H.B. 120

1

INFORMATION TECHNOLOGY COST-SAVINGS INCENTIVE
2 2012 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Lee B. Perry
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill amends the Utah Technology Governance Act to, under certain circumstances,
10 allow an executive branch agency to acquire information technology and related
11 equipment without going through, or acquiring the information technology or
12 equipment from, the Department of Technology Services, and creates a financial
13 incentive for an agency that makes this type of acquisition if it results in a cost savings.
14 Highlighted Provisions:
15 This bill:
16 . defines terms;
17 . allows an executive branch agency to acquire information technology and related
18 equipment without going through, or acquiring the information technology or
19 equipment from, the Department of Technology Services, if the executive branch
20 agency demonstrates that it can acquire the information technology or equipment:
21 . at a level of quality that is at least as high as the level of quality that can be
22 obtained from or through the department; and
23 . at a cost that is lower than the cost available from or through the department;
24 . permits an executive branch agency that realizes a cost savings by acquiring
25 information technology or related equipment in the manner described above to
26 apply for and, upon approval, use the cost-savings realized, in subsequent fiscal
27 years, for another specified purpose that is in the interest of the executive branch

28 agency, the state, and the public;
29 . modifies other provisions of the Utah Technology Governance Act to avoid
30 conflicts with the provisions of this bill; and
31 . makes technical changes.
32 Money Appropriated in this Bill:
33 None
34 Other Special Clauses:
35 None
36 Utah Code Sections Affected:
37 AMENDS:
38 63F-1-104, as last amended by Laws of Utah 2011, Chapter 270
39 63F-1-203, as last amended by Laws of Utah 2011, Chapter 270
40 63F-1-204, as last amended by Laws of Utah 2008, Chapter 382
41 63F-1-205, as last amended by Laws of Utah 2011, Chapter 376
42 63F-1-206, as last amended by Laws of Utah 2008, Chapter 382
43 63F-1-303, as enacted by Laws of Utah 2005, Chapter 169
44 63F-1-404, as last amended by Laws of Utah 2011, Chapter 270
45 63F-1-504, as last amended by Laws of Utah 2011, Chapter 270
46 ENACTS:
47 63F-1-901, Utah Code Annotated 1953
48 63F-1-902, Utah Code Annotated 1953
49 63F-1-903, Utah Code Annotated 1953
50 63F-1-904, Utah Code Annotated 1953
51
52 Be it enacted by the Legislature of the state of Utah:
53 Section 1. Section 63F-1-104 is amended to read:
54 63F-1-104. Purposes.
55 The department shall:
56 (1) lead state executive branch agency efforts to reengineer the state's information
57 technology architecture with the goal of coordinating central and individual agency information
58 technology in a manner that:

59 (a) ensures compliance with the executive branch agency strategic plan; and
60 (b) ensures that cost-effective, efficient information and communication systems and
61 resources are being used by agencies to:
62 (i) reduce data, hardware, and software redundancy;
63 (ii) improve system interoperability and data accessibility between agencies; and
64 (iii) meet the agency's and user's business and service needs;
65 (2) (a) coordinate an executive branch strategic plan for all agencies;
66 (b) identify best practices from agencies and other public and private sector entities;
67 and
68 (c) develop and implement processes to replicate information technology best practices
69 and standards throughout the executive branch;
70 (3) oversee the expanded use and implementation of project and contract management
71 principles as they relate to information technology projects within the executive branch;
72 (4) except as provided in Section 63F-1-903 , serve as general contractor between the
73 state's information technology users and private sector providers of information technology
74 products and services;
75 (5) work toward building stronger partnering relationships with providers;
76 (6) develop service level agreements with executive branch departments and agencies
77 to ensure quality products and services are delivered on schedule and within budget;
78 (7) develop standards for application development including a standard methodology
79 and cost-benefit analysis that all agencies shall utilize for application development activities;
80 (8) determine and implement statewide efforts to standardize data elements and
81 determine data ownership assignments among executive branch agencies;
82 (9) develop systems and methodologies to review, evaluate, and prioritize existing
83 information technology projects within the executive branch and report to the governor and the
84 Public Utilities and Technology Interim Committee on a semiannual basis regarding the status
85 of information technology projects; [and]
86 (10) assist the Governor's Office of Planning and Budget with the development of
87 information technology budgets for agencies[.]; and
88 (11) fulfill the duties described in this section in a manner that does not interfere with
89 an executive branch agency's rights under Section 63F-1-903 .

90 Section 2. Section 63F-1-203 is amended to read:
91 63F-1-203. Executive branch information technology strategic plan.
92 (1) In accordance with this section, the chief information officer shall prepare an
93 executive branch information technology strategic plan:
94 (a) that complies with this chapter; and
95 (b) which shall include:
96 (i) a strategic plan for the:
97 (A) interchange of information related to information technology between executive
98 branch agencies;
99 (B) coordination between executive branch agencies in the development and
100 maintenance of information technology and information systems, including the coordination of
101 agency information technology plans described in Section 63F-1-204 ; and
102 (C) protection of the privacy of individuals who use state information technology or
103 information systems;
104 (ii) priorities for the development and implementation of information technology or
105 information systems including priorities determined on the basis of:
106 (A) the importance of the information technology or information system; and
107 (B) the time sequencing of the information technology or information system; and
108 (iii) maximizing the use of existing state information technology resources.
109 (2) (a) In the development of the executive branch strategic plan, the chief information
110 officer shall consult with all cabinet level officials and the advisory board created in Section
111 63F-1-202 .
112 (b) The executive branch strategic plan may not prohibit or interfere with an executive
113 branch agency's rights under Section 63F-1-903 .
114 (3) (a) Unless withdrawn by the chief information officer or the governor in accordance
115 with Subsection (3)(b), the executive branch strategic plan takes effect 30 days after the day on
116 which the executive branch strategic plan is submitted to:
117 (i) the governor; and
118 (ii) the Public Utilities and Technology Interim Committee.
119 (b) The chief information officer or the governor may withdraw the executive branch
120 strategic plan submitted under Subsection (3)(a) if the governor or chief information officer

121 determines that the executive branch strategic plan:
122 (i) should be modified; or
123 (ii) for any other reason should not take effect.
124 (c) The Public Utilities and Technology Interim Committee may make
125 recommendations to the governor and to the chief information officer if the commission
126 determines that the executive branch strategic plan should be modified or for any other reason
127 should not take effect.
128 (d) Modifications adopted by the chief information officer shall be resubmitted to the
129 governor and the Public Utilities and Technology Interim Committee for their review or
130 approval as provided in Subsections (3)(a) and (b).
131 (4) The executive branch strategic plan is to be implemented by executive branch
132 agencies through each executive branch agency adopting an agency information technology
133 plan in accordance with Section 63F-1-204 .
134 Section 3. Section 63F-1-204 is amended to read:
135 63F-1-204. Agency information technology plans.
136 (1) (a) By July 1 of each year, each executive branch agency shall submit an agency
137 information technology plan to the chief information officer at the department level, unless the
138 governor or the chief information officer request an information technology plan be submitted
139 by a subunit of a department, or by an executive branch agency other than a department.
140 (b) [The] Subject to Subsection (7), the information technology plans required by this
141 section shall be in the form and level of detail required by the chief information officer, by
142 administrative rule adopted in accordance with Section 63F-1-206 , and shall include, at least:
143 (i) the information technology objectives of the agency;
144 (ii) any performance measures used by the agency for implementing the agency's
145 information technology objectives;
146 (iii) any planned expenditures related to information technology;
147 (iv) the agency's need for appropriations for information technology;
148 (v) how the agency's development of information technology coordinates with other
149 state and local governmental entities;
150 (vi) any efforts the agency has taken to develop public and private partnerships to
151 accomplish the information technology objectives of the agency; and

152 (vii) the efforts the executive branch agency has taken to conduct transactions
153 electronically in compliance with Section 46-4-503 .
154 (2) (a) Except as provided in Subsection (2)(b), an agency information technology plan
155 described in Subsection (1) shall comply with the executive branch strategic plan established in
156 accordance with Section 63F-1-203 .
157 (b) If the executive branch agency submitting the agency information technology plan
158 justifies the need to depart from the executive branch strategic plan, an agency information
159 technology plan may depart from the executive branch strategic plan to the extent approved by
160 the chief information officer.
161 (3) (a) On receipt of a state agency information technology plan, the chief information
162 officer shall forward a complete copy of the agency information technology plan to the
163 Division of Enterprise Technology created in Section 63F-1-401 and the Division of Integrated
164 Technology created in Section 63F-1-501 .
165 (b) The divisions shall provide the chief information officer a written analysis of each
166 agency plan submitted in accordance with Sections 63F-1-404 and 63F-1-504 .
167 (4) (a) The chief information officer shall review each agency plan to determine:
168 (i) (A) whether the agency plan complies with the executive branch strategic plan and
169 state information architecture; or
170 (B) to the extent that the agency plan does not comply with the executive branch
171 strategic plan or state information architecture, whether the executive branch entity is justified
172 in departing from the executive branch strategic plan, or state information architecture; and
173 (ii) whether the agency plan meets the information technology and other needs of:
174 (A) the executive branch agency submitting the plan; and
175 (B) the state.
176 (b) In conducting the review required by Subsection (4)(a), the chief information
177 officer shall consider the analysis submitted by the divisions under Subsection (3).
178 (5) After the chief information officer conducts the review described in Subsection (4)
179 of an agency information technology plan, the chief information officer may:
180 (a) approve the agency information technology plan;
181 (b) disapprove the agency information technology plan; or
182 (c) recommend modifications to the agency information technology plan.

183 (6) An executive branch agency or the department may not submit a request for
184 appropriation related to information technology or an information technology system to the
185 governor in accordance with Section 63J-1-201 until after the executive branch agency's
186 information technology plan is approved by the chief information officer.
187 (7) The chief information officer may not:
188 (a) require that a plan submitted by an executive branch agency disclose whether the
189 executive branch agency is planning to obtain information technology or equipment from or
190 through a source other than the department; or
191 (b) make approval of a plan, or any portion of a plan, subject to an executive branch
192 agency not exercising its rights under Section 63F-1-903 .
193 Section 4. Section 63F-1-205 is amended to read:
194 63F-1-205. Approval of acquisitions of information technology.
195 (1) (a) Except as provided in Title 63M, Chapter 1, Part 26, Government Procurement
196 Private Proposal Program, in accordance with Subsection (2), the chief information officer
197 shall approve the acquisition by an executive branch agency of:
198 (i) information technology equipment;
199 (ii) telecommunications equipment;
200 (iii) software;
201 (iv) services related to the items listed in Subsections (1)(a)(i) through (iii); and
202 (v) data acquisition.
203 (b) The chief information officer may negotiate the purchase, lease, or rental of private
204 or public information technology or telecommunication services or facilities in accordance with
205 this section.
206 (c) Where practical, efficient, and economically beneficial, the chief information
207 officer shall use existing private and public information technology or telecommunication
208 resources.
209 (d) Notwithstanding another provision of this section, an acquisition authorized by this
210 section shall comply with rules made by the State Procurement Policy Board under Title 63G,
211 Chapter 6, Utah Procurement Code.
212 (2) Before negotiating a purchase, lease, or rental under Subsection (1) for an amount
213 that exceeds the value established by the chief information officer by rule in accordance with

214 Section 63F-1-206 , the chief information officer shall:
215 (a) conduct an analysis of the needs of executive branch agencies and subscribers of
216 services and the ability of the proposed information technology or telecommunications services
217 or supplies to meet those needs; and
218 (b) for purchases, leases, or rentals not covered by an existing statewide contract,
219 provide in writing to the chief procurement officer in the Division of Purchasing and General
220 Services that:
221 (i) the analysis required in Subsection (2)(a) was completed; and
222 (ii) based on the analysis, the proposed purchase, lease, rental, or master contract of
223 services, products, or supplies is practical, efficient, and economically beneficial to the state
224 and the executive branch agency or subscriber of services.
225 (3) In approving an acquisition described in Subsections (1) and (2), the chief
226 information officer shall:
227 (a) establish by administrative rule, in accordance with Section 63F-1-206 , standards
228 under which an agency must obtain approval from the chief information officer before
229 acquiring the items listed in Subsections (1) and (2);
230 (b) for those acquisitions requiring approval, determine whether the acquisition is in
231 compliance with:
232 (i) the executive branch strategic plan;
233 (ii) the applicable agency information technology plan;
234 (iii) the budget for the executive branch agency or department as adopted by the
235 Legislature; and
236 (iv) Title 63G, Chapter 6, Utah Procurement Code; and
237 (c) in accordance with Section 63F-1-207 , require coordination of acquisitions between
238 two or more executive branch agencies if it is in the best interests of the state.
239 (4) (a) Each executive branch agency shall provide the chief information officer with
240 complete access to all information technology records, documents, and reports:
241 (i) at the request of the chief information officer; and
242 (ii) related to the executive branch agency's acquisition of any item listed in Subsection
243 (1).
244 (b) Beginning July 1, 2006 and in accordance with administrative rules established by

245 the department under Section 63F-1-206 , no new technology projects may be initiated by an
246 executive branch agency or the department unless the technology project is described in a
247 formal project plan and the business case analysis has been approved by the chief information
248 officer and agency head. The project plan and business case analysis required by this
249 Subsection (4) shall be in the form required by the chief information officer, and shall include:
250 (i) a statement of work to be done and existing work to be modified or displaced;
251 (ii) total cost of system development and conversion effort, including system analysis
252 and programming costs, establishment of master files, testing, documentation, special
253 equipment cost and all other costs, including overhead;
254 (iii) savings or added operating costs that will result after conversion;
255 (iv) other advantages or reasons that justify the work;
256 (v) source of funding of the work, including ongoing costs;
257 (vi) consistency with budget submissions and planning components of budgets; and
258 (vii) whether the work is within the scope of projects or initiatives envisioned when the
259 current fiscal year budget was approved.
260 (5) (a) The chief information officer and the Division of Purchasing and General
261 Services shall work cooperatively to establish procedures under which the chief information
262 officer shall monitor and approve acquisitions as provided in this section.
263 (b) The procedures established under this section shall include at least the written
264 certification required by Subsection 63G-6-204 (8).
265 (6) This section does not apply to acquisitions under Section 63F-1-903 .
266 Section 5. Section 63F-1-206 is amended to read:
267 63F-1-206. Rulemaking -- Policies.
268 (1) (a) Except as provided in Subsection (2), in accordance with Title 63G, Chapter 3,
269 Utah Administrative Rulemaking Act, the chief information officer shall make rules that:
270 (i) provide standards that impose requirements on executive branch agencies that:
271 (A) are related to the security of the statewide area network; and
272 (B) establish standards for when an agency must obtain approval before obtaining
273 items listed in Subsection 63F-1-205 (1);
274 (ii) specify the detail and format required in an agency information technology plan
275 submitted in accordance with Section 63F-1-204 ;

276 (iii) provide for standards related to the privacy policies of websites operated by or on
277 behalf of an executive branch agency;
278 (iv) provide for the acquisition, licensing, and sale of computer software;
279 (v) specify the requirements for the project plan and business case analysis required by
280 Section 63F-1-205 ;
281 (vi) provide for project oversight of agency technology projects when required by
282 Section 63F-1-205 ;
283 (vii) establish, in accordance with Subsection 63F-1-205 (2), the implementation of the
284 needs assessment for information technology purchases; and
285 (viii) establish telecommunications standards and specifications in accordance with
286 Section 63F-1-404 .
287 (b) The rulemaking authority in this Subsection (1) is in addition to any other
288 rulemaking authority granted by this title.
289 (2) (a) Notwithstanding Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
290 and subject to Subsection (2)(b), the chief information officer may adopt a policy that outlines
291 procedures to be followed by the chief information officer in facilitating the implementation of
292 this title by executive branch agencies if the policy:
293 (i) is consistent with the executive branch strategic plan; and
294 (ii) is not required to be made by rule under Subsection (1) or Section 63G-3-201 .
295 (b) (i) A policy adopted by the chief information officer under Subsection (2)(a) may
296 not take effect until 30 days after the day on which the chief information officer submits the
297 policy to:
298 (A) the governor; and
299 (B) all cabinet level officials.
300 (ii) During the 30-day period described in Subsection (2)(b)(i), cabinet level officials
301 may review and comment on a policy submitted under Subsection (2)(b)(i).
302 (3) (a) Notwithstanding Subsection (1) or (2) or Title 63G, Chapter 3, Utah
303 Administrative Rulemaking Act, without following the procedures of Subsection (1) or (2), the
304 chief information officer may adopt a security procedure to be followed by executive branch
305 agencies to protect the statewide area network if:
306 (i) broad communication of the security procedure would create a significant potential

307 for increasing the vulnerability of the statewide area network to breach or attack; and
308 (ii) after consultation with the chief information officer, the governor agrees that broad
309 communication of the security procedure would create a significant potential increase in the
310 vulnerability of the statewide area network to breach or attack.
311 (b) A security procedure described in Subsection (3)(a) is classified as a protected
312 record under Title 63G, Chapter 2, Government Records Access and Management Act.
313 (c) The chief information officer shall provide a copy of the security procedure as a
314 protected record to:
315 (i) the chief justice of the Utah Supreme Court for the judicial branch;
316 (ii) the speaker of the House of Representatives and the president of the Senate for the
317 legislative branch;
318 (iii) the chair of the Board of Regents; and
319 (iv) the chair of the State Board of Education.
320 (4) (a) Rules made under Subsection (1), and policies made under Subsection (2), may
321 not interfere with an executive branch agency's rights under Section 63F-1-903 .
322 (b) A security procedure described in Subsection (3)(a) may not unreasonably interfere
323 with an executive branch agency's rights under Section 63F-1-903 .
324 Section 6. Section 63F-1-303 is amended to read:
325 63F-1-303. Executive branch agencies -- Subscription by institutions.
326 (1) [An] Except as provided in Section 63F-1-903 , an executive branch agency in
327 accordance with its agency information technology plan approved by the chief information
328 officer shall:
329 (a) subscribe to the information technology services provided by the department; or
330 (b) contract with one or more alternate private providers of information technology
331 services if the chief information officer determines that the purchase of the services from a
332 private provider will:
333 (i) result in:
334 (A) cost savings;
335 (B) increased efficiency; or
336 (C) improved quality of services; and
337 (ii) not impair the interoperability of the state's information technology services.

338 (2) An institution of higher education may subscribe to the services provided by the
339 department if:
340 (a) the president of the institution recommends that the institution subscribe to the
341 services of the department; and
342 (b) the Board of Regents determines that subscription to the services of the department
343 will result in cost savings or increased efficiency to the institution.
344 (3) The following may subscribe to information technology services by requesting that
345 the services be provided from the department:
346 (a) the legislative branch;
347 (b) the judicial branch;
348 (c) the State Board of Education;
349 (d) a political subdivision of the state;
350 (e) an agency of the federal government;
351 (f) an independent entity as defined in Section 63E-1-102 ; and
352 (g) an elective constitutional officer of the executive department as defined in
353 Subsection 63F-1-102 (7)(b).
354 Section 7. Section 63F-1-404 is amended to read:
355 63F-1-404. Duties of the division.
356 The division shall:
357 (1) develop and implement an effective enterprise architecture governance model for
358 the executive branch;
359 (2) provide oversight of information technology projects that impact statewide
360 information technology services, assets, or functions of state government to:
361 (a) control costs;
362 (b) ensure business value to a project;
363 (c) maximize resources;
364 (d) ensure the uniform application of best practices; and
365 (e) avoid duplication of resources;
366 (3) develop a method of accountability to agencies for services provided by the
367 division through service agreements with the agencies;
368 (4) [beginning] on September 1[, 2006, and each September 1 thereafter] of each year,

369 provide the chief information officer and the Public Utilities and Technology Interim
370 Committee with performance measures used by the division to measure the quality of service
371 delivered by the division and the results of the performance measures;
372 (5) serve as a project manager for enterprise architecture which includes the
373 management of applications, standards, and procurement of enterprise architecture;
374 (6) coordinate the development and implementation of advanced state
375 telecommunication systems;
376 (7) provide services including technical assistance:
377 (a) to executive branch agencies and subscribers to the services; and
378 (b) related to information technology or telecommunications;
379 (8) establish telecommunication system specifications and standards for use by:
380 (a) one or more executive branch agencies; or
381 (b) one or more entities that subscribe to the telecommunication systems in accordance
382 with Section 63F-1-303 ;
383 (9) coordinate state telecommunication planning in cooperation with:
384 (a) state telecommunication users;
385 (b) executive branch agencies; and
386 (c) other subscribers to the state's telecommunication systems;
387 (10) cooperate with the federal government, other state entities, counties, and
388 municipalities in the development, implementation, and maintenance of:
389 (a) (i) governmental information technology; or
390 (ii) governmental telecommunication systems; and
391 (b) (i) as part of a cooperative organization; or
392 (ii) through means other than a cooperative organization;
393 (11) establish, operate, manage, and maintain:
394 (a) one or more state data centers; and
395 (b) one or more regional computer centers;
396 (12) design, implement, and manage all state-owned, leased, or rented land, mobile, or
397 radio telecommunication systems that are used in the delivery of services for state government
398 or its political subdivisions;
399 (13) in accordance with the executive branch strategic plan, implement minimum

400 standards to be used by the division for purposes of compatibility of procedures, programming
401 languages, codes, and media that facilitate the exchange of information within and among
402 telecommunication systems; [and]
403 (14) provide the chief information officer with an analysis of an executive branch
404 agency information technology plan that includes:
405 (a) an assessment of how the implementation of the agency information technology
406 plan will affect the costs, operations, and services of:
407 (i) the department; and
408 (ii) other executive branch agencies; and
409 (b) any recommended changes to the plan[.]; and
410 (15) fulfill the duties described in this section in a manner that does not interfere with
411 an executive branch agency's rights under Section 63F-1-903 .
412 Section 8. Section 63F-1-504 is amended to read:
413 63F-1-504. Duties of the division.
414 The division shall:
415 (1) establish standards for the information technology needs of a collection of
416 executive branch agencies or programs that share common characteristics relative to the types
417 of stakeholders they serve, including:
418 (a) project management;
419 (b) application development; and
420 (c) procurement;
421 (2) provide oversight of information technology standards that impact multiple
422 executive branch agency information technology services, assets, or functions to:
423 (a) control costs;
424 (b) ensure business value to a project;
425 (c) maximize resources;
426 (d) ensure the uniform application of best practices; and
427 (e) avoid duplication of resources;
428 (3) in accordance with Section 63F-1-204 , provide the chief information officer a
429 written analysis of any agency information technology plan provided to the division, which
430 shall include:

431 (a) a review of whether the agency's technology projects impact multiple agencies and
432 if so, whether the information technology projects are appropriately designed and developed;
433 (b) an assessment of whether the agency plan complies with the state information
434 architecture; and
435 (c) an assessment of whether the information technology projects included in the
436 agency plan comply with policies, procedures, and rules adopted by the department to ensure
437 that:
438 (i) information technology projects are phased in;
439 (ii) funding is released in phases;
440 (iii) an agency's authority to proceed to the next phase of an information technology
441 project is contingent upon the successful completion of the prior phase; and
442 (iv) one or more specific deliverables is identified for each phase of a technology
443 project;
444 (4) establish a system of accountability to user agencies through the use of service
445 agreements;
446 (5) each year, provide the chief information officer and the Public Utilities and
447 Technology Interim Committee with performance measures used by the division to measure the
448 quality of services delivered by the division and results of those measures; [and]
449 (6) establish administrative rules in accordance with Section 63F-1-206 and as required
450 by Section 63F-1-506 [.]; and
451 (7) fulfill the duties described in this section in a manner that does not interfere with an
452 executive branch agency's rights under Section 63F-1-903 .
453 Section 9. Section 63F-1-901 is enacted to read:
454 Part 9. Exceptions
455 63F-1-901. Title.
456 This part is known as "Exceptions."
457 Section 10. Section 63F-1-902 is enacted to read:
458 63F-1-902. Definitions.
459 As used in this part:
460 (1) "Budget savings" means the amount appropriated for a fiscal year to an executive
461 branch agency for information technology that is not spent during that fiscal year, to the extent

462 that the amount not spent was due to a cost savings realized under Section 63F-1-903 .
463 (2) "Cost savings" means that the actual expenditure by an executive branch agency for
464 the information technology and equipment acquired from or through a person other than the
465 department, under Section 63F-1-903 , is less than the amount that it would have cost to acquire
466 the information technology and equipment from or through the department.
467 (3) "Equipment" means:
468 (a) information technology equipment;
469 (b) telecommunications equipment; or
470 (c) software.
471 Section 11. Section 63F-1-903 is enacted to read:
472 63F-1-903. Direct acquisition of information technology or equipment.
473 (1) Notwithstanding any provision of this chapter to the contrary, an executive branch
474 agency may acquire information technology or equipment from a person other than the
475 department without going through the department and without approval from the department,
476 if:
477 (a) the chief information officer, under Section 63F-1-204 , has already given approval
478 for the executive branch agency to acquire the information technology or equipment directly
479 from or through the department;
480 (b) an appropriation is made by the Legislature for acquisition of the information
481 technology or equipment; and
482 (c) the executive branch agency:
483 (i) establishes, in writing, that it can acquire the information technology or equipment:
484 (A) at a level of quality that is at least as high as the level of quality that can be
485 obtained from or through the department; and
486 (B) at a cost that is lower than the cost available from or through the department;
487 (ii) provides a copy of the written document described in Subsection (1)(c)(i) to the
488 department and the Division of Finance; and
489 (iii) except as provided in Subsection (2), acquires the property in accordance with
490 Title 63G, Chapter 6, Utah Procurement Code.
491 (2) An executive branch agency that otherwise complies with Subsection (1) is, with
492 respect to the acquisition described in Subsection (1), exempt from a provision of Title 63G,

493 Chapter 6, Utah Procurement Code, or a rule made under Title 63G, Chapter 6, Utah
494 Procurement Code, that requires an executive branch agency to purchase under an existing state
495 contract.
496 Section 12. Section 63F-1-904 is enacted to read:
497 63F-1-904. Application to use cost savings for specified purpose.
498 (1) An executive branch agency that is able to demonstrate that it realized a cost
499 savings through an acquisition described in Section 63F-1-903 may, in the fiscal year following
500 the fiscal year in which the cost savings occurred, apply, to the appropriations subcommittee
501 responsible for making budget recommendations relating to the executive branch agency, for
502 permission to use the cost savings realized for another specified purpose that is in the interest
503 of the executive branch agency, the state, and the public, in subsequent fiscal years.
504 (2) Upon receipt of an application described in Subsection (1), the subcommittee is
505 encouraged to recommend to the Executive Appropriations Committee that the executive
506 branch agency be permitted to use some or all of the cost savings, in subsequent fiscal years,
507 for a specified purpose that is in the interest of the executive branch agency, the state, and the
508 public.
509 (3) The Executive Appropriations Committee is encouraged to approve the
510 recommendation, described in Subsection (2), of the appropriations subcommittee.
511 (4) The Legislature is encouraged to appropriate money approved by the Executive
512 Appropriations Committee, under Subsection (3), for the specified purpose recommended
513 under Subsection (2).




Legislative Review Note
as of 1-27-12 10:26 AM

Office of Legislative Research and General Counsel