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Fourth Substitute H.B. 426

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Wed, Mar 5, 2008 at 8:59 PM by rday. --> PLEASE NOTE:
THIS DOCUMENT INCLUDES BOTH THE BILL AND ALSO A TRANSMITTAL LETTER THAT CONTAINS PASSED AMENDMENTS BUT NOT INCORPORATED INTO THE BILL.


March 5, 2008



Mr. Speaker:

    The Senate substituted and passed Senate 4th Sub. H.B. 426, GOVERNMENT PROCUREMENT - PRIVATE PROPOSALS, by Representative K. Garn, and with the following amendments:
1.     Page 23, Line 698 :    

             698          (b) A detailed proposal that is to be   review     reviewed   by the committee shall be submitted to the
2.     Page 26, Lines 786 through 792 :    

             786          63M-1-2412. Private Proposal Restricted   Account     Special Revenue Fund   -- Fees.
             787          (1) There is created a restricted special revenue fund within the office called the Private
             788      Proposal Restricted Special Revenue Fund.
             789          (2) Monies collected from the payment of a fee required by this part shall be deposited
             790      in the Private Proposal Restricted Special Revenue Fund.
             791          (3)   Subject to appropriation by the Legislature, the     The   board or the committee may use the
             792      monies in the Private Proposal Restricted   Account     Special Revenue Fund   to offset:

and it is transmitted for further consideration.

        Respectfully,



        Annette B. Moore
        Secretary of the Senate


14 hb0426s04.wpd 8:45 pm CRP/rday


Senator Wayne L. Niederhauser proposes the following substitute bill:


             1     
GOVERNMENT PROCUREMENT - PRIVATE

             2     
PROPOSALS

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Kevin S. Garn

             6     
Senate Sponsor: Wayne L. Niederhauser

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill creates a program allowing a private entity to submit proposals to provide
             11      certain products or services to the Department of Technology Services or the Board of
             12      Education.
             13      Highlighted Provisions:
             14          This bill:
             15          .    creates a program allowing the submission of a proposal to provide a product or
             16      service to the Department of Technology Services or the Board of Education;
             17          .    requires the Board of Business and Economic Development to appoint a committee
             18      to evaluate a proposal under the program;
             19          .    defines terms;
             20          .    addresses the requirements of an initial proposal submitted to the committee;
             21          .    provides for review of an initial proposal by the committee and the affected
             22      department and allows comments by various entities;
             23          .    addresses the procurement process for detailed proposals if the initial proposal is
             24      accepted by the committee;
             25          .    provides requirements for a detailed proposal;


             26          .    makes an initial proposal a protected record under Title 63, Chapter 2, Government
             27      Records Access and Management Act;
             28          .    allows the committee, by rule, to maintain certain portions of an initial proposal as a
             29      protected record;
             30          .    addresses cooperation between a private entity submitting a detailed proposal and
             31      the affected department;
             32          .    requires the Governor's Office of Planning and Budget to prepare an economic
             33      feasibility report concerning a proposal;
             34          .    provides for the acceptance of a detailed proposal and the preparation and execution
             35      of a project agreement;
             36          .    creates a restricted special revenue fund, comprised of monies collected from fees
             37      for submitting a proposal;
             38          .    establishes uses for which monies may be expended from the restricted account;
             39          .    requires the establishment of fees for proposals and project agreements;
             40          .    allows for the appointment of an advisory committee to assist the committee in
             41      evaluating proposals and preparing project agreements; and
             42          .    makes technical changes.
             43      Monies Appropriated in this Bill:
             44          None
             45      Other Special Clauses:
             46          None
             47      Utah Code Sections Affected:
             48      AMENDS:
             49          63-2-304, as last amended by Laws of Utah 2008, Chapter 3
             50          63-38f-203, as renumbered and amended by Laws of Utah 2005, Chapter 148
             51          63-56-204, as last amended by Laws of Utah 2005, Chapter 169 and renumbered and
             52      amended by Laws of Utah 2005, Chapter 25
             53          63-56-205, as renumbered and amended by Laws of Utah 2005, Chapter 25
             54          63-56-302, as renumbered and amended by Laws of Utah 2005, Chapter 25
             55          63F-1-205, as last amended by Laws of Utah 2007, Chapter 306
             56      ENACTS:


             57          63G-6-408.5, Utah Code Annotated 1953
             58          63M-1-2401, Utah Code Annotated 1953
             59          63M-1-2402, Utah Code Annotated 1953
             60          63M-1-2403, Utah Code Annotated 1953
             61          63M-1-2404, Utah Code Annotated 1953
             62          63M-1-2405, Utah Code Annotated 1953
             63          63M-1-2406, Utah Code Annotated 1953
             64          63M-1-2407, Utah Code Annotated 1953
             65          63M-1-2408, Utah Code Annotated 1953
             66          63M-1-2409, Utah Code Annotated 1953
             67          63M-1-2410, Utah Code Annotated 1953
             68          63M-1-2411, Utah Code Annotated 1953
             69          63M-1-2412, Utah Code Annotated 1953
             70     
             71      Be it enacted by the Legislature of the state of Utah:
             72          Section 1. Section 63-2-304 is amended to read:
             73           63-2-304. Protected records.
             74          The following records are protected if properly classified by a governmental entity:
             75          (1) trade secrets as defined in Section 13-24-2 if the person submitting the trade secret
             76      has provided the governmental entity with the information specified in Section 63-2-308 ;
             77          (2) commercial information or nonindividual financial information obtained from a
             78      person if:
             79          (a) disclosure of the information could reasonably be expected to result in unfair
             80      competitive injury to the person submitting the information or would impair the ability of the
             81      governmental entity to obtain necessary information in the future;
             82          (b) the person submitting the information has a greater interest in prohibiting access
             83      than the public in obtaining access; and
             84          (c) the person submitting the information has provided the governmental entity with
             85      the information specified in Section 63-2-308 ;
             86          (3) commercial or financial information acquired or prepared by a governmental entity
             87      to the extent that disclosure would lead to financial speculations in currencies, securities, or


             88      commodities that will interfere with a planned transaction by the governmental entity or cause
             89      substantial financial injury to the governmental entity or state economy;
             90          (4) records the disclosure of which could cause commercial injury to, or confer a
             91      competitive advantage upon a potential or actual competitor of, a commercial project entity as
             92      defined in Subsection 11-13-103 (4);
             93          (5) test questions and answers to be used in future license, certification, registration,
             94      employment, or academic examinations;
             95          (6) records the disclosure of which would impair governmental procurement
             96      proceedings or give an unfair advantage to any person proposing to enter into a contract or
             97      agreement with a governmental entity, except that this Subsection (6) does not restrict the right
             98      of a person to see bids submitted to or by a governmental entity after bidding has closed;
             99          (7) records that would identify real property or the appraisal or estimated value of real
             100      or personal property, including intellectual property, under consideration for public acquisition
             101      before any rights to the property are acquired unless:
             102          (a) public interest in obtaining access to the information outweighs the governmental
             103      entity's need to acquire the property on the best terms possible;
             104          (b) the information has already been disclosed to persons not employed by or under a
             105      duty of confidentiality to the entity;
             106          (c) in the case of records that would identify property, potential sellers of the described
             107      property have already learned of the governmental entity's plans to acquire the property;
             108          (d) in the case of records that would identify the appraisal or estimated value of
             109      property, the potential sellers have already learned of the governmental entity's estimated value
             110      of the property; or
             111          (e) the property under consideration for public acquisition is a single family residence
             112      and the governmental entity seeking to acquire the property has initiated negotiations to acquire
             113      the property as required under Section 78B-6-505 ;
             114          (8) records prepared in contemplation of sale, exchange, lease, rental, or other
             115      compensated transaction of real or personal property including intellectual property, which, if
             116      disclosed prior to completion of the transaction, would reveal the appraisal or estimated value
             117      of the subject property, unless:
             118          (a) the public interest in access outweighs the interests in restricting access, including


             119      the governmental entity's interest in maximizing the financial benefit of the transaction; or
             120          (b) when prepared by or on behalf of a governmental entity, appraisals or estimates of
             121      the value of the subject property have already been disclosed to persons not employed by or
             122      under a duty of confidentiality to the entity;
             123          (9) records created or maintained for civil, criminal, or administrative enforcement
             124      purposes or audit purposes, or for discipline, licensing, certification, or registration purposes, if
             125      release of the records:
             126          (a) reasonably could be expected to interfere with investigations undertaken for
             127      enforcement, discipline, licensing, certification, or registration purposes;
             128          (b) reasonably could be expected to interfere with audits, disciplinary, or enforcement
             129      proceedings;
             130          (c) would create a danger of depriving a person of a right to a fair trial or impartial
             131      hearing;
             132          (d) reasonably could be expected to disclose the identity of a source who is not
             133      generally known outside of government and, in the case of a record compiled in the course of
             134      an investigation, disclose information furnished by a source not generally known outside of
             135      government if disclosure would compromise the source; or
             136          (e) reasonably could be expected to disclose investigative or audit techniques,
             137      procedures, policies, or orders not generally known outside of government if disclosure would
             138      interfere with enforcement or audit efforts;
             139          (10) records the disclosure of which would jeopardize the life or safety of an
             140      individual;
             141          (11) records the disclosure of which would jeopardize the security of governmental
             142      property, governmental programs, or governmental recordkeeping systems from damage, theft,
             143      or other appropriation or use contrary to law or public policy;
             144          (12) records that, if disclosed, would jeopardize the security or safety of a correctional
             145      facility, or records relating to incarceration, treatment, probation, or parole, that would interfere
             146      with the control and supervision of an offender's incarceration, treatment, probation, or parole;
             147          (13) records that, if disclosed, would reveal recommendations made to the Board of
             148      Pardons and Parole by an employee of or contractor for the Department of Corrections, the
             149      Board of Pardons and Parole, or the Department of Human Services that are based on the


             150      employee's or contractor's supervision, diagnosis, or treatment of any person within the board's
             151      jurisdiction;
             152          (14) records and audit workpapers that identify audit, collection, and operational
             153      procedures and methods used by the State Tax Commission, if disclosure would interfere with
             154      audits or collections;
             155          (15) records of a governmental audit agency relating to an ongoing or planned audit
             156      until the final audit is released;
             157          (16) records prepared by or on behalf of a governmental entity solely in anticipation of
             158      litigation that are not available under the rules of discovery;
             159          (17) records disclosing an attorney's work product, including the mental impressions or
             160      legal theories of an attorney or other representative of a governmental entity concerning
             161      litigation;
             162          (18) records of communications between a governmental entity and an attorney
             163      representing, retained, or employed by the governmental entity if the communications would be
             164      privileged as provided in Section 78B-1-137 ;
             165          (19) (a) (i) personal files of a state legislator, including personal correspondence to or
             166      from a member of the Legislature; and
             167          (ii) notwithstanding Subsection (19)(a)(i), correspondence that gives notice of
             168      legislative action or policy may not be classified as protected under this section; and
             169          (b) (i) an internal communication that is part of the deliberative process in connection
             170      with the preparation of legislation between:
             171          (A) members of a legislative body;
             172          (B) a member of a legislative body and a member of the legislative body's staff; or
             173          (C) members of a legislative body's staff; and
             174          (ii) notwithstanding Subsection (19)(b)(i), a communication that gives notice of
             175      legislative action or policy may not be classified as protected under this section;
             176          (20) (a) records in the custody or control of the Office of Legislative Research and
             177      General Counsel, that, if disclosed, would reveal a particular legislator's contemplated
             178      legislation or contemplated course of action before the legislator has elected to support the
             179      legislation or course of action, or made the legislation or course of action public; and
             180          (b) notwithstanding Subsection (20)(a), the form to request legislation submitted to the


             181      Office of Legislative Research and General Counsel is a public document unless a legislator
             182      asks that the records requesting the legislation be maintained as protected records until such
             183      time as the legislator elects to make the legislation or course of action public;
             184          (21) research requests from legislators to the Office of Legislative Research and
             185      General Counsel or the Office of the Legislative Fiscal Analyst and research findings prepared
             186      in response to these requests;
             187          (22) drafts, unless otherwise classified as public;
             188          (23) records concerning a governmental entity's strategy about collective bargaining or
             189      pending litigation;
             190          (24) records of investigations of loss occurrences and analyses of loss occurrences that
             191      may be covered by the Risk Management Fund, the Employers' Reinsurance Fund, the
             192      Uninsured Employers' Fund, or similar divisions in other governmental entities;
             193          (25) records, other than personnel evaluations, that contain a personal recommendation
             194      concerning an individual if disclosure would constitute a clearly unwarranted invasion of
             195      personal privacy, or disclosure is not in the public interest;
             196          (26) records that reveal the location of historic, prehistoric, paleontological, or
             197      biological resources that if known would jeopardize the security of those resources or of
             198      valuable historic, scientific, educational, or cultural information;
             199          (27) records of independent state agencies if the disclosure of the records would
             200      conflict with the fiduciary obligations of the agency;
             201          (28) records of an institution within the state system of higher education defined in
             202      Section 53B-1-102 regarding tenure evaluations, appointments, applications for admissions,
             203      retention decisions, and promotions, which could be properly discussed in a meeting closed in
             204      accordance with Title 52, Chapter 4, Open and Public Meetings Act, provided that records of
             205      the final decisions about tenure, appointments, retention, promotions, or those students
             206      admitted, may not be classified as protected under this section;
             207          (29) records of the governor's office, including budget recommendations, legislative
             208      proposals, and policy statements, that if disclosed would reveal the governor's contemplated
             209      policies or contemplated courses of action before the governor has implemented or rejected
             210      those policies or courses of action or made them public;
             211          (30) records of the Office of the Legislative Fiscal Analyst relating to budget analysis,


             212      revenue estimates, and fiscal notes of proposed legislation before issuance of the final
             213      recommendations in these areas;
             214          (31) records provided by the United States or by a government entity outside the state
             215      that are given to the governmental entity with a requirement that they be managed as protected
             216      records if the providing entity certifies that the record would not be subject to public disclosure
             217      if retained by it;
             218          (32) transcripts, minutes, or reports of the closed portion of a meeting of a public body
             219      except as provided in Section 52-4-206 ;
             220          (33) records that would reveal the contents of settlement negotiations but not including
             221      final settlements or empirical data to the extent that they are not otherwise exempt from
             222      disclosure;
             223          (34) memoranda prepared by staff and used in the decision-making process by an
             224      administrative law judge, a member of the Board of Pardons and Parole, or a member of any
             225      other body charged by law with performing a quasi-judicial function;
             226          (35) records that would reveal negotiations regarding assistance or incentives offered
             227      by or requested from a governmental entity for the purpose of encouraging a person to expand
             228      or locate a business in Utah, but only if disclosure would result in actual economic harm to the
             229      person or place the governmental entity at a competitive disadvantage, but this section may not
             230      be used to restrict access to a record evidencing a final contract;
             231          (36) materials to which access must be limited for purposes of securing or maintaining
             232      the governmental entity's proprietary protection of intellectual property rights including patents,
             233      copyrights, and trade secrets;
             234          (37) the name of a donor or a prospective donor to a governmental entity, including an
             235      institution within the state system of higher education defined in Section 53B-1-102 , and other
             236      information concerning the donation that could reasonably be expected to reveal the identity of
             237      the donor, provided that:
             238          (a) the donor requests anonymity in writing;
             239          (b) any terms, conditions, restrictions, or privileges relating to the donation may not be
             240      classified protected by the governmental entity under this Subsection (37); and
             241          (c) except for an institution within the state system of higher education defined in
             242      Section 53B-1-102 , the governmental unit to which the donation is made is primarily engaged


             243      in educational, charitable, or artistic endeavors, and has no regulatory or legislative authority
             244      over the donor, a member of the donor's immediate family, or any entity owned or controlled
             245      by the donor or the donor's immediate family;
             246          (38) accident reports, except as provided in Sections 41-6a-404 , 41-12a-202 , and
             247      73-18-13 ;
             248          (39) a notification of workers' compensation insurance coverage described in Section
             249      34A-2-205 ;
             250          (40) (a) the following records of an institution within the state system of higher
             251      education defined in Section 53B-1-102 , which have been developed, discovered, disclosed to,
             252      or received by or on behalf of faculty, staff, employees, or students of the institution:
             253          (i) unpublished lecture notes;
             254          (ii) unpublished notes, data, and information:
             255          (A) relating to research; and
             256          (B) of:
             257          (I) the institution within the state system of higher education defined in Section
             258      53B-1-102 ; or
             259          (II) a sponsor of sponsored research;
             260          (iii) unpublished manuscripts;
             261          (iv) creative works in process;
             262          (v) scholarly correspondence; and
             263          (vi) confidential information contained in research proposals;
             264          (b) Subsection (40)(a) may not be construed to prohibit disclosure of public
             265      information required pursuant to Subsection 53B-16-302 (2)(a) or (b); and
             266          (c) Subsection (40)(a) may not be construed to affect the ownership of a record;
             267          (41) (a) records in the custody or control of the Office of Legislative Auditor General
             268      that would reveal the name of a particular legislator who requests a legislative audit prior to the
             269      date that audit is completed and made public; and
             270          (b) notwithstanding Subsection (41)(a), a request for a legislative audit submitted to the
             271      Office of the Legislative Auditor General is a public document unless the legislator asks that
             272      the records in the custody or control of the Office of Legislative Auditor General that would
             273      reveal the name of a particular legislator who requests a legislative audit be maintained as


             274      protected records until the audit is completed and made public;
             275          (42) records that provide detail as to the location of an explosive, including a map or
             276      other document that indicates the location of:
             277          (a) a production facility; or
             278          (b) a magazine;
             279          (43) information contained in the database described in Section 62A-3-311.1 ;
             280          (44) information contained in the Management Information System and Licensing
             281      Information System described in Title 62A, Chapter 4a, Child and Family Services;
             282          (45) information regarding National Guard operations or activities in support of the
             283      National Guard's federal mission;
             284          (46) records provided by any pawn or secondhand business to a law enforcement
             285      agency or to the central database in compliance with Title 13, Chapter 32a, Pawnshop and
             286      Secondhand Merchandise Transaction Information Act;
             287          (47) information regarding food security, risk, and vulnerability assessments performed
             288      by the Department of Agriculture and Food;
             289          (48) except to the extent that the record is exempt from this chapter pursuant to Section
             290      63-2-106 , records related to an emergency plan or program prepared or maintained by the
             291      Division of Homeland Security the disclosure of which would jeopardize:
             292          (a) the safety of the general public; or
             293          (b) the security of:
             294          (i) governmental property;
             295          (ii) governmental programs; or
             296          (iii) the property of a private person who provides the Division of Homeland Security
             297      information;
             298          (49) records of the Department of Agriculture and Food relating to the National
             299      Animal Identification System or any other program that provides for the identification, tracing,
             300      or control of livestock diseases, including any program established under Title 4, Chapter 24,
             301      Utah Livestock Brand and Anti-theft Act or Title 4, Chapter 31, Livestock Inspection and
             302      Quarantine;
             303          (50) as provided in Section 26-39-109 :
             304          (a) information or records held by the Department of Health related to a complaint


             305      regarding a child care program or residential child care which the department is unable to
             306      substantiate; and
             307          (b) information or records related to a complaint received by the Department of Health
             308      from an anonymous complainant regarding a child care program or residential child care; [and]
             309          (51) unless otherwise classified as public under Section 63-2-301 and except as
             310      provided under Section 41-1a-116 , an individual's home address, home telephone number, or
             311      personal mobile phone number, if:
             312          (a) the individual is required to provide the information in order to comply with a law,
             313      ordinance, rule, or order of a government entity; and
             314          (b) the subject of the record has a reasonable expectation that this information will be
             315      kept confidential due to:
             316          (i) the nature of the law, ordinance, rule, or order; and
             317          (ii) the individual complying with the law, ordinance, rule, or order[.]; and
             318          (52) an initial proposal under Title 63M, Chapter 1, Part 24, Government Procurement
             319      Private Proposal Program, to the extent not made public by rules made under that chapter.
             320          Section 2. Section 63-38f-203 is amended to read:
             321           63-38f-203. Powers and duties of director.
             322          (1) The director, with the approval of the governor, may:
             323          (a) by following the procedures and requirements of Title 63, Chapter 38e, Federal
             324      Funds Procedures, seek federal grants, loans, or participation in federal programs;
             325          (b) enter into lawful contracts or agreements with other states, any chamber of
             326      commerce organization, [and] any service club[; and], and a private entity pursuant to Section
             327      63M-1-2410 ; and
             328          (c) annually prepare and submit to the governor a budget of the office's financial
             329      requirements.
             330          (2) If any federal program requires the expenditure of state funds as a condition to
             331      participation by the state in any fund, property, or service, with the governor's approval, the
             332      director shall expend whatever funds are necessary out of the money provided by the
             333      Legislature for the use of the office.
             334          Section 3. Section 63-56-204 is amended to read:
             335           63-56-204. Duties of chief procurement officer.


             336          Except as otherwise specifically provided in this chapter, the chief procurement officer
             337      serves as the central procurement officer of the state and shall:
             338          (1) adopt office policies governing the internal functions of the Division of Purchasing
             339      and General Services;
             340          (2) procure or supervise the procurement of all supplies, services, and construction
             341      needed by the state;
             342          (3) exercise general supervision and control over all inventories or supplies belonging
             343      to the state;
             344          (4) establish and maintain programs for the inspection, testing, and acceptance of
             345      supplies, services, and construction;
             346          (5) prepare statistical data concerning the procurement and usage of all supplies,
             347      services, and construction;
             348          (6) before June 1, 1990, notify all public procurement units of the requirements of
             349      Section 63-56-406 regarding purchases of recycled paper and recycled paper products,
             350      recycling requirements, and provide guidelines on the availability of recycled paper and paper
             351      products, including the sources of supply and the potential uses of various grades of recycled
             352      paper;
             353          (7) before July 1, 1992:
             354          (a) establish standards and specifications for determining which supplies are
             355      considered recycled, based upon his review of current definitions and standards employed by
             356      national procurement, product recycling, and other relevant organizations and the federal
             357      Environmental Protection Agency;
             358          (b) compile and update as necessary the specifications, a list of recycled supplies
             359      available on state contract, and sources where the supplies may be obtained;
             360          (c) make the compiled information under Subsection (7)(b) available to:
             361          (i) all local government entities under Section 11-37-101 ;
             362          (ii) all local health departments under Section 26A-1-108.7 ;
             363          (iii) all procurement officers or other persons responsible for purchasing supplies
             364      within the public school system under Title 53A, State System of Public Education;
             365          (iv) all procurement officers or other persons responsible for purchasing supplies
             366      within the state system of higher education under Title 53B, State System of Higher Education;


             367      and
             368          (v) all procurement officers or other persons responsible for purchasing supplies for all
             369      public procurement units as defined in Section 63-56-105 ; and
             370          (d) present a written report to the Natural Resources, Agriculture, and Environment
             371      Interim Committee annually prior to November 30 regarding the purchases of recycled goods
             372      on state contracts during the prior fiscal year; and
             373          (8) ensure that:
             374          (a) before approving a purchase, lease, or rental not covered by an existing statewide
             375      contract for information technology or telecommunications supplies or services, the chief
             376      information officer and the agency have provided in writing to the division, that the needs
             377      analysis required in Section 63F-1-205 was completed, unless the purchase, lease, or rental is
             378      approved in accordance with Title 63M, Chapter 1, Part 24, Government Procurement Private
             379      Proposal Program; and
             380          (b) the oversight authority required by Subsection (8)(a) is not delegated outside the
             381      Division of Purchasing and General Services.
             382          Section 4. Section 63-56-205 is amended to read:
             383           63-56-205. Delegation of authority.
             384          Subject to rules and regulations, the chief procurement officer may delegate authority to
             385      designees or to any department, agency, or official. For a procurement process under Title
             386      63M, Chapter 1, Part 24, Government Procurement Private Proposal Program, any delegation
             387      by the chief procurement officer under this section shall be made to the Governor's Office of
             388      Economic Development.
             389          Section 5. Section 63-56-302 is amended to read:
             390           63-56-302. Duty of chief procurement officer in maintaining specifications of
             391      supplies.
             392          The chief procurement officer shall prepare, issue, revise, maintain, and monitor the use
             393      of specifications for supplies, services, and construction required by the state. The chief
             394      procurement officer shall obtain expert advice and assistance from personnel of using agencies
             395      in the development of specifications and may delegate in writing to a using agency the
             396      authority to prepare and utilize its own specifications. For a procurement process under Title
             397      63M, Chapter 1, Part 24, Government Procurement Private Proposal Program, any delegation


             398      by the chief procurement officer under this section shall be made to the Governor's Office of
             399      Economic Development.
             400          Section 6. Section 63F-1-205 is amended to read:
             401           63F-1-205. Approval of acquisitions of information technology.
             402          (1) (a) [In] Except as provided in Title 63M, Chapter 1, Part 24, Government
             403      Procurement Private Proposal Program, in accordance with Subsection (2), the chief
             404      information officer shall approve the acquisition by an executive branch agency of:
             405          (i) information technology equipment;
             406          (ii) telecommunications equipment;
             407          (iii) software;
             408          (iv) services related to the items listed in Subsections (1)(a)(i) through (iii); and
             409          (v) data acquisition.
             410          (b) The chief information officer may negotiate the purchase, lease, or rental of private
             411      or public information technology or telecommunication services or facilities in accordance with
             412      this section.
             413          (c) Where practical, efficient, and economically beneficial, the chief information
             414      officer shall use existing private and public information technology or telecommunication
             415      resources.
             416          (2) Before negotiating a purchase, lease, or rental under Subsection (1) for an amount
             417      that exceeds the value established by the chief information officer by rule in accordance with
             418      Section 63F-1-206 , the chief information officer shall:
             419          (a) conduct an analysis of the needs of executive branch agencies and subscribers of
             420      services and the ability of the proposed information technology or telecommunications services
             421      or supplies to meet those needs; and
             422          (b) for purchases, leases, or rentals not covered by an existing statewide contract,
             423      provide in writing to the chief procurement officer in the Division of Purchasing and General
             424      Services that:
             425          (i) the analysis required in Subsection (2)(a) was completed; and
             426          (ii) based on the analysis, the proposed purchase, lease, rental, or master contract of
             427      services, products, or supplies is practical, efficient, and economically beneficial to the state
             428      and the executive branch agency or subscriber of services.


             429          (3) In approving an acquisition described in Subsections (1) and (2), the chief
             430      information officer shall:
             431          (a) establish by administrative rule, in accordance with Section 63F-1-206 , standards
             432      under which an agency must obtain approval from the chief information officer before
             433      acquiring the items listed in Subsections (1) and (2);
             434          (b) for those acquisitions requiring approval, determine whether the acquisition is in
             435      compliance with:
             436          (i) the executive branch strategic plan;
             437          (ii) the applicable agency information technology plan;
             438          (iii) the budget for the executive branch agency or department as adopted by the
             439      Legislature; and
             440          (iv) Title 63, Chapter 56, Utah Procurement Code; and
             441          (c) in accordance with Section 63F-1-207 , require coordination of acquisitions between
             442      two or more executive branch agencies if it is in the best interests of the state.
             443          (4) (a) Each executive branch agency shall provide the chief information officer with
             444      complete access to all information technology records, documents, and reports:
             445          (i) at the request of the chief information officer; and
             446          (ii) related to the executive branch agency's acquisition of any item listed in Subsection
             447      (1).
             448          (b) Beginning July 1, 2006 and in accordance with administrative rules established by
             449      the department under Section 63F-1-206 , no new technology projects may be initiated by an
             450      executive branch agency or the department unless the technology project is described in a
             451      formal project plan and the business case analysis has been approved by the chief information
             452      officer and agency head. The project plan and business case analysis required by this
             453      Subsection (4) shall be in the form required by the chief information officer, and shall include:
             454          (i) a statement of work to be done and existing work to be modified or displaced;
             455          (ii) total cost of system development and conversion effort, including system analysis
             456      and programming costs, establishment of master files, testing, documentation, special
             457      equipment cost and all other costs, including overhead;
             458          (iii) savings or added operating costs that will result after conversion;
             459          (iv) other advantages or reasons that justify the work;


             460          (v) source of funding of the work, including ongoing costs;
             461          (vi) consistency with budget submissions and planning components of budgets; and
             462          (vii) whether the work is within the scope of projects or initiatives envisioned when the
             463      current fiscal year budget was approved.
             464          (5) (a) The chief information officer and the Division of Purchasing and General
             465      Services shall work cooperatively to establish procedures under which the chief information
             466      officer shall monitor and approve acquisitions as provided in this section.
             467          (b) The procedures established under this section shall include at least the written
             468      certification required by Subsection 63-56-204 (8).
             469          Section 7. Section 63G-6-408.5 is enacted to read:
             470          63G-6-408.5. Procurement for submitted proposal.
             471          (1) As used in this section:
             472          (a) "Committee" is as defined in Section 63M-1-2402 .
             473          (b) "Initial proposal" is a proposal submitted by a private entity under Section
             474      63M-1-2405 .
             475          (2) After receipt by the chief procurement officer of a copy of an initial proposal from
             476      the committee in accordance with Subsection 63M-1-2406 (5), including any comment,
             477      suggestion, or modification to the initial proposal, the chief procurement officer shall initiate a
             478      procurement process in compliance with Title 63, Chapter 56, Utah Procurement Code.
             479          (3) The chief procurement officer or designee shall:
             480          (a) review each detailed proposal received in accordance with Title 63M, Chapter 1,
             481      Part 24, Government Procurement Private Proposal Program; and
             482          (b) submit all detailed proposals that meet the guidelines established under Subsection
             483      63M-1-2408 (1) to the committee for review under Section 63M-1-2409 .
             484          (4) For purposes of this chapter, the Governor's Office of Economic Development is
             485      considered the purchasing agency for a procurement process under Title 63M, Chapter 1, Part
             486      24, Government Procurement Private Proposal Program.
             487          Section 8. Section 63M-1-2401 is enacted to read:
             488     
Part 24. Government Procurement Private Proposal Program

             489          63M-1-2401. Title.
             490          This part is known as "Government Procurement Private Proposal Program."


             491          Section 9. Section 63M-1-2402 is enacted to read:
             492          63M-1-2402. Definitions.
             493          As used in this part:
             494          (1) "Affected department" means, as applicable, the Board of Education or the
             495      Department of Technology Services.
             496          (2) "Board" means the Board of Business and Economic Development created under
             497      Section 63-38f-301 .
             498          (3) "Board of Education" means the Utah State Board of Education.
             499          (4) "Chief procurement officer" means the chief procurement officer appointed under
             500      Section 63-56-203 .
             501          (5) "Committee" means the proposal review committee created under Section
             502      63M-1-2404 .
             503          (6) "Day" means a calendar day.
             504          (7) "Director" is as defined in Section 63-38f-102 .
             505          (8) "Executive Appropriations Committee" means the Legislature's Executive
             506      Appropriations Committee.
             507          (9) "Information technology" is as defined in Section 63F-1-102 .
             508          (10) "Office" means the Governor's Office of Economic Development created under
             509      Section 63-38f-201 .
             510          (11) "Private entity" means a person submitting a proposal under this part for the
             511      purpose of entering into a project.
             512          (12) "Project" means the subject of a proposal or an agreement for the procurement or
             513      disposal of:
             514          (a) information technology or telecommunications products or services; or
             515          (b) supplies or services for or on behalf of the Department of Technology Services or
             516      the Board of Education.
             517          (13) "Proposal" means an unsolicited offer by a private entity to undertake a project,
             518      including an initial proposal under Section 63M-1-2405 and a detailed proposal under Section
             519      63M-1-2408 .
             520          (14) "Services" is as defined in Section 63-56-105 .
             521          (15) "Supplies" is as defined in Section 63-56-105 .


             522          (16) "Telecommunications" is as defined in Section 63F-1-102 .
             523          Section 10. Section 63M-1-2403 is enacted to read:
             524          63M-1-2403. Government Procurement Private Proposal Program -- Proposals --
             525      Rulemaking.
             526          (1) There is created within the office the Government Procurement Private Proposal
             527      Program.
             528          (2) In accordance with this part, the board may:
             529          (a) accept a proposal for a project;
             530          (b) solicit comments, suggestions, and modifications to a project in accordance with
             531      Section 63G-6-408.5 ; and
             532          (c) make rules in accordance with Title 63, Chapter 46a, Utah Administrative
             533      Rulemaking Act, establishing requirements, including time limits for any action required by the
             534      affected department, a directly affected state entity or school district, or the Governor's Office
             535      of Planning and Budget, for the procurement of a project to the extent not governed by Title 63,
             536      Chapter 56, Utah Procurement Code.
             537          Section 11. Section 63M-1-2404 is enacted to read:
             538          63M-1-2404. Committee for reviewing proposals -- Appointment -- Accepting or
             539      rejecting proposal.
             540          (1) The director shall appoint a committee composed of members of the board to
             541      review and evaluate a proposal submitted in accordance with this part.
             542          (2) The director shall determine the number of board members that constitute a
             543      committee.
             544          (3) The committee shall, at all times, consist of less than a quorum of the members of
             545      the board, as established under Section 63-38f-301 .
             546          (4) A committee member shall serve on the committee until:
             547          (a) replaced by the director; or
             548          (b) the committee member ceases to be a member of the board.
             549          (5) The director may fill a vacancy among voting members on the committee.
             550          (6) The committee shall include the following nonvoting members in addition to the
             551      members appointed under Subsection (1):
             552          (a) a member of the Senate, appointed by the president of the Senate; and


             553          (b) a member of the House of Representatives, appointed by the speaker of the House
             554      of Representatives, who may not be from the same political party as the member of the Senate
             555      appointed under Subsection (6)(a).
             556          (7) (a) A vacancy among legislative members appointed under Subsection (6) shall be
             557      filled by the president of the Senate or the speaker of the House of Representatives,
             558      respectively.
             559          (b) At the time of appointment or reappointment, the president of the Senate and the
             560      speaker of the House of Representatives shall consult to ensure that the legislative members
             561      appointed under Subsection (6) are not members of the same political party.
             562          (8) A committee member is subject to Title 67, Chapter 16, Utah Public Officers' and
             563      Employees' Ethics Act, and any additional requirement established by the board in accordance
             564      with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
             565          (9) The committee shall inform a private entity of the committee's decision to approve
             566      or reject a proposal in writing.
             567          (10) If the committee, in its sole discretion, accepts a proposal, the proposal shall be
             568      evaluated under this part.
             569          (11) If the committee, in its sole discretion, rejects a proposal, the committee shall
             570      notify the private entity of the reason for the rejection and shall return any remaining portion of
             571      the fee required under Section 63M-1-2412 .
             572          Section 12. Section 63M-1-2405 is enacted to read:
             573          63M-1-2405. Initial proposal -- Requirements.
             574          (1) In accordance with this part, a private entity may at any time submit to the
             575      committee an initial proposal for a project.
             576          (2) An initial proposal shall include:
             577          (a) a conceptual description of the project;
             578          (b) a description of the economic benefit of the project to the state and the affected
             579      department;
             580          (c) information concerning the products, services, and supplies currently being
             581      provided by the state, that are similar to the project;
             582          (d) an estimate of the following costs associated with the project:
             583          (i) design;


             584          (ii) implementation;
             585          (iii) operation and maintenance; and
             586          (iv) any other related project cost; and
             587          (e) the name and address of a person who may be contacted for further information
             588      concerning the initial proposal.
             589          (3) A private entity submitting an initial proposal under this section shall pay the fee
             590      required by Section 63M-1-2412 when the initial proposal is submitted.
             591          (4) An initial proposal submitted under this section is a protected record under Title 63,
             592      Chapter 2, Government Records Access and Management Act, until the chief procurement
             593      officer initiates a procurement process in accordance with Section 63G-6-408.5 .
             594          (5) The board shall make rules in accordance with Title 63, Chapter 46a, Utah
             595      Administrative Rulemaking Act, detailing the portions of an initial proposal that remain
             596      protected after the chief procurement officer initiates a procurement process.
             597          Section 13. Section 63M-1-2406 is enacted to read:
             598          63M-1-2406. Review of initial proposal -- Affected department review.
             599          (1) The committee shall review and evaluate an initial proposal submitted in
             600      accordance with:
             601          (a) this part; and
             602          (b) any rule established by the board under Section 63M-1-2403 .
             603          (2) If the committee, in its sole discretion, determines to proceed with the project, the
             604      committee shall submit a copy of the initial proposal to:
             605          (a) the affected department; and
             606          (b) the Governor's Office of Planning and Budget.
             607          (3) (a) An affected department, directly affected state entity, and school district
             608      receiving a copy of the initial proposal under Subsection (2) or (4) shall review the initial
             609      proposal and provide the committee with any comment, suggestion, or modification to the
             610      project.
             611          (b) After receiving an initial proposal, the Governor's Office of Planning and Budget
             612      shall prepare an economic feasibility report containing:
             613          (i) information concerning the economic feasibility and effectiveness of the project
             614      based upon competent evidence;


             615          (ii) a dollar amount representing the total estimated fiscal impact of the project to the
             616      affected department and the state; and
             617          (iii) any other matter the committee requests or is required by the board by rule.
             618          (4) In reviewing an initial proposal, the affected department shall share the initial
             619      proposal with any other state entity or school district that will be directly affected if the
             620      proposal is ultimately adopted, if the confidentiality of the initial proposal is maintained.
             621          (5) If the committee determines to proceed with the project, the committee shall submit
             622      a copy of the initial proposal, including any comment, suggestion, or modification to the initial
             623      proposal, to:
             624          (a) the chief procurement officer in accordance with Section 63G-6-408.5 ; and
             625          (b) the Executive Appropriations Committee, for informational purposes.
             626          (6) Before taking any action under Subsection (5), the committee shall consider:
             627          (a) any comment, suggestion, or modification to the initial proposal submitted in
             628      accordance with Subsection (3);
             629          (b) the extent to which the project is practical, efficient, and economically beneficial to
             630      the state and the affected department;
             631          (c) the economic feasibility report prepared by the Governor's Office of Planning and
             632      Budget; and
             633          (d) any other reasonable factor identified by the committee or required by the board by
             634      rule.
             635          Section 14. Section 63M-1-2407 is enacted to read:
             636          63M-1-2407. Acceptance of initial proposal -- Obtaining detailed proposals.
             637          (1) If an initial proposal is accepted under Section 63M-1-2406 , the chief procurement
             638      officer shall:
             639          (a) take action under Section 63G-6-408.5 to initiate a procurement process to obtain
             640      one or more detailed proposals using information from portions of the initial proposal that are
             641      not protected records under Title 63, Chapter 2, Government Records and Access Management
             642      Act;
             643          (b) consult with the committee during the procurement process; and
             644          (c) submit all detailed proposals that meet the guidelines established under Subsection
             645      63M-1-2408 (1), including the detailed proposal submitted by the private entity that submitted


             646      the initial proposal for the project, to:
             647          (i) the committee; and
             648          (ii) the Governor's Office of Planning and Budget.
             649          (2) The office is considered the purchasing agency for a procurement process initiated
             650      under this part.
             651          Section 15. Section 63M-1-2408 is enacted to read:
             652          63M-1-2408. Detailed proposal -- Requirements -- Cooperation of affected
             653      department.
             654          (1) A detailed proposal submitted in response to a procurement process initiated under
             655      Section 63M-1-2407 shall include:
             656          (a) a conceptual description of the project, including the scope of the work;
             657          (b) a description of the economic benefit of the project to the state and the affected
             658      department;
             659          (c) an estimate of the design, implementation, operation, maintenance, or other costs
             660      associated with the project;
             661          (d) information concerning the information technology or telecommunication product
             662      and service or other supply or service currently provided by the state that is similar to the
             663      project being proposed, if applicable;
             664          (e) a statement setting forth the private entity's general plan for financing the project,
             665      including any appropriation by the Legislature or other public monies and, if applicable, the
             666      sources of the private entity's funds and identification of any dedicated revenue source or
             667      proposed debt or equity investment on behalf of the private entity;
             668          (f) the name and address of the person who may be contacted for further information
             669      concerning the detailed proposal;
             670          (g) a statement describing the private entity's experience with other similar projects and
             671      a description of why the private entity is best qualified for the project; and
             672          (h) any other information:
             673          (i) reasonably requested by the affected department or the committee, or required by
             674      the board by rule; or
             675          (ii) that the private entity considers necessary or appropriate to complete or describe
             676      the detailed proposal.


             677          (2) To assist each private entity in preparing a detailed proposal:
             678          (a) the affected department shall provide each private entity with access to all
             679      information, records, documents, and reports related to the proposal and the project that are
             680      designated public records under Title 63, Chapter 2, Government Records Access and
             681      Management Act; and
             682          (b) the affected department and the committee shall cooperate with each private entity
             683      to assist the private entity in the development of a detailed proposal that is:
             684          (i) practical;
             685          (ii) efficient; and
             686          (iii) economically beneficial to the state and the affected department.
             687          (3) The committee or any private entity may choose to terminate the development of
             688      the detailed proposal at any time before the submission of the detailed proposal to the chief
             689      procurement officer under Section 63G-6-408.5 .
             690          Section 16. Section 63M-1-2409 is enacted to read:
             691          63M-1-2409. Receipt of detailed proposals -- Economic feasibility report --
             692      Acceptance of a detailed proposal.
             693          (1) If the committee, in its sole discretion, determines that a detailed proposal does not
             694      substantially meet the guidelines established under Subsection 63M-1-2408 (1), the committee
             695      may elect not to review the detailed proposal.
             696          (2) (a) After receiving a detailed proposal, the Governor's Office of Planning and
             697      Budget shall update the economic feasibility report prepared under Section 63M-1-2406 .
             698          (b) A detailed proposal that is to be review by the committee shall be submitted to the
             699      affected department, a directly affected state entity, and a directly affected school district for
             700      comment or suggestion.
             701          (3) In determining which, if any, of the detailed proposals to accept, in addition to the
             702      proposal evaluation criteria, the committee shall consider the following factors:
             703          (a) any comment, suggestion, or modification offered in accordance with Subsection
             704      63M-1-2406 (3) or Subsection (2)(b);
             705          (b) the economic feasibility report updated in accordance with Subsection (2)(a);
             706          (c) the source of funding and any resulting constraint necessitated by the funding
             707      source;


             708          (d) any alternative funding proposal;
             709          (e) the extent to which the project is practical, efficient, and economically beneficial to
             710      the state and the affected department; and
             711          (f) any other reasonable factor identified by the committee or required by the board by
             712      rule.
             713          (4) (a) If the committee accepts a detailed proposal, the accepted detailed proposal
             714      shall be submitted to the board for approval.
             715          (b) If the affected department or a directly affected state entity or school district
             716      disputes the detailed proposal approved by the board, the Governor's Office of Planning and
             717      Budget shall consider the detailed proposal and any comment, suggestion, or modification and
             718      determine whether to proceed with a project agreement.
             719          (c) If there is no funding for a project that is the subject of a detailed proposal and the
             720      committee determines to proceed with the project, the office shall submit a report to the
             721      Governor's Office of Planning and Budget and the Executive Appropriations Committee
             722      detailing the position of the board, the affected department, a directly affected state entity or
             723      school district.
             724          (5) A detailed proposal received from a private entity other than the private entity that
             725      submitted the initial proposal may not be accepted in place of the detailed proposal offered by
             726      the private entity that submitted the initial proposal solely because of a lower cost if the lower
             727      cost is within the amount of the fee paid by the private entity that submitted the initial proposal
             728      for review of the initial proposal.
             729          Section 17. Section 63M-1-2410 is enacted to read:
             730          63M-1-2410. Project agreement.
             731          (1) If the board accepts the detailed proposal, the director shall:
             732          (a) prepare a project agreement in consultation with the affected department and any
             733      other state entity directly impacted by the detailed proposal; and
             734          (b) enter into the project agreement with the private entity.
             735          (2) A project agreement shall be signed by the director, the affected department, a
             736      directly affected state entity or school district, and the private entity.
             737          (3) A project agreement shall include provisions concerning:
             738          (a) the scope of the project;


             739          (b) the pricing method of the project;
             740          (c) the director's or the state's ability to terminate for convenience or for default, and
             741      any termination compensation to be paid to the private entity, if applicable;
             742          (d) the ability to monitor performance under the project agreement;
             743          (e) the appropriate limits of liability;
             744          (f) the appropriate transition of services, if applicable;
             745          (g) the exceptions from applicable rules and procedures for the implementation and
             746      administration of the project by the affected department, if any;
             747          (h) the clauses and remedies applicable to state contracts under Title 63, Chapter 56,
             748      Part 6, Contract Clauses; and
             749          (i) any other matter reasonably requested by the committee or required by the board by
             750      rule.
             751          (4) A copy of the signed project agreement shall be submitted to:
             752          (a) the affected department; and
             753          (b) the Executive Appropriations Committee.
             754          (5) A project agreement is considered a contract under Title 63, Chapter 56, Utah
             755      Procurement Code.
             756          (6) The affected department shall implement and administer the project agreement in
             757      accordance with rules made under Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             758      except as modified by the project agreement under Subsection (3)(g).
             759          Section 18. Section 63M-1-2411 is enacted to read:
             760          63M-1-2411. Advisory committee.
             761          (1) The director may appoint an advisory committee comprised of:
             762          (a) representatives of:
             763          (i) the affected department for the proposal;
             764          (ii) a directly affected state entity or school district;
             765          (iii) the Department of Human Resource Management; and
             766          (iv) the Division of Risk Management;
             767          (b) members of the public; and
             768          (c) other members.
             769          (2) Members of an advisory committee shall receive no compensation or benefits for


             770      their services, but may receive per diem and expenses incurred in the performance of the
             771      members' official duties at the rates established by the Division of Finance under Sections
             772      63A-3-106 and 63A-3-107 .
             773          (3) Members of an advisory committee may decline to receive per diem and expenses
             774      for their service.
             775          (4) An advisory committee appointed in accordance with Subsection (1) may not
             776      participate in the final decision-making of the committee or the board.
             777          (5) The staff, any outside consultant, and any advisory subcommittee shall:
             778          (a) provide the committee and the board with professional services, including
             779      architectural, engineering, legal, and financial services, to develop rules and guidelines to
             780      implement the program described in this part; and
             781          (b) assist the committee and the board in:
             782          (i) reviewing and commenting on initial proposals;
             783          (ii) reviewing and commenting on detailed proposals; and
             784          (iii) preparing and negotiating the terms of any project agreement.
             785          Section 19. Section 63M-1-2412 is enacted to read:
             786          63M-1-2412. Private Proposal Restricted Account -- Fees.
             787          (1) There is created a restricted special revenue fund within the office called the Private
             788      Proposal Restricted Special Revenue Fund.
             789          (2) Monies collected from the payment of a fee required by this part shall be deposited
             790      in the Private Proposal Restricted Special Revenue Fund.
             791          (3) Subject to appropriation by the Legislature, the board or the committee may use the
             792      monies in the Private Proposal Restricted Account to offset:
             793          (a) the expense of hiring staff and engaging any outside consultant to review a
             794      proposal under this part; and
             795          (b) any expense incurred by the Governor's Office of Planning and Budget or the
             796      affected department in the fulfillment of its duties under this part.
             797          (4) The board shall establish a fee in accordance with Section 63-38-3.2 for:
             798          (a) reviewing an initial proposal;
             799          (b) reviewing any detailed proposal; and
             800          (c) preparing any project agreement.


             801          (5) The board may waive the fee established under Subsection (4) if the board
             802      determines that it is:
             803          (a) reasonable; and
             804          (b) in the best interest of the state.


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