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S.B. 216

             1     

AMENDMENTS TO UTAH EMERGENCY

             2     
MEDICAL SERVICES ACT

             3     
2005 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Curtis S. Bramble

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends the Utah Emergency Medical Services System Act to clarify the
             10      procurement procedures that must be followed by a political subdivision issuing a
             11      request for proposal for emergency 911 ambulance services.
             12      Highlighted Provisions:
             13          This bill:
             14          .    amends definitions;
             15          .    clarifies that the procurement process must be based on competitive sealed
             16      proposals;
             17          .    requires a presubmission conference;
             18          .    requires fair treatment of all proposers;
             19          .    prohibits certain requirements in the request for proposals;
             20          .    requires certain information in the response to requests for proposals;
             21          .    clarifies the appeal rights for the selection of a proposer; and
             22          .    gives the State Appeals Board jurisdiction to review an appeal of the political
             23      subdivision's selection.
             24      Monies Appropriated in this Bill:
             25          None
             26      Other Special Clauses:
             27          This bill provides an immediate effective date.



             28      Utah Code Sections Affected:
             29      AMENDS:
             30          26-8a-405.1, as last amended by Chapter 277, Laws of Utah 2004
             31          26-8a-405.2, as last amended by Chapter 277, Laws of Utah 2004
             32      ENACTS:
             33          26-8a-405.3, Utah Code Annotated 1953
             34      Uncodified Material Affected:
             35      ENACTS UNCODIFIED MATERIAL
             36     
             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 26-8a-405.1 is amended to read:
             39           26-8a-405.1. Selection of provider by political subdivision.
             40          (1) For purposes of this section and [Section] Sections 26-8a-405.2 and 26-8a-405.3 :
             41          (a) "911 ambulance or paramedic services" means either 911 ambulance service, or 911
             42      paramedic service, or both and:
             43          (i) means a 911 call received by a designated dispatch center that receives 911 or E911
             44      calls; and
             45          (ii) does not mean a seven digit telephone call received directly by an ambulance
             46      provider licensed under this chapter;
             47          (b) "political subdivision" means:
             48          (i) a city or town located in a county of the first or second class as defined in Section
             49      17-50-501 ;
             50          (ii) a county of the first or second class;
             51          (iii) the following districts or service areas located in a county of the first or second
             52      class:
             53          (A) a special service district created under Title 17A, Chapter 2, Part 13, Utah Special
             54      Service District Act;
             55          (B) a local district created under Title 17B, Chapter 2, Local Districts, for the purpose
             56      of providing fire protection, paramedic, and emergency services; and
             57          (C) a county service area created under Title 17A, Chapter 2, Part 4, County Service
             58      Area Act, for the purpose of providing fire protection, paramedic, and emergency services; or



             59          (iv) areas coming together as described in Subsection 26-8a-405.2 (2)(b)(ii)[.]; or
             60          (v) municipalities and/or counties joining together pursuant to Title 11, Chapter 13,
             61      Interlocal Cooperation Act, as a special district for fire protection as defined in Section
             62      17A-2-1304 .
             63          (2) (a) Only an applicant approved under Section 26-8a-405 may respond to a request
             64      for a proposal for 911 ambulance or paramedic services issued in accordance with Section
             65      26-8a-405.2 by a political subdivision.
             66          (b) A response to a request for proposal is subject to the maximum rates established by
             67      the department under Section 26-8a-403 .
             68          (c) A political subdivision may award a contract to an applicant for the provision of
             69      911 ambulance or paramedic services:
             70          (i) in accordance with Section 26-8a-405.2 ; and
             71          (ii) subject to Subsection (3).
             72          (3) (a) The department shall issue a license to an applicant selected by a political
             73      subdivision under Subsection (2) unless the department finds that issuing a license to that
             74      applicant would jeopardize the health, safety, and welfare of the citizens of the geographic
             75      service area.
             76          (b) A license issued under this Subsection (3):
             77          (i) is for the exclusive geographic service area approved by the department in
             78      accordance with Subsection 26-8a-405.2 [(3)](2);
             79          (ii) is valid for four years;
             80          (iii) is not subject to a request for license from another applicant under the provisions
             81      of Sections 26-8a-406 through 26-8a-409 during the four-year term, unless the applicant's
             82      license is revoked under Section 26-8a-504 ; and
             83          (iv) is subject to supervision by the department under Sections 26-8a-503 and
             84      26-8a-504 .
             85          (4) [The] Except as provided in Subsection 26-8a-405.3 (4)(a), the provisions of
             86      Sections 26-8a-406 through 26-8a-409 do not apply to a license issued under this section.
             87          Section 2. Section 26-8a-405.2 is amended to read:
             88           26-8a-405.2. Selection of provider -- Request for competitive sealed proposal --
             89      Public convenience and necessity.


             90          (1) (a) A political subdivision may contract with an applicant approved under Section
             91      26-8a-404 to provide 911 ambulance or paramedic services for the geographic service area that
             92      is approved by the department in accordance with Subsection (2), if the political subdivision
             93      complies with the provisions of this section and Section 26-8a-405.3 .
             94          (b) The provisions of this section and [Section] Sections 26-8a-405.1 and 26-8a-405.3
             95      do not require a political subdivision to issue a request for proposal for ambulance or
             96      paramedic services. If a political subdivision does not contract with an applicant in accordance
             97      with this section and Section 26-8a-405.3 , the provisions of Sections 26-8a-406 through
             98      26-8a-409 apply to the issuance of a license for ambulance or paramedic services in the
             99      geographic service area that is within the boundaries of the political subdivision.
             100          (c) (i) For purposes of this Subsection (1)(c):
             101          (A) "local district" and "county service area" are defined in Subsection
             102      26-8a-405.1 (1)(b)(iii);
             103          (B) "participating municipality" means a city or town whose area is partly or entirely
             104      included within a county service area or local district; and
             105          (C) "participating county" means a county whose unincorporated area is partly or
             106      entirely included within a county service area or local district.
             107          (ii) A participating municipality or participating county may contract with a provider
             108      for 911 ambulance or paramedic service as provided in this section and Section 26-8a-405.3 .
             109          (iii) If the participating municipality or participating county contracts with a provider
             110      for 911 ambulance or paramedic services under this section and Section 26-8a-405.3 :
             111          (A) the county service area or local district is not obligated to provide the ambulance or
             112      paramedic services that are included in the contract between the participating municipality or
             113      the participating county and the 911 ambulance or paramedic provider;
             114          (B) the county service area and local district may impose taxes and obligations within
             115      the county service area or local district in the same manner as if the participating municipality
             116      or participating county were receiving all services offered by the local district or county service
             117      area; and
             118          (C) the participating municipality's and participating county's obligations to the local
             119      district or county service area are not diminished.
             120          (2) (a) The political subdivision shall submit the request for proposal and the exclusive


             121      geographic service area to be included in the request for proposal to the department for
             122      approval prior to issuing the request for proposal. The department shall approve the request for
             123      proposal and the exclusive geographic service area:
             124          (i) unless the geographic service area creates an orphaned area; and
             125          (ii) in accordance with Subsections (2)(b) and (c).
             126          (b) The exclusive geographic service area may:
             127          (i) include the entire geographic service area that is within the political subdivision's
             128      boundaries;
             129          (ii) include islands within or adjacent to other peripheral areas not included in the
             130      political subdivision that governs the geographic service area; or
             131          (iii) exclude portions of the geographic service area within the political subdivision's
             132      boundaries if another political subdivision or licensed provider agrees to include the excluded
             133      area within their license.
             134          (c) The proposed geographic service area for 911 ambulance or paramedic service must
             135      demonstrate that non-911 ambulance or paramedic service will be provided in the geographic
             136      service area, either by the current provider, the applicant, or some other method acceptable to
             137      the department. The department may consider the effect of the proposed geographic service
             138      area on the costs to the non-911 provider and that provider's ability to provide only non-911
             139      services in the proposed area.
             140          [(3) (a) (i) A political subdivision may select an applicant approved by the department
             141      under Section 26-8a-404 to provide 911 ambulance or paramedic services by contract let to the
             142      lowest, responsive, and responsible bidder after publication of notice at least once a week for
             143      three consecutive weeks in a newspaper of general circulation published in the county, or if
             144      there is no such newspaper, then after posting such notice for at least 20 days in at least five
             145      public places in the county.]
             146          [(ii) The applicants who are approved under Section 26-8a-405 and who are selected
             147      under Subsection (3)(a)(i) may be the political subdivision issuing the request for proposal, or
             148      any other public entity or entities, any private person or entity, or any combination thereof.]
             149          [(b) A political subdivision may reject all of the bids.]
             150          [(4) In seeking bids and awarding contracts under this section, a political subdivision:]
             151          [(a) shall follow the provisions of Section 63-56-20 ;]


             152          [(b) shall consider the public convenience and necessity factors listed in Subsections
             153      26-8a-408 (2), (3), and (4);]
             154          [(c) shall require the applicant responding to the bid to disclose how the applicant will
             155      meet performance standards in the request for proposal;]
             156          [(d) may not require or restrict an applicant to a certain method of meeting the
             157      performance standards; and]
             158          [(e) (i) shall require an applicant to submit the bid based on full cost accounting in
             159      accordance with generally accepted accounting principals; and]
             160          [(ii) if the applicant is a governmental entity, in addition to the requirements of
             161      Subsection (4)(e)(i), in accordance with generally accepted government auditing standards and
             162      in compliance with the State of Utah Legal Compliance Audit Guide.]
             163          Section 3. Section 26-8a-405.3 is enacted to read:
             164          26-8a-405.3. Use of competitive sealed proposals -- Procedure -- Appeal rights.
             165          (1) (a) Competitive sealed proposals for paramedic or 911 ambulance services under
             166      Section 26-8a-405.2 shall be solicited through a request for proposal and the provisions of this
             167      section.
             168          (b) The governing body of the political subdivision shall approve the request for
             169      proposal prior to the notice of the request for proposals under Subsection (1)(c).
             170          (c) Notice of the request for proposals must be published at least once a week for three
             171      consecutive weeks in a newspaper of general circulation published in the county, or if there is
             172      no such newspaper, then notice must be posted for at least 20 days in at least five public places
             173      in the county.
             174          (2) (a) Proposals shall be opened so as to avoid disclosure of contents to competing
             175      offerors during the process of negotiations.
             176          (b) (i) Subsequent to the published notice, and prior to selecting an applicant, the
             177      political subdivision must hold a presubmission conference with interested applicants for the
             178      purpose of assuring full understanding of, and responsiveness to, solicitation requirements.
             179          (ii) A political subdivision shall allow at least 120 days from the presubmission
             180      conference for the proposers to submit proposals.
             181          (c) Subsequent to the presubmission conference, the political subdivision may issue
             182      addenda to the request for proposals.


             183          (d) Offerors to the request for proposals shall be accorded fair and equal treatment with
             184      respect to any opportunity for discussion and revisions of proposals, and revisions may be
             185      permitted after submission and before a contract is awarded for the purpose of obtaining best
             186      and final offers.
             187          (e) In conducting discussions, there shall be no disclosures of any information derived
             188      from proposals submitted by competing offerors.
             189          (3) (a) (i) A political subdivision may select an applicant approved by the department
             190      under Section 26-8a-404 to provide 911 ambulance or paramedic services by contract to the
             191      most responsible offeror as defined in Subsection 63-56-5 (24).
             192          (ii) An award under Subsection (3)(a)(i) shall be made to the responsible offeror whose
             193      proposal is determined in writing to be the most advantageous to the political subdivision,
             194      taking into consideration price and the evaluation factors set forth in the request for proposal.
             195          (b) The applicants who are approved under Section 26-8a-405 and who are selected
             196      under this section may be the political subdivision issuing the request for competitive sealed
             197      proposals, or any other public entity or entities, any private person or entity, or any
             198      combination thereof.
             199          (c) A political subdivision may reject all of the competitive proposals.
             200          (4) In seeking competitive sealed proposals and awarding contracts under this section,
             201      a political subdivision:
             202          (a) shall consider the public convenience and necessity factors listed in Subsections
             203      26-8a-408 (2) through (7);
             204          (b) shall require the applicant responding to the proposal to disclose how the applicant
             205      will meet performance standards in the request for proposal;
             206          (c) may not require or restrict an applicant to a certain method of meeting the
             207      performance standards, including:
             208          (i) requiring ambulance medical personnel to also be a firefighter; or
             209          (ii) mandating that offerors use fire stations or dispatch services of the political
             210      subdivision;
             211          (d) (i) shall require an applicant to submit the proposal based on full cost accounting in
             212      accordance with generally accepted accounting principals; and
             213          (ii) if the applicant is a governmental entity, in addition to the requirements of


             214      Subsection (4)(e)(i), in accordance with generally accepted government auditing standards and
             215      in compliance with the State of Utah Legal Compliance Audit Guide; and
             216          (e) shall set forth in the request for proposal:
             217          (i) the method for determining full cost accounting in accordance with generally
             218      accepted accounting principles, and require an applicant to submit the proposal based on such
             219      full cost accounting principles;
             220          (ii) guidelines established to further competition and provider accountability; and
             221          (iii) a list of the factors that will be considered by the political subdivision in the award
             222      of the contract, including by percentage, the relative weight of the factors established under this
             223      Subsection (4)(e), which may include such things as:
             224          (A) response times;
             225          (B) staging locations;
             226          (C) experience;
             227          (D) quality of care; and
             228          (E) cost, consistent with the cost accounting method in Subsection (4)(e)(i).
             229          (5) (a) Notwithstanding the provisions of Subsection 63-56-2 (3), the provisions of Title
             230      63, Chapter 56, Part H, Legal and Contractual Remedies, apply to the procurement process
             231      required by this section, except as provided in Subsection (5)(c).
             232          (b) The Procurement Appeals Board created in Section 63-56-51 shall have jurisdiction
             233      to review and determine an appeal of an offeror under this section in the same manner as
             234      provided in Section 63-56-54 .
             235          (c) (i) An offeror may appeal the solicitation or award as provided by the political
             236      subdivision's procedures. After all political subdivision appeal rights are exhausted, the offeror
             237      may appeal under the provisions of Subsections (5)(a) and (b).
             238          (ii) The factual determination required by Subsection 63-56-57 (1) shall be based on
             239      whether the solicitation or award was made in accordance with the procedures set forth in this
             240      section and Section 26-8a-405.2 .
             241          (d) The determination of an issue of fact by the Appeals Board shall be final and
             242      conclusive unless arbitrary and capricious or clearly erroneous as provided in Section 63-56-57 .
             243          Section 4. Effective date.
             244          If approved by two-thirds of all the members elected to each house, this bill takes effect


             245      upon approval by the governor, or the day following the constitutional time limit of Utah
             246      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             247      the date of veto override.
             248          Section 5. Application of effective date.
             249          The provisions of this bill apply to:
             250          (1) a request for proposal issued by a political subdivision after the effective date of
             251      this bill; and
             252          (2) a request for proposal issued by a political subdivision prior to the effective date of
             253      this bill if the political subdivision requesting the proposals has not contracted with a proposer
             254      prior to the effective date of this bill.




Legislative Review Note
    as of 2-15-05 8:21 AM


Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel


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