by
             965      competitive sealed bidding.
             966          (b) The invitation shall include a purchase description and all contractual terms and
             967      conditions applicable to the procurement.
             968          (3) (a) Public notice of the invitation for bids shall be given a reasonable time before
             969      the date set forth in the invitation for the opening of bids, in accordance with rules.
             970          (b) The notice may include publication in a newspaper of general circulation a
             971      reasonable time before bid opening.
             972          (4) (a) Bids shall be opened publicly in the presence of one or more witnesses at the
             973      time and place designated in the invitation for bids.
             974          (b) The amount of each bid and any other relevant information specified by rules,
             975      together with the name of each bidder, shall be recorded.
             976          (c) The record and each bid shall be open to public inspection.
             977          (5) (a) Bids shall be unconditionally accepted without alteration or correction, except
             978      as authorized in this chapter.
             979          (b) (i) Bids shall be evaluated based on the requirements set forth in the invitation for
             980      bids, which may include criteria to determine acceptability such as inspection, testing, quality,
             981      workmanship, delivery, and suitability for a particular purpose.
             982          (ii) Those criteria that will affect the bid price and be considered in evaluation for
             983      award shall be objectively measurable.
             984          (iii) The criteria may include discounts, transportation costs, and total or life cycle
             985      costs.
             986          (c) No criteria may be used in bid evaluation that are not set forth in the invitation for
             987      bids.
             988          (6) (a) Correction or withdrawal of inadvertently erroneous bids before or after award,


             989      or cancellation of awards or contracts based on the bid mistakes, shall be permitted in
             990      accordance with rules.
             991          (b) After bid opening, no changes in bid prices or other provisions of bids prejudicial
             992      to the interest of the state or fair competition may be permitted.
             993          (c) Except as otherwise provided by rule, all decisions to permit the correction or
             994      withdrawal of bids or to cancel awards or contracts based on bid mistakes shall be supported by
             995      a written determination made by the chief procurement officer or the head of a purchasing
             996      agency.
             997          (7) (a) The contract shall be awarded with reasonable promptness by written notice to
             998      the lowest responsive and responsible bidder whose bid meets the requirements and criteria set
             999      forth in the invitation for bids.
             1000          (b) (i) If all bids for a construction project exceed available funds as certified by the
             1001      appropriate fiscal officer, and the low responsive and responsible bid does not exceed those
             1002      funds by more than 5%, the chief procurement officer or the head of a purchasing agency may,
             1003      in situations where time or economic considerations preclude resolicitation of work of a
             1004      reduced scope, negotiate an adjustment of the bid price, including changes in the bid
             1005      requirements, with the low responsive and responsible bidder in order to bring the bid within
             1006      the amount of available funds.
             1007          (ii) If the State Building Board establishes alternative procedures by rule under Section
             1008      63A-5-103 , the Division of Facilities Construction and Management need not comply with the
             1009      provisions of this Subsection (7) when a bid meets the requirements of the State Building
             1010      Board's rule.
             1011          (8) When it is considered impractical to prepare initially a purchase description to
             1012      support an award based on price, an invitation for bids may be issued requesting the
             1013      submission of unpriced offers to be followed by an invitation for bids limited to those bidders
             1014      whose offers have been qualified under the criteria set forth in the first solicitation.
             1015          Section 33. Section 63-56-402 , which is renumbered from Section 63-56-20.1 is
             1016      renumbered and amended to read:
             1017           [63-56-20.1].     63-56-402. Contracts awarded by reverse auction.
             1018          (1) As used in this section, "reverse auction" means a process where:
             1019          (a) contracts are awarded in an open and interactive environment, which may include


             1020      the use of electronic media; and
             1021          (b) bids are opened and made public immediately, and bidders given opportunity to
             1022      submit revised, lower bids, until the bidding process is complete.
             1023          (2) (a) Notwithstanding the requirements of this chapter, contracts may be awarded
             1024      through a reverse auction.
             1025          (b) The policy board shall make rules, consistent with this chapter, governing a reverse
             1026      auction process.
             1027          Section 34. Section 63-56-403 , which is renumbered from Section 63-56-20.3 is
             1028      renumbered and amended to read:
             1029           [63-56-20.3].     63-56-403. Procurement -- Use of recycled goods.
             1030          The procurement officer or other person responsible for purchasing supplies for each
             1031      public procurement unit shall:
             1032          (1) comply with Section [ 63-56-20.7 ] 63-56-406 ; and
             1033          (2) (a) maintain for reference a copy of the current listing of recycled items available
             1034      on state contract as issued by the chief procurement officer under Section [ 63-56-9 ] 63-56-204 ;
             1035      and
             1036          (b) give recycled items consideration when inviting bids and purchasing supplies.
             1037          Section 35. Section 63-56-404 , which is renumbered from Section 63-56-20.5 is
             1038      renumbered and amended to read:
             1039           [63-56-20.5].     63-56-404. Preference for providers of state products.
             1040          (1) (a) All public procurement units shall, in all purchases of goods, supplies,
             1041      equipment, materials, and printing, give a reciprocal preference to those bidders offering goods,
             1042      supplies, equipment, materials, or printing produced, manufactured, mined, grown, or
             1043      performed in Utah as against those bidders offering goods, supplies, equipment, materials, or
             1044      printing produced, manufactured, mined, grown, or performed in any state that gives or
             1045      requires a preference to goods, supplies, equipment, materials, or printing produced,
             1046      manufactured, mined, grown, or performed in that state.
             1047          (b) The amount of reciprocal preference shall be equal to the amount of the preference
             1048      applied by the other state for that particular good, supply, equipment, material, or printing.
             1049          (c) (i) The bidder shall certify on the bid that the goods, supplies, equipment, materials,
             1050      or printing offered are produced, manufactured, mined, grown, or performed in Utah.


             1051          (ii) The reciprocal preference is waived if that certification does not appear on the bid.
             1052          (2) (a) If the bidder submitting the lowest responsive and responsible bid offers goods,
             1053      supplies, equipment, materials, or printing produced, manufactured, mined, grown, or
             1054      performed in a state that gives or requires a preference, and if another bidder has submitted a
             1055      responsive and responsible bid offering goods, supplies, equipment, materials, or printing
             1056      produced, manufactured, mined, grown, or performed in Utah, and with the benefit of the
             1057      reciprocal preference, his bid is equal to or less than the original lowest bid, the procurement
             1058      officer shall:
             1059          (i) give notice to the bidder offering goods, supplies, equipment, materials, or printing
             1060      produced, manufactured, mined, grown, or performed in Utah that he qualifies as a preferred
             1061      bidder; and
             1062          (ii) make the purchase from the preferred bidder if, within 72 hours after notification to
             1063      him that he is a preferred bidder, he agrees, in writing, to meet the low bid.
             1064          (b) The procurement officer shall include the exact price submitted by the lowest
             1065      bidder in the notice he submits to the preferred bidder.
             1066          (c) The procurement officer may not enter into a contract with any other bidder for the
             1067      purchase until 72 hours have elapsed after notification to the preferred bidder.
             1068          (3) (a) If there is more than one preferred bidder, the procurement officer shall award
             1069      the contract to the willing preferred bidder who was the lowest preferred bidder originally.
             1070          (b) If there were two or more equally low preferred bidders, the procurement officer
             1071      shall comply with the rules adopted by the Procurement Policy Board to determine which
             1072      bidder should be awarded the contract.
             1073          (4) The provisions of this section do not apply if application of this section might
             1074      jeopardize the receipt of federal funds.
             1075          Section 36. Section 63-56-405 , which is renumbered from Section 63-56-20.6 is
             1076      renumbered and amended to read:
             1077           [63-56-20.6].     63-56-405. Preference for resident contractors.
             1078          (1) As used in this section, "resident contractor" means a person, partnership,
             1079      corporation, or other business entity that:
             1080          (a) either has its principal place of business in Utah or that employs workers who are
             1081      residents of this state when available; and


             1082          (b) was transacting business on the date when bids for the public contract were first
             1083      solicited.
             1084          (2) (a) When awarding contracts for construction, a public procurement unit shall grant
             1085      a resident contractor a reciprocal preference as against a nonresident contractor from any state
             1086      that gives or requires a preference to contractors from that state.
             1087          (b) The amount of the reciprocal preference shall be equal to the amount of the
             1088      preference applied by the state of the nonresident contractor.
             1089          (3) (a) The bidder shall certify on the bid that he qualifies as a resident contractor.
             1090          (b) The reciprocal preference is waived if that certification does not appear on the bid.
             1091          (4) (a) If the contractor submitting the lowest responsive and responsible bid is not a
             1092      resident contractor and has his principal place of business in any state that gives or requires a
             1093      preference to contractors from that state, and if a resident contractor has also submitted a
             1094      responsive and responsible bid, and, with the benefit of the reciprocal preference, the resident
             1095      contractor's bid is equal to or less than the original lowest bid, the procurement officer shall:
             1096          (i) give notice to the resident contractor that he qualifies as a preferred resident
             1097      contractor; and
             1098          (ii) issue the contract to the resident contractor if, within 72 hours after notification to
             1099      him that he is a preferred resident contractor, he agrees, in writing, to meet the low bid.
             1100          (b) The procurement officer shall include the exact price submitted by the lowest
             1101      bidder in the notice he submits to the preferred resident contractor.
             1102          (c) The procurement officer may not enter into a contract with any other bidder for the
             1103      construction until 72 hours have elapsed after notification to the preferred resident contractor.
             1104          (5) (a) If there is more than one preferred resident contractor, the procurement officer
             1105      shall award the contract to the willing preferred resident contractor who was the lowest
             1106      preferred resident contractor originally.
             1107          (b) If there were two or more equally low preferred resident contractors, the
             1108      procurement officer shall comply with the rules adopted by the Procurement Policy Board to
             1109      determine which bidder should be awarded the contract.
             1110          (6) The provisions of this section do not apply if application of this section might
             1111      jeopardize the receipt of federal funds.
             1112          Section 37. Section 63-56-406 , which is renumbered from Section 63-56-20.7 is


             1113      renumbered and amended to read:
             1114           [63-56-20.7].     63-56-406. Preference for recycled paper and paper
             1115      products.
             1116          (1) As used in this section:
             1117          (a) "Chief procurement officer" is the chief procurement officer appointed under
             1118      Section [ 63-56-8 ] 63-56-203 .
             1119          (b) "Paper" means any newspaper, high-grade office paper, fine paper, bond paper,
             1120      offset paper, xerographic paper, mimeographic paper, duplicator paper, and related types of
             1121      cellulosic material containing not more than 10% by weight or volume of noncellulosic
             1122      material such as laminates, binders, coatings, or saturants.
             1123          (c) "Paper product" means any paper items or commodities, including paper napkins,
             1124      towels, corrugated and other cardboard, toilet tissue, paper and related types of cellulosic
             1125      products containing not more than 10% by weight or volume of noncellulosic material such as
             1126      laminates, binders, coatings, or saturants. "Paper product" does not include preprinted
             1127      cellulosic products such as books, newspapers, calendars, and magazines.
             1128          (d) "Postconsumer waste," "recycled paper," "recycled paper product," and "secondary
             1129      waste paper material" are defined by rule made by the Division of Purchasing, Department of
             1130      Administrative Services. The division rules shall be based on current definitions and standards
             1131      employed by national procurement, product recycling, and other relevant organizations such as
             1132      the federal Environmental Protection Agency.
             1133          (2) Notwithstanding Section [ 63-56-20 ] 63-56-401 , which requires public procurement
             1134      units to purchase products from the lowest responsible bidder, and subject to Subsection (3),
             1135      every public procurement unit shall give preference to the purchase of paper and paper
             1136      products which are manufactured or produced from recycled materials.
             1137          (3) A public procurement unit shall give preference to purchasing recycled paper and
             1138      recycled paper products unless:
             1139          (a) the bid or purchase price for recycled paper or paper products exceeds by more than
             1140      5% the lowest responsive and responsible bidder whose bid meets the requirements and criteria
             1141      set forth in the invitation for bids;
             1142          (b) there is no recycled paper or paper product reasonably available that meets the
             1143      requirements and criteria set forth in the invitation for bids; or


             1144          (c) the public procurement unit has purchased at least the minimum percentage
             1145      purchase requirement of recycled paper or recycled paper products as provided in Subsection
             1146      (4).
             1147          (4) (a) The minimum percentage purchase requirement for fiscal year 1990-91 is 10%
             1148      of the public procurement unit's projected annual paper and paper product purchases.
             1149          (b) The minimum percentage purchase requirement shall be increased by 5% each
             1150      fiscal year until the minimum percentage purchase requirement is 50%.
             1151          (5) Each public procurement unit shall provide the chief procurement officer with a
             1152      report at the end of each fiscal year documenting:
             1153          (a) the dollar amounts of paper and paper products purchased;
             1154          (b) the dollar amounts of recycled paper and recycled paper products purchased; and
             1155          (c) any additional costs resulting from purchasing recycled paper or recycled paper
             1156      products.
             1157          (6) The chief procurement officer shall provide a written report of the information
             1158      received under Subsection (5) to the Natural Resources, Agriculture, and Environment Interim
             1159      Committee prior to November 30 of each year.
             1160          (7) (a) Each state agency shall separate and collect all types of recyclable paper for
             1161      recycling, except under Subsection (7)(b). The chief procurement officer shall maintain an
             1162      updated list of which papers are recyclable.
             1163          (b) If the state agency conducts an evaluation under Subsection (8) and determines the
             1164      cost of recycling a certain type of recyclable paper is more than 10% greater than the cost of the
             1165      current disposal method, the entity is exempt from the requirements of Subsection (7)(a)
             1166      regarding that type of paper.
             1167          (8) A state agency's evaluation shall:
             1168          (a) determine the types and quantities of recyclable paper in the state agency's current
             1169      waste stream;
             1170          (b) determine the market value of the recyclable paper;
             1171          (c) determine and describe the alternatives for separating recyclable paper from the
             1172      waste stream;
             1173          (d) for each type of paper and for each method of separation, determine the cost of
             1174      separating and collecting the recyclable paper for recycling;


             1175          (e) determine the cost of the current disposal method for each type of recyclable paper;
             1176          (f) for each type of paper, compare the cost of the current disposal method with the cost
             1177      of separating and collecting the paper for recycling; and
             1178          (g) determine the cost of producing the report required under Subsection (13)(b).
             1179          (9) Each evaluation conducted under Subsection (8) shall:
             1180          (a) be in writing;
             1181          (b) justify all estimates;
             1182          (c) be retained by the state agency;
             1183          (d) be accessible to the public for review; and
             1184          (e) be submitted to the chief procurement officer.
             1185          (10) Each state agency conducting an evaluation shall revise the evaluation as
             1186      necessary, at least every 30 months.
             1187          (11) A state agency that is required to separate paper for recycling shall:
             1188          (a) designate an existing employee as a recycling coordinator to organize and
             1189      coordinate the state agency's recycling program;
             1190          (b) establish procedures for separating each type of paper required to be separated for
             1191      recycling;
             1192          (c) establish a system for separating and collecting each type of paper to be recycled,
             1193      which assures the recyclable paper is sold to appropriate industries for reuse or recycling; and
             1194          (d) make participation in the recycling program as easy as practicable for state agency
             1195      personnel by establishing clear policies.
             1196          (12) The monies received from the sale of recyclable paper shall be retained by the
             1197      agency for:
             1198          (a) reimbursement to the state agency for program administration costs incurred as a
             1199      result of recycling, if any; and
             1200          (b) funding recycling incentives programs.
             1201          (13) (a) The recycling coordinator designated in Subsection (11) shall keep records of:
             1202          (i) the quantity of paper recycled by the state agency;
             1203          (ii) the costs incurred by the state agency in recycling paper; and
             1204          (iii) the monies received from the sale of recyclable paper.
             1205          (b) Each recycling coordinator shall provide a written report of the state agency's


             1206      recycling activities including the information required under Subsection (13)(a) before
             1207      September 30 of each year to the chief procurement officer.
             1208          (14) The chief procurement officer shall provide a written report of the information
             1209      received under Subsection (13) to the Natural Resources, Agriculture, and Environment Interim
             1210      Committee prior to November 30 of each year.
             1211          Section 38. Section 63-56-407 , which is renumbered from Section 63-56-20.8 is
             1212      renumbered and amended to read:
             1213           [63-56-20.8].     63-56-407. Use of alkaline paper.
             1214          (1) As used in this section, "alkaline paper" means paper that is acid-free,
             1215      manufactured with calcium carbonate as the principal filler, and meets standards for paper
             1216      approved by the American National Standards Institute, National Information Standards
             1217      Organization, and American Society for Testing and Materials.
             1218          (2) (a) Notwithstanding Section [ 63-56-20 ] 63-56-401 , which requires public
             1219      procurement units to purchase products from the lowest responsible bidder, and except as
             1220      provided in Subsection (2)(b), every public procurement unit shall purchase and use alkaline
             1221      paper.
             1222          (b) A public procurement unit shall purchase alkaline paper unless:
             1223          (i) the bid or purchase price for alkaline paper or alkaline recycled paper exceeds the
             1224      lowest responsive and responsible bidder whose bid meets the requirements and criteria set
             1225      forth in the invitation for bids;
             1226          (ii) there is no alkaline or alkaline recycled paper reasonably available that meets the
             1227      requirements and criteria set forth in the invitation for bids; or
             1228          (iii) other paper products have equal or better quality characteristics than alkaline paper
             1229      and meet standards for paper approved by the American National Standards Institute, National
             1230      Information Standards Organization, and American Society for Testing and Materials.
             1231          (3) The state archivist shall promote the use of alkaline paper within state government,
             1232      local units of government, and school districts.
             1233          Section 39. Section 63-56-408 , which is renumbered from Section 63-56-21 is
             1234      renumbered and amended to read:
             1235           [63-56-21].     63-56-408. Use of competitive sealed proposals in lieu of bids --
             1236      Procedure.


             1237          (1) (a) When, according to rules established by the Procurement Policy Board, the
             1238      chief procurement officer, the head of a purchasing agency, or a designee of either officer
             1239      above the level of procurement officer determines in writing that the use of competitive sealed
             1240      bidding is either not practicable or not advantageous to the state, a contract may be entered into
             1241      by competitive sealed proposals.
             1242          (b) (i) Competitive sealed proposals may be used for the procurement of services of
             1243      consultants, professionals, and providers as defined by the policy board by rule, whether or not
             1244      the determination described in this subsection has been made.
             1245          (ii) The policy board shall make rules establishing guidelines to assure maximum
             1246      practicable competition in those procurements, including the relative importance, if any, of the
             1247      fee to be charged by an offeror.
             1248          (iii) The rules may provide that it is either not practicable or not advantageous to the
             1249      state to procure certain types of supplies, services, or construction by competitive sealed
             1250      bidding or competitive sealed proposals.
             1251          (2) (a) Proposals shall be solicited through a request for proposals.
             1252          (b) Public notice of the request for proposals shall be given in accordance with policy
             1253      board rules.
             1254          (3) (a) Proposals shall be opened so as to avoid disclosure of contents to competing
             1255      offerors during the process of negotiation.
             1256          (b) A register of proposals shall be prepared in accordance with policy board rules and
             1257      shall be open for public inspection after the contract is awarded.
             1258          (4) The request for proposals shall state the relative importance of price and other
             1259      evaluating factors.
             1260          (5) (a) As provided in the request for proposals and under policy board rules,
             1261      discussions may be conducted with responsible offerors who submit proposals for the purpose
             1262      of assuring full understanding of, and responsiveness to, solicitation requirements.
             1263          (b) Offerors shall be accorded fair and equal treatment with respect to any opportunity
             1264      for discussion and revision of proposals, and revisions may be permitted after submissions and
             1265      before the contract is awarded for the purpose of obtaining best and final offers.
             1266          (c) In conducting discussions, there shall be no disclosure of any information derived
             1267      from proposals submitted by competing offerors.


             1268          (6) (a) Award shall be made to the responsible offeror whose proposal is determined in
             1269      writing to be the most advantageous to the state, taking into consideration price and the
             1270      evaluation factors set forth in the request for proposals.
             1271          (b) No other factors or criteria shall be used in the evaluation.
             1272          (c) The contract file shall contain the basis on which the award is made.
             1273          Section 40. Section 63-56-409 , which is renumbered from Section 63-56-22 is
             1274      renumbered and amended to read:
             1275           [63-56-22].     63-56-409. Small purchases.
             1276          Small purchases shall be defined in, and may be made in accordance with procedures
             1277      established by rules and regulations; except that procurement requirement shall not be
             1278      artificially divided so as to constitute a small purchase under this section.
             1279          Section 41. Section 63-56-410 , which is renumbered from Section 63-56-23 is
             1280      renumbered and amended to read:
             1281           [63-56-23].     63-56-410. Circumstances justifying award of contract without
             1282      competition.
             1283          A contract may be awarded for a supply, service, or construction item without
             1284      competition when, under rules and regulations, the chief procurement officer, the head of a
             1285      purchasing agency, or a designee of either officer above the level of procurement officer
             1286      determines in writing that:
             1287          (1) there is only one source for the required supply, service, or construction item; or
             1288          (2) the award to a specific supplier, service provider, or contractor is a condition of a
             1289      donation that will fund the full cost of the supply, service, or construction item.
             1290          Section 42. Section 63-56-411 , which is renumbered from Section 63-56-24 is
             1291      renumbered and amended to read:
             1292           [63-56-24].     63-56-411. Emergency procurements.
             1293          Notwithstanding any other provision of this chapter, when there exists a threat to public
             1294      health, welfare, or safety under emergency conditions as defined in rules and regulations, the
             1295      chief procurement officer, the head of a purchasing agency, or a designee of either officer may
             1296      make or authorize others to make emergency procurements; provided that emergency
             1297      procurements shall be made with as much competition as practicable under the circumstances.
             1298      A written determination of the basis for the emergency and for the selection of the particular


             1299      contractor shall be included in the contract file.
             1300          Section 43. Section 63-56-412 , which is renumbered from Section 63-56-25 is
             1301      renumbered and amended to read:
             1302           [63-56-25].     63-56-412. Cancellation and rejection of bids.
             1303          An invitation for bids, a request for proposals, or other solicitation may be cancelled, or
             1304      any or all bids or proposals may be rejected, in whole or in part, as may be specified in the
             1305      solicitation, when it is in the best interests of the state in accordance with rules and regulations.
             1306      The reasons shall be made part of the contract file.
             1307          Section 44. Section 63-56-413 , which is renumbered from Section 63-56-26 is
             1308      renumbered and amended to read:
             1309           [63-56-26].     63-56-413. Determination of nonresponsibility of bidder.
             1310          A written determination of nonresponsibility of a bidder or offeror shall be made in
             1311      accordance with rules and regulations. The unreasonable failure of a bidder or offeror to
             1312      promptly supply information in connection with an inquiry with respect to responsibility may
             1313      be grounds for a determination of nonresponsibility with respect to the bidder or offeror.
             1314      Information furnished by a bidder or offeror pursuant to this section shall not be disclosed
             1315      outside of the purchasing division or the purchasing agency without prior written consent by
             1316      the bidder or offeror.
             1317          Section 45. Section 63-56-414 , which is renumbered from Section 63-56-27 is
             1318      renumbered and amended to read:
             1319           [63-56-27].     63-56-414. Prequalification of suppliers.
             1320          Prospective suppliers may be prequalified for particular types of supplies, services, and
             1321      construction. Solicitation mailing lists of potential contractors shall include but shall not be
             1322      limited to prequalified suppliers.
             1323          Section 46. Section 63-56-415 , which is renumbered from Section 63-56-28 is
             1324      renumbered and amended to read:
             1325           [63-56-28].     63-56-415. Rules and regulations to determine allowable incurred
             1326      costs -- Required information -- Auditing of books.
             1327          (1) Rules and regulations may be promulgated to set forth cost principles to be used to
             1328      determine the allowability of incurred costs for the purpose of reimbursing costs under contract
             1329      provisions which provide for the reimbursement of costs; provided that if a written


             1330      determination is approved at a level above the procurement officer, the cost principles may be
             1331      modified by contract.
             1332          (2) A person shall, except as provided in Subsection (4), submit cost or pricing data
             1333      and shall certify that, to the best of the person's knowledge and belief, the cost or pricing data
             1334      submitted were accurate, complete, and current as of a mutually determined specified date prior
             1335      to the date of:
             1336          (a) the pricing of any contract awarded by competitive sealed proposals or pursuant to
             1337      the sole source procurement authority, where the total contract price is expected to exceed an
             1338      amount established by rules and regulations; or
             1339          (b) the pricing of any change order which is expected to exceed an amount established
             1340      by rules and regulations.
             1341          (3) Any contract or change order under which a certificate is required shall contain a
             1342      provision that the price to the state, including profit or fee, shall be adjusted to exclude any
             1343      significant sums by which the state finds that the price was increased because the
             1344      contractor-furnished cost or pricing data were inaccurate, incomplete, or not current as of the
             1345      date agreed upon between the parties.
             1346          (4) The requirements of Subsections (2) and (3) need not be applied to contracts:
             1347          (a) where the contract price is based on adequate price competition;
             1348          (b) where the contract price is based on established catalogue prices or market prices;
             1349          (c) where contract prices are set by law or regulation; or
             1350          (d) where it is determined in writing in accordance with rules and regulations that the
             1351      requirements of this section may be waived, and the reasons for such waiver are stated in
             1352      writing.
             1353          (5) The state may, at reasonable times and places, audit the books and records of any
             1354      person who has submitted cost or pricing data pursuant to this section or any contractor or
             1355      subcontractor under any negotiated contract or subcontract other than a firm fixed-price
             1356      contract to the extent that the books and records relate to the cost or pricing data, contract, or
             1357      subcontract. The books and records shall be maintained by the contractor for three years
             1358      following the end of the fiscal year in which final payment is made under the prime contract
             1359      and by the subcontractor for three years following the end of the fiscal year in which final
             1360      payment is made under the subcontract, unless a shorter period is otherwise authorized in


             1361      writing.
             1362          Section 47. Section 63-56-416 , which is renumbered from Section 63-56-29 is
             1363      renumbered and amended to read:
             1364           [63-56-29].     63-56-416. Cost-plus-a-percentage-of-cost contract prohibited.
             1365          (1) Subject to the limitations of this section, any type of contract which will promote
             1366      the best interests of the state may be used; provided that the use of a
             1367      cost-plus-a-percentage-of-cost contract is prohibited. A cost-reimbursement contract may be
             1368      used only when a determination is made in writing that such contract is likely to be less costly
             1369      to the state than any other type or that it is impracticable to obtain the supplies, services, or
             1370      construction required except under such a contract.
             1371          (2) Except with respect to firm fixed-price contracts, no contract type shall be used
             1372      unless it has been determined in writing by the chief procurement officer, the head of a
             1373      purchasing agency, or a designee of either officer that:
             1374          (a) the proposed contractor's accounting system will permit timely development of all
             1375      necessary cost data in the form required by the specific contract type contemplated; and
             1376          (b) the proposed contractor's accounting system is adequate to allocate costs in
             1377      accordance with generally accepted accounting principles.
             1378          Section 48. Section 63-56-417 , which is renumbered from Section 63-56-30 is
             1379      renumbered and amended to read:
             1380           [63-56-30].     63-56-417. Period of time for contract of supplies.
             1381          (1) Unless otherwise provided by law, a contract for supplies or services may be entered
             1382      into for any period of time [deemed] considered to be in the best interests of the state; provided
             1383      that the term of the contract and conditions of renewal or extension, if any, are included in the
             1384      solicitation and funds are available for the first fiscal period at the time of contracting. Payment
             1385      and performance obligations for succeeding fiscal periods shall be subject to the availability
             1386      and appropriation of funds.
             1387          (2) Prior to the utilization of a multiyear contract, it shall be determined in writing that
             1388      estimated requirements cover the period of the contract and are reasonably firm and continuing
             1389      and that such a contract will serve the best interests of the state by encouraging effective
             1390      competition or otherwise promoting economies in state procurement.
             1391          (3) When funds are not appropriated or otherwise made available to support


             1392      continuation of performance in a subsequent fiscal period, the contract shall be cancelled and
             1393      the contractor shall be reimbursed for the reasonable value of any nonrecurring costs incurred
             1394      but not amortized in the price of the supplies or services delivered under the contract. The cost
             1395      of cancellation may be paid from any appropriations available for that purpose.
             1396          Section 49. Section 63-56-418 , which is renumbered from Section 63-56-31 is
             1397      renumbered and amended to read:
             1398           [63-56-31].     63-56-418. Right of state to inspect place of business of contractor
             1399      or subcontractor.
             1400          The state may, at reasonable times, inspect the part of the plant or place of business of a
             1401      contractor or any subcontractor which is related to the performance of any contract awarded or
             1402      to be awarded by the state.
             1403          Section 50. Section 63-56-419 , which is renumbered from Section 63-56-32 is
             1404      renumbered and amended to read:
             1405           [63-56-32].     63-56-419. Determinations final except when arbitrary and
             1406      capricious.
             1407          The determinations required by Subsections [ 63-56-20 ] 63-56-401 (6), [ 63-56-21 ]
             1408      63-56-408 (1) and (6), Sections [ 63-56-23 ] 63-56-410 , [ 63-56-24 ] 63-56-411 , [ 63-56-26 ]
             1409      63-56-413 , Subsection [ 63-56-28 ] 63-56-415 (4), Section [ 63-56-29 ] 63-56-416 , and
             1410      Subsection [ 63-56-30 ] 63-56-417 (2) are final and conclusive unless they are arbitrary and
             1411      capricious or clearly erroneous.
             1412          Section 51. Section 63-56-420 , which is renumbered from Section 63-56-33 is
             1413      renumbered and amended to read:
             1414           [63-56-33].     63-56-420. Factual information to attorney general if collusion
             1415      suspected.
             1416          When for any reason collusion or other anticompetitive practices are suspected among
             1417      bidders or offerors, a notice of the relevant facts shall be transmitted to the attorney general.
             1418          Section 52. Section 63-56-421 , which is renumbered from Section 63-56-34 is
             1419      renumbered and amended to read:
             1420           [63-56-34].     63-56-421. Records of contracts made.
             1421          The chief procurement officer or the head of a purchasing agency shall maintain a
             1422      record listing all contracts made under Section [ 63-56-23 ] 63-56-410 or [ 63-56-24 ] 63-56-411


             1423      and shall maintain the record in accordance with Title 63, Chapter 2, Government Records
             1424      Access and Management Act. The record shall contain each contractor's name, the amount and
             1425      type of each contract, and a listing of the supplies, services, or construction procured under
             1426      each contract.
             1427          Section 53. Section 63-56-422 , which is renumbered from Section 63-56-35.5 is
             1428      renumbered and amended to read:
             1429           [63-56-35.5].     63-56-422. Exemptions from source selection and contract
             1430      requirements -- Violation penalty.
             1431          The policy board may, by rule, exempt a public procurement unit from the source
             1432      selection and contract award provisions of this part, if it [deems] considers that to be in the best
             1433      economic interest of the state.
             1434          On projects where public funds or political subdivisions are involved, the owner shall
             1435      follow the procedures outlined in the Utah Procurement Code when determining or selecting
             1436      their agent or construction manager. However, no exemption shall be permitted that allows
             1437      any political subdivision of this state to negotiate, enter into, or cause to be negotiated prior to
             1438      open bidding for the prime contracting agent any predetermined agreement or arrangement
             1439      which causes interference with the traditional fair competitive bidding process or the rights of
             1440      employees under state and federal law. Any agreement or arrangement entered into in violation
             1441      of this section is unenforceable and void ab initio and the parties to such an agreement or
             1442      arrangement are subject to a class B misdemeanor penalty.
             1443          This provision shall not apply to any political subdivision, agency, or department of this
             1444      state, if, as a condition of a federal grant, there is a requirement that a schedule of
             1445      predetermined wages be included in the contract.
             1446          Section 54. Section 63-56-423 , which is renumbered from Section 63-56-35.6 is
             1447      renumbered and amended to read:
             1448           [63-56-35.6].     63-56-423. Purchase of prison industry goods.
             1449          (1) All public procurement units shall purchase goods and services produced by the
             1450      Utah Correctional Industries Division as provided by this section, which is an exemption from
             1451      this chapter. All political subdivisions of the state may purchase these goods and services and
             1452      are encouraged to do so when feasible.
             1453          (2) By July 1 of each year, the director of the Utah Correctional Industries shall publish


             1454      and distribute to all state agencies and interested political subdivisions a catalog of goods and
             1455      services provided by the Correctional Industries Division. The catalog shall include a
             1456      description and price of each item offered for sale. The catalog shall be updated and revised
             1457      during the year as the director [deems] considers necessary.
             1458          (3) (a) State departments, agencies, and institutions may not purchase any goods or
             1459      services provided by the Correctional Industries Division from any other source unless it has
             1460      been determined in writing by the director of Correctional Industries and the state procurement
             1461      officer or in the case of institutions of higher education, the institutional procurement officer,
             1462      that purchase from the Correctional Industries Division is not feasible due to one of the
             1463      following circumstances:
             1464          [(a)] (i) the good or service offered by the division does not meet the reasonable
             1465      requirements of the purchasing agency;
             1466          [(b)] (ii) the good or service cannot be supplied within a reasonable time by the
             1467      division; or
             1468          [(c)] (iii) the cost of the good or service, including basic price, transportation costs, and
             1469      other expenses of acquisition, is not competitive with the cost of procuring the item from
             1470      another source.
             1471          (b) In cases of disagreement, the decision may be appealed to a board consisting of the
             1472      director of the Department of Corrections, the director of Administrative Services, and a
             1473      neutral third party agreed upon by the other two members or, in the case of institutions of
             1474      higher education, the president of the involved institution shall make the final decision.
             1475          Section 55. Section 63-56-424 , which is renumbered from Section 63-56-35.7 is
             1476      renumbered and amended to read:
             1477           [63-56-35.7].     63-56-424. Counties and municipalities eligible to participate
             1478      in state agreements, contracts, and surplus property program.
             1479          Utah counties, municipalities, and local public procurement units may purchase from or
             1480      otherwise participate in state public procurement unit agreements and contracts.
             1481          Section 56. Section 63-56-425 , which is renumbered from Section 63-56-35.8 is
             1482      renumbered and amended to read:
             1483           [63-56-35.8].     63-56-425. Purchase from sheltered workshops.
             1484          (1) As used in this section, "sheltered workshop" means a nonprofit organization


             1485      operated in the interest of severely disabled individuals that:
             1486          (a) is certified as a sheltered workshop or sheltered work activity center by the United
             1487      States Department of Labor; or
             1488          (b) is a supported employment program approved by the Utah State Office of
             1489      Rehabilitation if:
             1490          (i) the program has as its principal purpose the development of employment
             1491      opportunities for individuals with severe disabilities; and
             1492          (ii) at least 75% of the program employees under the procurement contract in question
             1493      have severe disabilities.
             1494          (2) Notwithstanding any provision in this chapter to the contrary, each public
             1495      procurement unit shall purchase goods and services produced by a sheltered workshop if:
             1496          (a) the good or service offered for sale by a sheltered workshop reasonably conforms to
             1497      the needs and specifications of the public procurement unit;
             1498          (b) the sheltered workshop can supply the good or service within a reasonable time;
             1499          (c) the price of the good or service is reasonably competitive with the cost of procuring
             1500      the good or service from another source;
             1501          (d) the sheltered workshop has provided the public procurement unit with a written bid
             1502      fairly identifying the good or service and naming its price; and
             1503          (e) (i) the sheltered workshop has its principal place of business in Utah;
             1504          (ii) the good was produced by the sheltered workshop in Utah; or
             1505          (iii) the service is provided by individuals, the majority of whom are domiciled in
             1506      Utah.
             1507          (3) The cost of a good or service is considered reasonably competitive under
             1508      Subsection (2)(c) if it is within 5% of the lowest responsive and responsible bid offer for that
             1509      good or service.
             1510          (4) Each sheltered workshop shall certify on any bid it submits to a public procurement
             1511      unit under this section that it is claiming a preference under this section.
             1512          (5) In the case of conflict between a purchase under this section and a purchase under
             1513      Section [ 63-56-35.6 ,] 63-56-423 , this section [ 63-56-35.8 ] prevails.
             1514          Section 57. Section 63-56-501 , which is renumbered from Section 63-56-36 is
             1515      renumbered and amended to read:


             1516     
Part 5. Procurement of Construction

             1517           [63-56-36].     63-56-501. Alternative methods of construction contracting
             1518      management.
             1519          (1) (a) Rules shall provide as many alternative methods of construction contracting
             1520      management as determined to be feasible.
             1521          (b) These rules shall:
             1522          (i) grant to the chief procurement officer or the head of the purchasing agency
             1523      responsible for carrying out the construction project the discretion to select the appropriate
             1524      method of construction contracting management for a particular project; and
             1525          (ii) require the procurement officer to execute and include in the contract file a written
             1526      statement setting forth the facts which led to the selection of a particular method of
             1527      construction contracting management for each project.
             1528          (c) Before choosing a construction contracting management method, the chief
             1529      procurement officer or the head of the purchasing agency responsible for carrying out the
             1530      construction project shall consider the following factors:
             1531          (i) when the project must be ready to be occupied;
             1532          (ii) the type of project;
             1533          (iii) the extent to which the requirements of the procuring agencies and the ways in
             1534      which they are to be met are known;
             1535          (iv) the location of the project;
             1536          (v) the size, scope, complexity, and economics of the project;
             1537          (vi) the source of funding and any resulting constraints necessitated by the funding
             1538      source;
             1539          (vii) the availability, qualification, and experience of state personnel to be assigned to
             1540      the project and how much time the state personnel can devote to the project; and
             1541          (viii) the availability, qualifications, and experience of outside consultants and
             1542      contractors to complete the project under the various methods being considered.
             1543          (2) (a) Rules adopted by state public procurement units and local public procurement
             1544      units to implement this section may authorize the use of a Construction Manager/General
             1545      Contractor as one method of construction contracting management.
             1546          (b) Those rules shall require that:


             1547          (i) the Construction Manager/General Contractor shall be selected using one of the
             1548      source selection methods provided for in [Sections 63-56-20 through 63-56-35.8 ] Part 4,
             1549      Source Selections and Contract Formation, and Section [ 63-56-36.1 ] 63-56-502 ; and
             1550          (ii) when entering into any subcontract that was not specifically included in the
             1551      Construction Manager/General Contractor's cost proposal submitted under the requirements of
             1552      Subsection (2)(b)(i), the Construction Manager/General Contractor shall procure that
             1553      subcontractor by using one of the source selection methods provided for in [Sections 63-56-20
             1554      through 63-56-35.8 ] Part 4, Source Selections and Contract Formation, in the same manner as
             1555      if the subcontract work was procured directly by the state.
             1556          (3) Procurement rules adopted by the State Building Board under Subsection (1) for
             1557      state building construction projects may authorize the use of a design-build provider as one
             1558      method of construction contracting management.
             1559          Section 58. Section 63-56-502 , which is renumbered from Section 63-56-36.1 is
             1560      renumbered and amended to read:
             1561           [63-56-36.1].     63-56-502. Procurement of design-build transportation
             1562      project contracts.
             1563          (1) As used in this section:
             1564          (a) "Design-build transportation project contract" means the procurement of both the
             1565      design and construction of a transportation project in a single contract with a company or
             1566      combination of companies capable of providing the necessary engineering services and
             1567      construction.
             1568          (b) "Transportation agency" means:
             1569          (i) the Department of Transportation;
             1570          (ii) a county of the first or second class, as defined in Section 17-50-501 ;
             1571          (iii) a municipality of the first class, as defined in Section 10-2-301 ;
             1572          (iv) a public transit district that has more than 200,000 people residing within its
             1573      boundaries; and
             1574          (v) a public airport authority[, as defined in Section 72-10-102 ].
             1575          (2) Except as provided in Subsection (3), a transportation agency may award a
             1576      design-build transportation project contract for any transportation project that has an estimated
             1577      cost of at least $50,000,000 by following the requirements of this section.


             1578          (3) (a) The Department of Transportation:
             1579          (i) may award a design-build transportation project contract for any transportation
             1580      project by following the requirements of this section; and
             1581          (ii) shall make rules, by following the procedures and requirements of Title 63, Chapter
             1582      46a, Utah Administrative Rulemaking Act, establishing requirements for the procurement of its
             1583      design-build transportation project contracts in addition to those required by this section.
             1584          (b) A public transit district that has more than 200,000 people residing within its
             1585      boundaries:
             1586          (i) may award a design-build transportation project contract for any transportation
             1587      project by following the requirements of this section; and
             1588          (ii) shall pass ordinances or a resolution establishing requirements for the procurement
             1589      of its design-build transportation project contracts in addition to those required by this section.
             1590          (c) A design-build transportation project contract authorized under this Subsection (3)
             1591      is not subject to the estimated cost threshold under Subsection (2).
             1592          (4) (a) Before entering a design-build transportation project contract, a transportation
             1593      agency may issue a request for qualifications to prequalify potential contractors.
             1594          (b) Public notice of the request for qualifications shall be given in accordance with
             1595      policy board rules.
             1596          (c) A transportation agency shall require, as part of the qualifications specified in the
             1597      request for qualifications, that potential contractors at least demonstrate their:
             1598          (i) construction experience;
             1599          (ii) design experience;
             1600          (iii) financial, manpower, and equipment resources available for the project; and
             1601          (iv) experience in other design-build transportation projects with attributes similar to
             1602      the project being procured.
             1603          (d) The request for qualifications shall identify the number of eligible competing
             1604      proposers that the transportation agency will select to submit a proposal, which must be at least
             1605      two.
             1606          (5) (a) The transportation agency shall:
             1607          (i) evaluate the responses received from the request for qualifications;
             1608          (ii) select from their number those qualified to submit proposals; and


             1609          (iii) invite those respondents to submit proposals based upon the transportation
             1610      agency's request for proposals.
             1611          (b) If the transportation agency fails to receive at least two qualified eligible competing
             1612      proposers, the transportation agency shall readvertise the project.
             1613          (6) The transportation agency shall issue a request for proposals to those qualified
             1614      respondents that:
             1615          (a) includes a scope of work statement constituting an information for proposal that
             1616      may include:
             1617          (i) preliminary design concepts;
             1618          (ii) design criteria, needs, and objectives;
             1619          (iii) warranty and quality control requirements;
             1620          (iv) applicable standards;
             1621          (v) environmental documents;
             1622          (vi) constraints;
             1623          (vii) time expectations or limitations;
             1624          (viii) incentives or disincentives; and
             1625          (ix) other special considerations;
             1626          (b) requires submitters to provide:
             1627          (i) a sealed cost proposal;
             1628          (ii) a critical path matrix schedule, including cash flow requirements;
             1629          (iii) proposal security; and
             1630          (iv) other items required by the department for the project; and
             1631          (c) may include award of a stipulated fee to be paid to submitters who submit
             1632      unsuccessful proposals.
             1633          (7) The transportation agency shall:
             1634          (a) evaluate the submissions received in response to the request for proposals from the
             1635      prequalified proposers;
             1636          (b) comply with rules relating to discussion of proposals, best and final offers, and
             1637      evaluations of the proposals submitted; and
             1638          (c) after considering price and other identified factors, award the contract to the
             1639      responsible proposer whose proposal is most advantageous to the state.


             1640          Section 59. Section 63-56-503 , which is renumbered from Section 63-56-37 is
             1641      renumbered and amended to read:
             1642           [63-56-37].     63-56-503. Bid security requirements -- Directed suretyship
             1643      prohibited -- Penalty.
             1644          (1) Bid security in amount equal to at least 5% of the amount of the bid shall be
             1645      required for all competitive sealed bidding for construction contracts. Bid security shall be a
             1646      bond provided by a surety company authorized to do business in this state, the equivalent in
             1647      cash, or any other form satisfactory to the state.
             1648          (2) When a bidder fails to comply with the requirement for bid security set forth in the
             1649      invitation for bids, the bid shall be rejected unless, pursuant to rules, it is determined that the
             1650      failure to comply with the security requirements is nonsubstantial.
             1651          (3) After the bids are opened, they shall be irrevocable for the period specified in the
             1652      invitation for bids, except as provided in Subsection [ 63-56-20 ] 63-56-401 (6). If a bidder is
             1653      permitted to withdraw a bid before award, no action shall be taken against the bidder or the bid
             1654      security.
             1655          (4) (a) When issuing an invitation for a bid under this chapter, the chief procurement
             1656      officer or the head of the purchasing agency responsible for carrying out a construction project
             1657      may not require a person or entity who is bidding for a contract to obtain a bond of the type
             1658      referred to in Subsection (1) from a specific insurance or surety company, producer, agent, or
             1659      broker.
             1660          (b) A person who violates Subsection (4)(a) is guilty of an infraction.
             1661          Section 60. Section 63-56-504 , which is renumbered from Section 63-56-38 is
             1662      renumbered and amended to read:
             1663           [63-56-38].     63-56-504. Bonds necessary when contract is awarded -- Waiver --
             1664      Action -- Attorneys' fees.
             1665          (1) When a construction contract is awarded under this chapter, the contractor to whom
             1666      the contract is awarded shall deliver the following bonds or security to the state, which shall
             1667      become binding on the parties upon the execution of the contract:
             1668          (a) a performance bond satisfactory to the state that is in an amount equal to 100% of
             1669      the price specified in the contract and is executed by a surety company authorized to do
             1670      business in this state or any other form satisfactory to the state; and


             1671          (b) a payment bond satisfactory to the state that is in an amount equal to 100% of the
             1672      price specified in the contract and is executed by a surety company authorized to do business in
             1673      this state or any other form satisfactory to the state, which is for the protection of each person
             1674      supplying labor, service, equipment, or material for the performance of the work provided for
             1675      in the contract.
             1676          (2) (a) When a construction contract is awarded under this chapter, the chief
             1677      procurement officer or the head of the purchasing agency responsible for carrying out a
             1678      construction project may not require a contractor to whom a contract is awarded to obtain a
             1679      bond of the types referred to in [Subsections] Subsection (1)[(a) and (b)] from a specific
             1680      insurance or surety company, producer, agent, or broker.
             1681          (b) A person who violates Subsection (2)(a) is guilty of an infraction.
             1682          (3) Rules may provide for waiver of the requirement of a bid, performance, or payment
             1683      bond for circumstances in which the state considers any or all of the bonds to be unnecessary to
             1684      protect the state.
             1685          (4) A person shall have a right of action on a payment bond under this section for any
             1686      unpaid amount due him if:
             1687          (a) he has furnished labor, service, equipment, or material for the work provided for in
             1688      the contract for which the payment bond is furnished under this section; and
             1689          (b) he has not been paid in full within 90 days after the last date on which he performed
             1690      the labor or service or supplied the equipment or material for which the claim is made.
             1691          (5) An action upon a payment bond shall be brought in a court of competent
             1692      jurisdiction in any county where the construction contract was to be performed and not
             1693      elsewhere. The action is barred if not commenced within one year after the last day on which
             1694      the claimant performed the labor or service or supplied the equipment or material on which the
             1695      claim is based. The obligee named in the bond need not be joined as a party to the action.
             1696          (6) In any suit upon a payment bond, the court shall award reasonable attorneys' fees to
             1697      the prevailing party, which fees shall be taxed as costs in the action.
             1698          Section 61. Section 63-56-505 (Effective 05/01/05) , which is renumbered from Section
             1699      63-56-38.1 (Effective 05/01/05) is renumbered and amended to read:
             1700           [63-56-38.1 (Effective 05/01/05)].     63-56-505 (Effective 05/01/05). Preliminary
             1701      notice requirement.


             1702          (1) Any person furnishing labor, service, equipment, or material for which a payment
             1703      bond claim may be made under this chapter shall provide preliminary notice to the designated
             1704      agent as prescribed by Section 38-1-32 , except that this section does not apply:
             1705          (a) to a person performing labor for wages; or
             1706          (b) if a notice of commencement is not filed as prescribed in Section 38-1-31 for the
             1707      project or improvement for which labor, service, equipment, or material is furnished.
             1708          (2) Any person who fails to provide the preliminary notice required by Subsection (1)
             1709      may not make a payment bond claim under this chapter.
             1710          (3) The preliminary notice required by Subsection (1) must be provided prior to
             1711      commencement of any action on the payment bond.
             1712          Section 62. Section 63-56-506 , which is renumbered from Section 63-56-39 is
             1713      renumbered and amended to read:
             1714           [63-56-39].     63-56-506. Form of bonds -- Effect of certified copy.
             1715          The form of the bonds required by this part shall be established by rules and
             1716      regulations. Any person may obtain from the state a certified copy of a bond upon payment of
             1717      the cost of reproduction of the bond and postage, if any. A certified copy of a bond shall be
             1718      prima facie evidence of the contents, execution, and delivery of the original.
             1719          Section 63. Section 63-56-601 , which is renumbered from Section 63-56-40 is
             1720      renumbered and amended to read:
             1721     
Part 6. Contract Clauses

             1722           [63-56-40].     63-56-601. Required contract clauses -- Computation of price
             1723      adjustments -- Use of rules and regulations.
             1724          (1) Rules and regulations shall require for state construction contracts and may permit
             1725      or require for state contracts for supplies and services the inclusion of clauses providing for
             1726      adjustments in prices, time of performance, or other appropriate contract provisions, and
             1727      covering the following subjects:
             1728          (a) the unilateral right of the state to order in writing changes in the work within the
             1729      scope of the contract and changes in the time of performance of the contract that do not alter
             1730      the scope of the contract work;
             1731          (b) variations occurring between estimated quantities of work in a contract and actual
             1732      quantities;


             1733          (c) suspension of work ordered by the state; and
             1734          (d) site conditions differing from those indicated in the construction contract, or
             1735      ordinarily encountered, except that differing site conditions clauses required by the rules and
             1736      regulations need not be included in a construction contract when the contract is negotiated,
             1737      when the contractor provides the site or design, or when the parties have otherwise agreed with
             1738      respect to the risk of differing site conditions.
             1739          (2) Adjustments in price pursuant to clauses promulgated under Subsection (1) shall be
             1740      computed in one or more of the following ways:
             1741          (a) by agreement on a fixed price adjustment before commencement of the pertinent
             1742      performance or as soon thereafter as practicable;
             1743          (b) by unit prices specified in the contract or subsequently agreed upon;
             1744          (c) by the costs attributable to the events or situations under the clauses with
             1745      adjustment of profit or fee, all as specified in the contract or subsequently agreed upon;
             1746          (d) in any other manner as the contracting parties may mutually agree; or
             1747          (e) in the absence of agreement by the parties, by a unilateral determination by the state
             1748      of the costs attributable to the events or situations under the clauses with adjustment of profit
             1749      or fee, all as computed by the state in accordance with applicable sections of the rules and
             1750      regulations issued under Subsection [ 63-56-28 ] 63-56-415 (1) and subject to the provisions of
             1751      Part [H of this chapter] 8, Legal and Contractual Remedies.
             1752          (3) A contractor shall be required to submit cost or pricing data if any adjustment in
             1753      contract price is subject to the provisions of Section [ 63-56-28 ] 63-56-415 .
             1754          (4) Rules and regulations shall require for state construction contracts and may permit
             1755      or require for state contracts for supplies and services the inclusion of clauses providing for
             1756      appropriate remedies and covering at least the following subjects:
             1757          (a) liquidated damages as appropriate;
             1758          (b) specified excuses for delay or nonperformance;
             1759          (c) termination of the contract for default; and
             1760          (d) termination of the contract in whole or in part for the convenience of the state.
             1761          (5) The contract clauses promulgated under this section shall be set forth in rules and
             1762      regulations. However, the chief procurement officer or the head of a purchasing agency may
             1763      modify the clauses for inclusion in any particular contract. Any variations shall be supported by


             1764      a written determination that describes the circumstances justifying the variations, and notice of
             1765      any material variation shall be included in the invitation for bids or request for proposals.
             1766          Section 64. Section 63-56-602 , which is renumbered from Section 63-56-41 is
             1767      renumbered and amended to read:
             1768           [63-56-41].     63-56-602. Certification of change order.
             1769          Under a construction contract, any change order which increases the contract amount
             1770      shall be subject to prior written certification that the change order is within the determined
             1771      project or contract budget. The certification shall be made by the fiscal officer of the entity
             1772      responsible for funding the project or the contract or other official responsible for monitoring
             1773      and reporting upon the status of the costs of the total project or contract budget. If the
             1774      certification discloses a resulting increase in the total project or contract budget, the
             1775      procurement officer shall not execute or make the change order unless sufficient funds are
             1776      available or the scope of the project or contract is adjusted to permit the degree of completion
             1777      feasible within the total project or contract budget as it existed prior to the change order under
             1778      consideration. However, with respect to the validity, as to the contractor, of any executed
             1779      change order upon which the contractor has reasonably relied, it shall be presumed that there
             1780      has been compliance with the provisions of this section.
             1781          Section 65. Section 63-56-701 , which is renumbered from Section 63-56-42 is
             1782      renumbered and amended to read:
             1783     
Part 7. Architect-Engineer Services

             1784           [63-56-42].     63-56-701. Policy regarding architect-engineer services.
             1785          It is the policy of this state to publicly announce all requirements for architect-engineer
             1786      services and to negotiate contracts for architect-engineer services on the basis of demonstrated
             1787      competence and qualification for the type of services required, and at fair and reasonable
             1788      prices. Architect-engineer services shall be procured as provided in this part except as
             1789      authorized by Sections [ 63-56-22 ] 63-56-409 through [ 63-56-24 ] 63-56-411 . This part does not
             1790      affect the authority of, and does not apply to procedures undertaken by, a public procurement
             1791      unit to obtain the services of architects or engineers in the capacity of employees of such unit.
             1792          Section 66. Section 63-56-702 , which is renumbered from Section 63-56-43 is
             1793      renumbered and amended to read:
             1794           [63-56-43].     63-56-702. Selection committee for architect-engineer services.


             1795          In the procurement of architect-engineer services, the chief procurement officer or the
             1796      head of a purchasing agency shall encourage firms engaged in the lawful practice of their
             1797      profession to submit annually a statement of qualifications and performance data. The Building
             1798      Board shall be the selection committee for architect-engineer services contracts under its
             1799      authority. Selection committees for architect-engineer services contracts not under the authority
             1800      of the Building Board shall be established in accordance with rules and regulations
             1801      promulgated by the policy board. Selection committees shall evaluate current statements of
             1802      qualifications and performance data on file with the state, together with those that may be
             1803      submitted by other firms in response to the announcement of the proposed contract. Selection
             1804      committees shall consider no less than three firms and then shall select therefrom, based upon
             1805      criteria established and published by the selection committees, no less than three of the firms
             1806      [deemed] considered to be the most highly qualified to provide the services required.
             1807          Section 67. Section 63-56-703 , which is renumbered from Section 63-56-43.1 is
             1808      renumbered and amended to read:
             1809           [63-56-43.1].     63-56-703. Selection as part of design-build or lease.
             1810          Notwithstanding any other provision of this chapter, architect-engineer services may be
             1811      procured under Title 63A, Chapter 5, State Building Board[/] - Division of Facilities
             1812      Construction and Management, as part of the services obtained in a design-build contract or as
             1813      part of the services obtained in a lease contract for real property, provided that the
             1814      qualifications of those providing the architect-engineer services are part of the consideration in
             1815      the selection process.
             1816          Section 68. Section 63-56-704 , which is renumbered from Section 63-56-44 is
             1817      renumbered and amended to read:
             1818           [63-56-44].     63-56-704. Determination of compensation for architect-engineer
             1819      services.
             1820          The procurement officer shall award a contract to a qualified firm at compensation
             1821      which the procurement officer determines in writing to be fair and reasonable to the state. In
             1822      making this decision, the procurement officer shall take into account the estimated value, the
             1823      scope, and complexity, and the professional nature of the services to be rendered. Should the
             1824      procurement officer be unable to agree to a satisfactory contract with the firm first selected, at a
             1825      price the procurement officer determines to be fair and reasonable to the state, discussions with


             1826      that firm shall be formally terminated. The procurement officer shall then undertake
             1827      discussions with a second qualified firm. Failing accord with the second firm, the procurement
             1828      officer shall formally terminate discussions. The procurement officer shall then undertake
             1829      discussions with a third qualified firm. Should the procurement officer be unable to award a
             1830      contract at a fair and reasonable price with any of the selected firms, the procurement officer
             1831      shall select additional firms, and the procurement officer shall continue discussions in
             1832      accordance with this part until an agreement is reached.
             1833          Section 69. Section 63-56-705 , which is renumbered from Section 63-56-44.5 is
             1834      renumbered and amended to read:
             1835           [63-56-44.5].     63-56-705. Restrictions on state agency procurement of
             1836      architect-engineer services.
             1837          (1) Except as provided in Subsection (2), when a public procurement unit, in
             1838      accordance with Section [ 63-56-42 ] 63-56-701 , elects to obtain architect or engineering
             1839      services by using a competitive procurement process and has provided public notice of its
             1840      competitive procurement process:
             1841          (a) a higher education entity, or any part of one, may not submit a proposal in response
             1842      to the public procurement unit's competitive procurement process; and
             1843          (b) the public procurement unit may not award a contract to perform the architect or
             1844      engineering services solicited in the competitive procurement process to a higher education
             1845      entity or any part of one.
             1846          (2) A public procurement unit need not comply with the requirements of Subsection (1)
             1847      when the public procurement unit is procuring architect or engineer services for contracts
             1848      related to research activities and technology transfer.
             1849          Section 70. Section 63-56-801 , which is renumbered from Section 63-56-45 is
             1850      renumbered and amended to read:
             1851     
Part 8. Legal and Contractual Remedies

             1852           [63-56-45].     63-56-801. Protest to chief procurement officer -- Time -- Authority
             1853      to resolve protest.
             1854          (1) Any actual or prospective bidder, offeror, or contractor who is aggrieved in
             1855      connection with the solicitation or award of a contract may protest to the chief procurement
             1856      officer or the head of a purchasing agency. A protest with respect to an invitation for bids or a


             1857      request for proposals shall be submitted in writing prior to the opening of bids or the closing
             1858      date for proposals, unless the aggrieved person did not know and should not have known of the
             1859      facts giving rise to the protest prior to bid opening or the closing date for proposals. The protest
             1860      shall be submitted in writing within five working days after the aggrieved person knows or
             1861      should have known of the facts giving rise thereto.
             1862          (2) The chief procurement officer, the head of a purchasing agency, or a designee of
             1863      either officer shall have the authority, prior to the commencement of an action in court
             1864      concerning the controversy, to settle and resolve the protest.
             1865          Section 71. Section 63-56-802 , which is renumbered from Section 63-56-46 is
             1866      renumbered and amended to read:
             1867           [63-56-46].     63-56-802. Effect of timely protest.
             1868          In the event of a timely protest under Subsection [ 63-56-45 ] 63-56-801 (1), [ 63-56-54 ]
             1869      63-56-810 (1), or [ 63-56-59 ] 63-56-815 (1), the state shall not proceed further with the
             1870      solicitation or with the award of the contract until all administrative and judicial remedies have
             1871      been exhausted or until the chief procurement officer, after consultation with the head of the
             1872      using agency or the head of a purchasing agency, makes a written determination that the award
             1873      of the contract without delay is necessary to protect substantial interests of the state.
             1874          Section 72. Section 63-56-803 , which is renumbered from Section 63-56-47 is
             1875      renumbered and amended to read:
             1876           [63-56-47].     63-56-803. Costs to or against protestor.
             1877          (1) When a protest is sustained administratively or upon administrative or judicial
             1878      review and the protesting bidder or offeror should have been awarded the contract under the
             1879      solicitation but is not, the protestor shall be entitled to the following relief as a claim against
             1880      the state:
             1881          (a) the reasonable costs incurred in connection with the solicitation, including bid
             1882      preparation and appeal costs; and
             1883          (b) any equitable relief determined to be appropriate by the reviewing administrative or
             1884      judicial body.
             1885          (2) When a protest is not sustained by the Procurement Appeals Board, the protestor
             1886      shall reimburse the Division of Purchasing and General Services for the per diem and expenses
             1887      paid by the division to witnesses or appeals board members and any additional expenses


             1888      incurred by the state agency staff who have provided materials and administrative services to
             1889      the board for that case.
             1890          Section 73. Section 63-56-804 , which is renumbered from Section 63-56-48 is
             1891      renumbered and amended to read:
             1892           [63-56-48].     63-56-804. Debarment from consideration for award of contracts --
             1893      Causes for debarment.
             1894          (1) After reasonable notice to the person involved and reasonable opportunity for that
             1895      person to be heard, the chief procurement officer or the head of a purchasing agency, after
             1896      consultation with the using agency and the attorney general, shall have authority to debar a
             1897      person for cause from consideration for award of contracts. The debarment shall not be for a
             1898      period exceeding three years. The same officer, after consultation with the using agency and the
             1899      attorney general, shall have authority to suspend a person from consideration for award of
             1900      contracts if there is probable cause to believe that the person has engaged in any activity which
             1901      might lead to debarment. The suspension shall not be for a period exceeding three months
             1902      unless an indictment has been issued for an offense which would be a cause for debarment
             1903      under Subsection (2) [of this section], in which case the suspension shall, at the request of the
             1904      attorney general, remain in effect until after the trial of the suspended person.
             1905          (2) The causes for debarment include the following:
             1906          (a) conviction of a criminal offense as an incident to obtaining or attempting to obtain a
             1907      public or private contract or subcontract or in the performance of such contract or subcontract;
             1908          (b) conviction under state or federal statutes of embezzlement, theft, forgery, bribery,
             1909      falsification or destruction of records, receiving stolen property, or any other offense indicating
             1910      a lack of business integrity or business honesty which currently, seriously, and directly affects
             1911      responsibility as a state contractor;
             1912          (c) conviction under state or federal antitrust statutes;
             1913          (d) failure without good cause to perform in accordance with the terms of the contract;
             1914      or
             1915          (e) any other cause the chief procurement officer, or the head of a purchasing agency
             1916      determines to be so serious and compelling as to affect responsibility as a state contractor,
             1917      including debarment by another governmental entity for any cause listed in rules and
             1918      regulations.


             1919          Section 74. Section 63-56-805 , which is renumbered from Section 63-56-49 is
             1920      renumbered and amended to read:
             1921           [63-56-49].     63-56-805. Authority to resolve controversy between state and
             1922      contractor.
             1923          The chief procurement officer, the head of a purchasing agency, or a designee of either
             1924      officer is authorized, prior to commencement of an action in court concerning the controversy,
             1925      to settle and resolve a controversy which arises between the state and a contractor under or by
             1926      virtue of a contract between them. This includes, without limitation, controversies based upon
             1927      breach of contract, mistakes, misrepresentation, or other cause for contract modification or
             1928      rescission.
             1929          Section 75. Section 63-56-806 , which is renumbered from Section 63-56-50 is
             1930      renumbered and amended to read:
             1931           [63-56-50].     63-56-806. Decisions of chief procurement officer to be in writing --
             1932      Effect of no writing.
             1933          (1) The chief procurement officer, the head of a purchasing agency, or the designee of
             1934      either officer shall promptly issue a written decision regarding any protest, debarment or
             1935      suspension, or contract controversy if it is not settled by a mutual agreement. The decision shall
             1936      state the reasons for the action taken and inform the protestor, contractor, or prospective
             1937      contractor of the right to judicial or administrative review as provided in this chapter.
             1938          (2) A decision shall be effective until stayed or reversed on appeal, except to the extent
             1939      provided in Section [ 63-56-46 ] 63-56-802 . A copy of the decision under Subsection (1) shall
             1940      be mailed or otherwise furnished immediately to the protestor, prospective contractor, or
             1941      contractor. The decision shall be final and conclusive unless the protestor, prospective
             1942      contractor, or contractor appeals administratively to the procurement appeals board in
             1943      accordance with Subsection [ 63-56-54 ] 63-45-810 (2) or the protestor, prospective contractor,
             1944      or contractor commences an action in court in accordance with Section [ 63-56-59 ] 63-56-815 .
             1945          (3) If the chief procurement officer, the head of a purchasing agency, or the designee of
             1946      either officer does not issue the written decision regarding a contract controversy within 60
             1947      calendar days after written request for a final decision, or within such longer period as may be
             1948      agreed upon by the parties, then the contractor may proceed as if an adverse decision had been
             1949      received.


             1950          Section 76. Section 63-56-807 , which is renumbered from Section 63-56-51 is
             1951      renumbered and amended to read:
             1952           [63-56-51].     63-56-807. Creation of Procurement Appeals Board.
             1953          (1) (a) A Procurement Appeals Board is created in the executive branch. The
             1954      Procurement Appeals Board shall be composed of a chair and one other member, to be
             1955      appointed by the governor, and a third member to be designated by the two appointed members
             1956      on a case-by-case basis.
             1957          (b) None of the members of the Procurement Appeals Board shall otherwise be
             1958      full-time employees of the state.
             1959          (c) The appointed members of the Procurement Appeals Board shall have been
             1960      members in good standing of the state bar for at least five years and shall be experienced in
             1961      contract or commercial matters.
             1962          (d) The designated member shall possess the technical expertise and experience needed
             1963      for the proper disposition of the factual issues presented by the case.
             1964          (2) (a) Except as required by Subsection (2)(b), as terms of current board members
             1965      expire, the governor shall appoint each new member or reappointed member to a four-year
             1966      term.
             1967          (b) Notwithstanding the requirements of Subsection (2)(a), the governor shall, at the
             1968      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             1969      board members are staggered so that approximately half of the board is appointed every two
             1970      years.
             1971          (c) The designated member shall serve for the case on which designated until the final
             1972      disposition of the case.
             1973          (d) Appointed members may be reappointed for succeeding terms and may continue to
             1974      serve after the expiration of their terms until a successor takes office.
             1975          (e) Qualified persons may be redesignated as members.
             1976          (3) When a vacancy occurs in the membership for any reason, the replacement shall be
             1977      appointed for the unexpired term.
             1978          (4) (a) Members shall receive no compensation or benefits for their services, but may
             1979      receive per diem and expenses incurred in the performance of the member's official duties at
             1980      the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .


             1981          (b) Members may decline to receive per diem and expenses for their service.
             1982          Section 77. Section 63-56-808 , which is renumbered from Section 63-56-52 is
             1983      renumbered and amended to read:
             1984           [63-56-52].     63-56-808. Rules of procedure to be adopted.
             1985          The Procurement Appeals Board shall adopt rules of procedure which, to the fullest
             1986      extent possible, will provide for the expeditious resolution of controversies, including
             1987      procedures to encourage agreements between the parties to a controversy prior to a hearing.
             1988      The board may adopt small claims procedures for the resolution of controversies involving
             1989      claims of less than $15,000.
             1990          Section 78. Section 63-56-809 , which is renumbered from Section 63-56-53 is
             1991      renumbered and amended to read:
             1992           [63-56-53].     63-56-809. Decisions to be in writing.
             1993          The Procurement Appeals Board shall issue a decision in writing or take other
             1994      appropriate action of each appeal submitted. A copy of any decision shall be provided to all
             1995      parties and the chief procurement officer or the head of a purchasing agency.
             1996          Section 79. Section 63-56-810 , which is renumbered from Section 63-56-54 is
             1997      renumbered and amended to read:
             1998           [63-56-54].     63-56-810. Jurisdiction of Procurement Appeals Board.
             1999          Unless an action has been initiated previously in district courts for essentially the same
             2000      cause of action, the board shall have jurisdiction to review and determine de novo:
             2001          (1) any protest of a solicitation or award of a contract addressed to the board by an
             2002      aggrieved actual or prospective bidder or offeror, or a contractor; and
             2003          (2) any appeal by an aggrieved party from a decision rendered or [deemed] considered
             2004      to have been rendered pursuant to Section [ 63-56-50 ] 63-56-806 .
             2005          Section 80. Section 63-56-811 , which is renumbered from Section 63-56-55 is
             2006      renumbered and amended to read:
             2007           [63-56-55].     63-56-811. Time limits to file protest or appeal -- Effect of filing.
             2008          (1) For a protest under Subsection [ 63-56-54 ] 63-56-810 (1), the aggrieved person shall
             2009      file a protest with the board within five working days after the aggrieved person knows or
             2010      should have known of the facts and circumstances upon which the protest is based; provided,
             2011      however, that a protest with respect to an invitation for bids or request for proposals shall be


             2012      filed prior to the opening of bids or the closing date for proposals unless the aggrieved person
             2013      did not know and should not have known of the facts giving rise to the protest prior to bid
             2014      opening or the closing date for proposals.
             2015          (2) For an appeal from a decision regarding a protested solicitation or award, the
             2016      aggrieved person shall file an appeal within seven calendar days of receipt of a decision
             2017      rendered or [deemed] considered to have been rendered pursuant to Section [ 63-56-50 ]
             2018      63-56-806 .
             2019          (3) For an appeal from a decision regarding a debarment, suspension, or contract
             2020      controversy, the aggrieved person shall file an appeal within 60 calendar days of receipt of a
             2021      decision rendered or [deemed] considered to have been rendered pursuant to Section
             2022      [ 63-56-50 ] 63-56-806 .
             2023          Section 81. Section 63-56-812 , which is renumbered from Section 63-56-56 is
             2024      renumbered and amended to read:
             2025           [63-56-56].     63-56-812. Discontinued appeal with prejudice, except as
             2026      authorized.
             2027          After notice of an appeal has been filed with the Procurement Appeals Board, no party
             2028      may discontinue the appeal without prejudice, except as authorized by the Procurement
             2029      Appeals Board.
             2030          Section 82. Section 63-56-813 , which is renumbered from Section 63-56-57 is
             2031      renumbered and amended to read:
             2032           [63-56-57].     63-56-813. Factual determination of appeals board final and
             2033      conclusive.
             2034          (1) On any protest or appeal under Section [ 63-56-54 ] 63-56-810 , the Procurement
             2035      Appeals Board shall promptly decide the contract controversy or whether the solicitation or
             2036      award was in accordance with this chapter. Any prior determinations by administrative officials
             2037      regarding protests of solicitations or awards, suspension or debarments, contract controversies,
             2038      or breach of contract controversies shall not be final or conclusive.
             2039          (2) A determination of an issue of fact by the Procurement Appeals Board under
             2040      Subsection (1) shall be final and conclusive unless arbitrary and capricious or clearly
             2041      erroneous. No determination on an issue of law shall be final or conclusive.
             2042          Section 83. Section 63-56-814 , which is renumbered from Section 63-56-58 is


             2043      renumbered and amended to read:
             2044           [63-56-58].     63-56-814. Right to appeal to Court of Appeals.
             2045          Any person receiving an adverse decision or the state may appeal a decision of the
             2046      Procurement Appeals Board to the Court of Appeals. However, no appeal may be made by the
             2047      state unless recommended by the chief procurement officer or the head of the purchasing
             2048      agency involved, and approved by the attorney general.
             2049          Section 84. Section 63-56-815 , which is renumbered from Section 63-56-59 is
             2050      renumbered and amended to read:
             2051           [63-56-59].     63-56-815. Jurisdiction of district court.
             2052          (1) The district court shall have jurisdiction over an action, whether the action is at law
             2053      or in equity, between the state and:
             2054          (a) a bidder, offeror, or contractor, prospective or actual, who is aggrieved in
             2055      connection with the solicitation or award of a contract;
             2056          (b) a person who is subject to a suspension or debarment proceeding; and
             2057          (c) a contractor, for any cause of action which arises under, or by virtue of a contract.
             2058          (2) The provisions of Title 63, Chapter 30d, Part 4, Notice of Claim Against a
             2059      Governmental Entity or a Government Employee, and Section 63-30d-601 do not apply to
             2060      actions brought under this chapter by an aggrieved party for equitable relief or reasonable costs
             2061      incurred in preparing or appealing an unsuccessful bid or offer.
             2062          Section 85. Section 63-56-816 , which is renumbered from Section 63-56-60 is
             2063      renumbered and amended to read:
             2064           [63-56-60].     63-56-816. Effect of prior determination by agents of state.
             2065          In any judicial action under Section [ 63-56-59 ] 63-56-815 , determinations by
             2066      employees, agents, or other persons appointed by the state shall be final and conclusive only as
             2067      provided in Sections [ 63-56-32 ] 63-56-419 and [ 63-56-50 ] 63-56-806 , and Subsection
             2068      [ 63-56-57 ] 63-56-813 (2).
             2069          Section 86. Section 63-56-817 , which is renumbered from Section 63-56-61 is
             2070      renumbered and amended to read:
             2071           [63-56-61].     63-56-817. Statutes of limitations.
             2072          (1) Any action under Subsection [ 63-56-59 ] 63-56-815 (1)(a) shall be initiated as
             2073      follows:


             2074          (a) within 20 calendar days after the aggrieved person knows or should have known of
             2075      the facts giving rise to the action; provided, however, that an action with respect to an
             2076      invitation for bids or request for proposals shall be initiated prior to the opening of bids or the
             2077      closing date for proposals unless the aggrieved person did not know and should not have
             2078      known of the facts giving rise to the action prior to bid opening or the closing date for
             2079      proposals; or
             2080          (b) within 14 calendar days after receipt of a final administrative decision pursuant to
             2081      either Section [ 63-56-50 ] 63-56-806 or Section [ 63-56-57 ] 63-56-813 , whichever is applicable.
             2082          (2) Any action under Subsection [ 63-56-59 ] 63-56-815 (1)(b) shall be commenced
             2083      within six months after receipt of a final administrative decision pursuant to Section [ 63-56-50 ]
             2084      63-56-806 or Section [ 63-56-57 ] 63-56-813 , whichever is applicable.
             2085          (3) The statutory limitations on an action between private persons on a contract or for
             2086      breach of contract shall apply to any action commenced pursuant to Subsection [ 63-56-59 ]
             2087      63-56-815 (1)(c), except notice of appeals from the Procurement Appeals Board pursuant to
             2088      Section [ 63-56-58 ] 63-56-814 concerning actions on a contract or for breach of contract shall
             2089      be filed within one year after the date of the Procurement Appeals Board decision.
             2090          Section 87. Section 63-56-818 , which is renumbered from Section 63-56-62 is
             2091      renumbered and amended to read:
             2092           [63-56-62].     63-56-818. Effect of violation prior to award of contract.
             2093          If prior to award it is determined administratively or upon administrative or judicial
             2094      review that a solicitation or proposed award of a contract is in violation of law, the solicitation
             2095      or proposed award shall be cancelled or revised to comply with the law.
             2096          Section 88. Section 63-56-819 , which is renumbered from Section 63-56-63 is
             2097      renumbered and amended to read:
             2098           [63-56-63].     63-56-819. Effect of violation after award of contract.
             2099          If after an award it is determined administratively or upon administrative or judicial
             2100      review that a solicitation or award of a contract is in violation of law:
             2101          (1) If the person awarded the contract has not acted fraudulently or in bad faith:
             2102          (a) The contract may be ratified and affirmed if it is determined that doing so is in the
             2103      best interests of the state; or
             2104          (b) The contract may be terminated and the person awarded the contract shall be


             2105      compensated for the actual expenses reasonably incurred under the contract prior to
             2106      termination, plus a reasonable profit;
             2107          (2) If the person awarded the contract has acted fraudulently or in bad faith:
             2108          (a) The contract may be declared null and void; or
             2109          (b) The contract may be ratified and affirmed if such action is in the best interests of
             2110      the state, without prejudice to the state's rights to any appropriate damages.
             2111          Section 89. Section 63-56-820 , which is renumbered from Section 63-56-64 is
             2112      renumbered and amended to read:
             2113           [63-56-64].     63-56-820. Interest rate.
             2114          (1) Except as provided in Subsection (2), in controversies between the state and
             2115      contractors under this part, interest on amounts ultimately determined to be due to a contractor
             2116      or to the state are payable at the rate applicable to judgments from the date the claim arose
             2117      through the date of decision or judgment, whichever is later.
             2118          (2) This section does not apply to public assistance benefits programs.
             2119          Section 90. Section 63-56-901 , which is renumbered from Section 63-56-65 is
             2120      renumbered and amended to read:
             2121     
Part 9. Intergovernmental Relations

             2122           [63-56-65].     63-56-901. Agreements between public procurement units.
             2123          Under the terms agreed upon among the parties, any public procurement unit may enter
             2124      into agreements with one or more other public procurement units to:
             2125          (1) sponsor, conduct, or administer a cooperative agreement for the procurement or
             2126      disposal of any supplies, services, or construction;
             2127          (2) cooperatively use supplies or services;
             2128          (3) commonly use or share warehousing facilities, capital equipment, and other
             2129      facilities;
             2130          (4) provide personnel; provided that the requesting public procurement unit shall pay
             2131      the public procurement unit providing the personnel the direct and indirect cost of providing
             2132      the personnel, in accordance with the agreement; or
             2133          (5) make available informational, technical, and other services, provided that the
             2134      requirements of the public procurement unit tendering the services shall have precedence over
             2135      the requesting public procurement unit and that the requesting public procurement unit shall


             2136      pay for the expenses of the services so provided, in accordance with the agreement.
             2137          Section 91. Section 63-56-902 , which is renumbered from Section 63-56-66 is
             2138      renumbered and amended to read:
             2139           [63-56-66].     63-56-902. Services between public procurement units.
             2140          (1) Upon request, any public procurement unit may make available to other public
             2141      procurement units the following services, among others: standard forms; printed manuals;
             2142      qualified products lists; source information; common use commodities listings; supplier
             2143      prequalification information; supplier performance ratings; debarred and suspended bidders
             2144      lists; forms for invitation for bids, requests for proposals, instructions to bidders, general
             2145      contract provisions, and other contract forms; and contracts or published summaries thereof,
             2146      including price and time of delivery information.
             2147          (2) Any public procurement unit may provide the following technical services, among
             2148      others, to other public procurement units; development of specifications; development of
             2149      quality assurance test methods, including receiving, inspection, and acceptance procedures; use
             2150      of testing and inspection facilities; and use of personnel training programs.
             2151          (3) Public procurement units may enter into contractual arrangements and publish a
             2152      schedule of fees for the services provided under Subsections (1) and (2).
             2153          Section 92. Section 63-56-903 , which is renumbered from Section 63-56-67 is
             2154      renumbered and amended to read:
             2155           [63-56-67].     63-56-903. Payments between public procurement units.
             2156          All payments from any public procurement unit received by a public procurement unit
             2157      supplying personnel or services shall be available to the supplying public procurement unit.
             2158          Section 93. Section 63-56-904 , which is renumbered from Section 63-56-68 is
             2159      renumbered and amended to read:
             2160           [63-56-68].     63-56-904. Compliance by one public procurement unit pursuant to
             2161      agreement considered compliance by others to agreement.
             2162          Where the public procurement unit administering a cooperative purchase complies with
             2163      the requirements of this chapter, any public procurement unit participating in such a purchase
             2164      shall be [deemed] considered to have complied with this chapter. Public procurement units may
             2165      not enter into a cooperative purchasing agreement for the purpose of circumventing this
             2166      chapter.


             2167          Section 94. Section 63-56-905 , which is renumbered from Section 63-56-69 is
             2168      renumbered and amended to read:
             2169           [63-56-69].     63-56-905. Chief procurement officer to collect information as to
             2170      supplies, etc.
             2171          To the extent possible, the chief procurement officer may collect information
             2172      concerning the type, cost, quality, and quantity of commonly used supplies, services, or
             2173      construction being procured or used by state public procurement units and local public
             2174      procurement units. The chief procurement officer may make the information available to any
             2175      public procurement unit upon request.
             2176          Section 95. Section 63-56-906 , which is renumbered from Section 63-56-70 is
             2177      renumbered and amended to read:
             2178           [63-56-70].     63-56-906. Resolving controversy arising under a cooperative
             2179      purchasing agreement.
             2180          Under a cooperative purchasing agreement, controversies arising between an
             2181      administering state public procurement unit and its bidders, offerors, or contractors shall be
             2182      resolved in accordance with Part [H of this chapter] 8, Legal and Contractual Remedies.
             2183          Section 96. Section 63-56-907 , which is renumbered from Section 63-56-71 is
             2184      renumbered and amended to read:
             2185           [63-56-71].     63-56-907. Resolution of local public procurement controversies.
             2186          Any local public procurement unit is authorized to enter into an agreement with the
             2187      State Procurement Appeals Board to resolve controversies between the local public
             2188      procurement unit and its contractors, whether or not such controversy arose from a cooperative
             2189      purchasing agreement.
             2190          Section 97. Section 63-56-1001 , which is renumbered from Section 63-56-72 is
             2191      renumbered and amended to read:
             2192     
Part 10. Illegal Activities

             2193           [63-56-72].     63-56-1001. Felony to accept emolument.
             2194          Any person acting as a procurement officer for the state of Utah or any subdivision
             2195      thereof, or who in any official capacity participates in the procurement of any supplies,
             2196      services, construction, real property, or insurance for any such political units, is guilty of a
             2197      felony if the person asks, receives, or offers to receive any emolument, gratuity, contribution,


             2198      loan, or reward, or any promise thereof, either for the person's own use or the use or benefit of
             2199      any other person or organization from any person interested in the sale of such supplies,
             2200      services, construction, real property, or insurance.
             2201          Section 98. Section 63-56-1002 , which is renumbered from Section 63-56-73 is
             2202      renumbered and amended to read:
             2203           [63-56-73].     63-56-1002. Felony to offer emolument.
             2204          A person who is interested in any way in the sale of any supplies, services, construction,
             2205      real property, or insurance to the state of Utah or any political subdivision thereof, is guilty of a
             2206      felony if the person gives or offers to give any emolument, gratuity, contribution, loan or
             2207      reward, or any promise thereof to any person acting as a procurement officer, or who in any
             2208      official capacity participates in the procurement of such supplies, services, construction, real
             2209      property, or insurance, whether it is given for his own use or for the use or benefit of any other
             2210      person or organization.
             2211          Section 99. Section 63A-5-208 is amended to read:
             2212           63A-5-208. Definitions -- Certain public construction bids to list subcontractors --
             2213      Changing subcontractors -- Bidders as subcontractors -- Dispute resolution process --
             2214      Penalties.
             2215          (1) As used in this section:
             2216          (a) "First-tier subcontractor" means a subcontractor who contracts directly with the
             2217      prime contractor.
             2218          (b) "Subcontractor" means any person or entity under contract with a contractor or
             2219      another subcontractor to provide services or labor for the construction, installation, or repair of
             2220      an improvement to real property.
             2221          (c) "Subcontractor" includes a trade contractor or specialty contractor.
             2222          (d) "Subcontractor" does not include suppliers who provide only materials, equipment,
             2223      or supplies to a contractor or subcontractor.
             2224          (2) The director shall apply the provisions of this section to achieve fair and
             2225      competitive bidding and to discourage bid-shopping by contractors.
             2226          (3) (a) (i) (A) On each public construction project, the director shall require the
             2227      apparent lowest three bidders to submit a list of their first-tier subcontractors indicating each
             2228      subcontractor's name, bid amount, and other information required by rule.


             2229          (B) Other bidders who are not one of the apparent lowest three bidders may also
             2230      submit a list of their first-tier subcontractors containing the information required by this
             2231      Subsection (3).
             2232          (C) The director may not consider any bid submitted by a bidder if the bidder fails to
             2233      submit a subcontractor list meeting the requirements of this section.
             2234          (ii) On projects where the contractor's total bid is less than $500,000, subcontractors
             2235      whose bid is less than $20,000 need not be listed.
             2236          (iii) On projects where the contractor's total bid is $500,000 or more, subcontractors
             2237      whose bid is less than $35,000 need not be listed.
             2238          (b) (i) The bidders shall submit this list within 24 hours after the bid opening time, not
             2239      including Saturdays, Sundays, and state holidays.
             2240          (ii) This list does not limit the director's right to authorize a change in the listing of any
             2241      subcontractor.
             2242          (c) The bidders shall verify that all subcontractors listed as part of their bids are
             2243      licensed as required by state law.
             2244          (d) Twenty-four hours after the bid opening, the contractor may change his
             2245      subcontractors only after:
             2246          (i) receiving permission from the director; and
             2247          (ii) establishing that:
             2248          (A) the change is in the best interest of the state; and
             2249          (B) the contractor establishes reasons for the change that meet the standards established
             2250      by the State Building Board.
             2251          (e) If the director approves any changes in subcontractors that result in a net lower
             2252      contract price for subcontracted work, the total of the prime contract may be reduced to reflect
             2253      the changes.
             2254          (4) (a) A bidder may list himself as a subcontractor when the bidder is currently
             2255      licensed to perform the portion of the work for which the bidder lists himself as a subcontractor
             2256      and:
             2257          (i) the bidder intends to perform the work of a subcontractor himself; or
             2258          (ii) the bidder intends to obtain a subcontractor to perform the work at a later date
             2259      because the bidder was unable to:


             2260          (A) obtain a bid from a qualified subcontractor; or
             2261          (B) obtain a bid from a qualified subcontractor at a cost that the bidder considers to be
             2262      reasonable.
             2263          (b) (i) When the bidder intends to perform the work of a subcontractor himself, the
             2264      director may, by written request, require that the bidder provide the director with information
             2265      indicating the bidder's:
             2266          (A) previous experience in the type of work to be performed; and
             2267          (B) qualifications for performing the work.
             2268          (ii) The bidder must respond in writing within five business days of receiving the
             2269      director's written request.
             2270          (iii) If the bidder's submitted information causes the director to reasonably believe that
             2271      self-performance of the portion of the work by the bidder is likely to yield a substandard
             2272      finished product, the director shall:
             2273          (A) require the bidder to use a subcontractor for the portion of the work in question and
             2274      obtain the subcontractor bid under the supervision of the director; or
             2275          (B) reject the bidder's bid.
             2276          (c) (i) When the bidder intends to obtain a subcontractor to perform the work at a later
             2277      date, the bidder shall provide documentation with the subcontractor list describing:
             2278          (A) the bidder's efforts to obtain a bid of a qualified subcontractor at a reasonable cost;
             2279      and
             2280          (B) why the bidder was unable to obtain a qualified subcontractor bid.
             2281          (ii) If the bidder who intends to obtain a subcontractor to perform the work at a later
             2282      date is awarded a contract, the director shall supervise the bidder's efforts to obtain a qualified
             2283      subcontractor bid.
             2284          (iii) The director may not adjust the amount of the contract awarded in order to reflect
             2285      the actual amount of the subcontractor's bid.
             2286          (5) The division may not disclose any subcontractor bid amounts obtained under this
             2287      section until the division has awarded the project to a contractor.
             2288          (6) (a) The director shall, in consultation with the State Building Board, prepare draft
             2289      rules establishing a process for resolving disputes involved with contracts under the division's
             2290      procurement authority.


             2291          (b) The draft rules shall be presented to the Government Operations Interim Committee
             2292      for review, comment, and recommendations before August 31, 2004.
             2293          (c) The director shall consider, and the rules may include:
             2294          (i) requirements regarding preliminary resolution efforts between the parties directly
             2295      involved with the dispute;
             2296          (ii) requirements for the filing of claims, including notification, timeframes, and
             2297      documentation;
             2298          (iii) identification of the types of costs eligible for allocation and a method for
             2299      allocating costs among the parties to the dispute;
             2300          (iv) required time periods, not to exceed 60 days, for the resolution of the claim;
             2301          (v) provision for an independent hearing officer, panel, or arbitrator to extend the time
             2302      period for resolution of the claim by not to exceed 60 additional days for good cause;
             2303          (vi) provision for the extension of required time periods if the claimant agrees;
             2304          (vii) requirements that decisions be issued in writing;
             2305          (viii) provisions for administrative appeals of the decision;
             2306          (ix) provisions for the timely payment of claims after resolution of the dispute,
             2307      including any appeals;
             2308          (x) a requirement that the final determination resulting from the dispute resolution
             2309      process provided for in the rules is a final agency action subject to judicial review as provided
             2310      in Sections 63-46b-14 and 63-46b-15 ;
             2311          (xi) a requirement that a claim or dispute that does not include a monetary claim
             2312      against the division or its agents is not limited to the dispute resolution process provided for in
             2313      this Subsection (6);
             2314          (xii) requirements for claims and disputes to be eligible for this dispute resolution
             2315      process;
             2316          (xiii) the use of an independent hearing officer, panel, arbitration, or mediation; and
             2317          (xiv) the circumstances under which a subcontractor may file a claim directly with the
             2318      division.
             2319          (d) Persons pursuing claims under the process required by this Subsection (6):
             2320          (i) are bound by the decision reached under this process unless the decision is properly
             2321      appealed; and


             2322          (ii) may not pursue claims or disputes under the dispute resolution process established
             2323      in Sections [ 63-56-49 ] 63-56-805 through [ 63-56-58 ] 63-56-814 .
             2324          (7) In addition to all other reasons allowed by law or rule, the director may reject all
             2325      bids if none of the bidders whose bid is within the budget of the project submit a subcontractor
             2326      list that meets the requirements of this section.
             2327          (8) Any violation of this section, or any fraudulent misrepresentation by a contractor,
             2328      subcontractor, or supplier, may be grounds for:
             2329          (a) the contractor, subcontractor, or supplier to be suspended or debarred by the
             2330      director; or
             2331          (b) the contractor or subcontractor to be disciplined by the Division of Professional and
             2332      Occupational Licensing.
             2333          Section 100. Section 63B-2-102 is amended to read:
             2334           63B-2-102. Maximum amount -- Projects authorized.
             2335          (1) The total amount of bonds issued under this part may not exceed $80,000,000.
             2336          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             2337      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             2338      Subsection (2).
             2339          (b) These costs may include the cost of acquiring land, interests in land, easements and
             2340      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             2341      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             2342      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             2343      covered by construction of the projects plus a period of six months after the end of the
             2344      construction period and all related engineering, architectural, and legal fees.
             2345          (c) For the division, proceeds shall be provided for the following:
             2346      CAPITAL IMPROVEMENTS
             2347      1    Alterations, Repairs, and Improvements
$8,413,900

             2348      TOTAL IMPROVEMENTS                
$8,413,900

             2349     
CAPITAL FACILITIES CONSTRUCTION

             2350                                               ESTIMATED
             2351                                               OPERATIONS
             2352                                                  AND


             2353      PROJECT        PROJECT                AMOUNT     MAINTENANCE
             2354      PRIORITY        DESCRIPTION            FUNDED        COSTS
             2355      1    Corrections - Northern Utah                 $2,729,700        $158,000
             2356          Community Corrections Center Phase II
             2357      2    University of Utah                    $10,200,000        $881,600
             2358          Marriot Library Phase II
             2359      3    Ogden Courts Building Phase II            $12,096,000        $340,000
             2360      4    Utah National Guard -                 $397,800         $70,500
             2361          Southeast Utah Armory Phase II
             2362      5    Southern Utah University                 $7,004,400        $427,000
             2363          Library Phase II
             2364      6    Utah Valley Special Events                $11,845,300        $536,900
             2365          Center Phase II
             2366      7    Salt Lake Community College             $1,300,000         $0
             2367          - Land
             2368      8    Tax Commission Building                $14,224,000        $812,000
             2369      9    Dixie College Business Building             $2,823,300        $187,800
             2370      10    Salt Lake Community College             $4,009,500        $257,600
             2371          South City 3rd Floor and Boiler
             2372      11    Public Education -                     $3,456,100        $124,800
             2373          Deaf and Blind Classrooms
             2374          TOTAL CONSTRUCTION                $70,086,100
             2375          TOTAL IMPROVEMENTS AND            $78,500,000
             2376              CONSTRUCTION
             2377          (d) For purposes of this section, operations and maintenance costs:
             2378          (i) are estimates only;
             2379          (ii) may include any operations and maintenance costs already funded in existing
             2380      agency budgets; and
             2381          (iii) are not commitments by this Legislature or future Legislatures to fund those
             2382      operations and maintenance costs.
             2383          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not


             2384      constitute a limitation on the amount that may be expended for any project.
             2385          (b) The board may revise these estimates and redistribute the amount estimated for a
             2386      project among the projects authorized.
             2387          (c) The commission, by resolution and in consultation with the board, may delete one
             2388      or more projects from this list if the inclusion of that project or those projects in the list could
             2389      be construed to violate state law or federal law or regulation.
             2390          (4) (a) The division may enter into agreements related to these projects before the
             2391      receipt of proceeds of bonds issued under this chapter.
             2392          (b) The division shall make those expenditures from unexpended and unencumbered
             2393      building funds already appropriated to the Capital Projects Fund.
             2394          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             2395      of bonds issued under this chapter.
             2396          (d) The commission may, by resolution, make any statement of intent relating to that
             2397      reimbursement that is necessary or desirable to comply with federal tax law.
             2398          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             2399      it is the intent of the Legislature that the balance necessary to complete the projects be
             2400      addressed by future Legislatures, either through appropriations or through the issuance or sale
             2401      of bonds.
             2402          (b) For those phased projects, the division may enter into contracts for amounts not to
             2403      exceed the anticipated full project funding but may not allow work to be performed on those
             2404      contracts in excess of the funding already authorized by the Legislature.
             2405          (c) Those contracts shall contain a provision for termination of the contract for the
             2406      convenience of the state as required by Section [ 63-56-40 ] 63-56-601 .
             2407          (d) It is also the intent of the Legislature that this authorization to the division does not
             2408      bind future Legislatures to fund projects initiated from this authorization.
             2409          Section 101. Section 63B-3-102 is amended to read:
             2410           63B-3-102. Maximum amount -- Projects authorized.
             2411          (1) The total amount of bonds issued under this part may not exceed $64,600,000.
             2412          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             2413      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             2414      Subsection (2).


             2415          (b) These costs may include the cost of acquiring land, interests in land, easements and
             2416      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             2417      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             2418      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             2419      covered by construction of the projects plus a period of six months after the end of the
             2420      construction period and all related engineering, architectural, and legal fees.
             2421          (c) For the division, proceeds shall be provided for the following:
             2422     
CAPITAL IMPROVEMENTS

             2423      1    Alterations, Repairs, and Improvements
$5,000,000        

             2424      TOTAL IMPROVEMENTS
$5,000,000

             2425     
CAPITAL AND ECONOMIC DEVELOPMENT

             2426                                               ESTIMATED
             2427                                               OPERATIONS
             2428                                                  AND
             2429      PROJECT    PROJECT                    AMOUNT     MAINTENANCE
             2430      PRIORITY    DESCRIPTION                FUNDED        COSTS
             2431          1    University of Utah                $13,811,500         $881,600
             2432              Marriott Library Phase III (Final)
             2433          2    Bridgerland Applied Technology Center    $2,400,000            $0
             2434              Utah State University Space
             2435          3    Weber State University -            $2,332,100         $9,600
             2436              Heat Plant
             2437          4    Department of Human Services        $4,180,000         $400,000
             2438              - Division of Youth Corrections renamed
             2439              in 2003 to the Division of Juvenile
             2440              Justice Services
             2441          5    Snow College -                $3,885,100         $224,500
             2442              Administrative Services/Student Center
             2443          6    Ogden Weber Applied             $750,000            $0
             2444              Technology Center -
             2445              Metal Trades Building Design and


             2446              Equipment Purchase
             2447          7    Department of Corrections            $1,237,100         $72,000
             2448              B-Block Remodel
             2449          8    Utah State University -             $550,000            $0
             2450              Old Main Phase III Design
             2451          9    Department of Corrections - 144 bed        $6,700,000         $168,800
             2452              Uintah Expansion
             2453          10    Southern Utah University            $5,630,400         $314,200
             2454              Administrative Services/Student Center
             2455          11    Anasazi Museum                 $760,200         $8,500
             2456          12    Hill Air Force Base -                $9,500,000            $0
             2457              Easements Purchase
             2458          13    Signetics Building Remodel            $2,000,000            $0
             2459          14    Antelope Island Visitors Center         $750,000         $30,000
             2460          15    State Fair Park -                 $150,000            $0
             2461              Master Study
             2462          16    Utah National Guard - Draper Land         $380,800            $0
             2463          17    Davis Applied Technology Center -         $325,000            $0
             2464              Design
             2465          18    Palisade State Park - Land             $800,000            $0
             2466              and Park Development
             2467          19    Department of Human Services         $80,000            $0
             2468              - Cedar City Land
             2469          20    Department of Human Services         $163,400            $0
             2470              - Clearfield Land
             2471          21    Electronic technology,            $2,500,000            $0
             2472              equipment, and hardware
             2473      TOTAL CAPITAL AND ECONOMIC DEVELOPMENT        $58,885,600
             2474      TOTAL IMPROVEMENTS AND
             2475      CAPITAL AND ECONOMIC DEVELOPMENT            $63,885,600
             2476          (d) For purposes of this section, operations and maintenance costs:


             2477          (i) are estimates only;
             2478          (ii) may include any operations and maintenance costs already funded in existing
             2479      agency budgets; and
             2480          (iii) are not commitments by this Legislature or future Legislatures to fund those
             2481      operations and maintenance costs.
             2482          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             2483      constitute a limitation on the amount that may be expended for any project.
             2484          (b) The board may revise these estimates and redistribute the amount estimated for a
             2485      project among the projects authorized.
             2486          (c) The commission, by resolution and in consultation with the board, may delete one
             2487      or more projects from this list if the inclusion of that project or those projects in the list could
             2488      be construed to violate state law or federal law or regulation.
             2489          (4) (a) The division may enter into agreements related to these projects before the
             2490      receipt of proceeds of bonds issued under this chapter.
             2491          (b) The division shall make those expenditures from unexpended and unencumbered
             2492      building funds already appropriated to the Capital Projects Fund.
             2493          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             2494      of bonds issued under this chapter.
             2495          (d) The commission may, by resolution, make any statement of intent relating to that
             2496      reimbursement that is necessary or desirable to comply with federal tax law.
             2497          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             2498      it is the intent of the Legislature that the balance necessary to complete the projects be
             2499      addressed by future Legislatures, either through appropriations or through the issuance or sale
             2500      of bonds.
             2501          (b) For those phased projects, the division may enter into contracts for amounts not to
             2502      exceed the anticipated full project funding but may not allow work to be performed on those
             2503      contracts in excess of the funding already authorized by the Legislature.
             2504          (c) Those contracts shall contain a provision for termination of the contract for the
             2505      convenience of the state as required by Section [ 63-56-40 ] 63-56-601 .
             2506          (d) It is also the intent of the Legislature that this authorization to the division does not
             2507      bind future Legislatures to fund projects initiated from this authorization.


             2508          Section 102. Section 63B-4-102 is amended to read:
             2509           63B-4-102. Maximum amount -- Projects authorized.
             2510          (1) The total amount of bonds issued under this part may not exceed $45,300,000.
             2511          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             2512      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             2513      Subsection (2).
             2514          (b) These costs may include the cost of acquiring land, interests in land, easements and
             2515      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             2516      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             2517      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             2518      covered by construction of the projects plus a period of six months after the end of the
             2519      construction period, and all related engineering, architectural, and legal fees.
             2520          (c) For the division, proceeds shall be provided for the following:
             2521     
CAPITAL IMPROVEMENTS

             2522          Alterations, Repairs, and Improvements                    $7,200,000
             2523      TOTAL IMPROVEMENTS                                $7,200,000
             2524     
CAPITAL AND ECONOMIC DEVELOPMENT

             2525              PROJECT                 AMOUNT         ESTIMATED
             2526              DESCRIPTION             FUNDED     OPERATIONS AND
             2527                                              MAINTENANCE
             2528                                                  COSTS
             2529          Corrections - Uinta IVA                $11,300,000        $212,800
             2530          Utah County Youth Correctional Facility        $6,650,000        $245,000
             2531          Ogden Weber Applied Technology Center -        $5,161,000        $176,000
             2532          Metal Trades        
             2533          Project Reserve Fund                    $3,500,000        None
             2534          Weber State University - Browning Center         $3,300,000        None
             2535          Remodel
             2536          Heber Wells Building Remodel            $2,000,000        None
             2537          Higher Education Davis County - Land Purchase    $1,600,000        None
             2538          National Guard -- Provo Armory            $1,500,000        $128,000


             2539          Department of Natural Resources - Pioneer         $900,000        $65,000
             2540          Trails Visitor Center
             2541          Higher Education Design Projects            $800,000        Varies
             2542                                                  depending
             2543                                                  upon
             2544                                                  projects
             2545                                                  selected
             2546          Salt Lake Community College -
             2547          South Valley Planning                $300,000        None
             2548          Division of Youth Corrections renamed in 2003
             2549          to the Division of Juvenile Justice
             2550          Services - Logan Land                $120,000        None
             2551          Purchase
             2552      TOTAL CAPITAL AND ECONOMIC DEVELOPMENT                $37,131,000
             2553      TOTAL IMPROVEMENTS AND
             2554      CAPITAL AND ECONOMIC DEVELOPMENT                    $44,331,000
             2555          (d) For purposes of this section, operations and maintenance costs:
             2556          (i) are estimates only;
             2557          (ii) may include any operations and maintenance costs already funded in existing
             2558      agency budgets; and
             2559          (iii) are not commitments by this Legislature or future Legislatures to fund those
             2560      operations and maintenance costs.
             2561          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             2562      constitute a limitation on the amount that may be expended for any project.
             2563          (b) The board may revise these estimates and redistribute the amount estimated for a
             2564      project among the projects authorized.
             2565          (c) The commission, by resolution and in consultation with the board, may delete one
             2566      or more projects from this list if the inclusion of that project or those projects in the list could
             2567      be construed to violate state law or federal law or regulation.
             2568          (4) (a) The division may enter into agreements related to these projects before the
             2569      receipt of proceeds of bonds issued under this chapter.


             2570          (b) The division shall make those expenditures from unexpended and unencumbered
             2571      building funds already appropriated to the Capital Projects Fund.
             2572          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             2573      of bonds issued under this chapter.
             2574          (d) The commission may, by resolution, make any statement of intent relating to that
             2575      reimbursement that is necessary or desirable to comply with federal tax law.
             2576          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             2577      it is the intent of the Legislature that the balance necessary to complete the projects be
             2578      addressed by future Legislatures, either through appropriations or through the issuance or sale
             2579      of bonds.
             2580          (b) For those phased projects, the division may enter into contracts for amounts not to
             2581      exceed the anticipated full project funding but may not allow work to be performed on those
             2582      contracts in excess of the funding already authorized by the Legislature.
             2583          (c) Those contracts shall contain a provision for termination of the contract for the
             2584      convenience of the state as required by Section [ 63-56-40 ] 63-56-601 .
             2585          (d) It is also the intent of the Legislature that this authorization to the division does not
             2586      bind future Legislatures to fund projects initiated from this authorization.
             2587          Section 103. Section 63B-5-102 is amended to read:
             2588           63B-5-102. Maximum amount -- Projects authorized.
             2589          (1) The total amount of bonds issued under this part may not exceed $32,000,000.
             2590          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             2591      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             2592      Subsection (2).
             2593          (b) These costs may include the cost of acquiring land, interests in land, easements and
             2594      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             2595      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             2596      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             2597      covered by construction of the projects plus a period of six months after the end of the
             2598      construction period, and all related engineering, architectural, and legal fees.
             2599          (c) For the division, proceeds shall be provided for the following:
             2600     
CAPITAL IMPROVEMENTS


             2601          Alterations, Repairs, and Improvements        $7,600,000
             2602      TOTAL IMPROVEMENTS                    $7,600,000
             2603     
CAPITAL AND ECONOMIC DEVELOPMENT

             2604                                               ESTIMATED
             2605                                           OPERATIONS AND
             2606              PROJECT                    AMOUNT     MAINTENANCE
             2607              DESCRIPTION                 FUNDED     COSTS
             2608          Corrections - Gunnison (192 Beds)            $13,970,000        $210,000
             2609          University of Utah -- Gardner Hall            $7,361,000        $203,900
             2610          Weber State University Davis Campus        $771,000        None
             2611          -- Land Purchase
             2612          Department of Workforce Services Cedar City    $148,000        None
             2613          -- Land Purchase
             2614          College of Eastern Utah Durrant School        $400,000        None
             2615          -- Land Purchase
             2616          State Hospital - Forensic Design (200 beds)        $750,000        $575,000
             2617      TOTAL CAPITAL AND ECONOMIC DEVELOPMENT    $23,400,000
             2618      TOTAL IMPROVEMENTS AND
             2619      CAPITAL AND ECONOMIC DEVELOPMENT        $31,000,000
             2620          (d) For purposes of this section, operations and maintenance costs:
             2621          (i) are estimates only;
             2622          (ii) may include any operations and maintenance costs already funded in existing
             2623      agency budgets; and
             2624          (iii) are not commitments by this Legislature or future Legislatures to fund those
             2625      operations and maintenance costs.
             2626          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             2627      constitute a limitation on the amount that may be expended for any project.
             2628          (b) The board may revise these estimates and redistribute the amount estimated for a
             2629      project among the projects authorized.
             2630          (c) The commission, by resolution and in consultation with the board, may delete one
             2631      or more projects from this list if the inclusion of that project or those projects in the list could


             2632      be construed to violate state law or federal law or regulation.
             2633          (4) (a) The division may enter into agreements related to these projects before the
             2634      receipt of proceeds of bonds issued under this chapter.
             2635          (b) The division shall make those expenditures from unexpended and unencumbered
             2636      building funds already appropriated to the Capital Projects Fund.
             2637          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             2638      of bonds issued under this chapter.
             2639          (d) The commission may, by resolution, make any statement of intent relating to that
             2640      reimbursement that is necessary or desirable to comply with federal tax law.
             2641          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             2642      it is the intent of the Legislature that the balance necessary to complete the projects be
             2643      addressed by future Legislatures, either through appropriations or through the issuance or sale
             2644      of bonds.
             2645          (b) For those phased projects, the division may enter into contracts for amounts not to
             2646      exceed the anticipated full project funding but may not allow work to be performed on those
             2647      contracts in excess of the funding already authorized by the Legislature.
             2648          (c) Those contracts shall contain a provision for termination of the contract for the
             2649      convenience of the state as required by Section [ 63-56-40 ] 63-56-601 .
             2650          (d) It is also the intent of the Legislature that this authorization to the division does not
             2651      bind future Legislatures to fund projects initiated from this authorization.
             2652          Section 104. Section 63B-6-102 is amended to read:
             2653           63B-6-102. Maximum amount -- Projects authorized.
             2654          (1) The total amount of bonds issued under this part may not exceed $57,000,000.
             2655          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             2656      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             2657      Subsection (2).
             2658          (b) These costs may include the cost of acquiring land, interests in land, easements and
             2659      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             2660      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             2661      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             2662      covered by construction of the projects plus a period of six months after the end of the


             2663      construction period, and all related engineering, architectural, and legal fees.
             2664          (c) For the division, proceeds shall be provided for the following:
             2665     
CAPITAL AND ECONOMIC DEVELOPMENT

             2666                                              ESTIMATED
             2667                                              OPERATIONS
             2668                                  AMOUNT        AND
             2669      PROJECT DESCRIPTION                FUNDED        MAINTENANCE
             2670      Youth Corrections - Carbon / Emery (18 beds)    $2,298,100        $70,000
             2671      State Hospital - 100 bed Forensic Facility        $13,800,700        $320,600
             2672      Utah State University - Widtsoe Hall        $23,986,700        $750,200
             2673      Davis Applied Technology Center            $6,344,900        $144,000
             2674      - Medical/Health Tech Addition
             2675      Southern Utah University -- Physical        $1,100,000        $456,100
             2676      Education Building (Design)
             2677      Salt Lake Community College -- High        $1,165,000        $718,500
             2678      Technology Building, 90th So. Campus (Design)
             2679      Department of Natural Resources - Antelope    $3,600,000        None
             2680      Island Road
             2681      Youth Corrections                    $1,500,000        None
             2682      - Region 1 72 Secured Bed Facility
             2683      Department of Natural Resources - Dead Horse    $1,350,000        $5,700
             2684      Point Visitors Center
             2685      TOTAL CAPITAL AND ECONOMIC        $55,145,400
             2686      DEVELOPMENT
             2687          (d) For purposes of this section, operations and maintenance costs:
             2688          (i) are estimates only;
             2689          (ii) may include any operations and maintenance costs already funded in existing
             2690      agency budgets; and
             2691          (iii) are not commitments by this Legislature or future Legislatures to fund those
             2692      operations and maintenance costs.
             2693          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not


             2694      constitute a limitation on the amount that may be expended for any project.
             2695          (b) The board may revise these estimates and redistribute the amount estimated for a
             2696      project among the projects authorized.
             2697          (c) The commission, by resolution and in consultation with the board, may delete one
             2698      or more projects from this list if the inclusion of that project or those projects in the list could
             2699      be construed to violate state law or federal law or regulation.
             2700          (4) (a) The division may enter into agreements related to these projects before the
             2701      receipt of proceeds of bonds issued under this chapter.
             2702          (b) The division shall make those expenditures from unexpended and unencumbered
             2703      building funds already appropriated to the Capital Projects Fund.
             2704          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             2705      of bonds issued under this chapter.
             2706          (d) The commission may, by resolution, make any statement of intent relating to that
             2707      reimbursement that is necessary or desirable to comply with federal tax law.
             2708          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             2709      it is the intent of the Legislature that the balance necessary to complete the projects be
             2710      addressed by future Legislatures, either through appropriations or through the issuance or sale
             2711      of bonds.
             2712          (b) For those phased projects, the division may enter into contracts for amounts not to
             2713      exceed the anticipated full project funding but may not allow work to be performed on those
             2714      contracts in excess of the funding already authorized by the Legislature.
             2715          (c) Those contracts shall contain a provision for termination of the contract for the
             2716      convenience of the state as required by Section [ 63-56-40 ] 63-56-601 .
             2717          (d) It is also the intent of the Legislature that this authorization to the division does not
             2718      bind future Legislatures to fund projects initiated from this authorization.
             2719          Section 105. Section 63B-6-402 is amended to read:
             2720           63B-6-402. Maximum amount -- Projects authorized.
             2721          (1) The total amount of bonds issued under this part may not exceed $9,000,000.
             2722          (2) (a) Proceeds from the issuance of bonds shall be provided to the State Tax
             2723      Commission to provide funds to pay all or part of the cost of the project described in this
             2724      Subsection (2).


             2725          (b) These costs may include:
             2726          (i) the cost of acquisition, development, and conversion of computer hardware and
             2727      software for motor vehicle fee systems and tax collection and accounting systems of the state;
             2728          (ii) interest estimated to accrue on these bonds during the period to be covered by that
             2729      development and conversion, plus a period of six months following the completion of the
             2730      development and conversion; and
             2731          (iii) all related engineering, consulting, and legal fees.
             2732          (c) For the State Tax Commission, proceeds shall be provided for the following:
             2733              PROJECT                    AMOUNT
             2734              DESCRIPTION                FUNDED
             2735          UTAX SYSTEMS                    $8,500,000
             2736          ACQUISITION AND DEVELOPMENT
             2737          (3) The commission, by resolution may decline to issue bonds if the project could be
             2738      construed to violate state law or federal law or regulation.
             2739          (4) (a) For this project, for which only partial funding is provided in Subsection (2), it
             2740      is the intent of the Legislature that the balance necessary to complete the project be addressed
             2741      by future Legislatures, either through appropriations or through the issuance or sale of bonds.
             2742          (b) The State Tax Commission may enter into contracts for amounts not to exceed the
             2743      anticipated full project funding but may not allow work to be performed on those contracts in
             2744      excess of the funding already authorized by the Legislature.
             2745          (c) Those contracts shall contain a provision for termination of the contract for the
             2746      convenience of the state as required by Section [ 63-56-40 ] 63-56-601 .
             2747          (d) It is also the intent of the Legislature that this authorization to the State Tax
             2748      Commission does not bind future Legislatures to fund projects initiated from this authorization.
             2749          Section 106. Section 63B-7-102 is amended to read:
             2750           63B-7-102. Maximum amount -- Projects authorized.
             2751          (1) The total amount of bonds issued under this part may not exceed $33,600,000.
             2752          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             2753      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             2754      Subsection (2).
             2755          (b) These costs may include the cost of acquiring land, interests in land, easements and


             2756      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             2757      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             2758      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             2759      covered by construction of the projects plus a period of six months after the end of the
             2760      construction period, and all related engineering, architectural, and legal fees.
             2761          (c) For the division, proceeds shall be provided for the following:
             2762      PROJECT                 AMOUNT                ESTIMATED
             2763      DESCRIPTION             FUNDED             OPERATIONS AND
             2764                                              MAINTENANCE
             2765      Southern Utah University         $4,600,000                $0
             2766          Land Purchase
             2767      Salt Lake Community College     $3,980,700                $507,900
             2768          High Tech Center -
             2769          Jordan Campus
             2770      Children's Special Health Care     $755,400                $247,600
             2771          Needs Clinic
             2772      Youth Corrections - 2 @ 32 beds     $419,500                $276,000
             2773          (Vernal / Logan)
             2774      Corrections - Gunnison 288 bed     $8,425,600                $0
             2775          and Lagoon Expansion
             2776      University of Utah -             $445,500                $101,700
             2777          Cowles Building
             2778      Utah Valley State College -         $1,166,300                $391,000
             2779          Technical Building
             2780      Sevier Valley Applied Technology     $3,014,300                $443,300
             2781          Center - Shop Expansion
             2782      Division of Parks and Recreation     $1,000,000                $22,700
             2783          Statewide Restrooms
             2784      Murray Highway Patrol Office     $2,300,000                $81,000
             2785      Department of Workforce         $2,780,000                $128,100
             2786          Services - Davis County


             2787          Employment Center
             2788      State Hospital - Rampton II         $1,600,000                $462,000
             2789      Courts - 4th District             $1,368,000                $0
             2790          Land - Provo
             2791      Dixie College - Land             $1,000,000                $0
             2792      TOTAL CAPITAL AND         $32,855,300
             2793      ECONOMIC DEVELOPMENT
             2794          (d) For purposes of this section, operations and maintenance costs:
             2795          (i) are estimates only;
             2796          (ii) may include any operations and maintenance costs already funded in existing
             2797      agency budgets; and
             2798          (iii) are not commitments by this Legislature or future Legislatures to fund those
             2799      operations and maintenance costs.
             2800          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             2801      constitute a limitation on the amount that may be expended for any project.
             2802          (b) The board may revise these estimates and redistribute the amount estimated for a
             2803      project among the projects authorized.
             2804          (c) The commission, by resolution and in consultation with the board, may delete one
             2805      or more projects from this list if the inclusion of that project or those projects in the list could
             2806      be construed to violate state law or federal law or regulation.
             2807          (4) (a) The division may enter into agreements related to these projects before the
             2808      receipt of proceeds of bonds issued under this chapter.
             2809          (b) The division shall make those expenditures from unexpended and unencumbered
             2810      building funds already appropriated to the Capital Projects Fund.
             2811          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             2812      of bonds issued under this chapter.
             2813          (d) The commission may, by resolution, make any statement of intent relating to that
             2814      reimbursement that is necessary or desirable to comply with federal tax law.
             2815          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             2816      it is the intent of the Legislature that the balance necessary to complete the projects be
             2817      addressed by future Legislatures, either through appropriations or through the issuance or sale


             2818      of bonds.
             2819          (b) For those phased projects, the division may enter into contracts for amounts not to
             2820      exceed the anticipated full project funding but may not allow work to be performed on those
             2821      contracts in excess of the funding already authorized by the Legislature.
             2822          (c) Those contracts shall contain a provision for termination of the contract for the
             2823      convenience of the state as required by Section [ 63-56-40 ] 63-56-601 .
             2824          (d) It is also the intent of the Legislature that this authorization to the division does not
             2825      bind future Legislatures to fund projects initiated from this authorization.
             2826          Section 107. Section 63B-7-402 is amended to read:
             2827           63B-7-402. Maximum amount -- Projects authorized.
             2828          (1) The total amount of bonds issued under this part may not exceed $16,500,000.
             2829          (2) (a) Proceeds from the issuance of bonds shall be provided to the State Tax
             2830      Commission to provide funds to pay all or part of the cost of the project described in this
             2831      Subsection (2).
             2832          (b) These costs may include:
             2833          (i) the cost of acquisition, development, and conversion of computer hardware and
             2834      software for motor vehicle fee systems and tax collection and accounting systems of the state;
             2835          (ii) interest estimated to accrue on these bonds during the period to be covered by that
             2836      development and conversion, plus a period of six months following the completion of the
             2837      development and conversion; and
             2838          (iii) all related engineering, consulting, and legal fees.
             2839          (c) For the State Tax Commission, proceeds shall be provided for the following:
             2840          PROJECT                    AMOUNT
             2841          DESCRIPTION                FUNDED
             2842          UTAX SYSTEMS                $15,650,000
             2843          ACQUISITION AND DEVELOPMENT
             2844          (3) The commission, by resolution may decline to issue bonds if the project could be
             2845      construed to violate state law or federal law or regulation.
             2846          (4) (a) For this project, for which only partial funding is provided in Subsection (2), it
             2847      is the intent of the Legislature that the balance necessary to complete the project be addressed
             2848      by future Legislatures, either through appropriations or through the issuance or sale of bonds.


             2849          (b) The State Tax Commission may enter into contracts for amounts not to exceed the
             2850      anticipated full project funding but may not allow work to be performed on those contracts in
             2851      excess of the funding already authorized by the Legislature.
             2852          (c) Those contracts shall contain a provision for termination of the contract for the
             2853      convenience of the state as required by Section [ 63-56-40 ] 63-56-601 .
             2854          (d) It is also the intent of the Legislature that this authorization to the State Tax
             2855      Commission does not bind future Legislatures to fund projects initiated from this authorization.
             2856          Section 108. Section 63B-8-102 is amended to read:
             2857           63B-8-102. Maximum amount -- Projects authorized.
             2858          (1) The total amount of bonds issued under this part may not exceed $48,500,000.
             2859          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             2860      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             2861      Subsection (2).
             2862          (b) These costs may include the cost of acquiring land, interests in land, easements and
             2863      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             2864      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             2865      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             2866      covered by construction of the projects plus a period of six months after the end of the
             2867      construction period, and all related engineering, architectural, and legal fees.
             2868          (c) For the division, proceeds shall be provided for the following:
             2869          PROJECT                    AMOUNT         ESTIMATED
             2870          DESCRIPTION                FUNDED     OPERATIONS AND
             2871                                              MAINTENANCE
             2872          Southern Utah University -            $2,493,200            $447,744
             2873              Physical Education Building
             2874          Utah Valley State College -            $29,000,000            $721,875
             2875              Information Sciences Building
             2876          University of Utah -                 $7,268,500            $140,217
             2877              Cowles Building Renovation
             2878          Vernal District Court                $4,539,500            $149,989
             2879          Salt Lake Community College -        $4,200,000            $281,784


             2880              Applied Education Center
             2881          TOTAL CAPITAL AND            $47,501,200
             2882          ECONOMIC DEVELOPMENT
             2883          (d) For purposes of this section, operations and maintenance costs:
             2884          (i) are estimates only;
             2885          (ii) may include any operations and maintenance costs already funded in existing
             2886      agency budgets; and
             2887          (iii) are not commitments by this Legislature or future Legislatures to fund those
             2888      operations and maintenance costs.
             2889          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             2890      constitute a limitation on the amount that may be expended for any project.
             2891          (b) The board may revise these estimates and redistribute the amount estimated for a
             2892      project among the projects authorized.
             2893          (c) The commission, by resolution and in consultation with the board, may delete one
             2894      or more projects from this list if the inclusion of that project or those projects in the list could
             2895      be construed to violate state law or federal law or regulation.
             2896          (4) (a) The division may enter into agreements related to these projects before the
             2897      receipt of proceeds of bonds issued under this chapter.
             2898          (b) The division shall make those expenditures from unexpended and unencumbered
             2899      building funds already appropriated to the Capital Projects Fund.
             2900          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             2901      of bonds issued under this chapter.
             2902          (d) The commission may, by resolution, make any statement of intent relating to that
             2903      reimbursement that is necessary or desirable to comply with federal tax law.
             2904          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             2905      it is the intent of the Legislature that the balance necessary to complete the projects be
             2906      addressed by future Legislatures, either through appropriations or through the issuance or sale
             2907      of bonds.
             2908          (b) For those phased projects, the division may enter into contracts for amounts not to
             2909      exceed the anticipated full project funding but may not allow work to be performed on those
             2910      contracts in excess of the funding already authorized by the Legislature.


             2911          (c) Those contracts shall contain a provision for termination of the contract for the
             2912      convenience of the state as required by Section [ 63-56-40 ] 63-56-601 .
             2913          (d) It is also the intent of the Legislature that this authorization to the division does not
             2914      bind future Legislatures to fund projects initiated from this authorization.
             2915          Section 109. Section 63B-8-402 is amended to read:
             2916           63B-8-402. Maximum amount -- Projects authorized.
             2917          (1) The total amount of bonds issued under this part may not exceed $7,400,000.
             2918          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             2919      funds to pay all or part of the cost of acquiring and constructing the project listed in this
             2920      Subsection (2).
             2921          (b) These costs may include the cost of acquiring land, interests in land, easements and
             2922      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             2923      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             2924      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             2925      covered by construction of the projects plus a period of six months after the end of the