Download Zipped Amended WordPerfect SB0153S02.ZIP
[Introduced][Status][Bill Documents][Fiscal Note][Bills Directory]

Second Substitute S.B. 153

This document includes House Floor Amendments incorporated into the bill on Wed, Mar 7, 2012 at 8:14 PM by lerror. -->

Senator Wayne L. Niederhauser proposes the following substitute bill:


             1     
PROCUREMENT AMENDMENTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Wayne L. Niederhauser

             5     
House Sponsor: Melvin R. Brown

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill recodifies and amends the Utah Procurement Code.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines terms;
             13          .    describes requirements and procedures relating to procurements and procurement
             14      processes by public entities;
             15          .    describes the applicability of the Utah Procurement Code;
             16          .    grants rulemaking authority;
             17          .    describes the duties and powers of the Division of Purchasing and General Services;
             18          .    provides for exemptions from certain provisions of the Utah Procurement Code;
             19          .    describes the duties and powers of the Utah State Procurement Policy Board and the
             20      procurement advisory councils;
             21          .    describes the duties and powers of the chief procurement officer;
             22          .    provides for exceptions to procurement process requirements;
             23          .    addresses cancellations, rejections, and debarment;
             24          .    addresses reciprocal preferences and purchase from community rehabilitation
             25      programs;



Text Box

- 2 -
             26
         .    describes the duties and powers of the Purchasing from Persons with Disabilities
             27      Advisory Board;
             28          .    describes bid security and bond requirements;
             29          .    describes requirements relating to contracts and change orders;
             30          .    describes requirements relating to construction procurement and contracts;
             31          .    describes requirements relating to architect-engineer services;
             32          .    describes procedures, requirements, and limitations relating to controversies,
             33      protests, appeals, and judicial action;
             34          .    addresses the retention of records;
             35          .    addresses interaction between public procurement units;
             36          .    establishes ethical practice provisions relating to procurements;
             37          .    amends existing, and enacts new, criminal provisions and penalties relating to
             38      procurements; and
             39          .    makes technical changes.
             40      Money Appropriated in this Bill:
             41          None
             42      Other Special Clauses:
             43          This bill takes effect on May 1, 2013.
             44          This bill coordinates with S.B. 114, Contesting Public Procurements, by providing
             45      substantive and technical amendments.
             46          This bill coordinates with S.B. 165, Redevelopment Agency Amendments, by
             47      providing substantive and technical amendments.
             48      Utah Code Sections Affected:
             49      AMENDS:
             50          7-1-323, as last amended by Laws of Utah 2008, Chapter 382
             51          7-2-21, as last amended by Laws of Utah 2008, Chapter 382
             52          9-4-704, as last amended by Laws of Utah 2011, Chapter 342
             53          9-4-906, as last amended by Laws of Utah 2008, Chapter 382
             54          9-4-1602, as enacted by Laws of Utah 2011, Chapter 217
             55          10-3-1304, as last amended by Laws of Utah 2008, Chapter 382
             56          10-3-1305, as last amended by Laws of Utah 2008, Chapter 382



Text Box

- 3 -
             57
         10-7-86, as last amended by Laws of Utah 2008, Chapter 382
             58          11-17-20, as last amended by Laws of Utah 2008, Chapter 382
             59          11-39-101, as last amended by Laws of Utah 2008, Chapters 360 and 382
             60          11-39-107, as last amended by Laws of Utah 2011, Chapter 387
             61          11-44-202, as enacted by Laws of Utah 2010, Chapter 244
             62          11-44-301, as enacted by Laws of Utah 2010, Chapter 244
             63          13-2-9, as last amended by Laws of Utah 2008, Chapter 382
             64          14-1-18, as last amended by Laws of Utah 2008, Chapter 382
             65          17-16a-4, as last amended by Laws of Utah 2008, Chapter 382
             66          17-43-202, as last amended by Laws of Utah 2008, Chapter 382
             67          17-43-302, as last amended by Laws of Utah 2008, Chapter 382
             68          17-53-225, as last amended by Laws of Utah 2008, Chapter 382
             69          17-53-313, as last amended by Laws of Utah 2008, Chapter 382
             70          17B-1-108, as last amended by Laws of Utah 2008, Chapter 382
             71          17B-2a-818, as last amended by Laws of Utah 2010, Chapter 281
             72          17B-2a-818.5, as last amended by Laws of Utah 2011, Chapters 297 and 400
             73          17D-1-106, as last amended by Laws of Utah 2011, Chapters 40, 106, 205, and 209
             74          17D-2-108, as enacted by Laws of Utah 2008, Chapter 360
             75          19-1-206, as last amended by Laws of Utah 2011, Chapters 297 and 400
             76          20A-11-701, as last amended by Laws of Utah 2011, Chapter 396
             77          26-8a-405.3, as last amended by Laws of Utah 2011, Chapter 297
             78          26-8a-405.5, as last amended by Laws of Utah 2011, Chapter 297
             79          26-10-8, as enacted by Laws of Utah 2010, Chapter 413
             80          26-10b-102, as last amended by Laws of Utah 2011, Chapter 297
             81          26-18-2.6, as enacted by Laws of Utah 2011, Chapter 344
             82          26-40-110, as last amended by Laws of Utah 2011, Chapter 297
             83          30-3-11.3, as last amended by Laws of Utah 2011, Chapter 51
             84          30-3-11.4, as last amended by Laws of Utah 2011, Chapter 51
             85          30-3-38, as last amended by Laws of Utah 2008, Chapters 44 and 382
             86          31A-29-110, as last amended by Laws of Utah 2008, Chapter 382
             87          31A-29-111, as last amended by Laws of Utah 2008, Chapters 382 and 385



Text Box

- 4 -
             88
         31A-33-104, as last amended by Laws of Utah 2008, Chapter 382
             89          31A-33-107, as last amended by Laws of Utah 2008, Chapter 382
             90          34A-2-203, as last amended by Laws of Utah 2008, Chapter 382
             91          35A-5-202, as last amended by Laws of Utah 2008, Chapter 382
             92          38-1-30, as last amended by Laws of Utah 2011, Chapter 299
             93          38-1-39, as last amended by Laws of Utah 2008, Chapter 382
             94          41-12a-803, as last amended by Laws of Utah 2011, Chapter 342
             95          53-2-404, as last amended by Laws of Utah 2011, Chapter 342
             96          53A-1-706, as last amended by Laws of Utah 2008, Chapter 382
             97          53A-1a-511, as last amended by Laws of Utah 2008, Chapter 382
             98          53A-20-101, as last amended by Laws of Utah 2008, Chapter 382
             99          53A-25b-105, as enacted by Laws of Utah 2009, Chapter 294
             100          53C-1-201 (Effective 07/01/12), as last amended by Laws of Utah 2011, Chapters 247
             101      and 353
             102          54-3-29, as last amended by Laws of Utah 2011, Chapter 340
             103          54-8b-10, as last amended by Laws of Utah 2011, Chapters 329 and 342
             104          62A-1-108.5, as last amended by Laws of Utah 2011, Chapter 366
             105          62A-3-104, as last amended by Laws of Utah 2008, Chapter 382
             106          62A-3-104.1, as last amended by Laws of Utah 2008, Chapter 382
             107          62A-14-109, as last amended by Laws of Utah 2008, Chapter 382
             108          63A-5-205, as last amended by Laws of Utah 2011, Chapter 400
             109          63A-5-208, as last amended by Laws of Utah 2008, Chapter 382
             110          63A-5-302, as last amended by Laws of Utah 2010, Chapter 324
             111          63B-2-102, as last amended by Laws of Utah 2008, Chapter 382
             112          63B-3-102, as last amended by Laws of Utah 2008, Chapter 382
             113          63B-4-102, as last amended by Laws of Utah 2008, Chapter 382
             114          63B-5-102, as last amended by Laws of Utah 2008, Chapter 382
             115          63B-6-102, as last amended by Laws of Utah 2008, Chapter 382
             116          63B-6-402, as last amended by Laws of Utah 2008, Chapter 382
             117          63B-7-102, as last amended by Laws of Utah 2008, Chapter 382
             118          63B-7-402, as last amended by Laws of Utah 2008, Chapter 382



Text Box

- 5 -
             119
         63B-8-102, as last amended by Laws of Utah 2008, Chapter 382
             120          63B-8-402, as last amended by Laws of Utah 2008, Chapter 382
             121          63B-9-103, as last amended by Laws of Utah 2008, Chapter 382
             122          63B-11-202, as last amended by Laws of Utah 2008, Chapter 382
             123          63C-7-210, as last amended by Laws of Utah 2008, Chapter 382
             124          63C-9-301, as last amended by Laws of Utah 2008, Chapters 10 and 382
             125          63C-9-403, as last amended by Laws of Utah 2011, Chapter 400
             126          63E-2-109, as last amended by Laws of Utah 2008, Chapter 382
             127          63F-1-205, as last amended by Laws of Utah 2011, Chapter 376
             128          63G-7-804, as renumbered and amended by Laws of Utah 2008, Chapter 382
             129          63G-10-403, as enacted by Laws of Utah 2011, Chapter 361
             130          63H-2-504, as enacted by Laws of Utah 2009, Chapter 378
             131          63H-3-109, as renumbered and amended by Laws of Utah 2011, Chapter 370
             132          63H-4-108, as renumbered and amended by Laws of Utah 2011, Chapter 370
             133          63H-5-108, as renumbered and amended by Laws of Utah 2011, Chapter 370
             134          63H-6-103, as renumbered and amended by Laws of Utah 2011, Chapter 370
             135          63I-1-263, as last amended by Laws of Utah 2011, Chapters 199, 370, 408, and 411
             136          63M-1-2602, as enacted by Laws of Utah 2008, Chapter 352
             137          63M-1-2603, as enacted by Laws of Utah 2008, Chapter 352
             138          63M-1-2605, as enacted by Laws of Utah 2008, Chapter 352
             139          63M-1-2606, as enacted by Laws of Utah 2008, Chapter 352
             140          63M-1-2607, as enacted by Laws of Utah 2008, Chapter 352
             141          63M-1-2608, as enacted by Laws of Utah 2008, Chapter 352
             142          63M-1-2610, as enacted by Laws of Utah 2008, Chapter 352
             143          64-13a-13, as last amended by Laws of Utah 2008, Chapter 382
             144          67-16-4, as last amended by Laws of Utah 2008, Chapter 382
             145          67-16-5, as last amended by Laws of Utah 2008, Chapter 382
             146          67-16-5.3, as last amended by Laws of Utah 2008, Chapter 382
             147          67-16-6, as last amended by Laws of Utah 2008, Chapter 382
             148          72-6-107, as last amended by Laws of Utah 2010, Chapter 90
             149          72-6-107.5, as last amended by Laws of Utah 2011, Chapter 400



Text Box

- 6 -
             150
         72-6-108, as last amended by Laws of Utah 2009, Chapter 388
             151          72-6-205, as last amended by Laws of Utah 2009, Chapter 183
             152          72-7-504, as last amended by Laws of Utah 2008, Chapter 382
             153          73-10-27, as last amended by Laws of Utah 2008, Chapters 267 and 382
             154          73-23-3, as last amended by Laws of Utah 2008, Chapter 382
             155          76-10-1602, as last amended by Laws of Utah 2011, Chapter 320
             156          78A-2-112, as renumbered and amended by Laws of Utah 2008, Chapter 3
             157          79-2-404, as last amended by Laws of Utah 2011, Chapter 400
             158          79-4-203, as renumbered and amended by Laws of Utah 2009, Chapter 344
             159      ENACTS:
             160          63G-6a-104, Utah Code Annotated 1953
             161          63G-6a-110, Utah Code Annotated 1953
             162          63G-6a-201, Utah Code Annotated 1953
             163          63G-6a-301, Utah Code Annotated 1953
             164          63G-6a-401, Utah Code Annotated 1953
             165          63G-6a-402, Utah Code Annotated 1953
             166          63G-6a-403, Utah Code Annotated 1953
             167          63G-6a-404, Utah Code Annotated 1953
             168          63G-6a-405, Utah Code Annotated 1953
             169          63G-6a-406, Utah Code Annotated 1953
             170          63G-6a-408, Utah Code Annotated 1953
             171          63G-6a-501, Utah Code Annotated 1953
             172          63G-6a-502, Utah Code Annotated 1953
             173          63G-6a-503, Utah Code Annotated 1953
             174          63G-6a-504, Utah Code Annotated 1953
             175          63G-6a-601, Utah Code Annotated 1953
             176          63G-6a-602, Utah Code Annotated 1953
             177          63G-6a-603, Utah Code Annotated 1953
             178          63G-6a-604, Utah Code Annotated 1953
             179          63G-6a-605, Utah Code Annotated 1953
             180          63G-6a-606, Utah Code Annotated 1953



Text Box

- 7 -
             181
         63G-6a-607, Utah Code Annotated 1953
             182          63G-6a-608, Utah Code Annotated 1953
             183          63G-6a-609, Utah Code Annotated 1953
             184          63G-6a-610, Utah Code Annotated 1953
             185          63G-6a-611, Utah Code Annotated 1953
             186          63G-6a-612, Utah Code Annotated 1953
             187          63G-6a-701, Utah Code Annotated 1953
             188          63G-6a-702, Utah Code Annotated 1953
             189          63G-6a-703, Utah Code Annotated 1953
             190          63G-6a-704, Utah Code Annotated 1953
             191          63G-6a-705, Utah Code Annotated 1953
             192          63G-6a-706, Utah Code Annotated 1953
             193          63G-6a-707, Utah Code Annotated 1953
             194          63G-6a-708, Utah Code Annotated 1953
             195          63G-6a-709, Utah Code Annotated 1953
             196          63G-6a-710, Utah Code Annotated 1953
             197          63G-6a-801, Utah Code Annotated 1953
             198          63G-6a-803, Utah Code Annotated 1953
             199          63G-6a-901, Utah Code Annotated 1953
             200          63G-6a-1001, Utah Code Annotated 1953
             201          63G-6a-1004, Utah Code Annotated 1953
             202          63G-6a-1101, Utah Code Annotated 1953
             203          63G-6a-1201, Utah Code Annotated 1953
             204          63G-6a-1204, Utah Code Annotated 1953
             205          63G-6a-1301, Utah Code Annotated 1953
             206          63G-6a-1401, Utah Code Annotated 1953
             207          63G-6a-1501, Utah Code Annotated 1953
             208          63G-6a-1601, Utah Code Annotated 1953
             209          63G-6a-1701, Utah Code Annotated 1953
             210          63G-6a-1801, Utah Code Annotated 1953
             211          63G-6a-1901, Utah Code Annotated 1953



Text Box

- 8 -
             212
         63G-6a-2001, Utah Code Annotated 1953
             213          63G-6a-2101, Utah Code Annotated 1953
             214          63G-6a-2201, Utah Code Annotated 1953
             215          63G-6a-2202, Utah Code Annotated 1953
             216          63G-6a-2301, Utah Code Annotated 1953
             217          63G-6a-2303, Utah Code Annotated 1953
             218          63G-6a-2304, Utah Code Annotated 1953
             219          63G-6a-2305, Utah Code Annotated 1953
             220          63G-6a-2306, Utah Code Annotated 1953
             221          63G-6a-2307, Utah Code Annotated 1953
             222      RENUMBERS AND AMENDS:
             223          63G-6a-101, (Renumbered from 63G-6-101, as enacted by Laws of Utah 2008, Chapter
             224      382)
             225          63G-6a-102, (Renumbered from 63G-6-102, as renumbered and amended by Laws of
             226      Utah 2008, Chapter 382)
             227          63G-6a-103, (Renumbered from 63G-6-103, as last amended by Laws of Utah 2011,
             228      Chapter 376)
             229          63G-6a-105, (Renumbered from 63G-6-104, as renumbered and amended by Laws of
             230      Utah 2008, Chapter 382)
             231          63G-6a-106, (Renumbered from 63G-6-207, as last amended by Laws of Utah 2008,
             232      Chapter 3 and renumbered and amended by Laws of Utah 2008, Chapter 382)
             233          63G-6a-109, (Renumbered from 63G-6-105, as renumbered and amended by Laws of
             234      Utah 2008, Chapter 382)
             235          63G-6a-202, (Renumbered from 63G-6-201, as last amended by Laws of Utah 2011,
             236      Chapter 376)
             237          63G-6a-203, (Renumbered from 63G-6-202, as last amended by Laws of Utah 2011,
             238      Chapter 376)
             239          63G-6a-204, (Renumbered from 63G-6-208, as last amended by Laws of Utah 2009,
             240      Chapter 132)
             241          63G-6a-205, (Renumbered from 63G-6-209, as renumbered and amended by Laws of
             242      Utah 2008, Chapter 382)



Text Box

- 9 -
             243
         63G-6a-302, (Renumbered from 63G-6-203, as renumbered and amended by Laws of
             244      Utah 2008, Chapter 382)
             245          63G-6a-303, (Renumbered from 63G-6-204, as last amended by Laws of Utah 2008,
             246      Chapter 352 and renumbered and amended by Laws of Utah 2008, Chapter 382)
             247          63G-6a-304, (Renumbered from 63G-6-205, as last amended by Laws of Utah 2008,
             248      Chapter 352 and renumbered and amended by Laws of Utah 2008, Chapter 382)
             249          63G-6a-305, (Renumbered from 63G-6-302, as last amended by Laws of Utah 2011,
             250      Chapter 376)
             251          63G-6a-407, (Renumbered from 63G-6-303, as renumbered and amended by Laws of
             252      Utah 2008, Chapter 382)
             253          63G-6a-711, (Renumbered from 63G-6-408.5, as enacted by Laws of Utah 2008,
             254      Chapter 352)
             255          63G-6a-802, (Renumbered from 63G-6-410, as renumbered and amended by Laws of
             256      Utah 2008, Chapter 382)
             257          63G-6a-804, (Renumbered from 63G-6-423, as renumbered and amended by Laws of
             258      Utah 2008, Chapter 382)
             259          63G-6a-805, (Renumbered from 63G-6-425, as renumbered and amended by Laws of
             260      Utah 2008, Chapter 382)
             261          63G-6a-902, (Renumbered from 63G-6-412, as renumbered and amended by Laws of
             262      Utah 2008, Chapter 382)
             263          63G-6a-903, (Renumbered from 63G-6-413, as renumbered and amended by Laws of
             264      Utah 2008, Chapter 382)
             265          63G-6a-904, (Renumbered from 63G-6-804, as renumbered and amended by Laws of
             266      Utah 2008, Chapter 382)
             267          63G-6a-1002, (Renumbered from 63G-6-404, as renumbered and amended by Laws of
             268      Utah 2008, Chapter 382)
             269          63G-6a-1003, (Renumbered from 63G-6-405, as renumbered and amended by Laws of
             270      Utah 2008, Chapter 382)
             271          63G-6a-1102, (Renumbered from 63G-6-504, as renumbered and amended by Laws of
             272      Utah 2008, Chapter 382)
             273          63G-6a-1103, (Renumbered from 63G-6-505, as renumbered and amended by Laws of



Text Box

- 10 -
             274
     Utah 2008, Chapter 382)
             275          63G-6a-1104, (Renumbered from 63G-6-506, as last amended by Laws of Utah 2011,
             276      Chapter 299)
             277          63G-6a-1105, (Renumbered from 63G-6-507, as renumbered and amended by Laws of
             278      Utah 2008, Chapter 382)
             279          63G-6a-1202, (Renumbered from 63G-6-601, as renumbered and amended by Laws of
             280      Utah 2008, Chapter 382)
             281          63G-6a-1203, (Renumbered from 63G-6-603, as enacted by Laws of Utah 2009,
             282      Chapter 217)
             283          63G-6a-1205, (Renumbered from 63G-6-416, as renumbered and amended by Laws of
             284      Utah 2008, Chapter 382)
             285          63G-6a-1206, (Renumbered from 63G-6-415, as renumbered and amended by Laws of
             286      Utah 2008, Chapter 382)
             287          63G-6a-1207, (Renumbered from 63G-6-602, as renumbered and amended by Laws of
             288      Utah 2008, Chapter 382)
             289          63G-6a-1302, (Renumbered from 63G-6-501, as renumbered and amended by Laws of
             290      Utah 2008, Chapter 382)
             291          63G-6a-1303, (Renumbered from 63G-6-604, as enacted by Laws of Utah 2010,
             292      Chapter 18)
             293          63G-6a-1402, (Renumbered from 63G-6-502, as last amended by Laws of Utah 2010,
             294      Chapter 358)
             295          63G-6a-1403, (Renumbered from 63G-6-503, as renumbered and amended by Laws of
             296      Utah 2008, Chapter 382)
             297          63G-6a-1502, (Renumbered from 63G-6-701, as renumbered and amended by Laws of
             298      Utah 2008, Chapter 382)
             299          63G-6a-1503, (Renumbered from 63G-6-702, as renumbered and amended by Laws of
             300      Utah 2008, Chapter 382)
             301          63G-6a-1504, (Renumbered from 63G-6-703, as renumbered and amended by Laws of
             302      Utah 2008, Chapter 382)
             303          63G-6a-1505, (Renumbered from 63G-6-704, as renumbered and amended by Laws of
             304      Utah 2008, Chapter 382)



Text Box

- 11 -
             305
         63G-6a-1506, (Renumbered from 63G-6-705, as renumbered and amended by Laws of
             306      Utah 2008, Chapter 382)
             307          63G-6a-1602, (Renumbered from 63G-6-805, as renumbered and amended by Laws of
             308      Utah 2008, Chapter 382)
             309          63G-6a-1603, (Renumbered from 63G-6-801, as last amended by Laws of Utah 2011,
             310      Chapter 361)
             311          63G-6a-1604, (Renumbered from 63G-6-806, as renumbered and amended by Laws of
             312      Utah 2008, Chapter 382)
             313          63G-6a-1605, (Renumbered from 63G-6-907, as renumbered and amended by Laws of
             314      Utah 2008, Chapter 382)
             315          63G-6a-1606, (Renumbered from 63G-6-802, as renumbered and amended by Laws of
             316      Utah 2008, Chapter 382)
             317          63G-6a-1607, (Renumbered from 63G-6-803, as renumbered and amended by Laws of
             318      Utah 2008, Chapter 382)
             319          63G-6a-1702, (Renumbered from 63G-6-807, as last amended by Laws of Utah 2010,
             320      Chapter 286)
             321          63G-6a-1703, (Renumbered from 63G-6-810, as renumbered and amended by Laws of
             322      Utah 2008, Chapter 382)
             323          63G-6a-1704, (Renumbered from 63G-6-808, as renumbered and amended by Laws of
             324      Utah 2008, Chapter 382)
             325          63G-6a-1705, (Renumbered from 63G-6-809, as renumbered and amended by Laws of
             326      Utah 2008, Chapter 382)
             327          63G-6a-1706, (Renumbered from 63G-6-811, as renumbered and amended by Laws of
             328      Utah 2008, Chapter 382)
             329          63G-6a-1707, (Renumbered from 63G-6-812, as renumbered and amended by Laws of
             330      Utah 2008, Chapter 382)
             331          63G-6a-1708, (Renumbered from 63G-6-813, as renumbered and amended by Laws of
             332      Utah 2008, Chapter 382)
             333          63G-6a-1802, (Renumbered from 63G-6-814, as renumbered and amended by Laws of
             334      Utah 2008, Chapter 382)
             335          63G-6a-1803, (Renumbered from 63G-6-815, as renumbered and amended by Laws of



Text Box

- 12 -
             336
     Utah 2008, Chapter 382)
             337          63G-6a-1804, (Renumbered from 63G-6-817, as renumbered and amended by Laws of
             338      Utah 2008, Chapter 382)
             339          63G-6a-1805, (Renumbered from 63G-6-816, as renumbered and amended by Laws of
             340      Utah 2008, Chapter 382)
             341          63G-6a-1902, (Renumbered from 63G-6-419, as renumbered and amended by Laws of
             342      Utah 2008, Chapter 382)
             343          63G-6a-1903, (Renumbered from 63G-6-818, as renumbered and amended by Laws of
             344      Utah 2008, Chapter 382)
             345          63G-6a-1904, (Renumbered from 63G-6-819, as renumbered and amended by Laws of
             346      Utah 2008, Chapter 382)
             347          63G-6a-1905, (Renumbered from 63G-6-820, as renumbered and amended by Laws of
             348      Utah 2008, Chapter 382)
             349          63G-6a-2002, (Renumbered from 63G-6-106, as renumbered and amended by Laws of
             350      Utah 2008, Chapter 382)
             351          63G-6a-2003, (Renumbered from 63G-6-421, as renumbered and amended by Laws of
             352      Utah 2008, Chapter 382)
             353          63G-6a-2004, (Renumbered from 63G-6-905, as renumbered and amended by Laws of
             354      Utah 2008, Chapter 382)
             355          63G-6a-2102, (Renumbered from 63G-6-901, as renumbered and amended by Laws of
             356      Utah 2008, Chapter 382)
             357          63G-6a-2103, (Renumbered from 63G-6-902, as renumbered and amended by Laws of
             358      Utah 2008, Chapter 382)
             359          63G-6a-2104, (Renumbered from 63G-6-904, as renumbered and amended by Laws of
             360      Utah 2008, Chapter 382)
             361          63G-6a-2105, (Renumbered from 63G-6-424, as renumbered and amended by Laws of
             362      Utah 2008, Chapter 382)
             363          63G-6a-2302, (Renumbered from 63G-6-420, as renumbered and amended by Laws of
             364      Utah 2008, Chapter 382)
             365      REPEALS:
             366          10-7-87, as last amended by Laws of Utah 2008, Chapter 382



Text Box

- 13 -
             367
         11-37-101, as last amended by Laws of Utah 2008, Chapter 382
             368          17-15-24, as last amended by Laws of Utah 2008, Chapter 382
             369          17B-1-109, as renumbered and amended by Laws of Utah 2007, Chapter 329
             370          26A-1-108.7, as last amended by Laws of Utah 2008, Chapter 382
             371          63G-6-206, as renumbered and amended by Laws of Utah 2008, Chapter 382
             372          63G-6-301, as last amended by Laws of Utah 2011, Chapter 376
             373          63G-6-401, as last amended by Laws of Utah 2009, Chapter 388
             374          63G-6-402, as renumbered and amended by Laws of Utah 2008, Chapter 382
             375          63G-6-403, as renumbered and amended by Laws of Utah 2008, Chapter 382
             376          63G-6-406, as renumbered and amended by Laws of Utah 2008, Chapter 382
             377          63G-6-407, as renumbered and amended by Laws of Utah 2008, Chapter 382
             378          63G-6-408, as renumbered and amended by Laws of Utah 2008, Chapter 382
             379          63G-6-409, as renumbered and amended by Laws of Utah 2008, Chapter 382
             380          63G-6-411, as renumbered and amended by Laws of Utah 2008, Chapter 382
             381          63G-6-414, as renumbered and amended by Laws of Utah 2008, Chapter 382
             382          63G-6-417, as renumbered and amended by Laws of Utah 2008, Chapter 382
             383          63G-6-418, as renumbered and amended by Laws of Utah 2008, Chapter 382
             384          63G-6-422, as renumbered and amended by Laws of Utah 2008, Chapter 382
             385          63G-6-426, as renumbered and amended by Laws of Utah 2008, Chapter 382
             386          63G-6-903, as renumbered and amended by Laws of Utah 2008, Chapter 382
             387          63G-6-906, as renumbered and amended by Laws of Utah 2008, Chapter 382
             388          63G-6-1001, as renumbered and amended by Laws of Utah 2008, Chapter 382
             389          63G-6-1002, as renumbered and amended by Laws of Utah 2008, Chapter 382
             390      Utah Code Sections Affected by Coordination Clause:
             391          26-8a-405.3, as last amended by Laws of Utah 2011, Chapter 297
             392          63A-5-208, as last amended by Laws of Utah 2008, Chapter 382
             393          63G-6-104, as renumbered and amended by Laws of Utah 2008, Chapter 382
             394          63G-6-201, as last amended by Laws of Utah 2011, Chapter 376
             395          63G-6-202, as last amended by Laws of Utah 2011, Chapter 376
             396          63G-6-801, as last amended by Laws of Utah 2011, Chapter 361
             397          63G-6-801.5, Utah Code Annotated 1953



Text Box

- 14 -
             398
         63G-6-802, as renumbered and amended by Laws of Utah 2008, Chapter 382
             399          63G-6-803, as renumbered and amended by Laws of Utah 2008, Chapter 382
             400          63G-6-805, as renumbered and amended by Laws of Utah 2008, Chapter 382
             401          63G-6-806, as renumbered and amended by Laws of Utah 2008, Chapter 382
             402          63G-6-807, as last amended by Laws of Utah 2010, Chapter 286
             403          63G-6-807.5, Utah Code Annotated 1953
             404          63G-6-808, as renumbered and amended by Laws of Utah 2008, Chapter 382
             405          63G-6-809, as renumbered and amended by Laws of Utah 2008, Chapter 382
             406          63G-6-810, as renumbered and amended by Laws of Utah 2008, Chapter 382
             407          63G-6-811, as renumbered and amended by Laws of Utah 2008, Chapter 382
             408          63G-6-812, as renumbered and amended by Laws of Utah 2008, Chapter 382
             409          63G-6-813, as renumbered and amended by Laws of Utah 2008, Chapter 382
             410          63G-6-814, as renumbered and amended by Laws of Utah 2008, Chapter 382
             411          63G-6-814.5, Utah Code Annotated 1953
             412          63G-6-815, as renumbered and amended by Laws of Utah 2008, Chapter 382
             413          63G-6-816, as renumbered and amended by Laws of Utah 2008, Chapter 382
             414          63G-6-817, as renumbered and amended by Laws of Utah 2008, Chapter 382
             415          63G-6-818, as renumbered and amended by Laws of Utah 2008, Chapter 382
             416          63G-6-819, as renumbered and amended by Laws of Utah 2008, Chapter 382
             417          63G-6-820, as renumbered and amended by Laws of Utah 2008, Chapter 382
             418          63G-6-907, as renumbered and amended by Laws of Utah 2008, Chapter 382
             419          63G-6a-103, Utah Code Annotated 1953
             420          63G-6a-104, Utah Code Annotated 1953
             421          63G-6a-105, Utah Code Annotated 1953
             422          63G-6a-202, Utah Code Annotated 1953
             423          63G-6a-203, Utah Code Annotated 1953
             424          63G-6a-1602, Utah Code Annotated 1953
             425          63G-6a-1603, Utah Code Annotated 1953
             426          63G-6a-1604, Utah Code Annotated 1953
             427          63G-6a-1605, Utah Code Annotated 1953
             428          63G-6a-1606, Utah Code Annotated 1953



Text Box

- 15 -
             429
         63G-6a-1702, Utah Code Annotated 1953
             430          63G-6a-1703, Utah Code Annotated 1953
             431          63G-6a-1704, Utah Code Annotated 1953
             432          63G-6a-1705, Utah Code Annotated 1953
             433          63G-6a-1706, Utah Code Annotated 1953
             434          63G-6a-1707, Utah Code Annotated 1953
             435          63G-6a-1708, Utah Code Annotated 1953
             436          63G-6a-1802, Utah Code Annotated 1953
             437          63G-6a-1803, Utah Code Annotated 1953
             438          63G-6a-1804, Utah Code Annotated 1953
             439          63G-6a-1805, Utah Code Annotated 1953
             440          63G-6a-1902, Utah Code Annotated 1953
             441          63G-6a-1903, Utah Code Annotated 1953
             442          63G-6a-1904, Utah Code Annotated 1953
             443          63G-6a-1905, Utah Code Annotated 1953
             444          63G-6a-1906, Utah Code Annotated 1953
             445          63G-6a-1907, Utah Code Annotated 1953
             446          63G-6a-1908, Utah Code Annotated 1953
             447          63G-6a-1909, Utah Code Annotated 1953
             448          63G-6a-1910, Utah Code Annotated 1953
             449          63G-6a-1911, Utah Code Annotated 1953
             450          63G-10-403, as enacted by Laws of Utah 2011, Chapter 361
             451     

             452      Be it enacted by the Legislature of the state of Utah:
             453          Section 1. Section 7-1-323 is amended to read:
             454           7-1-323. Regulation of interstate operations -- Coordination of efforts.
             455          (1) The commissioner may:
             456          (a) examine, supervise, and regulate a branch operated in this state by a depository
             457      institution chartered by another state and take any action or issue any order with regard to that
             458      branch;
             459          (b) examine, supervise, and regulate a branch operated in another state by a depository



Text Box

- 16 -
             460
     institution chartered by this state and take any action or issue any order with regard to that
             461      branch; and
             462          (c) coordinate these activities with any other state or federal agency that shares
             463      jurisdiction over the institution.
             464          (2) The commissioner may coordinate the examination, supervision, and regulation of
             465      any depository institution chartered by this state with the examination, supervision, and
             466      regulation of an affiliated depository institution operating in another state.
             467          (3) The commissioner may take any reasonable and lawful action in furtherance of
             468      coordinating the regulation of interstate operations, including:
             469          (a) negotiating and entering into cooperative agreements with an agency of another
             470      state or of the federal government;
             471          (b) sharing information and reports in accordance with Section 7-1-802 with an agency
             472      that shares jurisdiction over the institution;
             473          (c) accepting as sufficient, if appropriate, examination reports and other information
             474      compiled or generated by or for an agency that shares jurisdiction over the institution;
             475          (d) contracting with an agency that shares jurisdiction over the institution to engage the
             476      services of its examiners at a reasonable rate of compensation;
             477          (e) offering the services of the department's examiners at a reasonable rate of
             478      compensation to an agency that shares jurisdiction over the institution;
             479          (f) collecting fees on behalf of, or receiving payment of fees through, an agency that
             480      shares jurisdiction over the institution; and
             481          (g) cooperating in any other way with other supervisory agencies and professional
             482      associations to promote the efficient, safe, and sound operation and regulation of interstate
             483      depository institution activities, including the formulation of interstate examination policies
             484      and procedures and the drafting of model laws, rules, and agreements.
             485          (4) A contract between the department and an agency that shares jurisdiction over a
             486      depository institution to provide examiners to aid in interstate examination and regulation is
             487      considered a sole source contract under Section [ 63G-6-410 ] 63G-6a-802 .
             488          Section 2. Section 7-2-21 is amended to read:
             489           7-2-21. Applicability of Utah Procurement Code.
             490          No action of the commissioner taken under this chapter or Chapter 19, Acquisition of



Text Box

- 17 -
             491
     Failing Depository Institutions or Holding Companies, is subject to the provisions of Title 63G,
             492      Chapter [6] 6a, Utah Procurement Code.
             493          Section 3. Section 9-4-704 is amended to read:
             494           9-4-704. Distribution of fund money.
             495          (1) The executive director shall:
             496          (a) make grants and loans from the fund for any of the activities authorized by Section
             497      9-4-705 , as directed by the board;
             498          (b) establish the criteria with the approval of the board by which loans and grants will
             499      be made; and
             500          (c) determine with the approval of the board the order in which projects will be funded.
             501          (2) The executive director shall distribute, as directed by the board, any federal money
             502      contained in the fund according to the procedures, conditions, and restrictions placed upon the
             503      use of the money by the federal government.
             504          (3) (a) The executive director shall distribute, as directed by the board, any funds
             505      received pursuant to Section 17C-1-412 to pay the costs of providing income targeted housing
             506      within the community that created the community development and renewal agency under Title
             507      17C, Limited Purpose Local Government Entities - Community Development and Renewal
             508      Agencies Act.
             509          (b) As used in Subsection (3)(a):
             510          (i) "Community" has the meaning as defined in Section 17C-1-102 .
             511          (ii) "Income targeted housing" has the meaning as defined in Section 17C-1-102 .
             512          (4) Except federal money and money received under Section 17C-1-412 , the executive
             513      director shall distribute, as directed by the board, all other money from the fund according to
             514      the following requirements:
             515          (a) Not less than 30% of all fund money shall be distributed to rural areas of the state.
             516          (b) At least 50% of the money in the fund shall be distributed as loans to be repaid to
             517      the fund by the entity receiving them.
             518          (i) (A) Of the fund money distributed as loans, at least 50% shall be distributed to
             519      benefit persons whose annual income is at or below 50% of the median family income for the
             520      state.
             521          (B) The remaining loan money shall be distributed to benefit persons whose annual



Text Box

- 18 -
             522
     income is at or below 80% of the median family income for the state.
             523          (ii) The executive director or the executive director's designee shall lend money in
             524      accordance with this Subsection (4) at a rate based upon the borrower's ability to pay.
             525          (c) Any fund money not distributed as loans shall be distributed as grants.
             526          (i) At least 90% of the fund money distributed as grants shall be distributed to benefit
             527      persons whose annual income is at or below 50% of the median family income for the state.
             528          (ii) The remaining fund money distributed as grants may be used by the executive
             529      director to obtain federal matching funds or for other uses consistent with the intent of this part,
             530      including the payment of reasonable loan servicing costs, but no more than 3% of the revenues
             531      of the fund may be used to offset other department or board administrative expenses.
             532          (5) The executive director may with the approval of the board:
             533          (a) enact rules to establish procedures for the grant and loan process by following the
             534      procedures and requirements of Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             535      and
             536          (b) service or contract, pursuant to Title 63G, Chapter [6] 6a, Utah Procurement Code,
             537      for the servicing of loans made by the fund.
             538          Section 4. Section 9-4-906 is amended to read:
             539           9-4-906. Relation to certain acts.
             540          (1) The corporation is exempt from:
             541          (a) Title 51, Chapter 5, Funds Consolidation Act;
             542          (b) Title 51, Chapter 7, State Money Management Act;
             543          (c) Title 63A, Utah Administrative Services Code; [and]
             544          (d) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             545          (e) Title 63J, Chapter 1, Budgetary Procedures Act;
             546          (f) Title 63J, Chapter 2, Revenue Procedures and Control Act; and
             547          (g) Title 67, Chapter 19, Utah State Personnel Management Act.
             548          (2) The corporation shall comply with:
             549          (a) Title 52, Chapter 4, Open and Public Meetings Act; and
             550          (b) Title 63G, Chapter 2, Government Records Access and Management Act.
             551          Section 5. Section 9-4-1602 is amended to read:
             552           9-4-1602. Distribution of fund money.



Text Box

- 19 -
             553
         (1) (a) The director shall make loans and loan guarantees from the fund for the Small
             554      Business Credit Initiative created under the federal government's Small Business Jobs Act of
             555      2010, to use federal money for programs that leverage private lending to help finance small
             556      businesses and manufacturers that are creditworthy but not receiving the loans needed to
             557      expand and create jobs.
             558          (b) In making loans and loan guarantees under this part, the director shall give due
             559      consideration to small businesses in underserved communities throughout the state that have
             560      been deeply impacted by recession and not seen a comparable resurgence in their economies.
             561          (2) The director shall distribute any federal money in the fund according to the
             562      procedures, conditions, and restrictions placed upon the use of the money by the federal
             563      government.
             564          (3) The director may, with the approval of the executive director of the department:
             565          (a) enact rules to establish procedures for the loan and loan guarantee process by
             566      following the procedures and requirements of Title 63G, Chapter 3, Utah Administrative
             567      Rulemaking Act; and
             568          (b) service or contract, under Title 63G, Chapter [6] 6a, Utah Procurement Code, for
             569      the servicing of loans made by the fund.
             570          Section 6. Section 10-3-1304 is amended to read:
             571           10-3-1304. Use of office for personal benefit prohibited.
             572          (1) As used in this section, "economic benefit tantamount to a gift" includes:
             573          (a) a loan at an interest rate that is substantially lower than the commercial rate then
             574      currently prevalent for similar loans; and
             575          (b) compensation received for private services rendered at a rate substantially
             576      exceeding the fair market value of the services.
             577          (2) It is an offense for an elected or appointed officer or municipal employee, under
             578      circumstances not amounting to a violation of Section [ 63G-6-1001 ] 63G-6a-2304 or 76-8-105 ,
             579      to:
             580          (a) disclose or improperly use private, controlled, or protected information acquired by
             581      reason of the officer's or employee's official position or in the course of official duties in order
             582      to further substantially the officer's or employee's personal economic interest or to secure
             583      special privileges or exemptions for the officer or employee or for others;



Text Box

- 20 -
             584
         (b) use or attempt to use the officer's or employee's official position to:
             585          (i) further substantially the officer's or employee's personal economic interest; or
             586          (ii) secure special privileges for the officer or employee or for others; or
             587          (c) knowingly receive, accept, take, seek, or solicit, directly or indirectly, for the officer
             588      or employee or for another, a gift of substantial value or a substantial economic benefit
             589      tantamount to a gift that:
             590          (i) would tend improperly to influence a reasonable person in the person's position to
             591      depart from the faithful and impartial discharge of the person's public duties; or
             592          (ii) the person knows or that a reasonable person in that position should know under
             593      the circumstances is primarily for the purpose of rewarding the person for official action taken.
             594          (3) Subsection (2)(c) does not apply to:
             595          (a) an occasional nonpecuniary gift having a value of less than $50;
             596          (b) an award publicly presented in recognition of public services;
             597          (c) any bona fide loan made in the ordinary course of business; or
             598          (d) a political campaign contribution.
             599          Section 7. Section 10-3-1305 is amended to read:
             600           10-3-1305. Compensation for assistance in transaction involving municipality --
             601      Public disclosure and filing required.
             602          (1) As used in this section, "municipal body" means any public board, commission,
             603      committee, or other public group organized to make public policy decisions or to advise
             604      persons who make public policy decisions.
             605          (2) It is an offense for an elected officer, or appointed officer, who is a member of a
             606      public body, under circumstances not amounting to a violation of Section [ 63G-6-1001 ]
             607      63G-6a-2304 or 76-8-105 , to receive or agree to receive compensation for assisting any person
             608      or business entity in any transaction involving the municipality in which the member is an
             609      officer unless the member:
             610          (a) files with the mayor a sworn statement giving the information required by this
             611      section; and
             612          (b) discloses the information required by Subsection (5) in an open meeting to the
             613      members of the body of which the officer is a member immediately before the discussion.
             614          (3) It is an offense for an appointed officer who is not a member of a public body or a



Text Box

- 21 -
             615
     municipal employee to receive or agree to receive compensation for assisting any person or
             616      business entity in any transaction involving the municipality by which the person is employed
             617      unless the officer or employee:
             618          (a) files with the mayor a sworn statement giving the information required by this
             619      section; and
             620          (b) discloses the information required by Subsection (5) to:
             621          (i) the officer or employee's immediate supervisor; and
             622          (ii) any other municipal officer or employee who may rely upon the employee's
             623      representations in evaluating or approving the transaction.
             624          (4) (a) The officer or employee shall file the statement required to be filed by this
             625      section 10 days before the date of any agreement between the elected or appointed officer or
             626      municipal employee and the person or business entity being assisted or 10 days before the
             627      receipt of compensation by the officer or employee, whichever is earlier.
             628          (b) The statement is public information and shall be available for examination by the
             629      public.
             630          (5) The statement and disclosure shall contain:
             631          (a) the name and address of the officer or municipal employee;
             632          (b) the name and address of the person or business entity being or to be assisted or in
             633      which the appointed or elected official or municipal employee has a substantial interest; and
             634          (c) a brief description of the transaction as to which service is rendered or is to be
             635      rendered and of the nature of the service performed or to be performed.
             636          Section 8. Section 10-7-86 is amended to read:
             637           10-7-86. Municipality may adopt Utah Procurement Code -- Hiring of
             638      professional architect, engineer, or surveyor.
             639          (1) The governing body of any municipality may adopt any or all of the provisions of
             640      Title 63G, Chapter [6] 6a, Utah Procurement Code, or the rules promulgated pursuant to that
             641      code.
             642          (2) Notwithstanding Subsection (1), the governing body of each municipality that
             643      engages the services of a professional architect, engineer, or surveyor and considers more than
             644      one such professional for the engagement:
             645          (a) shall consider, as a minimum, in the selection process:



Text Box

- 22 -
             646
         (i) the qualifications, experience, and background of each firm submitting a proposal;
             647          (ii) the specific individuals assigned to the project and the time commitments of each
             648      to the project; and
             649          (iii) the project schedule and the approach to the project that the firm will take; and
             650          (b) may engage the services of a professional architect, engineer, or surveyor based on
             651      the criteria under Subsection (2)(a) rather than solely on lowest cost.
             652          Section 9. Section 11-17-20 is amended to read:
             653           11-17-20. Power of the State Charter School Finance Authority.
             654          (1) The State Charter School Finance Authority may exercise the powers granted to
             655      municipalities and counties by this chapter, subject to the same limitations as that imposed on a
             656      municipality or county under the chapter, except as provided by Title 53A, Chapter 20b, State
             657      Charter School Finance Authority Act.
             658          (2) As used in this chapter, "governing body" when applied to the State Charter School
             659      Finance Authority means the authority's governing board as described in Section 53A-20b-103 .
             660          (3) Notwithstanding Section 11-17-15 , a charter school that receives financing under
             661      this chapter is subject to Title 63G, Chapter [6] 6a, Utah Procurement Code.
             662          Section 10. Section 11-39-101 is amended to read:
             663           11-39-101. Definitions.
             664          As used in this chapter:
             665          (1) "Bid limit" means:
             666          (a) for a building improvement:
             667          (i) for the year 2003, $40,000; and
             668          (ii) for each year after 2003, the amount of the bid limit for the previous year, plus an
             669      amount calculated by multiplying the amount of the bid limit for the previous year by the lesser
             670      of 3% or the actual percent change in the Consumer Price Index during the previous calendar
             671      year; and
             672          (b) for a public works project:
             673          (i) for the year 2003, $125,000; and
             674          (ii) for each year after 2003, the amount of the bid limit for the previous year, plus an
             675      amount calculated by multiplying the amount of the bid limit for the previous year by the lesser
             676      of 3% or the actual percent change in the Consumer Price Index during the previous calendar



Text Box

- 23 -
             677
     year.
             678          (2) "Building improvement":
             679          (a) means the construction or repair of a public building or structure; and
             680          (b) does not include construction or repair at an international airport.
             681          (3) "Consumer Price Index" means the Consumer Price Index for All Urban
             682      Consumers as published by the Bureau of Labor Statistics of the United States Department of
             683      Labor.
             684          (4) "Design-build project":
             685          (a) means a building improvement or public works project costing over $250,000 with
             686      respect to which both the design and construction are provided for in a single contract with a
             687      contractor or combination of contractors capable of providing design-build services; and
             688          (b) does not include a building improvement or public works project:
             689          (i) that is undertaken by a local entity under contract with a construction manager that
             690      guarantees the contract price and is at risk for any amount over the contract price; and
             691          (ii) each component of which is competitively bid.
             692          (5) "Design-build services" means the engineering, architectural, and other services
             693      necessary to formulate and implement a design-build project, including its actual construction.
             694          (6) "Emergency repairs" means a building improvement or public works project
             695      undertaken on an expedited basis to:
             696          (a) eliminate an imminent risk of damage to or loss of public or private property;
             697          (b) remedy a condition that poses an immediate physical danger; or
             698          (c) reduce a substantial, imminent risk of interruption of an essential public service.
             699          (7) "Governing body" means:
             700          (a) for a county, city, or town, the legislative body of the county, city, or town;
             701          (b) for a local district, the board of trustees of the local district; and
             702          (c) for a special service district:
             703          (i) the legislative body of the county, city, or town that established the special service
             704      district, if no administrative control board has been appointed under Section 17D-1-301 ; or
             705          (ii) the administrative control board of the special service district, if an administrative
             706      control board has been appointed under Section 17D-1-301 .
             707          (8) "Local district" has the same meaning as defined in Section 17B-1-102 .



Text Box

- 24 -
             708
         (9) "Local entity" means a county, city, town, local district, or special service district.
             709          (10) "Lowest responsive responsible bidder" means a prime contractor who:
             710          (a) has submitted a bid in compliance with the invitation to bid and within the
             711      requirements of the plans and specifications for the building improvement or public works
             712      project;
             713          (b) is the lowest bidder that satisfies the local entity's criteria relating to financial
             714      strength, past performance, integrity, reliability, and other factors that the local entity uses to
             715      assess the ability of a bidder to perform fully and in good faith the contract requirements;
             716          (c) has furnished a bid bond or equivalent in money as a condition to the award of a
             717      prime contract; and
             718          (d) furnishes a payment and performance bond as required by law.
             719          (11) "Procurement code" means the provisions of Title 63G, Chapter [6] 6a, Utah
             720      Procurement Code.
             721          (12) "Public works project":
             722          (a) means the construction of:
             723          (i) a park or recreational facility; or
             724          (ii) a pipeline, culvert, dam, canal, or other system for water, sewage, storm water, or
             725      flood control; and
             726          (b) does not include:
             727          (i) the replacement or repair of existing infrastructure on private property;
             728          (ii) construction commenced before June 1, 2003; and
             729          (iii) construction or repair at an international airport.
             730          (13) "Special service district" has the same meaning as defined in Section 17D-1-102 .
             731          Section 11. Section 11-39-107 is amended to read:
             732           11-39-107. Procurement code.
             733          (1) This chapter may not be construed to:
             734          (a) prohibit a county or municipal legislative body from adopting the procedures of the
             735      procurement code; or
             736          (b) limit the application of the procurement code to a local district or special service
             737      district.
             738          (2) A local entity may adopt procedures for the following construction contracting



Text Box

- 25 -
             739
     methods:
             740          (a) construction manager/general contractor, as defined in Section [ 63G-6-103 ]
             741      63G-6a-103 ; or
             742          (b) a method that requires that the local entity draft a plan, specifications, and an
             743      estimate for the building improvement or public works project.
             744          (3) For a public works project only and that costs $10,000,000 or more, the following
             745      may enter into a contract for design-build, as defined in Section [ 63G-6-103 ] 63G-6a-103 , and
             746      adopt the procedures and follow the provisions of the procurement code for the procurement of
             747      and as the procedures and provisions relate to a design-build:
             748          (a) a city of the first class;
             749          (b) a local district; or
             750          (c) a special service district.
             751          (4) (a) In seeking bids and awarding a contract for a building improvement or public
             752      works project, a county or a municipal legislative body may elect to follow the provisions of
             753      the procurement code, as the county or municipal legislative body considers appropriate under
             754      the circumstances, for specification preparation, source selection, or contract formation.
             755          (b) A county or municipal legislative body's election to adopt the procedures of the
             756      procurement code may not excuse the county or municipality, respectively, from complying
             757      with the requirements to award a contract for work in excess of the bid limit and to publish
             758      notice of the intent to award.
             759          (c) An election under Subsection (4)(a) may be made on a case-by-case basis, unless
             760      the county or municipality has previously adopted [the procurement code as permitted by
             761      Subsection 63G-6-104 (3)(e)] the provisions of Title 63G, Chapter 6a, Utah Procurement Code.
             762          (d) The county or municipal legislative body shall:
             763          (i) make each election under Subsection (4)(a) in an open meeting; and
             764          (ii) specify in its action the portions of the procurement code to be followed.
             765          (5) If the estimated cost of the building improvement or public works project proposed
             766      by a local district or special service district exceeds the bid limit, the governing body of the
             767      local district or special service district may, if it determines to proceed with the building
             768      improvement or public works project, use the competitive procurement procedures of the
             769      procurement code in place of the comparable provisions of this chapter.



Text Box

- 26 -
             770
         Section 12. Section 11-44-202 is amended to read:
             771           11-44-202. Types of agreements.
             772          Notwithstanding Section [ 63G-6-416 ] 63G-6a-1205 , a political subdivision shall
             773      structure an energy service agreement as a guaranteed energy savings performance contract,
             774      which shall include:
             775          (1) the design and installation of an energy efficiency measure, if applicable;
             776          (2) operation and maintenance of any energy efficiency measure implemented; and
             777          (3) guaranteed annual cost savings that meet or exceed the total annual contract
             778      payments by the political subdivision under the contract, including financing charges incurred
             779      by the political subdivision over the life of the contract.
             780          Section 13. Section 11-44-301 is amended to read:
             781           11-44-301. Selection.
             782          (1) A political subdivision shall follow the procedures outlined in Title 63G, Chapter
             783      [6] 6a, Utah Procurement Code, when selecting a qualified energy service provider.
             784          (2) The Division of Purchasing shall maintain a list of qualified energy service
             785      providers.
             786          (3) The qualified energy service provider selected from the bid process shall prepare an
             787      investment grade energy audit, which shall become part of the final contract between the
             788      political subdivision and the qualified energy service provider.
             789          (4) The audit shall include:
             790          (a) a detailed description of the energy efficiency measure;
             791          (b) an estimated cost; and
             792          (c) a projected cost savings.
             793          Section 14. Section 13-2-9 is amended to read:
             794           13-2-9. Internet -- Consumer education.
             795          (1) The Division of Consumer Protection shall, subject to appropriation, contract with
             796      a person to make public service announcements advising consumers about the dangers of using
             797      the Internet, especially:
             798          (a) material harmful to minors;
             799          (b) steps a consumer may take to learn more about the dangers of using the Internet;
             800          (c) information about how a service provider can help a consumer learn more about the



Text Box

- 27 -
             801
     dangers of using the Internet, including the service provider's duties created by this bill; and
             802          (d) how a consumer can monitor the Internet usage of family members.
             803          (2) Money appropriated under Subsection (1) shall be paid by the Division of
             804      Consumer Protection to a person only if:
             805          (a) the person is a nonprofit organization; and
             806          (b) the person agrees to spend private money amounting to two times the amount of
             807      money provided by the Division of Consumer Protection during each fiscal year in accordance
             808      with Subsection (1).
             809          (3) In administering any money appropriated for use under this section, the Division of
             810      Consumer Protection shall comply with Title 63G, Chapter [6] 6a, Utah Procurement Code.
             811          Section 15. Section 14-1-18 is amended to read:
             812           14-1-18. Definitions -- Application of Procurement Code to payment and
             813      performance bonds.
             814          (1) (a) For purposes of this chapter, "political subdivision" means any county, city,
             815      town, school district, local district, special service district, community development and
             816      renewal agency, public corporation, institution of higher education of the state, public agency
             817      of any political subdivision, and, to the extent provided by law, any other entity which expends
             818      public funds for construction.
             819          (b) For purposes of applying Section [ 63G-6-505 ] 63G-6a-1103 to a political
             820      subdivision, "state" includes "political subdivision."
             821          (2) [Section 63G-6-505 ] Notwithstanding any provision of Title 63G, Chapter 6a, Utah
             822      Procurement Code, to the contrary, Section 63G-6a-1103 applies to all contracts for the
             823      construction, alteration, or repair of any public building or public work of the state or a
             824      political subdivision of the state.
             825          Section 16. Section 17-16a-4 is amended to read:
             826           17-16a-4. Prohibited use of official position -- Exception.
             827          (1) Except as provided in Subsection (3), it is an offense for an elected or appointed
             828      officer, under circumstances not amounting to a violation of Section [ 63G-6-1001 ]
             829      63G-6a-2304 or 76-8-105 , to:
             830          (a) disclose confidential information acquired by reason of the officer's official position
             831      or use that information to secure special privileges or exemptions for himself or others;



Text Box

- 28 -
             832
         (b) use or attempt to use the officer's official position to secure special privileges for
             833      the officer or for others; or
             834          (c) knowingly receive, accept, take, seek or solicit, directly or indirectly, any gift or
             835      loan for the officer or for another, if the gift or loan tends to influence the officer in the
             836      discharge of the officer's official duties.
             837          (2) This section is inapplicable to:
             838          (a) an occasional nonpecuniary gift having a value of less than $50;
             839          (b) an award publicly presented;
             840          (c) any bona fide loan made in the ordinary course of business; or
             841          (d) political campaign contributions actually used in a political campaign.
             842          (3) A member of a county legislative body who is also a member of the governing
             843      board of a provider of mental health or substance abuse services under contract with the county
             844      does not commit an offense under Subsection (1)(a) or (b) by discharging, in good faith, the
             845      duties and responsibilities of each position, if the county legislative body member does not
             846      participate in the process of selecting the mental health or substance abuse service provider.
             847          Section 17. Section 17-43-202 is amended to read:
             848           17-43-202. Local substance abuse authorities -- Requirements prior to
             849      distributing public funds.
             850          (1) Each local substance abuse authority shall award all public funds in compliance
             851      with:
             852          (a) the requirements of Title 63G, Chapter [6] 6a, Utah Procurement Code; or
             853          (b) a county procurement ordinance that requires similar procurement practices.
             854          (2) If all initial bids on the project are rejected, the authority shall publish a new
             855      invitation to bid. If no satisfactory bid is received by the authority when the bids received from
             856      the second invitation are opened, the authority may execute a contract without requiring
             857      competitive bidding.
             858          (3) A local substance abuse authority need not comply with the procurement provisions
             859      of this section when it disburses public funds to another political subdivision of the state or an
             860      institution of higher education of the state.
             861          (4) Each contract awarded by a local substance abuse authority shall be for a fixed
             862      amount and limited period. A contract may be modified due to changes in available funding



Text Box

- 29 -
             863
     for the same contract purpose without competition.
             864          Section 18. Section 17-43-302 is amended to read:
             865           17-43-302. Local mental health authorities -- Requirements prior to distributing
             866      public funds.
             867          (1) Each local mental health authority shall award all public funds by complying with
             868      the requirements of Title 63G, Chapter [6] 6a, Utah Procurement Code, or by complying with a
             869      county procurement ordinance which requires similar procurement practices.
             870          (2) If all initial bids on the project are rejected, the authority shall publish a new
             871      invitation to bid in the manner specified in this section. If no satisfactory bid is received by the
             872      authority when the bids received from the second invitation are opened, the authority may
             873      execute a contract without requiring competitive bidding.
             874          (3) The local mental health authority need not comply with the procurement provisions
             875      of this section when it disburses public funds to another political subdivision of the state or an
             876      institution of higher education of the state.
             877          (4) Each contract awarded by a local mental health authority shall be for a fixed
             878      amount and limited period. A contract may be modified due to changes in available funding
             879      for the same contract purpose without competition.
             880          Section 19. Section 17-53-225 is amended to read:
             881           17-53-225. County legislative body may adopt Utah Procurement Code --
             882      Retention of records.
             883          (1) A county legislative body may adopt any or all of the provisions of Title 63G,
             884      Chapter [6] 6a, Utah Procurement Code, or the rules promulgated pursuant to that code.
             885          (2) Whenever any county is required by law to receive bids for purchases, construction,
             886      repairs, or any other purpose requiring the expenditure of funds, that county shall keep on file
             887      all bids received, together with proof of advertisement by publication or otherwise, for:
             888          (a) at least three years following the letting of any contract pursuant to those bids; or
             889          (b) three years following the first advertisement for the bids, if all bids pursuant to that
             890      advertisement are rejected.
             891          Section 20. Section 17-53-313 is amended to read:
             892           17-53-313. Hiring of professional architect, engineer, or surveyor.
             893          Notwithstanding the adoption of some or all of the provisions of Title 63G, Chapter [6]



Text Box

- 30 -
             894
     6a, Utah Procurement Code, under Section 17-53-225 , each county executive that engages the
             895      services of a professional architect, engineer, or surveyor and considers more than one such
             896      professional for the engagement:
             897          (1) shall consider, as a minimum, in the selection process:
             898          (a) the qualifications, experience, and background of each firm submitting a proposal;
             899          (b) the specific individuals assigned to the project and the time commitments of each to
             900      the project; and
             901          (c) the project schedule and the approach to the project that the firm will take; and
             902          (2) may engage the services of a professional architect, engineer, or surveyor based on
             903      the criteria under Subsection (1) rather than solely on lowest cost.
             904          Section 21. Section 17B-1-108 is amended to read:
             905           17B-1-108. Restrictions on local district procurement of architect-engineer
             906      services.
             907          (1) As used in this section:
             908          (a) "Architect-engineer services" means those professional services within the scope of
             909      the practice of architecture as defined in Section 58-3a-102 .
             910          (b) "Engineer services" means those professional services within the scope of the
             911      practice of professional engineering as defined in Section 58-22-102 .
             912          (2) When a local district elects to obtain architect services or engineering services by
             913      using a competitive procurement process and has provided public notice of its competitive
             914      procurement process:
             915          (a) a higher education entity, or any part of one, may not submit a proposal in response
             916      to the local district's competitive procurement process; and
             917          (b) the local district may not award a contract to perform the architect services or
             918      engineering services solicited in the competitive procurement process to a higher education
             919      entity or any part of one.
             920          (3) Notwithstanding Subsection [ 63G-6-104 (3)(d)] 63G-6a-105 (3), each local district
             921      board that engages the services of a professional architect, engineer, or surveyor and considers
             922      more than one such professional for the engagement:
             923          (a) shall consider, as a minimum, in the selection process:
             924          (i) the qualifications, experience, and background of each firm submitting a proposal;



Text Box

- 31 -
             925
         (ii) the specific individuals assigned to the project and the time commitments of each
             926      to the project; and
             927          (iii) the project schedule and the approach to the project that the firm will take; and
             928          (b) may engage the services of a professional architect, engineer, or surveyor based on
             929      the criteria under Subsection (3)(a) rather than solely on lowest cost.
             930          Section 22. Section 17B-2a-818 is amended to read:
             931           17B-2a-818. Requirements applicable to public transit district contracts.
             932          (1) A public transit district shall comply with the applicable provisions of Title 63G,
             933      Chapter [6] 6a, Utah Procurement Code.
             934          (2) If construction of a district facility or work exceeds $750,000, the construction shall
             935      be let as provided in:
             936          (a) Title 63G, Chapter [6] 6a, Utah Procurement Code; and
             937          (b) Section 17B-2a-818.5 .
             938          Section 23. Section 17B-2a-818.5 is amended to read:
             939           17B-2a-818.5. Contracting powers of public transit districts -- Health insurance
             940      coverage.
             941          (1) For purposes of this section:
             942          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
             943      34A-2-104 who:
             944          (i) works at least 30 hours per calendar week; and
             945          (ii) meets employer eligibility waiting requirements for health care insurance which
             946      may not exceed the first day of the calendar month following 90 days from the date of hire.
             947          (b) "Health benefit plan" has the same meaning as provided in Section 31A-1-301 .
             948          (c) "Qualified health insurance coverage" is as defined in Section 26-40-115 .
             949          (d) "Subcontractor" has the same meaning provided for in Section 63A-5-208 .
             950          (2) (a) Except as provided in Subsection (3), this section applies to a design or
             951      construction contract entered into by the public transit district on or after July 1, 2009, and to a
             952      prime contractor or to a subcontractor in accordance with Subsection (2)(b).
             953          (b) (i) A prime contractor is subject to this section if the prime contract is in the
             954      amount of $1,500,000 or greater.
             955          (ii) A subcontractor is subject to this section if a subcontract is in the amount of



Text Box

- 32 -
             956
     $750,000 or greater.
             957          (3) This section does not apply if:
             958          (a) the application of this section jeopardizes the receipt of federal funds;
             959          (b) the contract is a sole source contract; or
             960          (c) the contract is an emergency procurement.
             961          (4) (a) This section does not apply to a change order as defined in Section [ 63G-6-103 ]
             962      63G-6a-103 , or a modification to a contract, when the contract does not meet the initial
             963      threshold required by Subsection (2).
             964          (b) A person who intentionally uses change orders or contract modifications to
             965      circumvent the requirements of Subsection (2) is guilty of an infraction.
             966          (5) (a) A contractor subject to Subsection (2) shall demonstrate to the public transit
             967      district that the contractor has and will maintain an offer of qualified health insurance coverage
             968      for the contractor's employees and the employee's dependents during the duration of the
             969      contract.
             970          (b) If a subcontractor of the contractor is subject to Subsection (2)(b), the contractor
             971      shall demonstrate to the public transit district that the subcontractor has and will maintain an
             972      offer of qualified health insurance coverage for the subcontractor's employees and the
             973      employee's dependents during the duration of the contract.
             974          (c) (i) (A) A contractor who fails to meet the requirements of Subsection (5)(a) during
             975      the duration of the contract is subject to penalties in accordance with an ordinance adopted by
             976      the public transit district under Subsection (6).
             977          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
             978      requirements of Subsection (5)(b).
             979          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
             980      the duration of the contract is subject to penalties in accordance with an ordinance adopted by
             981      the public transit district under Subsection (6).
             982          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
             983      requirements of Subsection (5)(a).
             984          (6) The public transit district shall adopt ordinances:
             985          (a) in coordination with:
             986          (i) the Department of Environmental Quality in accordance with Section 19-1-206 ;



Text Box

- 33 -
             987
         (ii) the Department of Natural Resources in accordance with Section 79-2-404 ;
             988          (iii) the State Building Board in accordance with Section 63A-5-205 ;
             989          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403 ; and
             990          (v) the Department of Transportation in accordance with Section 72-6-107.5 ; and
             991          (b) which establish:
             992          (i) the requirements and procedures a contractor shall follow to demonstrate to the
             993      public transit district compliance with this section which shall include:
             994          (A) that a contractor will not have to demonstrate compliance with Subsection (5)(a) or
             995      (b) more than twice in any 12-month period; and
             996          (B) that the actuarially equivalent determination required for the qualified health
             997      insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
             998      department or division with a written statement of actuarial equivalency from either:
             999          (I) the Utah Insurance Department;
             1000          (II) an actuary selected by the contractor or the contractor's insurer; or
             1001          (III) an underwriter who is responsible for developing the employer group's premium
             1002      rates;
             1003          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
             1004      violates the provisions of this section, which may include:
             1005          (A) a three-month suspension of the contractor or subcontractor from entering into
             1006      future contracts with the public transit district upon the first violation;
             1007          (B) a six-month suspension of the contractor or subcontractor from entering into future
             1008      contracts with the public transit district upon the second violation;
             1009          (C) an action for debarment of the contractor or subcontractor in accordance with
             1010      Section [ 63G-6-804 ] 63G-6a-904 upon the third or subsequent violation; and
             1011          (D) monetary penalties which may not exceed 50% of the amount necessary to
             1012      purchase qualified health insurance coverage for employees and dependents of employees of
             1013      the contractor or subcontractor who were not offered qualified health insurance coverage
             1014      during the duration of the contract; and
             1015          (iii) a website on which the district shall post the benchmark for the qualified health
             1016      insurance coverage identified in Subsection (1)(c).
             1017          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(b)(ii), a contractor



Text Box

- 34 -
             1018
     or subcontractor who intentionally violates the provisions of this section shall be liable to the
             1019      employee for health care costs that would have been covered by qualified health insurance
             1020      coverage.
             1021          (ii) An employer has an affirmative defense to a cause of action under Subsection
             1022      (7)(a)(i) if:
             1023          (A) the employer relied in good faith on a written statement of actuarial equivalency
             1024      provided by an:
             1025          (I) actuary; or
             1026          (II) underwriter who is responsible for developing the employer group's premium rates;
             1027      or
             1028          (B) a department or division determines that compliance with this section is not
             1029      required under the provisions of Subsection (3) or (4).
             1030          (b) An employee has a private right of action only against the employee's employer to
             1031      enforce the provisions of this Subsection (7).
             1032          (8) Any penalties imposed and collected under this section shall be deposited into the
             1033      Medicaid Restricted Account created in Section 26-18-402 .
             1034          (9) The failure of a contractor or subcontractor to provide qualified health insurance
             1035      coverage as required by this section:
             1036          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
             1037      or contractor under Section [ 63G-6-801 ] 63G-6a-1603 or any other provision in Title 63G,
             1038      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code; and
             1039          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
             1040      contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
             1041      or construction.
             1042          Section 24. Section 17D-1-106 is amended to read:
             1043           17D-1-106. Special service districts subject to other provisions.
             1044          (1) A special service district is, to the same extent as if it were a local district, subject
             1045      to and governed by:
             1046          (a) Sections 17B-1-105 , 17B-1-107 , 17B-1-108 , [ 17B-1-109 ,] 17B-1-110 , 17B-1-111 ,
             1047      17B-1-112 , 17B-1-113 , 17B-1-116 , 17B-1-118 , 17B-1-119 , 17B-1-120 , and 17B-1-121 ;
             1048          (b) Subsections 17B-1-301 (3) and (4), Sections 17B-1-304 , 17B-1-305 , 17B-1-306 ,



Text Box

- 35 -
             1049
     17B-1-307 , 17B-1-310 , 17B-1-312 , 17B-1-313 , and 17B-1-314 ;
             1050          (c) Section 20A-1-512 ;
             1051          (d) Title 17B, Chapter 1, Part 6, Fiscal Procedures for Local Districts;
             1052          (e) Title 17B, Chapter 1, Part 7, Local District Budgets and Audit Reports;
             1053          (f) Title 17B, Chapter 1, Part 8, Local District Personnel Management; and
             1054          (g) Title 17B, Chapter 1, Part 9, Collection of Service Fees and Charges.
             1055          (2) For purposes of applying the provisions listed in Subsection (1) to a special service
             1056      district, each reference in those provisions to the local district board of trustees means the
             1057      governing body.
             1058          Section 25. Section 17D-2-108 is amended to read:
             1059           17D-2-108. Other statutory provisions.
             1060          (1) This chapter is supplemental to existing laws relating to a local entity's acquisition,
             1061      use, maintenance, management, or operation of a project.
             1062          (2) Except as provided in this chapter, a local entity or local building authority that
             1063      complies with the provisions of this chapter need not comply with any other statutory provision
             1064      concerning the acquisition, construction, use, or maintenance of a project, including:
             1065          (a) a statute relating to public bidding; and
             1066          (b) Title 63G, Chapter [6] 6a, Utah Procurement Code.
             1067          (3) A local building authority is, to the same extent as if it were a local district, subject
             1068      to and governed by:
             1069          (a) Title 17B, Chapter 1, Part 6, Fiscal Procedures for Local Districts;
             1070          (b) Title 17B, Chapter 1, Part 8, Local District Personnel Management; and
             1071          (c) Section 17B-1-108 .
             1072          Section 26. Section 19-1-206 is amended to read:
             1073           19-1-206. Contracting powers of department -- Health insurance coverage.
             1074          (1) For purposes of this section:
             1075          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
             1076      34A-2-104 who:
             1077          (i) works at least 30 hours per calendar week; and
             1078          (ii) meets employer eligibility waiting requirements for health care insurance which
             1079      may not exceed the first day of the calendar month following 90 days from the date of hire.



Text Box

- 36 -
             1080
         (b) "Health benefit plan" has the same meaning as provided in Section 31A-1-301 .
             1081          (c) "Qualified health insurance coverage" is as defined in Section 26-40-115 .
             1082          (d) "Subcontractor" has the same meaning provided for in Section 63A-5-208 .
             1083          (2) (a) Except as provided in Subsection (3), this section applies to a design or
             1084      construction contract entered into by or delegated to the department or a division or board of
             1085      the department on or after July 1, 2009, and to a prime contractor or subcontractor in
             1086      accordance with Subsection (2)(b).
             1087          (b) (i) A prime contractor is subject to this section if the prime contract is in the
             1088      amount of $1,500,000 or greater.
             1089          (ii) A subcontractor is subject to this section if a subcontract is in the amount of
             1090      $750,000 or greater.
             1091          (3) This section does not apply to contracts entered into by the department or a division
             1092      or board of the department if:
             1093          (a) the application of this section jeopardizes the receipt of federal funds;
             1094          (b) the contract or agreement is between:
             1095          (i) the department or a division or board of the department; and
             1096          (ii) (A) another agency of the state;
             1097          (B) the federal government;
             1098          (C) another state;
             1099          (D) an interstate agency;
             1100          (E) a political subdivision of this state; or
             1101          (F) a political subdivision of another state;
             1102          (c) the executive director determines that applying the requirements of this section to a
             1103      particular contract interferes with the effective response to an immediate health and safety
             1104      threat from the environment; or
             1105          (d) the contract is:
             1106          (i) a sole source contract; or
             1107          (ii) an emergency procurement.
             1108          (4) (a) This section does not apply to a change order as defined in Section [ 63G-6-103 ]
             1109      63G-6a-103 , or a modification to a contract, when the contract does not meet the initial
             1110      threshold required by Subsection (2).



Text Box

- 37 -
             1111
         (b) A person who intentionally uses change orders or contract modifications to
             1112      circumvent the requirements of Subsection (2) is guilty of an infraction.
             1113          (5) (a) A contractor subject to Subsection (2) shall demonstrate to the executive
             1114      director that the contractor has and will maintain an offer of qualified health insurance
             1115      coverage for the contractor's employees and the employees' dependents during the duration of
             1116      the contract.
             1117          (b) If a subcontractor of the contractor is subject to Subsection (2), the contractor shall
             1118      demonstrate to the executive director that the subcontractor has and will maintain an offer of
             1119      qualified health insurance coverage for the subcontractor's employees and the employees'
             1120      dependents during the duration of the contract.
             1121          (c) (i) (A) A contractor who fails to comply with Subsection (5)(a) during the duration
             1122      of the contract is subject to penalties in accordance with administrative rules adopted by the
             1123      department under Subsection (6).
             1124          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
             1125      requirements of Subsection (5)(b).
             1126          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
             1127      the duration of the contract is subject to penalties in accordance with administrative rules
             1128      adopted by the department under Subsection (6).
             1129          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
             1130      requirements of Subsection (5)(a).
             1131          (6) The department shall adopt administrative rules:
             1132          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             1133          (b) in coordination with:
             1134          (i) a public transit district in accordance with Section 17B-2a-818.5 ;
             1135          (ii) the Department of Natural Resources in accordance with Section 79-2-404 ;
             1136          (iii) the State Building Board in accordance with Section 63A-5-205 ;
             1137          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403 ;
             1138          (v) the Department of Transportation in accordance with Section 72-6-107.5 ; and
             1139          (vi) the Legislature's Administrative Rules Review Committee; and
             1140          (c) which establish:
             1141          (i) the requirements and procedures a contractor shall follow to demonstrate to the



Text Box

- 38 -
             1142
     public transit district compliance with this section that shall include:
             1143          (A) that a contractor will not have to demonstrate compliance with Subsection (5)(a) or
             1144      (b) more than twice in any 12-month period; and
             1145          (B) that the actuarially equivalent determination required for the qualified health
             1146      insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
             1147      department or division with a written statement of actuarial equivalency from either:
             1148          (I) the Utah Insurance Department;
             1149          (II) an actuary selected by the contractor or the contractor's insurer; or
             1150          (III) an underwriter who is responsible for developing the employer group's premium
             1151      rates;
             1152          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
             1153      violates the provisions of this section, which may include:
             1154          (A) a three-month suspension of the contractor or subcontractor from entering into
             1155      future contracts with the state upon the first violation;
             1156          (B) a six-month suspension of the contractor or subcontractor from entering into future
             1157      contracts with the state upon the second violation;
             1158          (C) an action for debarment of the contractor or subcontractor in accordance with
             1159      Section [ 63G-6-804 ] 63G-6a-904 upon the third or subsequent violation; and
             1160          (D) notwithstanding Section 19-1-303 , monetary penalties which may not exceed 50%
             1161      of the amount necessary to purchase qualified health insurance coverage for an employee and
             1162      the dependents of an employee of the contractor or subcontractor who was not offered qualified
             1163      health insurance coverage during the duration of the contract; and
             1164          (iii) a website on which the department shall post the benchmark for the qualified
             1165      health insurance coverage identified in Subsection (1)(c).
             1166          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c), a contractor or
             1167      subcontractor who intentionally violates the provisions of this section shall be liable to the
             1168      employee for health care costs that would have been covered by qualified health insurance
             1169      coverage.
             1170          (ii) An employer has an affirmative defense to a cause of action under Subsection
             1171      (7)(a)(i) if:
             1172          (A) the employer relied in good faith on a written statement of actuarial equivalency



Text Box

- 39 -
             1173
     provided by:
             1174          (I) an actuary; or
             1175          (II) an underwriter who is responsible for developing the employer group's premium
             1176      rates; or
             1177          (B) the department determines that compliance with this section is not required under
             1178      the provisions of Subsection (3) or (4).
             1179          (b) An employee has a private right of action only against the employee's employer to
             1180      enforce the provisions of this Subsection (7).
             1181          (8) Any penalties imposed and collected under this section shall be deposited into the
             1182      Medicaid Restricted Account created in Section 26-18-402 .
             1183          (9) The failure of a contractor or subcontractor to provide qualified health insurance
             1184      coverage as required by this section:
             1185          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
             1186      or contractor under Section [ 63G-6-801 ] 63G-6a-1603 or any other provision in Title 63G,
             1187      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code; and
             1188          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
             1189      contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
             1190      or construction.
             1191          Section 27. Section 20A-11-701 is amended to read:
             1192           20A-11-701. Campaign financial reporting by corporations -- Filing requirements
             1193      -- Statement contents.
             1194          (1) (a) Each corporation that has made expenditures for political purposes that total at
             1195      least $750 during a calendar year shall file a verified financial statement with the lieutenant
             1196      governor's office:
             1197          (i) on January 10, reporting expenditures as of December 31 of the previous year;
             1198          (ii) seven days before the regular primary election date;
             1199          (iii) on August 31; and
             1200          (iv) seven days before the regular general election date.
             1201          (b) The corporation shall report:
             1202          (i) a detailed listing of all expenditures made since the last statement;
             1203          (ii) for financial statements filed under Subsections (1)(a)(ii) through (iv), all



Text Box

- 40 -
             1204
     expenditures as of five days before the required filing date of the financial statement; and
             1205          (iii) whether the corporation, including an officer of the corporation, director of the
             1206      corporation, or person with at least 10% ownership in the corporation:
             1207          (A) has bid since the last financial statement on a contract, as defined in Section
             1208      [ 63G-6-103 ] 63G-6a-103 , in excess of $100,000;
             1209          (B) is currently bidding on a contract, as defined in Section [ 63G-6-103 ] 63G-6a-103 ,
             1210      in excess of $100,000; or
             1211          (C) is a party to a contract, as defined in Section [ 63G-6-103 ] 63G-6a-103 , in excess of
             1212      $100,000.
             1213          (c) The corporation need not file a financial statement under this section if the
             1214      corporation made no expenditures during the reporting period.
             1215          (2) The financial statement shall include:
             1216          (a) the name and address of each reporting entity that received an expenditure from the
             1217      corporation, and the amount of each expenditure;
             1218          (b) the total amount of expenditures disbursed by the corporation; and
             1219          (c) a statement by the corporation's treasurer or chief financial officer certifying the
             1220      accuracy of the financial statement.
             1221          Section 28. Section 26-8a-405.3 is amended to read:
             1222           26-8a-405.3. Use of competitive sealed proposals -- Procedure -- Appeal rights.
             1223          (1) (a) Competitive sealed proposals for paramedic or 911 ambulance services under
             1224      Section 26-8a-405.2 , or for non-911 services under Section 26-8a-405.4 , shall be solicited
             1225      through a request for proposal and the provisions of this section.
             1226          (b) The governing body of the political subdivision shall approve the request for
             1227      proposal prior to the notice of the request for proposals under Subsection (1)(c).
             1228          (c) (i) Notice of the request for proposals shall be published:
             1229          (A) at least once a week for three consecutive weeks in a newspaper of general
             1230      circulation published in the county; or
             1231          (B) if there is no such newspaper, then notice shall be posted for at least 20 days in at
             1232      least five public places in the county; and
             1233          (ii) in accordance with Section 45-1-101 for at least 20 days.
             1234          (2) (a) Proposals shall be opened so as to avoid disclosure of contents to competing



Text Box

- 41 -
             1235
     offerors during the process of negotiations.
             1236          (b) (i) Subsequent to the published notice, and prior to selecting an applicant, the
             1237      political subdivision shall hold a presubmission conference with interested applicants for the
             1238      purpose of assuring full understanding of, and responsiveness to, solicitation requirements.
             1239          (ii) A political subdivision shall allow at least 90 days from the presubmission
             1240      conference for the proposers to submit proposals.
             1241          (c) Subsequent to the presubmission conference, the political subdivision may issue
             1242      addenda to the request for proposals. An addenda to a request for proposal shall be finalized
             1243      and posted by the political subdivision at least 45 days before the day on which the proposal
             1244      must be submitted.
             1245          (d) Offerors to the request for proposals shall be accorded fair and equal treatment with
             1246      respect to any opportunity for discussion and revisions of proposals, and revisions may be
             1247      permitted after submission and before a contract is awarded for the purpose of obtaining best
             1248      and final offers.
             1249          (e) In conducting discussions, there shall be no disclosures of any information derived
             1250      from proposals submitted by competing offerors.
             1251          (3) (a) (i) A political subdivision may select an applicant approved by the department
             1252      under Section 26-8a-404 to provide 911 ambulance or paramedic services by contract to the
             1253      most responsible offeror as defined in [Subsection 63G-6-103 (24)] Section 63G-6a-103 .
             1254          (ii) An award under Subsection (3)(a)(i) shall be made to the responsible offeror whose
             1255      proposal is determined in writing to be the most advantageous to the political subdivision,
             1256      taking into consideration price and the evaluation factors set forth in the request for proposal.
             1257          (b) The applicants who are approved under Section 26-8a-405 and who are selected
             1258      under this section may be the political subdivision issuing the request for competitive sealed
             1259      proposals, or any other public entity or entities, any private person or entity, or any
             1260      combination thereof.
             1261          (c) A political subdivision may reject all of the competitive proposals.
             1262          (4) In seeking competitive sealed proposals and awarding contracts under this section,
             1263      a political subdivision:
             1264          (a) shall apply the public convenience and necessity factors listed in Subsections
             1265      26-8a-408 (2) through (6);



Text Box

- 42 -
             1266
         (b) shall require the applicant responding to the proposal to disclose how the applicant
             1267      will meet performance standards in the request for proposal;
             1268          (c) may not require or restrict an applicant to a certain method of meeting the
             1269      performance standards, including:
             1270          (i) requiring ambulance medical personnel to also be a firefighter; or
             1271          (ii) mandating that offerors use fire stations or dispatch services of the political
             1272      subdivision;
             1273          (d) shall require an applicant to submit the proposal:
             1274          (i) based on full cost accounting in accordance with generally accepted accounting
             1275      principals; and
             1276          (ii) if the applicant is a governmental entity, in addition to the requirements of
             1277      Subsection (4)(e)(i), in accordance with generally accepted government auditing standards and
             1278      in compliance with the State of Utah Legal Compliance Audit Guide; and
             1279          (e) shall set forth in the request for proposal:
             1280          (i) the method for determining full cost accounting in accordance with generally
             1281      accepted accounting principles, and require an applicant to submit the proposal based on such
             1282      full cost accounting principles;
             1283          (ii) guidelines established to further competition and provider accountability; and
             1284          (iii) a list of the factors that will be considered by the political subdivision in the award
             1285      of the contract, including by percentage, the relative weight of the factors established under this
             1286      Subsection (4)(e), which may include such things as:
             1287          (A) response times;
             1288          (B) staging locations;
             1289          (C) experience;
             1290          (D) quality of care; and
             1291          (E) cost, consistent with the cost accounting method in Subsection (4)(e)(i).
             1292          (5) (a) Notwithstanding [the provisions of Subsection 63G-6-104 (3), the] any provision
             1293      of Title 63G, Chapter 6a, Utah Procurement Code, to the contrary, the provisions of Title 63G,
             1294      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code, apply to the
             1295      procurement process required by this section, except as provided in Subsection (5)(c).
             1296          (b) [The Procurement Appeals Board created in Section 63G-6-807 ] An appeals board,



Text Box

- 43 -
             1297
     as defined in Section 63G-6a-103 , shall have jurisdiction to review and determine an appeal of
             1298      an offeror under this section in the same manner as provided in Section [ 63G-6-810 ]
             1299      63G-6a-1703 .
             1300          (c) (i) An offeror may appeal the solicitation or award as provided by the political
             1301      subdivision's procedures. After all political subdivision appeal rights are exhausted, the offeror
             1302      may appeal under the provisions of Subsections (5)(a) and (b).
             1303          (ii) The factual determination required by Subsection [ 63G-6-813 ] 63G-6a-1708 (1)
             1304      shall be based on whether the solicitation or award was made in accordance with the
             1305      procedures set forth in this section and Section 26-8a-405.2 .
             1306          (d) The determination of an issue of fact by the appeals board shall be final and
             1307      conclusive unless arbitrary and capricious or clearly erroneous as provided in Section
             1308      [ 63G-6-813 ] 63G-6a-1708 .
             1309          Section 29. Section 26-8a-405.5 is amended to read:
             1310           26-8a-405.5. Use of competitive sealed proposals -- Procedure -- Appeal rights.
             1311          (1) (a) The department shall issue a request for proposal for non-911 services in a
             1312      geographic service area if the department receives a request from a political subdivision under
             1313      Subsection 26-8a-405.4 (3)(a)(ii)(B) to issue a request for proposal for non-911 services.
             1314          (b) Competitive sealed proposals for non-911 services under Subsection (1)(a) shall be
             1315      solicited through a request for proposal and the provisions of this section.
             1316          (c) (i) Notice of the request for proposals shall be published:
             1317          (A) at least once a week for three consecutive weeks in a newspaper of general
             1318      circulation published in the county; or
             1319          (B) if there is no such newspaper, then notice shall be posted for at least 20 days in at
             1320      least five public places in the county; and
             1321          (ii) in accordance with Section 45-1-101 for at least 20 days.
             1322          (2) (a) Proposals shall be opened so as to avoid disclosure of contents to competing
             1323      offerors during the process of negotiations.
             1324          (b) (i) Subsequent to the published notice, and prior to selecting an applicant, the
             1325      department shall hold a presubmission conference with interested applicants for the purpose of
             1326      assuring full understanding of, and responsiveness to, solicitation requirements.
             1327          (ii) The department shall allow at least 90 days from the presubmission conference for



Text Box

- 44 -
             1328
     the proposers to submit proposals.
             1329          (c) Subsequent to the presubmission conference, the department may issue addenda to
             1330      the request for proposals. An addenda to a request for proposal shall be finalized and posted by
             1331      the department at least 45 days before the day on which the proposal must be submitted.
             1332          (d) Offerors to the request for proposals shall be accorded fair and equal treatment with
             1333      respect to any opportunity for discussion and revisions of proposals, and revisions may be
             1334      permitted after submission and before a contract is awarded for the purpose of obtaining best
             1335      and final offers.
             1336          (e) In conducting discussions, there shall be no disclosures of any information derived
             1337      from proposals submitted by competing offerors.
             1338          (3) (a) (i) The department may select an applicant approved by the department under
             1339      Section 26-8a-404 to provide non-911 services by contract to the most responsible offeror as
             1340      defined in [Subsection 63G-6-103 (24)] Section 63G-6a-103 .
             1341          (ii) An award under Subsection (3)(a)(i) shall be made to the responsible offeror whose
             1342      proposal is determined in writing to be the most advantageous to the public, taking into
             1343      consideration price and the evaluation factors set forth in the request for proposal.
             1344          (b) The applicants who are approved under Section 26-8a-405 and who are selected
             1345      under this section may be the political subdivision responding to the request for competitive
             1346      sealed proposals, or any other public entity or entities, any private person or entity, or any
             1347      combination thereof.
             1348          (c) The department may reject all of the competitive proposals.
             1349          (4) In seeking competitive sealed proposals and awarding contracts under this section,
             1350      the department:
             1351          (a) shall consider the public convenience and necessity factors listed in Subsections
             1352      26-8a-408 (2) through (6);
             1353          (b) shall require the applicant responding to the proposal to disclose how the applicant
             1354      will meet performance standards in the request for proposal;
             1355          (c) may not require or restrict an applicant to a certain method of meeting the
             1356      performance standards, including:
             1357          (i) requiring ambulance medical personnel to also be a firefighter; or
             1358          (ii) mandating that offerors use fire stations or dispatch services of the political



Text Box

- 45 -
             1359
     subdivision;
             1360          (d) shall require an applicant to submit the proposal:
             1361          (i) based on full cost accounting in accordance with generally accepted accounting
             1362      principals; and
             1363          (ii) if the applicant is a governmental entity, in addition to the requirements of
             1364      Subsection (4)(e)(i), in accordance with generally accepted government auditing standards and
             1365      in compliance with the State of Utah Legal Compliance Audit Guide; and
             1366          (e) shall set forth in the request for proposal:
             1367          (i) the method for determining full cost accounting in accordance with generally
             1368      accepted accounting principles, and require an applicant to submit the proposal based on such
             1369      full cost accounting principles;
             1370          (ii) guidelines established to further competition and provider accountability; and
             1371          (iii) a list of the factors that will be considered by the department in the award of the
             1372      contract, including by percentage, the relative weight of the factors established under this
             1373      Subsection (4)(e), which may include such things as:
             1374          (A) response times;
             1375          (B) staging locations;
             1376          (C) experience;
             1377          (D) quality of care; and
             1378          (E) cost, consistent with the cost accounting method in Subsection (4)(e)(i).
             1379          (5) A license issued under this section:
             1380          (a) is for the exclusive geographic service area approved by the department;
             1381          (b) is valid for four years;
             1382          (c) is not subject to a request for license from another applicant under the provisions of
             1383      Sections 26-8a-406 through 26-8a-409 during the four-year term, unless the applicant's license
             1384      is revoked under Section 26-8a-504 ;
             1385          (d) is subject to supervision by the department under Sections 26-8a-503 and
             1386      26-8a-504 ; and
             1387          (e) except as provided in Subsection (4)(a), is not subject to the provisions of Sections
             1388      26-8a-406 through 26-8a-409 .
             1389          Section 30. Section 26-10-8 is amended to read:



Text Box

- 46 -
             1390
          26-10-8. Request for proposal required for non-state supplied services.
             1391          (1) Funds provided to the department through Sections 51-9-201 and 59-14-204 to be
             1392      used to provide services, shall be awarded to non-governmental entities based on a competitive
             1393      process consistent with Title 63G, Chapter [6] 6a, Utah Procurement Code.
             1394          (2) Beginning July 1, 2010, and not more than every five years thereafter, the
             1395      department shall issue requests for proposals for new or renewing contracts to award funding
             1396      for programs under Subsection (1).
             1397          Section 31. Section 26-10b-102 is amended to read:
             1398           26-10b-102. Department to award grants and contracts -- Applications.
             1399          (1) (a) Within appropriations specified by the Legislature for this purpose, the
             1400      department may make grants to public and nonprofit entities for the cost of operation of
             1401      providing primary health care services to medically underserved populations.
             1402          (b) The department may, as funding permits, contract with community based
             1403      organizations for the purpose of developing culturally and linguistically appropriate programs
             1404      and services for low income and medically underserved populations through a pilot program to
             1405      accomplish one or more of the following:
             1406          (i) to educate individuals:
             1407          (A) to use private and public health care coverage programs, products, services, and
             1408      resources in a timely, effective, and responsible manner;
             1409          (B) to make prudent use of private and public health care resources;
             1410          (C) to pursue preventive health care, health screenings, and disease management; and
             1411          (D) to locate health care programs and services;
             1412          (ii) to assist individuals to develop:
             1413          (A) personal health management;
             1414          (B) self-sufficiency in daily care; and
             1415          (C) life and disease management skills;
             1416          (iii) to support translation of health materials and information;
             1417          (iv) to facilitate an individual's access to primary care services and providers, including
             1418      mental health services; and
             1419          (v) to measure and report empirical results of the pilot project.
             1420          (2) (a) Grants by the department shall be awarded based on:



Text Box

- 47 -
             1421
         (i) applications submitted to the department in the manner and form prescribed by the
             1422      department; and
             1423          (ii) the criteria established in Section 26-10b-103 .
             1424          (b) The application for a grant under Subsection (2)(a) shall contain:
             1425          (i) a requested award amount;
             1426          (ii) a budget; and
             1427          (iii) a narrative plan of the manner in which the applicant intends to provide the
             1428      primary health care services described in Subsection 26-10b-101 (7).
             1429          (c) A contract bid for a service under Subsection (1)(b):
             1430          (i) shall be awarded in accordance with Title 63G, Chapter [6] 6a, Utah Procurement
             1431      Code;
             1432          (ii) shall include the information described in Section 26-10b-103 ; and
             1433          (iii) is subject to Subsection (3) [of this section].
             1434          (3) (a) An applicant under this chapter shall demonstrate to the department that the
             1435      applicant will not deny services to a person because of the person's inability to pay for the
             1436      services.
             1437          (b) Subsection (3)(a) does not preclude an applicant from seeking payment from the
             1438      person receiving services, a third party, or a government agency if:
             1439          (i) the applicant is authorized to charge for the services; and
             1440          (ii) the person, third party, or government agency is under legal obligation to pay the
             1441      charges.
             1442          (4) The department shall maximize the use of federal matching funds received for
             1443      services under Subsection (1)(b) to fund additional contracts under Subsection (1)(b).
             1444          Section 32. Section 26-18-2.6 is amended to read:
             1445           26-18-2.6. Dental benefits.
             1446          (1) (a) The division shall establish a competitive bid process to bid out Medicaid dental
             1447      benefits under this chapter.
             1448          (b) The division may bid out the Medicaid dental benefits separately from other
             1449      program benefits.
             1450          (2) The division shall use the following criteria to evaluate dental bids:
             1451          (a) ability to manage dental expenses;



Text Box

- 48 -
             1452
         (b) proven ability to handle dental insurance;
             1453          (c) efficiency of claim paying procedures;
             1454          (d) provider contracting, discounts, and adequacy of network; and
             1455          (e) other criteria established by the department.
             1456          (3) The division shall request bids for the program's benefits:
             1457          (a) in 2011; and
             1458          (b) at least once every five years thereafter.
             1459          (4) The division's contract with dental plans for the program's benefits shall include
             1460      risk sharing provisions in which the dental plan must accept 100% of the risk for any difference
             1461      between the division's premium payments per client and actual dental expenditures.
             1462          (5) The division may not award contracts to:
             1463          (a) more than three responsive bidders under this section; or
             1464          (b) an insurer that does not have a current license in the state.
             1465          (6) (a) The division may cancel the request for proposals if:
             1466          (i) there are no responsive bidders; or
             1467          (ii) the division determines that accepting the bids would increase the program's costs.
             1468          (b) If the division cancels the request for proposals under Subsection (6)(a), the
             1469      division shall report to the Health and Human Services Committee regarding the reasons for
             1470      the decision.
             1471          (7) Title 63G, Chapter [6] 6a, Utah Procurement Code, shall apply to this section.
             1472          Section 33. Section 26-40-110 is amended to read:
             1473           26-40-110. Managed care -- Contracting for services.
             1474          (1) Program benefits provided to enrollees under the program, as described in Section
             1475      26-40-106 , shall be delivered in a managed care system if the department determines that
             1476      adequate services are available where the enrollee lives or resides.
             1477          (2) (a) The department shall use the following criteria to evaluate bids from health
             1478      plans:
             1479          (i) ability to manage medical expenses, including mental health costs;
             1480          (ii) proven ability to handle accident and health insurance;
             1481          (iii) efficiency of claim paying procedures;
             1482          (iv) proven ability for managed care and quality assurance;



Text Box

- 49 -
             1483
         (v) provider contracting and discounts;
             1484          (vi) pharmacy benefit management;
             1485          (vii) an estimate of total charges for administering the pool;
             1486          (viii) ability to administer the pool in a cost-efficient manner;
             1487          (ix) the ability to provide adequate providers and services in the state; and
             1488          (x) other criteria established by the department.
             1489          (b) The dental benefits required by Section 26-40-106 may be bid out separately from
             1490      other program benefits.
             1491          (c) Except for dental benefits, the department shall request bids for the program's
             1492      benefits in 2008. The department shall request bids for the program's dental benefits in 2009.
             1493      The department shall request bids for the program's benefits at least once every five years
             1494      thereafter.
             1495          (d) The department's contract with health plans for the program's benefits shall include
             1496      risk sharing provisions in which the health plan shall accept at least 75% of the risk for any
             1497      difference between the department's premium payments per client and actual medical
             1498      expenditures.
             1499          (3) The executive director shall report to and seek recommendations from the Health
             1500      Advisory Council created in Section 26-1-7.5 :
             1501          (a) if the division receives less than two bids or proposals under this section that are
             1502      acceptable to the division or responsive to the bid; and
             1503          (b) before awarding a contract to a managed care system.
             1504          (4) (a) The department shall award contracts to responsive bidders if the department
             1505      determines that a bid is acceptable and meets the criteria of Subsections (2)(a) and (d).
             1506          (b) The department may contract with the Group Insurance Division within the Utah
             1507      State Retirement Office to provide services under Subsection (1) if:
             1508          (i) the executive director seeks the recommendation of the Health Advisory Council
             1509      under Subsection (3); and
             1510          (ii) the executive director determines that the bids were not acceptable to the
             1511      department.
             1512          (c) In accordance with Section 49-20-201 , a contract awarded under Subsection (4)(b)
             1513      is not subject to the risk sharing required by Subsection (2)(d).



Text Box

- 50 -
             1514
         (5) Title 63G, Chapter [6] 6a, Utah Procurement Code, shall apply to this section.
             1515          Section 34. Section 30-3-11.3 is amended to read:
             1516           30-3-11.3. Mandatory educational course for divorcing parents -- Purpose --
             1517      Curriculum -- Exceptions.
             1518          (1) The Judicial Council shall approve and implement a mandatory course for
             1519      divorcing parents in all judicial districts. The mandatory course is designed to educate and
             1520      sensitize divorcing parties to their children's needs both during and after the divorce process.
             1521          (2) The Judicial Council shall adopt rules to implement and administer this program.
             1522          (3) As a prerequisite to receiving a divorce decree, both parties are required to attend a
             1523      mandatory course on their children's needs after filing a complaint for divorce and receiving a
             1524      docket number, unless waived under Section 30-3-4 . If that requirement is waived, the court
             1525      may permit the divorce action to proceed.
             1526          (4) The court may require unmarried parents to attend this educational course when
             1527      those parents are involved in a visitation or custody proceeding before the court.
             1528          (5) The mandatory course shall instruct both parties:
             1529          (a) about divorce and its impacts on:
             1530          (i) their child or children;
             1531          (ii) their family relationship; and
             1532          (iii) their financial responsibilities for their child or children; and
             1533          (b) that domestic violence has a harmful effect on children and family relationships.
             1534          (6) The Administrative Office of the Courts shall administer the course pursuant to
             1535      Title 63G, Chapter [6] 6a, Utah Procurement Code, through private or public contracts and
             1536      organize the program in each of Utah's judicial districts. The contracts shall provide for the
             1537      recoupment of administrative expenses through the costs charged to individual parties,
             1538      pursuant to Subsection (8).
             1539          (7) A certificate of completion constitutes evidence to the court of course completion
             1540      by the parties.
             1541          (8) (a) Each party shall pay the costs of the course to the independent contractor
             1542      providing the course at the time and place of the course. A fee of $8 shall be collected, as part
             1543      of the course fee paid by each participant, and deposited in the Children's Legal Defense
             1544      Account, described in Section 51-9-408 .



Text Box

- 51 -
             1545
         (b) Each party who is unable to pay the costs of the course may attend the course
             1546      without payment upon a prima facie showing of impecuniosity as evidenced by an affidavit of
             1547      impecuniosity filed in the district court. In those situations, the independent contractor shall be
             1548      reimbursed for its costs from the appropriation to the Administrative Office of the Courts for
             1549      "Mandatory Educational Course for Divorcing Parents Program." Before a decree of divorce
             1550      may be entered, the court shall make a final review and determination of impecuniosity and
             1551      may order the payment of the costs if so determined.
             1552          (9) Appropriations from the General Fund to the Administrative Office of the Courts
             1553      for the "Mandatory Educational Course for Divorcing Parents Program" shall be used to pay
             1554      the costs of an indigent parent who makes a showing as provided in Subsection (8)(b).
             1555          (10) The Administrative Office of the Courts shall adopt a program to evaluate the
             1556      effectiveness of the mandatory educational course. Progress reports shall be provided if
             1557      requested by the Judiciary Interim Committee.
             1558          Section 35. Section 30-3-11.4 is amended to read:
             1559           30-3-11.4. Mandatory orientation course for divorcing parties -- Purpose --
             1560      Curriculum -- Exceptions.
             1561          (1) There is established a mandatory divorce orientation course for all parties with
             1562      minor children who file a petition for temporary separation or for a divorce. A couple with no
             1563      minor children are not required, but may choose to attend the course. The purpose of the
             1564      course shall be to educate parties about the divorce process and reasonable alternatives.
             1565          (2) A petitioner shall attend a divorce orientation course no more than 60 days after
             1566      filing a petition for divorce.
             1567          (3) The respondent shall attend the divorce orientation course no more than 30 days
             1568      after being served with a petition for divorce.
             1569          (4) The clerk of the court shall provide notice to a petitioner of the requirement for the
             1570      course, and information regarding the course shall be included with the petition or motion,
             1571      when served on the respondent.
             1572          (5) The divorce orientation course shall be neutral, unbiased, at least one hour in
             1573      duration, and include:
             1574          (a) options available as alternatives to divorce;
             1575          (b) resources available from courts and administrative agencies for resolving custody



Text Box

- 52 -
             1576
     and support issues without filing for divorce;
             1577          (c) resources available to improve or strengthen the marriage;
             1578          (d) a discussion of the positive and negative consequences of divorce;
             1579          (e) a discussion of the process of divorce;
             1580          (f) options available for proceeding with a divorce, including:
             1581          (i) mediation;
             1582          (ii) collaborative law; and
             1583          (iii) litigation; and
             1584          (g) a discussion of post-divorce resources.
             1585          (6) The course may be provided in conjunction with the mandatory course for
             1586      divorcing parents required by Section 30-3-11.3 .
             1587          (7) The Administrative Office of the Courts shall administer the course pursuant to
             1588      Title 63G, Chapter [6] 6a, Utah Procurement Code, through private or public contracts.
             1589          (8) Each participant shall pay the costs of the course, which may not exceed $20, to the
             1590      independent contractor providing the course at the time and place of the course.
             1591          (a) A fee of $5 shall be collected, as part of the course fee paid by each participant, and
             1592      deposited in the Children's Legal Defense Account described in Section 51-9-408 .
             1593          (b) A participant who is unable to pay the costs of the course may attend without
             1594      payment and request an Affidavit of Impecuniosity from the provider to be filed with the
             1595      petition or motion. The provider shall be reimbursed for its costs by the Administrative Office
             1596      of the Courts. A petitioner who is later determined not to meet the qualifications for
             1597      impecuniosity may be ordered to pay the costs of the course.
             1598          (9) Appropriations from the General Fund to the Administrative Office of the Courts
             1599      for the divorce orientation course shall be used to pay the costs of an indigent petitioner who is
             1600      determined to be impecunious as provided in Subsection (8)(b).
             1601          (10) The Online Court Assistance Program shall include instructions with the forms for
             1602      divorce which inform the petitioner of the requirement of this section.
             1603          (11) Both parties shall attend a divorce orientation course before a divorce decree may
             1604      be entered, unless waived by the court. A certificate of completion constitutes evidence to the
             1605      court of course completion by the parties.
             1606          (12) It shall be an affirmative defense in all divorce actions that the divorce orientation



Text Box

- 53 -
             1607
     requirement was not complied with, and the action may not continue until a party has
             1608      complied.
             1609          (13) The Administrative Office of the Courts shall adopt a program to evaluate the
             1610      effectiveness of the mandatory educational course. Progress reports shall be provided if
             1611      requested by the Judiciary Interim Committee.
             1612          Section 36. Section 30-3-38 is amended to read:
             1613           30-3-38. Expedited Parent-time Enforcement Program.
             1614          (1) There is established an Expedited Parent-time Enforcement Program in the third
             1615      judicial district to be administered by the Administrative Office of the Courts.
             1616          (2) As used in this section:
             1617          (a) "Mediator" means a person who:
             1618          (i) is qualified to mediate parent-time disputes under criteria established by the
             1619      Administrative Office of the Courts; and
             1620          (ii) agrees to follow billing guidelines established by the Administrative Office of the
             1621      Courts and this section.
             1622          (b) "Services to facilitate parent-time" or "services" means services designed to assist
             1623      families in resolving parent-time problems through:
             1624          (i) counseling;
             1625          (ii) supervised parent-time;
             1626          (iii) neutral drop-off and pick-up;
             1627          (iv) educational classes; and
             1628          (v) other related activities.
             1629          (3) (a) If a parent files a motion in the third district court alleging that court-ordered
             1630      parent-time rights are being violated, the clerk of the court, after assigning the case to a judge,
             1631      shall refer the case to the administrator of this program for assignment to a mediator, unless a
             1632      parent is incarcerated or otherwise unavailable. Unless the court rules otherwise, a parent
             1633      residing outside of the state is not unavailable. The director of the program for the courts, the
             1634      court, or the mediator may excuse either party from the requirement to mediate for good cause.
             1635          (b) Upon receipt of a case, the mediator shall:
             1636          (i) meet with the parents to address parent-time issues within 15 days of the motion
             1637      being filed;



Text Box

- 54 -
             1638
         (ii) assess the situation;
             1639          (iii) facilitate an agreement on parent-time between the parents; and
             1640          (iv) determine whether a referral to a service provider under Subsection (3)(c) is
             1641      warranted.
             1642          (c) While a case is in mediation, a mediator may refer the parents to a service provider
             1643      designated by the Department of Human Services for services to facilitate parent-time if:
             1644          (i) the services may be of significant benefit to the parents; or
             1645          (ii) (A) a mediated agreement between the parents is unlikely; and
             1646          (B) the services may facilitate an agreement.
             1647          (d) At any time during mediation, a mediator shall terminate mediation and transfer the
             1648      case to the administrator of the program for referral to the judge or court commissioner to
             1649      whom the case was assigned under Subsection (3)(a) if:
             1650          (i) a written agreement between the parents is reached; or
             1651          (ii) the parents are unable to reach an agreement through mediation and:
             1652          (A) the parents have received services to facilitate parent-time;
             1653          (B) both parents object to receiving services to facilitate parent-time; or
             1654          (C) the parents are unlikely to benefit from receiving services to facilitate parent-time.
             1655          (e) Upon receiving a case from the administrator of the program, a judge or court
             1656      commissioner may:
             1657          (i) review the agreement of the parents and, if acceptable, sign it as an order;
             1658          (ii) order the parents to receive services to facilitate parent-time;
             1659          (iii) proceed with the case; or
             1660          (iv) take other appropriate action.
             1661          (4) (a) If a parent makes a particularized allegation of physical or sexual abuse of a
             1662      child who is the subject of a parent-time order against the other parent or a member of the other
             1663      parent's household to a mediator or service provider, the mediator or service provider shall
             1664      immediately report that information to:
             1665          (i) the judge assigned to the case who may immediately issue orders and take other
             1666      appropriate action to resolve the allegation and protect the child; and
             1667          (ii) the Division of Child and Family Services within the Department of Human
             1668      Services in the manner required by Title 62A, Chapter 4a, Part 4, Child Abuse or Neglect



Text Box

- 55 -
             1669
     Reporting Requirements.
             1670          (b) If an allegation under Subsection (4)(a) is made against a parent with parent-time
             1671      rights or a member of that parent's household, parent-time by that parent shall, pursuant to an
             1672      order of the court, be supervised until:
             1673          (i) the allegation has been resolved; or
             1674          (ii) a court orders otherwise.
             1675          (c) Notwithstanding an allegation under Subsection (4)(a), a mediator may continue to
             1676      mediate parent-time problems and a service provider may continue to provide services to
             1677      facilitate parent-time unless otherwise ordered by a court.
             1678          (5) (a) The Department of Human Services may contract with one or more entities in
             1679      accordance with Title 63G, Chapter [6] 6a, Utah Procurement Code, to provide:
             1680          (i) services to facilitate parent-time;
             1681          (ii) case management services; and
             1682          (iii) administrative services.
             1683          (b) An entity who contracts with the Department of Human Services under Subsection
             1684      (5)(a) shall:
             1685          (i) be qualified to provide one or more of the services listed in Subsection (5)(a); and
             1686          (ii) agree to follow billing guidelines established by the Department of Human Services
             1687      and this section.
             1688          (6) (a) Except as provided in Subsection (6)(b), the cost of mediation shall be:
             1689          (i) reduced to a sum certain;
             1690          (ii) divided equally between the parents; and
             1691          (iii) charged against each parent taking into account the ability of that parent to pay
             1692      under billing guidelines adopted in accordance with this section.
             1693          (b) A judge may order a parent to pay an amount in excess of that provided for in
             1694      Subsection (6)(a) if the parent:
             1695          (i) failed to participate in good faith in mediation or services to facilitate parent-time;
             1696      or
             1697          (ii) made an unfounded assertion or claim of physical or sexual abuse of a child.
             1698          (c) (i) The cost of mediation and services to facilitate parent-time may be charged to
             1699      parents at periodic intervals.



Text Box

- 56 -
             1700
         (ii) Mediation and services to facilitate parent-time may only be terminated on the
             1701      ground of nonpayment if both parents are delinquent.
             1702          (7) (a) The Judicial Council may make rules to implement and administer the
             1703      provisions of this program related to mediation.
             1704          (b) The Department of Human Services may make rules to implement and administer
             1705      the provisions of this program related to services to facilitate parent-time.
             1706          (8) (a) The Administrative Office of the Courts shall adopt outcome measures to
             1707      evaluate the effectiveness of the mediation component of this program. Progress reports shall
             1708      be provided to the Judiciary Interim Committee as requested by the committee.
             1709          (b) The Department of Human Services shall adopt outcome measures to evaluate the
             1710      effectiveness of the services component of this program. Progress reports shall be provided to
             1711      the Judiciary Interim Committee as requested by the committee.
             1712          (c) The Administrative Office of the Courts and the Department of Human Services
             1713      may adopt joint outcome measures and file joint reports to satisfy the requirements of
             1714      Subsections (7)(a) and (b).
             1715          (9) The Department of Human Services shall, by following the procedures and
             1716      requirements of Title 63J, Chapter 5, Federal Funds Procedures, apply for federal funds as
             1717      available.
             1718          Section 37. Section 31A-29-110 is amended to read:
             1719           31A-29-110. Pool administrator -- Selection -- Powers.
             1720          (1) The board shall select a pool administrator in accordance with Title 63G, Chapter
             1721      [6] 6a, Utah Procurement Code. The board shall evaluate bids based on criteria established by
             1722      the board, which shall include:
             1723          (a) ability to manage medical expenses;
             1724          (b) proven ability to handle accident and health insurance;
             1725          (c) efficiency of claim paying procedures;
             1726          (d) marketing and underwriting;
             1727          (e) proven ability for managed care and quality assurance;
             1728          (f) provider contracting and discounts;
             1729          (g) pharmacy benefit management;
             1730          (h) an estimate of total charges for administering the pool; and



Text Box

- 57 -
             1731
         (i) ability to administer the pool in a cost-efficient manner.
             1732          (2) A pool administrator may be:
             1733          (a) a health insurer;
             1734          (b) a health maintenance organization;
             1735          (c) a third-party administrator; or
             1736          (d) any person or entity which has demonstrated ability to meet the criteria in
             1737      Subsection (1).
             1738          (3) (a) The pool administrator shall serve for a period of three years, with two one-year
             1739      extension options, subject to the terms, conditions, and limitations of the contract between the
             1740      board and the administrator.
             1741          (b) At least one year prior to the expiration of the contract between the board and the
             1742      pool administrator, the board shall invite all interested parties, including the current pool
             1743      administrator, to submit bids to serve as the pool administrator.
             1744          (c) Selection of the pool administrator for a succeeding period shall be made at least
             1745      six months prior to the expiration of the period of service under Subsection (3)(a).
             1746          (4) The pool administrator is responsible for all operational functions of the pool and
             1747      shall:
             1748          (a) have access to all nonpatient specific experience data, statistics, treatment criteria,
             1749      and guidelines compiled or adopted by the Medicaid program, the Public Employees Health
             1750      Plan, the Department of Health, or the Insurance Department, and which are not otherwise
             1751      declared by statute to be confidential;
             1752          (b) perform all marketing, eligibility, enrollment, member agreements, and
             1753      administrative claim payment functions relating to the pool;
             1754          (c) establish, administer, and operate a monthly premium billing procedure for
             1755      collection of premiums from enrollees;
             1756          (d) perform all necessary functions to assure timely payment of benefits to enrollees,
             1757      including:
             1758          (i) making information available relating to the proper manner of submitting a claim
             1759      for benefits to the pool administrator and distributing forms upon which submission shall be
             1760      made; and
             1761          (ii) evaluating the eligibility of each claim for payment by the pool;



Text Box

- 58 -
             1762
         (e) submit regular reports to the board regarding the operation of the pool, the
             1763      frequency, content, and form of which reports shall be determined by the board;
             1764          (f) following the close of each calendar year, determine net written and earned
             1765      premiums, the expense of administration, and the paid and incurred losses for the year and
             1766      submit a report of this information to the board, the commissioner, and the Division of Finance
             1767      on a form prescribed by the commissioner; and
             1768          (g) be paid as provided in the plan of operation for expenses incurred in the
             1769      performance of the pool administrator's services.
             1770          Section 38. Section 31A-29-111 is amended to read:
             1771           31A-29-111. Eligibility -- Limitations.
             1772          (1) (a) Except as provided in Subsection (1)(b), an individual who is not HIPAA
             1773      eligible is eligible for pool coverage if the individual:
             1774          (i) pays the established premium;
             1775          (ii) is a resident of this state; and
             1776          (iii) meets the health underwriting criteria under Subsection (5)(a).
             1777          (b) Notwithstanding Subsection (1)(a), an individual who is not HIPAA eligible is not
             1778      eligible for pool coverage if one or more of the following conditions apply:
             1779          (i) the individual is eligible for health care benefits under Medicaid or Medicare,
             1780      except as provided in Section 31A-29-112 ;
             1781          (ii) the individual has terminated coverage in the pool, unless:
             1782          (A) 12 months have elapsed since the termination date; or
             1783          (B) the individual demonstrates that creditable coverage has been involuntarily
             1784      terminated for any reason other than nonpayment of premium;
             1785          (iii) the pool has paid the maximum lifetime benefit to or on behalf of the individual;
             1786          (iv) the individual is an inmate of a public institution;
             1787          (v) the individual is eligible for a public health plan, as defined in federal regulations
             1788      adopted pursuant to 42 U.S.C. 300gg;
             1789          (vi) the individual's health condition does not meet the criteria established under
             1790      Subsection (5);
             1791          (vii) the individual is eligible for coverage under an employer group that offers a health
             1792      benefit plan or a self-insurance arrangement to its eligible employees, dependents, or members



Text Box

- 59 -
             1793
     as:
             1794          (A) an eligible employee;
             1795          (B) a dependent of an eligible employee; or
             1796          (C) a member;
             1797          (viii) the individual is covered under any other health benefit plan;
             1798          (ix) at the time of application, the individual has not resided in Utah for at least 12
             1799      consecutive months preceding the date of application; or
             1800          (x) the individual's employer pays any part of the individual's health benefit plan
             1801      premium, either as an insured or a dependent, for pool coverage.
             1802          (2) (a) Except as provided in Subsection (2)(b), an individual who is HIPAA eligible is
             1803      eligible for pool coverage if the individual:
             1804          (i) pays the established premium; and
             1805          (ii) is a resident of this state.
             1806          (b) Notwithstanding Subsection (2)(a), a HIPAA eligible individual is not eligible for
             1807      pool coverage if one or more of the following conditions apply:
             1808          (i) the individual is eligible for health care benefits under Medicaid or Medicare,
             1809      except as provided in Section 31A-29-112 ;
             1810          (ii) the individual is eligible for a public health plan, as defined in federal regulations
             1811      adopted pursuant to 42 U.S.C. 300gg;
             1812          (iii) the individual is covered under any other health benefit plan;
             1813          (iv) the individual is eligible for coverage under an employer group that offers a health
             1814      benefit plan or self-insurance arrangements to its eligible employees, dependents, or members
             1815      as:
             1816          (A) an eligible employee;
             1817          (B) a dependent of an eligible employee; or
             1818          (C) a member;
             1819          (v) the pool has paid the maximum lifetime benefit to or on behalf of the individual;
             1820          (vi) the individual is an inmate of a public institution; or
             1821          (vii) the individual's employer pays any part of the individual's health benefit plan
             1822      premium, either as an insured or a dependent, for pool coverage.
             1823          (3) (a) Notwithstanding Subsection (1)(b)(ix), if otherwise eligible under Subsection



Text Box

- 60 -
             1824
     (1)(a), an individual whose health care insurance coverage from a state high risk pool with
             1825      similar coverage is terminated because of nonresidency in another state is eligible for coverage
             1826      under the pool subject to the conditions of Subsections (1)(b)(i) through (viii).
             1827          (b) Coverage sought under Subsection (3)(a) shall be applied for within 63 days after
             1828      the termination date of the previous high risk pool coverage.
             1829          (c) The effective date of this state's pool coverage shall be the date of termination of
             1830      the previous high risk pool coverage.
             1831          (d) The waiting period of an individual with a preexisting condition applying for
             1832      coverage under this chapter shall be waived:
             1833          (i) to the extent to which the waiting period was satisfied under a similar plan from
             1834      another state; and
             1835          (ii) if the other state's benefit limitation was not reached.
             1836          (4) (a) If an eligible individual applies for pool coverage within 30 days of being
             1837      denied coverage by an individual carrier, the effective date for pool coverage shall be no later
             1838      than the first day of the month following the date of submission of the completed insurance
             1839      application to the carrier.
             1840          (b) Notwithstanding Subsection (4)(a), for individuals eligible for coverage under
             1841      Subsection (3), the effective date shall be the date of termination of the previous high risk pool
             1842      coverage.
             1843          (5) (a) The board shall establish and adjust, as necessary, health underwriting criteria
             1844      based on:
             1845          (i) health condition; and
             1846          (ii) expected claims so that the expected claims are anticipated to remain within
             1847      available funding.
             1848          (b) The board, with approval of the commissioner, may contract with one or more
             1849      providers under Title 63G, Chapter [6] 6a, Utah Procurement Code, to develop underwriting
             1850      criteria under Subsection (5)(a).
             1851          (c) If an individual is denied coverage by the pool under the criteria established in
             1852      Subsection (5)(a), the pool shall issue a certificate of insurability to the individual for coverage
             1853      under Subsection 31A-30-108 (3).
             1854          Section 39. Section 31A-33-104 is amended to read:



Text Box

- 61 -
             1855
          31A-33-104. Workers' Compensation Fund exempted.
             1856          (1) The Workers' Compensation Fund is exempt from the provisions of:
             1857          (a) Title 52, Chapter 4, Open and Public Meetings Act;
             1858          (b) Title 63G, Chapter 2, Government Records Access and Management Act; and
             1859          (c) Title 63A, Utah Administrative Services Code.
             1860          (2) The board may specifically exempt the Workers' Compensation Fund from any
             1861      provisions of:
             1862          (a) Title 67, Chapter 19, Utah State Personnel Management Act; and
             1863          (b) Title 63G, Chapter [6] 6a, Utah Procurement Code.
             1864          (3) The provisions of Title 63G, Chapter 4, Administrative Procedures Act, do not
             1865      govern the initial determination of any person's eligibility for benefits under Title 34A, Chapter
             1866      2, Workers' Compensation Act, and Title 34A, Chapter 3, Utah Occupational Disease Act.
             1867          Section 40. Section 31A-33-107 is amended to read:
             1868           31A-33-107. Duties of board -- Creation of subsidiaries -- Entering into joint
             1869      enterprises.
             1870          (1) The board shall:
             1871          (a) appoint a chief executive officer to administer the Workers' Compensation Fund;
             1872          (b) receive and act upon financial, management, and actuarial reports covering the
             1873      operations of the Workers' Compensation Fund;
             1874          (c) ensure that the Workers' Compensation Fund is administered according to law;
             1875          (d) examine and approve an annual operating budget for the Workers' Compensation
             1876      Fund;
             1877          (e) serve as investment trustees and fiduciaries of the Injury Fund;
             1878          (f) receive and act upon recommendations of the chief executive officer;
             1879          (g) develop broad policy for the long-term operation of the Workers' Compensation
             1880      Fund, consistent with its mission and fiduciary responsibility;
             1881          (h) subject to Chapter 19a, Part 4, Workers' Compensation Rates, approve any rating
             1882      plans that would modify a policyholder's premium;
             1883          (i) subject to Chapter 19a, Part 4, Workers' Compensation Rates, approve the amount
             1884      of deviation, if any, from standard insurance rates;
             1885          (j) approve the amount of the dividends, if any, to be returned to policyholders;



Text Box

- 62 -
             1886
         (k) adopt a procurement policy consistent with the provisions of Title 63G, Chapter [6]
             1887      6a, Utah Procurement Code;
             1888          (l) develop and publish an annual report to policyholders, the governor, the Legislature,
             1889      and interested parties that describes the financial condition of the Injury Fund, including a
             1890      statement of expenses and income and what measures were taken or will be necessary to keep
             1891      the Injury Fund actuarially sound;
             1892          (m) establish a fiscal year;
             1893          (n) determine and establish an actuarially sound price for insurance offered by the
             1894      fund;
             1895          (o) establish conflict of interest requirements that govern the board, officers, and
             1896      employees;
             1897          (p) establish compensation and reasonable expenses to be paid to directors on the board
             1898      subject to the requirements of Section 31A-33-106 , so that the board may not approve
             1899      compensation that exceeds the amount described in Subsection 31A-33-106 (18)(a)(i)(B); and
             1900          (q) perform all other acts necessary for the policymaking and oversight of the Workers'
             1901      Compensation Fund.
             1902          (2) Subject to board review and its responsibilities under Subsection (1)(e), the board
             1903      may delegate authority to make daily investment decisions.
             1904          (3) The fund may form or acquire a subsidiary or enter into a joint enterprise:
             1905          (a) only if that action is approved by the board; and
             1906          (b) subject to the limitations in Section 31A-33-103.5 .
             1907          Section 41. Section 34A-2-203 is amended to read:
             1908           34A-2-203. Payment of premiums for workers' compensation.
             1909          (1) Until June 30, 2007, a department, commission, board, or other agency of the state
             1910      shall pay the insurance premium on its employees direct to the Workers' Compensation Fund.
             1911          (2) Beginning July 1, 2007, the state shall secure the payment of workers'
             1912      compensation benefits for its employees:
             1913          (a) by:
             1914          (i) insuring, and keeping insured, the payment of this compensation with the Workers'
             1915      Compensation Fund;
             1916          (ii) insuring, and keeping insured, the payment of this compensation with any stock



Text Box

- 63 -
             1917
     corporation or mutual association authorized to transact the business of workers' compensation
             1918      insurance in this state; or
             1919          (iii) paying direct compensation as a self-insured employer in the amount, in the
             1920      manner, and when due as provided for in this chapter or Chapter 3, Utah Occupational Disease
             1921      Act;
             1922          (b) in accordance with Title 63A, Chapter 4, Risk Management; and
             1923          (c) subject to Subsection (3).
             1924          (3) (a) If the state determines to secure the payment of workers' compensation benefits
             1925      for its employees by paying direct compensation as a self-insured employer in the amount, in
             1926      the manner, and due as provided for in this chapter or Chapter 3, Utah Occupational Disease
             1927      Act, the state is:
             1928          (i) exempt from Section 34A-2-202.5 and Subsection 34A-2-704 (14); and
             1929          (ii) required to pay a premium assessment as provided in Section 34A-2-202 .
             1930          (b) If the state chooses to pay workers' compensation benefits for its employees
             1931      through insuring under Subsection (2)(a)(i) or (ii), the state shall obtain that insurance in
             1932      accordance with Title 63G, Chapter [6] 6a, Utah Procurement Code.
             1933          Section 42. Section 35A-5-202 is amended to read:
             1934           35A-5-202. Contracts with providers.
             1935          (1) In compliance with Title 63G, Chapter [6] 6a, Utah Procurement Code, the
             1936      department shall enter into a contract with one or more qualified providers to implement the
             1937      workforce improvement plan created under Section 35A-5-201 .
             1938          (2) A contract entered into under this section shall be:
             1939          (a) performance based; and
             1940          (b) structured so that the provider receives reimbursement based on:
             1941          (i) job development;
             1942          (ii) participant placement in jobs;
             1943          (iii) wages and benefits provided; and
             1944          (iv) participant retention in jobs over at least a 12-month period.
             1945          (3) If the department determines through the procurement process that there are no
             1946      qualified providers to implement the workforce improvement plan, the department may
             1947      implement the plan.



Text Box

- 64 -
             1948
         Section 43. Section 38-1-30 is amended to read:
             1949           38-1-30. Third party contract -- Designated agent.
             1950          (1) The division shall contract in accordance with Title 63G, Chapter [6] 6a, Utah
             1951      Procurement Code, with a third party to establish and maintain the database for the purposes
             1952      established under this section, Section 38-1-27 , and Sections 38-1-31 through 38-1-36 .
             1953          (2) (a) The third party under contract under this section is the division's designated
             1954      agent, and shall develop and maintain a database from the information provided by:
             1955          (i) local government entities issuing building permits;
             1956          (ii) original contractors;
             1957          (iii) subcontractors; and
             1958          (iv) other interested persons.
             1959          (b) The database shall accommodate filings by third parties on behalf of clients.
             1960          (c) The division and the designated agent shall design, develop, and test the database
             1961      for full implementation on May 1, 2005.
             1962          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1963      division shall make rules and develop procedures for:
             1964          (a) the division to oversee and enforce this section, Section 38-1-27 , and Sections
             1965      38-1-31 through 38-1-36 ;
             1966          (b) the designated agent to administer this section, Section 38-1-27 , and Sections
             1967      38-1-31 through 38-1-36 ; and
             1968          (c) the form of submission of an alternate filing, which may include procedures for
             1969      rejecting an illegible or incomplete filing.
             1970          (4) (a) The designated agent shall archive computer data files at least semiannually for
             1971      auditing purposes.
             1972          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1973      division shall make rules to allow the designated agent to periodically archive projects from the
             1974      database.
             1975          (c) A project shall be archived no earlier than:
             1976          (i) one year after the day on which a notice of completion is filed for a project;
             1977          (ii) if no notice of completion is filed, two years after the last filing activity for a
             1978      project; or



Text Box

- 65 -
             1979
         (iii) one year after the day on which a filing is cancelled under Subsection
             1980      38-1-32 (6)(c) or 38-1-33 (2)(c).
             1981          (d) The division may audit the designated agent's administration of the database as
             1982      often as the division considers necessary.
             1983          (5) The designated agent shall carry errors and omissions insurance in the amounts
             1984      established by rule made by the division in accordance with Title 63G, Chapter 3, Utah
             1985      Administrative Rulemaking Act.
             1986          (6) (a) The designated agent shall make reasonable efforts to assure the accurate entry
             1987      into the database of information provided in alternate filings.
             1988          (b) The designated agent shall meet or exceed standards established by the division for
             1989      the accuracy of data entry for alternate filings.
             1990          (7) The designated agent is not liable for the correctness of the information contained
             1991      in an alternate filing it enters into the database.
             1992          Section 44. Section 38-1-39 is amended to read:
             1993           38-1-39. Waiver or impairment of a lien right -- Forms -- Scope.
             1994          (1) As used in this section:
             1995          (a) "Check" means a payment instrument on a depository institution including:
             1996          (i) a check;
             1997          (ii) a draft;
             1998          (iii) an order; or
             1999          (iv) other instrument.
             2000          (b) "Depository institution" is as defined in Section 7-1-103 .
             2001          (c) "Lien claimant" means a person that claims a lien under this chapter.
             2002          (d) "Receives payment" means, in the case of a restrictive endorsement, a payee has
             2003      endorsed a check and the check is presented to and paid by the depository institution on which
             2004      it is drawn.
             2005          (2) Notwithstanding Section 38-1-29 , a written consent given by a lien claimant that
             2006      waives or limits the lien claimant's lien rights is enforceable only if the lien claimant:
             2007          (a) (i) executes a waiver and release that is signed by the lien claimant or the lien
             2008      claimant's authorized agent; or
             2009          (ii) for a restrictive endorsement on a check, includes a restrictive endorsement on a



Text Box

- 66 -
             2010
     check that is:
             2011          (A) signed by the lien claimant or the lien claimant's authorized agent; and
             2012          (B) in substantially the same form set forth in Subsection (4)(d); and
             2013          (b) receives payment of the amount identified in the waiver and release or check that
             2014      includes the restrictive endorsement:
             2015          (i) including payment by a joint payee check; and
             2016          (ii) for a progress payment, only to the extent of the payment.
             2017          (3) (a) Notwithstanding the language of a waiver and release described in Subsection
             2018      (2), Subsection (3)(b) applies if:
             2019          (i) the payment given in exchange for any waiver and release of lien is made by check;
             2020      and
             2021          (ii) the check fails to clear the depository institution on which it is drawn for any
             2022      reason.
             2023          (b) If the conditions of Subsection (3)(a) are met:
             2024          (i) the waiver and release described in Subsection (3)(a) is null, void, and of no legal
             2025      effect; and
             2026          (ii) the following will not be affected by the lien claimant's execution of the waiver and
             2027      release:
             2028          (A) any lien;
             2029          (B) any lien right;
             2030          (C) any bond right;
             2031          (D) any contract right; or
             2032          (E) any other right to recover payment afforded to the lien claimant in law or equity.
             2033          (4) (a) A waiver and release given by a lien claimant meets the requirements of this
             2034      section if it is in substantially the form provided in this Subsection (4) for the circumstance
             2035      provided in this Subsection (4).
             2036          (b) A waiver and release may be in substantially the following form if the lien claimant
             2037      is required to execute a waiver and release in exchange for or to induce the payment of a
             2038      progress billing:
             2039     
"UTAH CONDITIONAL WAIVER AND RELEASE UPON PROGRESS PAYMENT

             2040      Property Name: _____________________________________________________________



Text Box

- 67 -
             2041
     Property Location: ___________________________________________________________
             2042      Undersigned's Customer: _____________________________________________________
             2043      Invoice/Payment Application Number: __________________________________________
             2044      Payment Amount: ___________________________________________________________
             2045      Payment Period: ____________________________________________________________
             2046          To the extent provided below, this document becomes effective to release and the
             2047      undersigned is considered to waive any notice of lien or right under Utah Code Ann., Title 38,
             2048      Chapter 1, Mechanics' Liens, or any bond right under Utah Code Ann., Title 14, Contractors'
             2049      Bonds, or Section [ 63G-6-505 ] 63G-6a-1103 related to payment rights the undersigned has on
             2050      the above described Property once:
             2051          (1) the undersigned endorses a check in the above referenced Payment Amount payable
             2052      to the undersigned; and
             2053          (2) the check is paid by the depository institution on which it is drawn.
             2054          This waiver and release applies to a progress payment for the work, materials,
             2055      equipment, or a combination of work, materials, and equipment furnished by the undersigned
             2056      to the Property or to the Undersigned's Customer which are the subject of the Invoice or
             2057      Payment Application, but only to the extent of the Payment Amount. This waiver and release
             2058      does not apply to any retention withheld; any items, modifications, or changes pending
             2059      approval; disputed items and claims; or items furnished or invoiced after the Payment Period.
             2060          The undersigned warrants that the undersigned either has already paid or will use the
             2061      money the undersigned receives from this progress payment promptly to pay in full all the
             2062      undersigned's laborers, subcontractors, materialmen, and suppliers for all work, materials,
             2063      equipment, or combination of work, materials, and equipment that are the subject of this
             2064      waiver and release.
             2065      Dated: ________________________
             2066      ___________________________________________________________(Company Name)
             2067      _____________________________________________________By:__________________
             2068      _____________________________________________________Its:__________________"
             2069          (c) A waiver and release may be in substantially the following form if the lien claimant
             2070      is required to execute a waiver and release in exchange for or to induce the payment of a final
             2071      billing:



Text Box

- 68 -
             2072
    
"UTAH WAIVER AND RELEASE UPON FINAL PAYMENT

             2073      Property Name: ____________________________________________________________
             2074      Property Location: __________________________________________________________
             2075      Undersigned's Customer: _____________________________________________________
             2076      Invoice/Payment Application Number: __________________________________________
             2077      Payment Amount: ___________________________________________________________
             2078          To the extent provided below, this document becomes effective to release and the
             2079      undersigned is considered to waive any notice of lien or right under Utah Code Ann., Title 38,
             2080      Chapter 1, Mechanics' Liens, or any bond right under Utah Code Ann., Title 14, Contractors'
             2081      Bonds, or Section [ 63G-6-505 ] 63G-6a-1103 related to payment rights the undersigned has on
             2082      the above described Property once:
             2083          (1) the undersigned endorses a check in the above referenced Payment Amount payable
             2084      to the undersigned; and
             2085          (2) the check is paid by the depository institution on which it is drawn.
             2086          This waiver and release applies to the final payment for the work, materials, equipment,
             2087      or combination of work, materials, and equipment furnished by the undersigned to the Property
             2088      or to the Undersigned's Customer.
             2089          The undersigned warrants that the undersigned either has already paid or will use the
             2090      money the undersigned receives from the final payment promptly to pay in full all the
             2091      undersigned's laborers, subcontractors, materialmen, and suppliers for all work, materials,
             2092      equipment, or combination of work, materials, and equipment that are the subject of this
             2093      waiver and release.
             2094      Dated: ________________________
             2095      ___________________________________________________________(Company Name)
             2096      _____________________________________________________By:__________________
             2097      _____________________________________________________Its:__________________"
             2098          (d) A restrictive endorsement placed on a check to effectuate a waiver and release
             2099      described in this Subsection (4) meets the requirements of this section if it is in substantially
             2100      the following form:
             2101          "This check is a progress/ final payment for property described on this check sufficient
             2102      for identification. Endorsement of this check is an acknowledgment by the endorser that the



Text Box

- 69 -
             2103
     waiver and release to which the payment applies is effective to the extent provided in Utah
             2104      Code Ann. Subsection 38-1-39 (4)(b) or (c) respectively."
             2105          (e) (i) If using a restrictive endorsement under Subsection (4)(d), the person preparing
             2106      the check shall indicate whether the check is for a progress payment or a final payment by
             2107      circling the word "progress" if the check is for a progress payment, or the word "final" if the
             2108      check is for a final payment.
             2109          (ii) If a restrictive endorsement does not indicate whether the check is for a progress
             2110      payment or a final payment, it is considered to be for a progress payment.
             2111          (5) (a) If the conditions of Subsection (5)(b) are met, this section does not affect the
             2112      enforcement of:
             2113          (i) an accord and satisfaction regarding a bona fide dispute; or
             2114          (ii) an agreement made in settlement of an action pending in any court or arbitration.
             2115          (b) Pursuant to Subsection (5)(a), this section does not affect enforcement of an accord
             2116      and satisfaction or settlement described in Subsection (5)(a) if the accord and satisfaction or
             2117      settlement:
             2118          (i) is in a writing signed by the lien claimant; and
             2119          (ii) specifically references the lien rights waived or impaired.
             2120          Section 45. Section 41-12a-803 is amended to read:
             2121           41-12a-803. Program creation -- Administration -- Selection of designated agent
             2122      -- Duties -- Rulemaking -- Audits.
             2123          (1) There is created the Uninsured Motorist Identification Database Program to:
             2124          (a) establish an Uninsured Motorist Identification Database to verify compliance with
             2125      motor vehicle owner's or operator's security requirements under Section 41-12a-301 and other
             2126      provisions under this part;
             2127          (b) assist in reducing the number of uninsured motor vehicles on the highways of the
             2128      state;
             2129          (c) assist in increasing compliance with motor vehicle registration and sales and use tax
             2130      laws;
             2131          (d) assist in protecting a financial institution's bona fide security interest in a motor
             2132      vehicle; and
             2133          (e) assist in the identification and prevention of identity theft and other crimes.



Text Box

- 70 -
             2134
         (2) The program shall be administered by the department with the assistance of the
             2135      designated agent and the Motor Vehicle Division.
             2136          (3) (a) The department shall contract in accordance with Title 63G, Chapter [6] 6a,
             2137      Utah Procurement Code, with a third party to establish and maintain an Uninsured Motorist
             2138      Identification Database for the purposes established under this part.
             2139          (b) The contract may not obligate the department to pay the third party more money
             2140      than is available in the account.
             2141          (4) (a) The third party under contract under this section is the department's designated
             2142      agent, and shall develop and maintain a computer database from the information provided by:
             2143          (i) insurers under Section 31A-22-315 ;
             2144          (ii) the division under Subsection (6); and
             2145          (iii) the Motor Vehicle Division under Section 41-1a-120 .
             2146          (b) (i) The database shall be developed and maintained in accordance with guidelines
             2147      established by the department so that state and local law enforcement agencies and financial
             2148      institutions as defined in Section 7-1-103 can efficiently access the records of the database,
             2149      including reports useful for the implementation of the provisions of this part.
             2150          (ii) (A) The reports shall be in a form and contain information approved by the
             2151      department.
             2152          (B) The reports may be made available through the Internet or through other electronic
             2153      medium, if the department determines that sufficient security is provided to ensure compliance
             2154      with Section 41-12a-805 regarding limitations on disclosure of information in the database.
             2155          (5) With information provided by the department and the Motor Vehicle Division, the
             2156      designated agent shall, at least monthly for submissions under Subsection 31A-22-315 (2)(b) or
             2157      at least twice a month for submissions under Subsection 31A-22-315 (2)(a):
             2158          (a) update the database with the motor vehicle insurance information provided by the
             2159      insurers in accordance with Section 31A-22-315 ; and
             2160          (b) compare all current motor vehicle registrations against the database.
             2161          (6) The division shall provide the designated agent with the name, date of birth,
             2162      address, and driver license number of all persons on the driver license database.
             2163          (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2164      department shall make rules and develop procedures in cooperation with the Motor Vehicle



Text Box

- 71 -
             2165
     Division to use the database for the purpose of administering and enforcing this part.
             2166          (8) (a) The designated agent shall archive computer data files at least semi-annually for
             2167      auditing purposes.
             2168          (b) The internal audit unit of the tax commission provided under Section 59-1-206
             2169      shall audit the program at least every three years.
             2170          (c) The audit under Subsection (8)(b) shall include verification of:
             2171          (i) billings made by the designated agent; and
             2172          (ii) the accuracy of the designated agent's matching of vehicle registration with
             2173      insurance data.
             2174          Section 46. Section 53-2-404 is amended to read:
             2175           53-2-404. State costs for emergency disaster services.
             2176          (1) Subject to this section and Section 53-2-403 , the division shall expend or commit to
             2177      expend money described in Subsection 53-2-403 (1)(d)(i) to fund costs to the state of
             2178      emergency disaster services.
             2179          (2) Money paid by the division under this section to government entities and private
             2180      persons providing emergency disaster services are subject to Title 63G, Chapter [6] 6a, Utah
             2181      Procurement Code.
             2182          Section 47. Section 53A-1-706 is amended to read:
             2183           53A-1-706. Purchases of educational technology.
             2184          (1) (a) A school district or college of education shall comply with Title 63G, Chapter
             2185      [6] 6a, Utah Procurement Code, in purchasing technology, except as otherwise provided in
             2186      Subsection (1)(b).
             2187          (b) A school district may purchase computers from, and contract for the repair or
             2188      refurbishing of computers with, the Utah Correctional Industries without going through the
             2189      bidding or competition procedures outlined in Title 63G, Chapter [6, Part 4, Source Selections
             2190      and Contract Formation] 6a, Utah Procurement Code.
             2191          (2) A school district or college of education may purchase technology through
             2192      cooperative purchasing contracts administered by the state Division of Purchasing or through
             2193      its own established purchasing program.
             2194          Section 48. Section 53A-1a-511 is amended to read:
             2195           53A-1a-511. Waivers from state board rules -- Application of statutes and rules



Text Box

- 72 -
             2196
     to charter schools.
             2197          (1) A charter school shall operate in accordance with its charter and is subject to Title
             2198      53A, State System of Public Education, and other state laws applicable to public schools,
             2199      except as otherwise provided in this part.
             2200          (2) (a) A charter school or any other public school or school district may apply to the
             2201      State Board of Education for a waiver of any state board rule that inhibits or hinders the school
             2202      or the school district from accomplishing its mission or educational goals set out in its strategic
             2203      plan or charter.
             2204          (b) The state board may grant the waiver, unless:
             2205          (i) the waiver would cause the school district or the school to be in violation of state or
             2206      federal law; or
             2207          (ii) the waiver would threaten the health, safety, or welfare of students in the district or
             2208      at the school.
             2209          (c) If the State Board of Education denies the waiver, the reason for the denial shall be
             2210      provided in writing to the waiver applicant.
             2211          (3) (a) Except as provided in Subsection (3)(b), State Board of Education rules
             2212      governing the following do not apply to a charter school:
             2213          (i) school libraries;
             2214          (ii) required school administrative and supervisory services; and
             2215          (iii) required expenditures for instructional supplies.
             2216          (b) A charter school shall comply with rules implementing statutes that prescribe how
             2217      state appropriations may be spent.
             2218          (4) The following provisions of Title 53A, State System of Public Education, and rules
             2219      adopted under those provisions, do not apply to a charter school:
             2220          (a) Sections 53A-1a-108 and 53A-1a-108.5 , requiring the establishment of a school
             2221      community council and school improvement plan;
             2222          (b) Sections 53A-3-413 and 53A-3-414 , pertaining to the use of school buildings as
             2223      civic centers;
             2224          (c) Section 53A-3-420 , requiring the use of activity disclosure statements;
             2225          (d) Section 53A-12-207 , requiring notification of intent to dispose of textbooks;
             2226          (e) Section 53A-13-107 , requiring annual presentations on adoption;



Text Box

- 73 -
             2227
         (f) Chapter 19, Part 1, Fiscal Procedures, pertaining to fiscal procedures of school
             2228      districts and local school boards; and
             2229          (g) Section 53A-14-107 , requiring an independent evaluation of instructional materials.
             2230          (5) For the purposes of Title 63G, Chapter [6] 6a, Utah Procurement Code, a charter
             2231      school shall be considered a local public procurement unit.
             2232          (6) Each charter school shall be subject to:
             2233          (a) Title 52, Chapter 4, Open and Public Meetings Act; and
             2234          (b) Title 63G, Chapter 2, Government Records Access and Management Act.
             2235          (7) (a) The State Charter School Board shall, in concert with the charter schools, study
             2236      existing state law and administrative rules for the purpose of determining from which laws and
             2237      rules charter schools should be exempt.
             2238          (b) (i) The State Charter School Board shall present recommendations for exemption to
             2239      the State Board of Education for consideration.
             2240          (ii) The State Board of Education shall consider the recommendations of the State
             2241      Charter School Board and respond within 60 days.
             2242          Section 49. Section 53A-20-101 is amended to read:
             2243           53A-20-101. Construction and alteration of schools and plants -- Advertising for
             2244      bids -- Payment and performance bonds -- Contracts -- Bidding limitations on local
             2245      school boards -- Interest of local school board members.
             2246          (1) As used in this section, the word "sealed" does not preclude acceptance of
             2247      electronically sealed and submitted bids or proposals in addition to bids or proposals manually
             2248      sealed and submitted.
             2249          (2) (a) Prior to the construction of any school or the alteration of any existing school
             2250      plant, if the total estimated accumulative building project cost exceeds $80,000, a local school
             2251      board shall advertise for bids on the project at least 10 days before the bid due date.
             2252          (b) The board shall have the advertisement published in a newspaper having general
             2253      circulation throughout the state and in appropriate construction trade publications that offer
             2254      free listings.
             2255          (c) A similar advertisement is required in a newspaper published or having general
             2256      circulation in any city or county that would be affected by the proposed project.
             2257          (d) The advertisement shall:



Text Box

- 74 -
             2258
         (i) require sealed proposals for the building project in accordance with plans and
             2259      specifications furnished by the local school board;
             2260          (ii) state where and when the proposals will be opened and shall reserve the right of the
             2261      board to reject any and all proposals; and
             2262          (iii) require a certified check or bid bond of not less than 5% of the bid to accompany
             2263      the bid.
             2264          (3) (a) The board shall meet at the time and place specified in the advertisement and
             2265      publicly open and read all received proposals.
             2266          (b) If satisfactory bids are received, the board shall award the contract to the lowest
             2267      responsible bidder.
             2268          (c) If none of the proposals are satisfactory, all shall be rejected.
             2269          (d) The board shall again advertise in the manner provided in this section.
             2270          (e) If, after advertising a second time no satisfactory bid is received, the board may
             2271      proceed under its own direction with the required project.
             2272          (4) (a) The check or bond required under Subsection (2)(d) shall be drawn in favor of
             2273      the local school board.
             2274          (b) If the successful bidder fails or refuses to enter into the contract and furnish the
             2275      additional bonds required under this section, then the bidder's check or bond is forfeited to the
             2276      district.
             2277          (5) A local school board shall require payment and performance bonds of the
             2278      successful bidder as required in Section [ 63G-6-505 ] 63G-6a-1103 .
             2279          (6) (a) A local school board may require in the proposed contract that at least 10% of
             2280      the contract price be withheld until the project is completed and accepted by the board.
             2281          (b) If money is withheld, the board shall place it in an interest bearing account, and the
             2282      interest accrues for the benefit of the contractor and subcontractors.
             2283          (c) This money shall be paid upon completion of the project and acceptance by the
             2284      board.
             2285          (7) (a) A local school board may not bid on projects within the district if the total
             2286      accumulative estimated cost exceeds $80,000.
             2287          (b) The board may use its resources if no satisfactory bids are received under this
             2288      section.



Text Box

- 75 -
             2289
         (8) If the local school board determines in accordance with Section [ 63G-6-501 ]
             2290      63G-6a-1302 to use a construction manager/general contractor as its method of construction
             2291      contracting management on projects where the total estimated accumulative cost exceeds
             2292      $80,000, it shall select the construction manager/general contractor [using one of the source
             2293      selection methods provided for in Sections 63G-6-401 through 63G-6-501 ] in accordance with
             2294      the requirements of Title 63G, Chapter 6a, Utah Procurement Code.
             2295          (9) A local school board member may not have a direct or indirect financial interest in
             2296      the construction project contract.
             2297          Section 50. Section 53A-25b-105 is amended to read:
             2298           53A-25b-105. Applicability of statutes to the Utah Schools for the Deaf and the
             2299      Blind.
             2300          (1) The Utah Schools for the Deaf and the Blind is subject to Title 53A, State System
             2301      of Public Education, and other state laws applicable to public schools, except as otherwise
             2302      provided by this chapter.
             2303          (2) The following provisions of Title 53A, State System of Public Education, do not
             2304      apply to the Utah Schools for the Deaf and the Blind:
             2305          (a) provisions governing the budgets, funding, or finances of school districts or charter
             2306      schools; and
             2307          (b) provisions governing school construction.
             2308          (3) Except as provided in this chapter, the Utah Schools for the Deaf and the Blind is
             2309      subject to state laws governing state agencies, including:
             2310          (a) Title 51, Chapter 5, Funds Consolidation Act;
             2311          (b) Title 51, Chapter 7, State Money Management Act;
             2312          (c) Title 52, Chapter 4, Open and Public Meetings Act;
             2313          (d) Title 63A, Utah Administrative Services Code;
             2314          (e) Title 63G, Chapter 2, Government Records Access and Management Act;
             2315          (f) Title 63G, Chapter 4, Administrative Procedures Act;
             2316          (g) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             2317          (h) Title 63J, Chapter 1, Budgetary Procedures Act;
             2318          (i) Title 63J, Chapter 2, Revenue Procedures and Control Act; and
             2319          (j) Title 67, Chapter 19, Utah State Personnel Management Act.



Text Box

- 76 -
             2320
         Section 51. Section 53C-1-201 (Effective 07/01/12) is amended to read:
             2321           53C-1-201 (Effective 07/01/12). Creation of administration -- Purpose -- Director.
             2322          (1) (a) There is established within state government the School and Institutional Trust
             2323      Lands Administration.
             2324          (b) The administration shall manage all school and institutional trust lands and assets
             2325      within the state, except as otherwise provided in Title 53C, Chapter 3, Deposit and Allocation
             2326      of Revenue from Trust Lands, and Sections 51-7a-201 and 51-7a-202 .
             2327          (2) The administration is an independent state agency and not a division of any other
             2328      department.
             2329          (3) (a) It is subject to the usual legislative and executive department controls except as
             2330      provided in this Subsection (3).
             2331          (b) (i) The director may make rules as approved by the board that allow the
             2332      administration to classify a business proposal submitted to the administration as protected
             2333      under Section 63G-2-305 , for as long as is necessary to evaluate the proposal.
             2334          (ii) The administration shall return the proposal to the party who submitted the
             2335      proposal, and incur no further duties under Title 63G, Chapter 2, Government Records Access
             2336      and Management Act, if the administration determines not to proceed with the proposal.
             2337          (iii) The administration shall classify the proposal pursuant to law if it decides to
             2338      proceed with the proposal.
             2339          (iv) Section 63G-2-403 does not apply during the review period.
             2340          (c) The director shall make rules in compliance with Title 63G, Chapter 3, Utah
             2341      Administrative Rulemaking Act, except that the administration is not subject to Subsections
             2342      63G-3-301 (6) and (7) and Section 63G-3-601 , and the director, with the board's approval, may
             2343      establish a procedure for the expedited approval of rules, based on written findings by the
             2344      director showing:
             2345          (i) the changes in business opportunities affecting the assets of the trust;
             2346          (ii) the specific business opportunity arising out of those changes which may be lost
             2347      without the rule or changes to the rule;
             2348          (iii) the reasons the normal procedures under Section 63G-3-301 cannot be met without
             2349      causing the loss of the specific opportunity;
             2350          (iv) approval by at least five board members; and



Text Box

- 77 -
             2351
         (v) that the director has filed a copy of the rule and a rule analysis, stating the specific
             2352      reasons and justifications for its findings, with the Division of Administrative Rules and
             2353      notified interested parties as provided in Subsection 63G-3-301 (10).
             2354          (d) (i) The administration shall comply with Title 67, Chapter 19, Utah State Personnel
             2355      Management Act, except as provided in this Subsection (3)(d).
             2356          (ii) The board may approve, upon recommendation of the director, that exemption for
             2357      specific positions under Subsections 67-19-12 (2) and 67-19-15 (1) is required in order to enable
             2358      the administration to efficiently fulfill its responsibilities under the law. The director shall
             2359      consult with the executive director of the Department of Human Resource Management prior
             2360      to making such a recommendation.
             2361          (iii) The positions of director, deputy director, associate director, assistant director,
             2362      legal counsel appointed under Section 53C-1-305 , administrative assistant, and public affairs
             2363      officer are exempt under Subsections 67-19-12 (2) and 67-19-15 (1).
             2364          (iv) Salaries for exempted positions, except for the director, shall be set by the director,
             2365      after consultation with the executive director of the Department of Human Resource
             2366      Management, within ranges approved by the board. The board and director shall consider
             2367      salaries for similar positions in private enterprise and other public employment when setting
             2368      salary ranges.
             2369          (v) The board may create an annual incentive and bonus plan for the director and other
             2370      administration employees designated by the board, based upon the attainment of financial
             2371      performance goals and other measurable criteria defined and budgeted in advance by the board.
             2372          (e) The administration shall comply with Title 63G, Chapter [6] 6a, Utah Procurement
             2373      Code, except where the board approves, upon recommendation of the director, exemption from
             2374      the Utah Procurement Code, and simultaneous adoption of rules under Title 63G, Chapter 3,
             2375      Utah Administrative Rulemaking Act, for procurement, which enable the administration to
             2376      efficiently fulfill its responsibilities under the law.
             2377          (f) (i) Except as provided in Subsection (3)(f)(ii), the administration is not subject to
             2378      the fee agency requirements of Section 63J-1-504 .
             2379          (ii) The following fees of the administration are subject to the requirements of Section
             2380      63J-1-504 : application, assignment, amendment, affidavit for lost documents, name change,
             2381      reinstatement, grazing nonuse, extension of time, partial conveyance, patent reissue, collateral



Text Box

- 78 -
             2382
     assignment, electronic payment, and processing.
             2383          (4) The administration is managed by a director of school and institutional trust lands
             2384      appointed by a majority vote of the board of trustees with the consent of the governor.
             2385          (5) (a) The board of trustees shall provide policies for the management of the
             2386      administration and for the management of trust lands and assets.
             2387          (b) The board shall provide policies for the ownership and control of Native American
             2388      remains that are discovered or excavated on school and institutional trust lands in consultation
             2389      with the Division of Indian Affairs and giving due consideration to Title 9, Chapter 9, Part 4,
             2390      Native American Grave Protection and Repatriation Act. The director may make rules in
             2391      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement
             2392      policies provided by the board regarding Native American remains.
             2393          (6) In connection with joint ventures and other transactions involving trust lands and
             2394      minerals approved under Sections 53C-1-303 and 53C-2-401 , the administration, with board
             2395      approval, may become a member of a limited liability company under Title 48, Chapter 3, Utah
             2396      Revised Uniform Limited Liability Company Act, and is considered a person under Section
             2397      48-3-102 .
             2398          Section 52. Section 54-3-29 is amended to read:
             2399           54-3-29. Removal, relocation, or alteration of utility facility in public highway
             2400      construction or reconstruction -- Notice -- Cooperation.
             2401          (1) As used in this section:
             2402          (a) "Design-build" means a design-build transportation project for which a design-build
             2403      transportation project contract is issued, within the meaning of Section [ 63G-6-502 ]
             2404      63G-6a-1402 .
             2405          (b) "Municipality" is as defined in Section 10-1-104 .
             2406          (c) "Political subdivision" means a:
             2407          (i) county; or
             2408          (ii) municipality.
             2409          (d) "Public agency" means an entity of state government or a political subdivision.
             2410          (e) "Public highway" means a highway, street, road, or alley constructed for public use
             2411      in the state.
             2412          (f) "Utility company" means a privately, cooperatively, or publicly owned utility,



Text Box

- 79 -
             2413
     including a utility owned by a political subdivision, that provides service using a utility facility.
             2414          (g) "Utility facility" means:
             2415          (i) a telecommunications, gas, electricity, cable television, water, sewer, or data
             2416      facility;
             2417          (ii) a video transmission line;
             2418          (iii) a drainage and irrigation system; or
             2419          (iv) a facility similar to those listed in Subsections (1)(g)(i) through (iii) located in, on,
             2420      along, across, over, through, or under any public highway.
             2421          (2) If a public agency engages in or proposes to engage in a construction or
             2422      reconstruction project on a public highway that may require the removal, relocation, or
             2423      alteration of a utility facility, the public agency shall:
             2424          (a) contact an association, established under Title 54, Chapter 8a, Damage to
             2425      Underground Utility Facilities, to identify each utility company that may have a utility facility
             2426      in the area of the construction or reconstruction project;
             2427          (b) identify a utility company that has an above-ground utility facility in the area of the
             2428      proposed construction or reconstruction project; and
             2429          (c) electronically notify each utility company identified in accordance with Subsections
             2430      (2)(a) and (b).
             2431          (3) The notice required by Subsection (2)(c) shall:
             2432          (a) be made as early as practicable and at least 30 days:
             2433          (i) before the preliminary design or project development meeting;
             2434          (ii) before issuance of a request for proposal for a design-build project; or
             2435          (iii) after a change in scope of a design-build project;
             2436          (b) include:
             2437          (i) information concerning the proposed project design;
             2438          (ii) the proposed date of a required removal, relocation, or alteration of a utility facility;
             2439          (iii) the federal identifying project number, if applicable; and
             2440          (c) advise the utility company if the proposed project may qualify for aid for the utility
             2441      company's expense in removing, relocating, or altering a utility facility.
             2442          (4) A public agency shall permit a utility company notified under Subsection (2) to
             2443      participate in the preliminary design or project development meeting, or similar meeting at



Text Box

- 80 -
             2444
     which the project design is addressed.
             2445          (5) (a) A public agency shall, not less than 30 days after providing notice under
             2446      Subsection (2) to each utility company, provide the utility company an opportunity to meet
             2447      with the public agency to allow the utility company to:
             2448          (i) review project plans;
             2449          (ii) understand the objectives and funding sources for the proposed project;
             2450          (iii) provide and discuss recommendations to the public agency that may reasonably
             2451      eliminate or minimize utility removal, relocation, or alteration costs, limit the disruption of
             2452      utility company services, or eliminate or reduce the need for present or future utility facility
             2453      removal, relocation, or alteration; and
             2454          (iv) provide reasonable schedules to enable coordination of the construction project
             2455      and removal, relocation, or alteration of a utility facility.
             2456          (b) If a public agency provides a utility company with reasonable opportunities to meet
             2457      in accordance with Subsection (5)(a), the utility company's failure to meet does not affect the
             2458      public agency's ability to proceed with the project.
             2459          (6) While recognizing the essential goals and objectives of the public highway agency
             2460      in proceeding with and completing a project, the parties shall use their best efforts to find ways
             2461      to:
             2462          (a) eliminate the cost to the utility of relocation of the utility facilities; or
             2463          (b) if elimination of the costs is not feasible, minimize the relocation costs to the extent
             2464      reasonably possible.
             2465          (7) A utility company notified under Subsection (2) shall coordinate with the public
             2466      agency concerning the utility facility removal, relocation, or alteration, including the
             2467      scheduling of the utility facility removal, relocation, or alteration.
             2468          (8) A public agency and a utility company may address the removal, relocation, or
             2469      alteration of a utility facility in relation to a construction or reconstruction project on a public
             2470      highway in a franchise agreement in lieu of this section, if the public agency is otherwise
             2471      permitted to enter into the franchise agreement.
             2472          (9) This chapter does not affect a public agency's authority over a public right-of-way,
             2473      including any rule, ordinance, order to relocate a utility as provided in Section 72-6-116 , or
             2474      other valid provision governing the use of the public right-of-way.



Text Box

- 81 -
             2475
         Section 53. Section 54-8b-10 is amended to read:
             2476           54-8b-10. Imposing a surcharge to provide hearing and speech impaired persons
             2477      with telecommunication devices -- Definitions -- Procedures for establishing program --
             2478      Surcharge -- Administration and disposition of surcharge money.
             2479          (1) As used in this section:
             2480          (a) "Certified deaf or severely hearing or speech impaired person" means any state
             2481      resident who:
             2482          (i) is so certified by:
             2483          (A) a licensed physician;
             2484          (B) an otolaryngologist;
             2485          (C) a speech language pathologist;
             2486          (D) an audiologist; or
             2487          (E) a qualified state agency; and
             2488          (ii) qualifies for assistance under any low income public assistance program
             2489      administered by a state agency.
             2490          (b) "Certified interpreter" means a person who is a certified interpreter under Title
             2491      53A, Chapter 26a, Interpreter Services for the Hearing Impaired Act.
             2492          (c) (i) "Telecommunication device" means any mechanical adaptation device that
             2493      enables a deaf or severely hearing or speech impaired person to use the telephone.
             2494          (ii) "Telecommunication device" includes:
             2495          (A) telecommunication devices for the deaf (TDD);
             2496          (B) telephone amplifiers;
             2497          (C) telephone signal devices;
             2498          (D) artificial larynxes; and
             2499          (E) adaptive equipment for TDD keyboard access.
             2500          (2) The commission shall hold hearings to establish a program whereby a certified deaf
             2501      or severely hearing or speech impaired customer of a telecommunications corporation that
             2502      provides service through a local exchange or of a wireless telecommunications provider may
             2503      obtain a telecommunication device capable of serving the customer at no charge to the
             2504      customer beyond the rate for basic service.
             2505          (3) (a) The program described in Subsection (2) shall provide a dual party relay system



Text Box

- 82 -
             2506
     using third party intervention to connect a certified deaf or severely hearing or speech impaired
             2507      person with a normal hearing person by way of telecommunication devices designed for that
             2508      purpose.
             2509          (b) The commission may, by rule, establish the type of telecommunications device to
             2510      be provided to ensure functional equivalence.
             2511          (4) (a) The commission shall impose a surcharge on each residential and business
             2512      access line of each customer of local-exchange telephone service in this state, and each
             2513      residential and business telephone number of each customer of mobile telephone service in this
             2514      state, not including a telephone number used exclusively to transfer data to and from a mobile
             2515      device, which shall be collected by the telecommunications corporation providing public
             2516      telecommunications service to the customer, to cover the costs of:
             2517          (i) the program described in Subsection (2); and
             2518          (ii) payments made under Subsection (5).
             2519          (b) The commission shall establish by rule the amount to be charged under this section,
             2520      provided that:
             2521          (i) the surcharge does not exceed 20 cents per month for each residential and business
             2522      access line for local-exchange telephone service, and for each residential and business
             2523      telephone number for mobile telephone service, not including a telephone number used
             2524      exclusively to transfer data to and from a mobile device; and
             2525          (ii) if the surcharge is related to a mobile telecommunications service, the surcharge
             2526      may be imposed, billed, and collected only to the extent permitted by the Mobile
             2527      Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.
             2528          (c) The telecommunications corporation shall collect the surcharge from its customers
             2529      and transfer the money collected to the commission under rules adopted by the commission.
             2530          (d) The surcharge shall be separately identified on each bill to a customer.
             2531          (5) (a) Money collected from the surcharge imposed under Subsection (4) shall be
             2532      deposited in the state treasury as dedicated credits to be administered as determined by the
             2533      commission.
             2534          (b) These dedicated credits may be used only:
             2535          (i) for the purchase, maintenance, repair, and distribution of telecommunication
             2536      devices;



Text Box

- 83 -
             2537
         (ii) for the acquisition, operation, maintenance, and repair of a dual party relay system;
             2538          (iii) to reimburse telephone corporations for the expenses incurred in collecting and
             2539      transferring to the commission the surcharge imposed by the commission;
             2540          (iv) for the general administration of the program;
             2541          (v) to train persons in the use of telecommunications devices; and
             2542          (vi) by the commission to contract, in compliance with Title 63G, Chapter [6] 6a, Utah
             2543      Procurement Code, with:
             2544          (A) an institution within the state system of higher education listed in Section
             2545      53B-1-102 for a program approved by the Board of Regents that trains persons to qualify as
             2546      certified interpreters; or
             2547          (B) the Division of Services to the Deaf and Hard of Hearing for a program that trains
             2548      persons to qualify as certified interpreters.
             2549          (c) (i) The commission shall make rules under Title 63G, Chapter 3, Utah
             2550      Administrative Rulemaking Act, for the administration of money under Subsection (5)(b)(vi).
             2551          (ii) In the initial rulemaking to determine the administration of money under
             2552      Subsection (5)(b)(vi), the commission shall give notice and hold a public hearing.
             2553          (d) Money received by the commission under Subsection (4) is nonlapsing.
             2554          (6) (a) The telephone surcharge need not be collected by a telecommunications
             2555      corporation if the amount collected would be less than the actual administrative costs of the
             2556      collection.
             2557          (b) If Subsection (6)(a) applies, the telecommunications corporation shall submit to the
             2558      commission, in lieu of the revenue from the surcharge collection, a breakdown of the
             2559      anticipated costs and the expected revenue from the collection, showing that the costs exceed
             2560      the revenue.
             2561          (7) The commission shall solicit the advice, counsel, and physical assistance of
             2562      severely hearing or speech impaired persons and the organizations serving them in the design
             2563      and implementation of the program.
             2564          Section 54. Section 62A-1-108.5 is amended to read:
             2565           62A-1-108.5. Mental illness and intellectual disability examinations --
             2566      Responsibilities of the department.
             2567          (1) In accomplishing its duties to conduct mental illness and intellectual disability



Text Box

- 84 -
             2568
     examinations under Title 77, Utah Code of Criminal Procedure, the department shall proceed
             2569      as outlined in this section and within appropriations authorized by the Legislature. The
             2570      executive director may delegate the executive director's responsibilities under this section to
             2571      one or more divisions within the department.
             2572          (2) When the department is ordered by the court to conduct a mental illness or
             2573      intellectual disability examination, the executive director shall:
             2574          (a) direct that the examination be performed at the Utah State Hospital; or
             2575          (b) designate at least one examiner, selected under Subsection (3), to examine the
             2576      defendant in the defendant's current custody or status.
             2577          (3) The department shall establish criteria, in consultation with the Commission on
             2578      Criminal and Juvenile Justice, and shall contract with persons or organizations to conduct
             2579      mental illness and intellectual disability examinations under Subsection (2)(b). In making this
             2580      selection, the department shall follow the provisions of Title 63G, Chapter [6] 6a, Utah
             2581      Procurement Code.
             2582          (4) Nothing in this section prohibits the executive director, at the request of defense
             2583      counsel or a prosecuting attorney in a criminal proceeding under Title 77, Utah Code of
             2584      Criminal Procedure, and for good cause shown, from proposing a person who has not been
             2585      previously selected under Subsection (3) to contract with the department to conduct the
             2586      examination. In selecting that person, the criteria of the department established under
             2587      Subsection (3) and the provisions of Title 63G, Chapter [6] 6a, Utah Procurement Code, shall
             2588      be met.
             2589          Section 55. Section 62A-3-104 is amended to read:
             2590           62A-3-104. Authority of division.
             2591          (1) The division is the sole state agency, as defined by the Older Americans Act of
             2592      1965, 42 U.S.C. 3001 et seq., to:
             2593          (a) serve as an effective and visible advocate for the aging and adult population of this
             2594      state;
             2595          (b) develop and administer a state plan under the policy direction of the board; and
             2596          (c) take primary responsibility for state activities relating to provisions of the Older
             2597      Americans Act of 1965, as amended.
             2598          (2) (a) The division has authority to designate:



Text Box

- 85 -
             2599
         (i) planning and service areas for the state; and
             2600          (ii) an area agency on aging within each planning and service area to design and
             2601      implement a comprehensive and coordinated system of services and programs for the aged
             2602      within appropriations from the Legislature.
             2603          (b) Designation as an area agency on aging may be withdrawn:
             2604          (i) upon request of the area agency on aging; or
             2605          (ii) upon noncompliance with the provisions of the:
             2606          (A) Older Americans Act of 1965, 42 U.S.C. 3001 et seq.;
             2607          (B) federal regulations enacted under the Older Americans Act of 1965, 42 U.S.C.
             2608      3001 et seq.;
             2609          (C) provisions of this chapter; or
             2610          (D) rules, policies, or procedures established by the division.
             2611          (3) (a) The division has the authority to designate:
             2612          (i) planning and service areas for the state; and
             2613          (ii) subject to Subsection (3)(b), an area agency on high risk adults within each
             2614      planning and service area to design and implement a comprehensive and coordinated system of
             2615      case management and programs for high risk adults within appropriations from the Legislature.
             2616          (b) For purposes of Subsection (3)(a)(ii), before October 1, 1998, the division shall
             2617      designate as the area agency on high risk adults in a planning and service area:
             2618          (i) the area agency on aging that operates within the same geographic area if that
             2619      agency requests, before July 1, 1998, to expand that agency's current contract with the division
             2620      to include the responsibility of:
             2621          (A) being the area agency on high risk adults; or
             2622          (B) operating the area agency on high risk adults:
             2623          (I) through joint cooperation with one or more existing area agencies on aging; and
             2624          (II) without reducing geographical coverage in any service area; or
             2625          (ii) a public or private nonprofit agency or office if the area agency on aging that
             2626      operates within the same geographic area has not made a request in accordance with Subsection
             2627      (3)(b)(i).
             2628          (c) (i) Area agencies on high risk adults shall be in operation before July 1, 1999.
             2629          (ii) The division's efforts to establish area agencies on high risk adults shall start with



Text Box

- 86 -
             2630
     counties with a population of more than 150,000 people.
             2631          (d) Designation as an area agency on high risk adults may be withdrawn:
             2632          (i) upon request by the area agency; or
             2633          (ii) upon noncompliance with:
             2634          (A) state law;
             2635          (B) federal law; or
             2636          (C) rules, policies, or procedures established by the division.
             2637          (4) (a) The division may, by following the procedures and requirements of Title 63J,
             2638      Chapter 5, Federal Funds Procedures:
             2639          (i) seek federal grants, loans, or participation in federal programs; and
             2640          (ii) receive and distribute state and federal funds for the division's programs and
             2641      services to the aging and adult populations of the state.
             2642          (b) The division may not disburse public funds to a personal care attendant as payment
             2643      for personal services rendered to an aged person or high risk adult, except as provided in
             2644      Section 62A-3-104.3 .
             2645          (5) The division has authority to establish, either directly or by contract, programs of
             2646      advocacy, monitoring, evaluation, technical assistance, and public education to enhance the
             2647      quality of life for aging and adult citizens of the state.
             2648          (6) In accordance with the rules of the division and Title 63G, Chapter [6] 6a, Utah
             2649      Procurement Code, the division may contract with:
             2650          (a) the governing body of an area agency to provide a comprehensive program of
             2651      services; or
             2652          (b) public and private entities for special services.
             2653          (7) The division has authority to provide for collection, compilation, and dissemination
             2654      of information, statistics, and reports relating to issues facing aging and adult citizens.
             2655          (8) The division has authority to prepare and submit reports regarding the operation
             2656      and administration of the division to the department, the Legislature, and the governor, as
             2657      requested.
             2658          (9) The division shall:
             2659          (a) implement and enforce policies established by the board governing all aspects of
             2660      the division's programs for aging and adult persons in the state;



Text Box

- 87 -
             2661
         (b) in order to ensure compliance with all applicable state and federal statutes, policies,
             2662      and procedures, monitor and evaluate programs provided by or under contract with:
             2663          (i) the division;
             2664          (ii) area agencies; and
             2665          (iii) an entity that receives funds from an area agency;
             2666          (c) examine expenditures of public funds;
             2667          (d) withhold funds from programs based on contract noncompliance;
             2668          (e) review and approve plans of area agencies in order to ensure:
             2669          (i) compliance with division policies; and
             2670          (ii) a statewide comprehensive program;
             2671          (f) in order to further programs for aging and adult persons and prevent duplication of
             2672      services, promote and establish cooperative relationships with:
             2673          (i) state and federal agencies;
             2674          (ii) social and health agencies;
             2675          (iii) education and research organizations; and
             2676          (iv) other related groups;
             2677          (g) advocate for the aging and adult populations;
             2678          (h) promote and conduct research on the problems and needs of aging and adult
             2679      persons;
             2680          (i) submit recommendations for changes in policies, programs, and funding to the:
             2681          (i) governor; and
             2682          (ii) Legislature; and
             2683          (j) (i) accept contributions to and administer the funds contained in the "Out and
             2684      About" Homebound Transportation Assistance Fund created in Section 62A-3-110 ; and
             2685          (ii) make rules in accordance with Title 63G, Chapter 3, Utah Administrative
             2686      Rulemaking Act, to facilitate the administration of the "Out and About" Homebound
             2687      Transportation Assistance Fund in accordance with Section 62A-3-110 .
             2688          Section 56. Section 62A-3-104.1 is amended to read:
             2689           62A-3-104.1. Powers and duties of area agencies.
             2690          (1) An area agency that provides services to an aged person, or a high risk adult shall
             2691      within the area agency's respective jurisdiction:



Text Box

- 88 -
             2692
         (a) advocate by monitoring, evaluating, and providing input on all policies, programs,
             2693      hearings, and levies that affect a person described in this Subsection (1);
             2694          (b) design and implement a comprehensive and coordinated system of services within a
             2695      designated planning and service area;
             2696          (c) conduct periodic reviews and evaluations of needs and services;
             2697          (d) prepare and submit to the division plans for funding and service delivery for
             2698      services within the designated planning and service area;
             2699          (e) establish, either directly or by contract, programs licensed under Chapter 2,
             2700      Licensure of Programs and Facilities;
             2701          (f) (i) appoint an area director;
             2702          (ii) prescribe the area director's duties; and
             2703          (iii) provide adequate and qualified staff to carry out the area plan described in
             2704      Subsection (1)(d);
             2705          (g) establish rules not contrary to policies of the board and rules of the division,
             2706      regulating local services and facilities;
             2707          (h) operate other services and programs funded by sources other than those
             2708      administered by the division;
             2709          (i) establish mechanisms to provide direct citizen input, including an area agency
             2710      advisory council with a majority of members who are eligible for services from the area
             2711      agency;
             2712          (j) establish fee schedules; and
             2713          (k) comply with the requirements and procedures of:
             2714          (i) Title 11, Chapter 13, Interlocal Cooperation Act; and
             2715          (ii) Title 51, Chapter 2a, Accounting Reports from Political Subdivisions, Interlocal
             2716      Organizations, and Other Local Entities Act.
             2717          (2) Before disbursing any public funds, an area agency shall require that all entities
             2718      receiving any public funds agree in writing that:
             2719          (a) the division may examine the entity's program and financial records; and
             2720          (b) the auditor of the local area agency may examine and audit the entity's program and
             2721      financial records, if requested by the local area agency.
             2722          (3) An area agency on aging may not disburse public funds to a personal care attendant



Text Box

- 89 -
             2723
     as payment for personal services rendered to an aged person or high risk adult, except as
             2724      provided in Section 62A-3-104.3 .
             2725          (4) (a) For the purpose of providing services pursuant to this part, a local area agency
             2726      may receive:
             2727          (i) property;
             2728          (ii) grants;
             2729          (iii) gifts;
             2730          (iv) supplies;
             2731          (v) materials;
             2732          (vi) any benefit derived from the items described in Subsections (4)(a)(i) through (v);
             2733      and
             2734          (vii) contributions.
             2735          (b) If a gift is conditioned upon the gift's use for a specified service or program, the gift
             2736      shall be used for the specific service or program.
             2737          (5) (a) Area agencies shall award all public funds in compliance with:
             2738          (i) the requirements of Title 63G, Chapter [6] 6a, Utah Procurement Code; or
             2739          (ii) a county procurement ordinance that requires procurement procedures similar to
             2740      those described in Subsection (5)(a)(i).
             2741          (b) (i) If all initial bids on a project are rejected, the area agency shall publish a new
             2742      invitation to bid.
             2743          (ii) If no satisfactory bid is received by the area agency described in Subsection
             2744      (5)(b)(i), when the bids received from the second invitation are opened the area agency may
             2745      execute a contract without requiring competitive bidding.
             2746          (c) (i) An area agency need not comply with the procurement provisions of this section
             2747      when it disburses public funds to another governmental entity.
             2748          (ii) For purposes of this Subsection (5)(c), "governmental entity" means any political
             2749      subdivision or institution of higher education of the state.
             2750          (d) (i) Contracts awarded by an area agency shall be for a:
             2751          (A) fixed amount; and
             2752          (B) limited period.
             2753          (ii) The contracts described in Subsection (5)(d)(i) may be modified due to changes in



Text Box

- 90 -
             2754
     available funding for the same contract purpose without competition.
             2755          (6) Local area agencies shall comply with:
             2756          (a) applicable state and federal:
             2757          (i) statutes;
             2758          (ii) policies; and
             2759          (iii) audit requirements; and
             2760          (b) directives resulting from an audit described in Subsection (6)(a)(iii).
             2761          Section 57. Section 62A-14-109 is amended to read:
             2762           62A-14-109. Contract for services.
             2763          (1) In accordance with Title 63G, Chapter [6] 6a, Utah Procurement Code, the office
             2764      may contract with one or more providers to perform guardian and conservator duties.
             2765          (2) The office shall review and monitor the services provided by a contract provider to
             2766      a ward for whom the office has been appointed guardian or conservator.
             2767          Section 58. Section 63A-5-205 is amended to read:
             2768           63A-5-205. Contracting powers of director -- Retainage -- Health insurance
             2769      coverage.
             2770          (1) As used in this section:
             2771          (a) "Capital developments" has the same meaning as provided in Section 63A-5-104 .
             2772          (b) "Capital improvements" has the same meaning as provided in Section 63A-5-104 .
             2773          (c) "Employee" means an "employee," "worker," or "operative" as defined in Section
             2774      34A-2-104 who:
             2775          (i) works at least 30 hours per calendar week; and
             2776          (ii) meets employer eligibility waiting requirements for health care insurance which
             2777      may not exceed the first day of the calendar month following 90 days from the date of hire.
             2778          (d) "Health benefit plan" has the same meaning as provided in Section 31A-1-301 .
             2779          (e) "Qualified health insurance coverage" is as defined in Section 26-40-115 .
             2780          (f) "Subcontractor" has the same meaning provided for in Section 63A-5-208 .
             2781          (2) In accordance with Title 63G, Chapter [6] 6a, Utah Procurement Code, the director
             2782      may:
             2783          (a) subject to Subsection (3), enter into contracts for any work or professional services
             2784      which the division or the State Building Board may do or have done; and



Text Box

- 91 -
             2785
         (b) as a condition of any contract for architectural or engineering services, prohibit the
             2786      architect or engineer from retaining a sales or agent engineer for the necessary design work.
             2787          (3) (a) Except as provided in Subsection (3)(b), this Subsection (3) applies to all design
             2788      or construction contracts entered into by the division or the State Building Board on or after
             2789      July 1, 2009, and:
             2790          (i) applies to a prime contractor if the prime contract is in the amount of $1,500,000 or
             2791      greater; and
             2792          (ii) applies to a subcontractor if the subcontract is in the amount of $750,000 or greater.
             2793          (b) This Subsection (3) does not apply:
             2794          (i) if the application of this Subsection (3) jeopardizes the receipt of federal funds;
             2795          (ii) if the contract is a sole source contract;
             2796          (iii) if the contract is an emergency procurement; or
             2797          (iv) to a change order as defined in Section [ 63G-6-103 ] 63G-6a-103 , or a modification
             2798      to a contract, when the contract does not meet the threshold required by Subsection (3)(a).
             2799          (c) A person who intentionally uses change orders or contract modifications to
             2800      circumvent the requirements of Subsection (3)(a) is guilty of an infraction.
             2801          (d) (i) A contractor subject to Subsection (3)(a) shall demonstrate to the director that
             2802      the contractor has and will maintain an offer of qualified health insurance coverage for the
             2803      contractor's employees and the employees' dependents.
             2804          (ii) If a subcontractor of the contractor is subject to Subsection (3)(a), the contractor
             2805      shall demonstrate to the director that the subcontractor has and will maintain an offer of
             2806      qualified health insurance coverage for the subcontractor's employees and the employees'
             2807      dependents.
             2808          (e) (i) (A) A contractor who fails to meet the requirements of Subsection (3)(d)(i)
             2809      during the duration of the contract is subject to penalties in accordance with administrative
             2810      rules adopted by the division under Subsection (3)(f).
             2811          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
             2812      requirements of Subsection (3)(d)(ii).
             2813          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (3)(d)(ii)
             2814      during the duration of the contract is subject to penalties in accordance with administrative
             2815      rules adopted by the division under Subsection (3)(f).



Text Box

- 92 -
             2816
         (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
             2817      requirements of Subsection (3)(d)(i).
             2818          (f) The division shall adopt administrative rules:
             2819          (i) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             2820          (ii) in coordination with:
             2821          (A) the Department of Environmental Quality in accordance with Section 19-1-206 ;
             2822          (B) the Department of Natural Resources in accordance with Section 79-2-404 ;
             2823          (C) a public transit district in accordance with Section 17B-2a-818.5 ;
             2824          (D) the State Capitol Preservation Board in accordance with Section 63C-9-403 ;
             2825          (E) the Department of Transportation in accordance with Section 72-6-107.5 ; and
             2826          (F) the Legislature's Administrative Rules Review Committee; and
             2827          (iii) which establish:
             2828          (A) the requirements and procedures a contractor must follow to demonstrate to the
             2829      director compliance with this Subsection (3) which shall include:
             2830          (I) that a contractor will not have to demonstrate compliance with Subsection (3)(d)(i)
             2831      or (ii) more than twice in any 12-month period; and
             2832          (II) that the actuarially equivalent determination required for the qualified health
             2833      insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
             2834      department or division with a written statement of actuarial equivalency from either:
             2835          (Aa) the Utah Insurance Department;
             2836          (Bb) an actuary selected by the contractor or the contractor's insurer; or
             2837          (Cc) an underwriter who is responsible for developing the employer group's premium
             2838      rates;
             2839          (B) the penalties that may be imposed if a contractor or subcontractor intentionally
             2840      violates the provisions of this Subsection (3), which may include:
             2841          (I) a three-month suspension of the contractor or subcontractor from entering into
             2842      future contracts with the state upon the first violation;
             2843          (II) a six-month suspension of the contractor or subcontractor from entering into future
             2844      contracts with the state upon the second violation;
             2845          (III) an action for debarment of the contractor or subcontractor in accordance with
             2846      Section [ 63G-6-804 ] 63G-6a-904 upon the third or subsequent violation; and



Text Box

- 93 -
             2847
         (IV) monetary penalties which may not exceed 50% of the amount necessary to
             2848      purchase qualified health insurance coverage for an employee and the dependents of an
             2849      employee of the contractor or subcontractor who was not offered qualified health insurance
             2850      coverage during the duration of the contract; and
             2851          (C) a website on which the department shall post the benchmark for the qualified
             2852      health insurance coverage identified in Subsection (1)(e).
             2853          (g) (i) In addition to the penalties imposed under Subsection (3)(f)(iii), a contractor or
             2854      subcontractor who intentionally violates the provisions of this section shall be liable to the
             2855      employee for health care costs that would have been covered by qualified health insurance
             2856      coverage.
             2857          (ii) An employer has an affirmative defense to a cause of action under Subsection
             2858      (3)(g)(i) if:
             2859          (A) the employer relied in good faith on a written statement of actuarial equivalency
             2860      provided by:
             2861          (I) an actuary; or
             2862          (II) an underwriter who is responsible for developing the employer group's premium
             2863      rates; or
             2864          (B) the department determines that compliance with this section is not required under
             2865      the provisions of Subsection (3)(b).
             2866          (iii) An employee has a private right of action only against the employee's employer to
             2867      enforce the provisions of this Subsection (3)(g).
             2868          (h) Any penalties imposed and collected under this section shall be deposited into the
             2869      Medicaid Restricted Account created by Section 26-18-402 .
             2870          (i) The failure of a contractor or subcontractor to provide qualified health insurance
             2871      coverage as required by this section:
             2872          (i) may not be the basis for a protest or other action from a prospective bidder, offeror,
             2873      or contractor under Section [ 63G-6-801 ] 63G-6a-1603 or any other provision in Title 63G,
             2874      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code; and
             2875          (ii) may not be used by the procurement entity or a prospective bidder, offeror, or
             2876      contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
             2877      or construction.



Text Box

- 94 -
             2878
         (4) The judgment of the director as to the responsibility and qualifications of a bidder
             2879      is conclusive, except in case of fraud or bad faith.
             2880          (5) The division shall make all payments to the contractor for completed work in
             2881      accordance with the contract and pay the interest specified in the contract on any payments that
             2882      are late.
             2883          (6) If any payment on a contract with a private contractor to do work for the division or
             2884      the State Building Board is retained or withheld, it shall be retained or withheld and released as
             2885      provided in Section 13-8-5 .
             2886          Section 59. Section 63A-5-208 is amended to read:
             2887           63A-5-208. Definitions -- Certain public construction bids to list subcontractors --
             2888      Changing subcontractors -- Bidders as subcontractors -- Dispute resolution process --
             2889      Penalties.
             2890          (1) As used in this section:
             2891          (a) "First-tier subcontractor" means a subcontractor who contracts directly with the
             2892      prime contractor.
             2893          (b) "Subcontractor" means any person or entity under contract with a contractor or
             2894      another subcontractor to provide services or labor for the construction, installation, or repair of
             2895      an improvement to real property.
             2896          (c) "Subcontractor" includes a trade contractor or specialty contractor.
             2897          (d) "Subcontractor" does not include suppliers who provide only materials, equipment,
             2898      or supplies to a contractor or subcontractor.
             2899          (2) The director shall apply the provisions of this section to achieve fair and
             2900      competitive bidding and to discourage bid-shopping by contractors.
             2901          (3) (a) (i) (A) On each public construction project, the director shall require the
             2902      apparent lowest three bidders to submit a list of their first-tier subcontractors indicating each
             2903      subcontractor's name, bid amount, and other information required by rule.
             2904          (B) Other bidders who are not one of the apparent lowest three bidders may also
             2905      submit a list of their first-tier subcontractors containing the information required by this
             2906      Subsection (3).
             2907          (C) The director may not consider any bid submitted by a bidder if the bidder fails to
             2908      submit a subcontractor list meeting the requirements of this section.



Text Box

- 95 -
             2909
         (ii) On projects where the contractor's total bid is less than $500,000, subcontractors
             2910      whose bid is less than $20,000 need not be listed.
             2911          (iii) On projects where the contractor's total bid is $500,000 or more, subcontractors
             2912      whose bid is less than $35,000 need not be listed.
             2913          (b) (i) The bidders shall submit this list within 24 hours after the bid opening time, not
             2914      including Saturdays, Sundays, and state holidays.
             2915          (ii) This list does not limit the director's right to authorize a change in the listing of any
             2916      subcontractor.
             2917          (c) The bidders shall verify that all subcontractors listed as part of their bids are
             2918      licensed as required by state law.
             2919          (d) Twenty-four hours after the bid opening, the contractor may change the contractor's
             2920      subcontractors only after:
             2921          (i) receiving permission from the director; and
             2922          (ii) establishing that:
             2923          (A) the change is in the best interest of the state; and
             2924          (B) the contractor establishes reasons for the change that meet the standards established
             2925      by the State Building Board.
             2926          (e) If the director approves any changes in subcontractors that result in a net lower
             2927      contract price for subcontracted work, the total of the prime contract may be reduced to reflect
             2928      the changes.
             2929          (4) (a) A bidder may list himself as a subcontractor when the bidder is currently
             2930      licensed to perform the portion of the work for which the bidder lists himself as a subcontractor
             2931      and:
             2932          (i) the bidder intends to perform the work of a subcontractor himself; or
             2933          (ii) the bidder intends to obtain a subcontractor to perform the work at a later date
             2934      because the bidder was unable to:
             2935          (A) obtain a bid from a qualified subcontractor; or
             2936          (B) obtain a bid from a qualified subcontractor at a cost that the bidder considers to be
             2937      reasonable.
             2938          (b) (i) When the bidder intends to perform the work of a subcontractor himself, the
             2939      director may, by written request, require that the bidder provide the director with information



Text Box

- 96 -
             2940
     indicating the bidder's:
             2941          (A) previous experience in the type of work to be performed; and
             2942          (B) qualifications for performing the work.
             2943          (ii) The bidder must respond in writing within five business days of receiving the
             2944      director's written request.
             2945          (iii) If the bidder's submitted information causes the director to reasonably believe that
             2946      self-performance of the portion of the work by the bidder is likely to yield a substandard
             2947      finished product, the director shall:
             2948          (A) require the bidder to use a subcontractor for the portion of the work in question and
             2949      obtain the subcontractor bid under the supervision of the director; or
             2950          (B) reject the bidder's bid.
             2951          (c) (i) When the bidder intends to obtain a subcontractor to perform the work at a later
             2952      date, the bidder shall provide documentation with the subcontractor list describing:
             2953          (A) the bidder's efforts to obtain a bid of a qualified subcontractor at a reasonable cost;
             2954      and
             2955          (B) why the bidder was unable to obtain a qualified subcontractor bid.
             2956          (ii) If the bidder who intends to obtain a subcontractor to perform the work at a later
             2957      date is awarded a contract, the director shall supervise the bidder's efforts to obtain a qualified
             2958      subcontractor bid.
             2959          (iii) The director may not adjust the amount of the contract awarded in order to reflect
             2960      the actual amount of the subcontractor's bid.
             2961          (5) The division may not disclose any subcontractor bid amounts obtained under this
             2962      section until the division has awarded the project to a contractor.
             2963          (6) (a) The director shall, in consultation with the State Building Board, prepare draft
             2964      rules establishing a process for resolving disputes involved with contracts under the division's
             2965      procurement authority.
             2966          (b) The draft rules shall be presented to the Government Operations Interim Committee
             2967      for review, comment, and recommendations before August 31, 2004.
             2968          (c) The director shall consider, and the rules may include:
             2969          (i) requirements regarding preliminary resolution efforts between the parties directly
             2970      involved with the dispute;



Text Box

- 97 -
             2971
         (ii) requirements for the filing of claims, including notification, timeframes, and
             2972      documentation;
             2973          (iii) identification of the types of costs eligible for allocation and a method for
             2974      allocating costs among the parties to the dispute;
             2975          (iv) required time periods, not to exceed 60 days, for the resolution of the claim;
             2976          (v) provision for an independent hearing officer, panel, or arbitrator to extend the time
             2977      period for resolution of the claim by not to exceed 60 additional days for good cause;
             2978          (vi) provision for the extension of required time periods if the claimant agrees;
             2979          (vii) requirements that decisions be issued in writing;
             2980          (viii) provisions for administrative appeals of the decision;
             2981          (ix) provisions for the timely payment of claims after resolution of the dispute,
             2982      including any appeals;
             2983          (x) a requirement that the final determination resulting from the dispute resolution
             2984      process provided for in the rules is a final agency action subject to judicial review as provided
             2985      in Sections 63G-4-401 and 63G-4-402 ;
             2986          (xi) a requirement that a claim or dispute that does not include a monetary claim
             2987      against the division or its agents is not limited to the dispute resolution process provided for in
             2988      this Subsection (6);
             2989          (xii) requirements for claims and disputes to be eligible for this dispute resolution
             2990      process;
             2991          (xiii) the use of an independent hearing officer, panel, arbitration, or mediation; and
             2992          (xiv) the circumstances under which a subcontractor may file a claim directly with the
             2993      division.
             2994          (d) Persons pursuing claims under the process required by this Subsection (6):
             2995          (i) are bound by the decision reached under this process unless the decision is properly
             2996      appealed; and
             2997          (ii) may not pursue claims or disputes under the dispute resolution process established
             2998      in Sections [ 63G-6-805 through 63G-6-814 ] 63G-6a-1602 through 63G-6a-1802 .
             2999          (7) In addition to all other reasons allowed by law or rule, the director may reject all
             3000      bids if none of the bidders whose bid is within the budget of the project submit a subcontractor
             3001      list that meets the requirements of this section.



Text Box

- 98 -
             3002
         (8) Any violation of this section, or any fraudulent misrepresentation by a contractor,
             3003      subcontractor, or supplier, may be grounds for:
             3004          (a) the contractor, subcontractor, or supplier to be suspended or debarred by the
             3005      director; or
             3006          (b) the contractor or subcontractor to be disciplined by the Division of Professional and
             3007      Occupational Licensing.
             3008          Section 60. Section 63A-5-302 is amended to read:
             3009           63A-5-302. Leasing responsibilities of the director.
             3010          (1) The director shall:
             3011          (a) lease, in the name of the division, all real property space to be occupied by an
             3012      agency;
             3013          (b) in leasing space, comply with:
             3014          (i) Title 63G, Chapter [6] 6a, Utah Procurement Code; and
             3015          (ii) any legislative mandates contained in the appropriations act or other specific
             3016      legislation;
             3017          (c) apply the criteria contained in Subsection (1)(e) to prepare a report evaluating each
             3018      high-cost lease at least 12 months before it expires;
             3019          (d) evaluate each lease under the division's control and apply the criteria contained in
             3020      Subsection (1)(e), when appropriate, to evaluate those leases;
             3021          (e) in evaluating leases:
             3022          (i) determine whether or not the lease is cost-effective when the needs of the agency to
             3023      be housed in the leased facilities are considered;
             3024          (ii) determine whether or not another option such as construction, use of other
             3025      state-owned space, or a lease-purchase agreement is more cost-effective than leasing;
             3026          (iii) determine whether or not the significant lease terms are cost-effective and provide
             3027      the state with sufficient flexibility and protection from liability;
             3028          (iv) compare the proposed lease payments to the current market rates, and evaluate
             3029      whether or not the proposed lease payments are reasonable under current market conditions;
             3030          (v) compare proposed significant lease terms to the current market, and recommend
             3031      whether or not these proposed terms are reasonable under current market conditions; and
             3032          (vi) if applicable, recommend that the lease or modification to a lease be approved or



Text Box

- 99 -
             3033
     disapproved;
             3034          (f) based upon the evaluation, include in the report recommendations that identify
             3035      viable alternatives to:
             3036          (i) make the lease cost-effective; or
             3037          (ii) meet the agency's needs when the lease expires; and
             3038          (g) upon request, provide the information included in the report to:
             3039          (i) the agency benefitted by the lease; and
             3040          (ii) the Office of Legislative Fiscal Analyst.
             3041          (2) The director may:
             3042          (a) subject to legislative appropriation, enter into facility leases with terms of up to 10
             3043      years when the length of the lease's term is economically advantageous to the state; and
             3044          (b) with the approval of the State Building Board and subject to legislative
             3045      appropriation, enter into facility leases with terms of more than 10 years when the length of the
             3046      lease's term is economically advantageous to the state.
             3047          Section 61. Section 63B-2-102 is amended to read:
             3048           63B-2-102. Maximum amount -- Projects authorized.
             3049          (1) The total amount of bonds issued under this part may not exceed $80,000,000.
             3050          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3051      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3052      Subsection (2).
             3053          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3054      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3055      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3056      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3057      covered by construction of the projects plus a period of six months after the end of the
             3058      construction period and all related engineering, architectural, and legal fees.
             3059          (c) For the division, proceeds shall be provided for the following:
             3060        CAPITAL IMPROVEMENTS    
             3061        1   Alterations, Repairs, and Improvements   $8,413,900  
             3062        TOTAL IMPROVEMENTS   $8,413,900  
             3063        CAPITAL FACILITIES CONSTRUCTION  

Text Box

- 100 -
             3064
      

PROJECT
PRIORITY  


    PROJECT
    DESCRIPTION  




AMOUNT
FUNDED  
ESTIMATED
OPERATIONS
AND
MAINTENANCE
COSTS  
             3065        1   Corrections - Northern Utah
Community Corrections Center Phase II  
$2,729,700   $158,000  
             3066        2   University of Utah
Marriot Library Phase II  
$10,200,000   $881,600  
             3067        3   Ogden Courts Building Phase II   $12,096,000   $340,000  
             3068        4   Utah National Guard -
Southeast Utah Armory Phase II  
$397,800   $70,500  
             3069        5   Southern Utah University
Library Phase II  
$7,004,400   $427,000  
             3070        6   Utah Valley Special Events
Center Phase II  
$11,845,300   $536,900  
             3071        7   Salt Lake Community College - Land   $1,300,000   $0  
             3072        8   Tax Commission Building   $14,224,000   $812,000  
             3073        9   Dixie College Business Building   $2,823,300   $187,800  
             3074        10   Salt Lake Community College
South City 3rd Floor and Boiler  
$4,009,500   $257,600  
             3075        11   Public Education -
Deaf and Blind Classrooms  
$3,456,100   $124,800  
             3076          TOTAL CONSTRUCTION   $70,086,100    
             3077          TOTAL IMPROVEMENTS AND     
    CONSTRUCTION  
$78,500,000    
             3078          (d) For purposes of this section, operations and maintenance costs:
             3079          (i) are estimates only;



Text Box

- 101 -
             3080
         (ii) may include any operations and maintenance costs already funded in existing
             3081      agency budgets; and
             3082          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3083      operations and maintenance costs.
             3084          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3085      constitute a limitation on the amount that may be expended for any project.
             3086          (b) The board may revise these estimates and redistribute the amount estimated for a
             3087      project among the projects authorized.
             3088          (c) The commission, by resolution and in consultation with the board, may delete one
             3089      or more projects from this list if the inclusion of that project or those projects in the list could
             3090      be construed to violate state law or federal law or regulation.
             3091          (4) (a) The division may enter into agreements related to these projects before the
             3092      receipt of proceeds of bonds issued under this chapter.
             3093          (b) The division shall make those expenditures from unexpended and unencumbered
             3094      building funds already appropriated to the Capital Projects Fund.
             3095          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3096      of bonds issued under this chapter.
             3097          (d) The commission may, by resolution, make any statement of intent relating to that
             3098      reimbursement that is necessary or desirable to comply with federal tax law.
             3099          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3100      it is the intent of the Legislature that the balance necessary to complete the projects be
             3101      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3102      of bonds.
             3103          (b) For those phased projects, the division may enter into contracts for amounts not to
             3104      exceed the anticipated full project funding but may not allow work to be performed on those
             3105      contracts in excess of the funding already authorized by the Legislature.
             3106          (c) Those contracts shall contain a provision for termination of the contract for the
             3107      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3108          (d) It is also the intent of the Legislature that this authorization to the division does not
             3109      bind future Legislatures to fund projects initiated from this authorization.
             3110          Section 62. Section 63B-3-102 is amended to read:



Text Box

- 102 -
             3111
          63B-3-102. Maximum amount -- Projects authorized.
             3112          (1) The total amount of bonds issued under this part may not exceed $64,600,000.
             3113          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3114      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3115      Subsection (2).
             3116          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3117      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3118      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3119      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3120      covered by construction of the projects plus a period of six months after the end of the
             3121      construction period and all related engineering, architectural, and legal fees.
             3122          (c) For the division, proceeds shall be provided for the following:
             3123        CAPITAL IMPROVEMENTS  
             3124        1   Alterations, Repairs, and Improvements  
$5,000,000        
 
             3125        TOTAL IMPROVEMENTS  
$5,000,000
 
             3126        CAPITAL AND ECONOMIC DEVELOPMENT  
             3127       

PRIORITY
PROJECT  


PROJECT
DESCRIPTION  


AMOUNT
FUNDED  

ESTIMATED
OPERATIONS
AND
MAINTENANCE
COSTS  
             3128        1   University of Utah
Marriott Library Phase III (Final)  
$13,811,500   $881,600  
             3129        2   Bridgerland Applied Technology Center
Utah State University Space  
$2,400,000  
$0  
             3130        3   Weber State University -
Heat Plant  
$2,332,100   $9,600  

Text Box

- 103 -
             3131
      
4   Department of Human Services -
Division of Youth Corrections renamed
in 2003 to the Division of Juvenile
Justice Services  
$4,180,000   $400,000  
             3132        5   Snow College - Administrative
Services/Student Center  
$3,885,100   $224,500  
             3133        6   Ogden Weber Applied Technology
Center - Metal Trades Building Design
and Equipment Purchase  
$750,000   $0  
             3134        7   Department of Corrections B-Block
Remodel  
$1,237,100   $72,000  
             3135        8   Utah State University - Old Main Phase
III Design  
$550,000   $0  
             3136        9   Department of Corrections - 144 bed
Uintah Expansion  
$6,700,000   $168,800  
             3137        10   Southern Utah University
Administrative Services/Student Center  
$5,630,400   $314,200  
             3138        11   Anasazi Museum   $760,200   $8,500  
             3139        12   Hill Air Force Base - Easements
Purchase  
$9,500,000   $0  
             3140        13   Signetics Building Remodel   $2,000,000   $0  
             3141        14   Antelope Island Visitors Center   $750,000   $30,000  
             3142        15   State Fair Park - Master Study   $150,000   $0  
             3143        16   Utah National Guard - Draper Land   $380,800   $0  
             3144        17   Davis Applied Technology Center -
Design  
$325,000   $0  
             3145        18   Palisade State Park - Land and Park
Development  
$800,000   $0  

Text Box

- 104 -
             3146
      
19   Department of Human Services - Cedar
City Land  
$80,000   $0  
             3147        20   Department of Human Services -
Clearfield Land  
$163,400   $0  
             3148        21   Electronic technology, equipment, and
hardware  
$2,500,000   $0  
             3149        TOTAL CAPITAL AND ECONOMIC DEVELOPMENT        $58,885,600  
             3150        TOTAL IMPROVEMENTS AND CAPITAL
AND ECONOMIC DEVELOPMENT                $63,885,600  
             3151          (d) For purposes of this section, operations and maintenance costs:
             3152          (i) are estimates only;
             3153          (ii) may include any operations and maintenance costs already funded in existing
             3154      agency budgets; and
             3155          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3156      operations and maintenance costs.
             3157          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3158      constitute a limitation on the amount that may be expended for any project.
             3159          (b) The board may revise these estimates and redistribute the amount estimated for a
             3160      project among the projects authorized.
             3161          (c) The commission, by resolution and in consultation with the board, may delete one
             3162      or more projects from this list if the inclusion of that project or those projects in the list could
             3163      be construed to violate state law or federal law or regulation.
             3164          (4) (a) The division may enter into agreements related to these projects before the
             3165      receipt of proceeds of bonds issued under this chapter.
             3166          (b) The division shall make those expenditures from unexpended and unencumbered
             3167      building funds already appropriated to the Capital Projects Fund.
             3168          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3169      of bonds issued under this chapter.
             3170          (d) The commission may, by resolution, make any statement of intent relating to that
             3171      reimbursement that is necessary or desirable to comply with federal tax law.



Text Box

- 105 -
             3172
         (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3173      it is the intent of the Legislature that the balance necessary to complete the projects be
             3174      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3175      of bonds.
             3176          (b) For those phased projects, the division may enter into contracts for amounts not to
             3177      exceed the anticipated full project funding but may not allow work to be performed on those
             3178      contracts in excess of the funding already authorized by the Legislature.
             3179          (c) Those contracts shall contain a provision for termination of the contract for the
             3180      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3181          (d) It is also the intent of the Legislature that this authorization to the division does not
             3182      bind future Legislatures to fund projects initiated from this authorization.
             3183          Section 63. Section 63B-4-102 is amended to read:
             3184           63B-4-102. Maximum amount -- Projects authorized.
             3185          (1) The total amount of bonds issued under this part may not exceed $45,300,000.
             3186          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3187      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3188      Subsection (2).
             3189          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3190      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3191      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3192      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3193      covered by construction of the projects plus a period of six months after the end of the
             3194      construction period, and all related engineering, architectural, and legal fees.
             3195          (c) For the division, proceeds shall be provided for the following:
             3196        CAPITAL IMPROVEMENTS  
             3197          Alterations, Repairs, and Improvements   $7,200,000  
             3198            TOTAL IMPROVEMENTS   $7,200,000  
             3199        CAPITAL AND ECONOMIC DEVELOPMENT  

Text Box

- 106 -
             3200
      
 

    PROJECT
    DESCRIPTION  


AMOUNT
FUNDED  

ESTIMATED
OPERATIONS
AND
MAINTENANCE
COSTS  
             3201          Corrections - Uinta IVA   $11,300,000   $212,800  
             3202          Utah County Youth Correctional Facility   $6,650,000   $245,000  
             3203          Ogden Weber Applied Technology Center -
Metal Trades  
$5,161,000   $176,000  
             3204          Project Reserve Fund       $3,500,000   None  
             3205          Weber State University - Browning Center
Remodel  
$3,300,000   None  
             3206          Heber Wells Building Remodel   $2,000,000   None  
             3207          Higher Education Davis County - Land Purchase   $1,600,000   None  
             3208          National Guard -- Provo Armory   $1,500,000   $128,000  
             3209          Department of Natural Resources - Pioneer
Trails Visitor Center  
$900,000   $65,000  
             3210          Higher Education Design Projects   $800,000   Varies depending
upon projects
selected  
             3211          Salt Lake Community College - South Valley
Planning  
$300,000   None  
             3212          Division of Youth Corrections renamed in 2003
to the Division of Juvenile Justice Services -
Logan Land Purchase  
$120,000   None  
             3213        TOTAL CAPITAL AND ECONOMIC DEVELOPMENT   $37,131,000  
             3214        TOTAL IMPROVEMENTS AND CAPITAL AND ECONOMIC
DEVELOPMENT  
$44,331,000  
             3215          (d) For purposes of this section, operations and maintenance costs:
             3216          (i) are estimates only;



Text Box

- 107 -
             3217
         (ii) may include any operations and maintenance costs already funded in existing
             3218      agency budgets; and
             3219          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3220      operations and maintenance costs.
             3221          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3222      constitute a limitation on the amount that may be expended for any project.
             3223          (b) The board may revise these estimates and redistribute the amount estimated for a
             3224      project among the projects authorized.
             3225          (c) The commission, by resolution and in consultation with the board, may delete one
             3226      or more projects from this list if the inclusion of that project or those projects in the list could
             3227      be construed to violate state law or federal law or regulation.
             3228          (4) (a) The division may enter into agreements related to these projects before the
             3229      receipt of proceeds of bonds issued under this chapter.
             3230          (b) The division shall make those expenditures from unexpended and unencumbered
             3231      building funds already appropriated to the Capital Projects Fund.
             3232          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3233      of bonds issued under this chapter.
             3234          (d) The commission may, by resolution, make any statement of intent relating to that
             3235      reimbursement that is necessary or desirable to comply with federal tax law.
             3236          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3237      it is the intent of the Legislature that the balance necessary to complete the projects be
             3238      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3239      of bonds.
             3240          (b) For those phased projects, the division may enter into contracts for amounts not to
             3241      exceed the anticipated full project funding but may not allow work to be performed on those
             3242      contracts in excess of the funding already authorized by the Legislature.
             3243          (c) Those contracts shall contain a provision for termination of the contract for the
             3244      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3245          (d) It is also the intent of the Legislature that this authorization to the division does not
             3246      bind future Legislatures to fund projects initiated from this authorization.
             3247          Section 64. Section 63B-5-102 is amended to read:



Text Box

- 108 -
             3248
          63B-5-102. Maximum amount -- Projects authorized.
             3249          (1) The total amount of bonds issued under this part may not exceed $32,000,000.
             3250          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3251      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3252      Subsection (2).
             3253          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3254      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3255      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3256      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3257      covered by construction of the projects plus a period of six months after the end of the
             3258      construction period, and all related engineering, architectural, and legal fees.
             3259          (c) For the division, proceeds shall be provided for the following:
             3260        CAPITAL IMPROVEMENTS  
             3261          Alterations, Repairs, and Improvements   $7,600,000  
             3262            TOTAL IMPROVEMENTS   $7,600,000  
             3263          CAPITAL AND ECONOMIC DEVELOPMENT  
             3264         

PROJECT DESCRIPTION  


AMOUNT
FUNDED  

ESTIMATED
OPERATIONS
AND
MAINTENANCE
COSTS  
             3265          Corrections - Gunnison (192 Beds)   $13,970,000   $210,000  
             3266          University of Utah -- Gardner Hall   $7,361,000   $203,900  
             3267          Weber State University Davis Campus -- Land
Purchase  
$771,000   None  
             3268          Department of Workforce Services Cedar City
-- Land Purchase  
$148,000   None  
             3269          College of Eastern Utah Durrant School --
Land Purchase  
$400,000   None  
             3270          State Hospital - Forensic Design (200 beds)   $750,000   $575,000  

Text Box

- 109 -
             3271
      
TOTAL CAPITAL AND ECONOMIC
DEVELOPMENT  
$23,400,000    
             3272        TOTAL IMPROVEMENTS AND CAPITAL AND
ECONOMIC DEVELOPMENT  
$31,000,000    
             3273          (d) For purposes of this section, operations and maintenance costs:
             3274          (i) are estimates only;
             3275          (ii) may include any operations and maintenance costs already funded in existing
             3276      agency budgets; and
             3277          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3278      operations and maintenance costs.
             3279          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3280      constitute a limitation on the amount that may be expended for any project.
             3281          (b) The board may revise these estimates and redistribute the amount estimated for a
             3282      project among the projects authorized.
             3283          (c) The commission, by resolution and in consultation with the board, may delete one
             3284      or more projects from this list if the inclusion of that project or those projects in the list could
             3285      be construed to violate state law or federal law or regulation.
             3286          (4) (a) The division may enter into agreements related to these projects before the
             3287      receipt of proceeds of bonds issued under this chapter.
             3288          (b) The division shall make those expenditures from unexpended and unencumbered
             3289      building funds already appropriated to the Capital Projects Fund.
             3290          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3291      of bonds issued under this chapter.
             3292          (d) The commission may, by resolution, make any statement of intent relating to that
             3293      reimbursement that is necessary or desirable to comply with federal tax law.
             3294          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3295      it is the intent of the Legislature that the balance necessary to complete the projects be
             3296      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3297      of bonds.
             3298          (b) For those phased projects, the division may enter into contracts for amounts not to
             3299      exceed the anticipated full project funding but may not allow work to be performed on those



Text Box

- 110 -
             3300
     contracts in excess of the funding already authorized by the Legislature.
             3301          (c) Those contracts shall contain a provision for termination of the contract for the
             3302      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3303          (d) It is also the intent of the Legislature that this authorization to the division does not
             3304      bind future Legislatures to fund projects initiated from this authorization.
             3305          Section 65. Section 63B-6-102 is amended to read:
             3306           63B-6-102. Maximum amount -- Projects authorized.
             3307          (1) The total amount of bonds issued under this part may not exceed $57,000,000.
             3308          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3309      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3310      Subsection (2).
             3311          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3312      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3313      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3314      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3315      covered by construction of the projects plus a period of six months after the end of the
             3316      construction period, and all related engineering, architectural, and legal fees.
             3317          (c) For the division, proceeds shall be provided for the following:
             3318        CAPITAL AND ECONOMIC DEVELOPMENT  
             3319       

PROJECT DESCRIPTION  


AMOUNT
FUNDED  

ESTIMATED
OPERATIONS
AND
MAINTENANCE  
             3320        Youth Corrections - Carbon / Emery (18 beds)   $2,298,100   $70,000  
             3321        State Hospital - 100 bed Forensic Facility   $13,800,700   $320,600  
             3322        Utah State University - Widtsoe Hall   $23,986,700   $750,200  
             3323        Davis Applied Technology Center - Medical/Health
Tech Addition  
$6,344,900   $144,000  
             3324        Southern Utah University -- Physical Education
Building (Design)  
$1,100,000   $456,100  

Text Box

- 111 -
             3325
      
Salt Lake Community College -- High Technology
Building, 90th So. Campus (Design)  
$1,165,000   $718,500  
             3326        Department of Natural Resources - Antelope Island
Road  
$3,600,000   None  
             3327        Youth Corrections - Region 1 72 Secured Bed
Facility  
$1,500,000   None  
             3328        Department of Natural Resources - Dead Horse
Point Visitors Center  
$1,350,000   $5,700  
             3329        TOTAL CAPITAL AND ECONOMIC
DEVELOPMENT  
$55,145,400    
             3330          (d) For purposes of this section, operations and maintenance costs:
             3331          (i) are estimates only;
             3332          (ii) may include any operations and maintenance costs already funded in existing
             3333      agency budgets; and
             3334          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3335      operations and maintenance costs.
             3336          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3337      constitute a limitation on the amount that may be expended for any project.
             3338          (b) The board may revise these estimates and redistribute the amount estimated for a
             3339      project among the projects authorized.
             3340          (c) The commission, by resolution and in consultation with the board, may delete one
             3341      or more projects from this list if the inclusion of that project or those projects in the list could
             3342      be construed to violate state law or federal law or regulation.
             3343          (4) (a) The division may enter into agreements related to these projects before the
             3344      receipt of proceeds of bonds issued under this chapter.
             3345          (b) The division shall make those expenditures from unexpended and unencumbered
             3346      building funds already appropriated to the Capital Projects Fund.
             3347          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3348      of bonds issued under this chapter.
             3349          (d) The commission may, by resolution, make any statement of intent relating to that



Text Box

- 112 -
             3350
     reimbursement that is necessary or desirable to comply with federal tax law.
             3351          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3352      it is the intent of the Legislature that the balance necessary to complete the projects be
             3353      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3354      of bonds.
             3355          (b) For those phased projects, the division may enter into contracts for amounts not to
             3356      exceed the anticipated full project funding but may not allow work to be performed on those
             3357      contracts in excess of the funding already authorized by the Legislature.
             3358          (c) Those contracts shall contain a provision for termination of the contract for the
             3359      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3360          (d) It is also the intent of the Legislature that this authorization to the division does not
             3361      bind future Legislatures to fund projects initiated from this authorization.
             3362          Section 66. Section 63B-6-402 is amended to read:
             3363           63B-6-402. Maximum amount -- Projects authorized.
             3364          (1) The total amount of bonds issued under this part may not exceed $9,000,000.
             3365          (2) (a) Proceeds from the issuance of bonds shall be provided to the State Tax
             3366      Commission to provide funds to pay all or part of the cost of the project described in this
             3367      Subsection (2).
             3368          (b) These costs may include:
             3369          (i) the cost of acquisition, development, and conversion of computer hardware and
             3370      software for motor vehicle fee systems and tax collection and accounting systems of the state;
             3371          (ii) interest estimated to accrue on these bonds during the period to be covered by that
             3372      development and conversion, plus a period of six months following the completion of the
             3373      development and conversion; and
             3374          (iii) all related engineering, consulting, and legal fees.
             3375          (c) For the State Tax Commission, proceeds shall be provided for the following:
             3376          PROJECT
DESCRIPTION  
AMOUNT
FUNDED  
             3377          UTAX SYSTEMS ACQUISITION AND
DEVELOPMENT  
$8,500,000  
             3378          (3) The commission, by resolution may decline to issue bonds if the project could be



Text Box

- 113 -
             3379
     construed to violate state law or federal law or regulation.
             3380          (4) (a) For this project, for which only partial funding is provided in Subsection (2), it
             3381      is the intent of the Legislature that the balance necessary to complete the project be addressed
             3382      by future Legislatures, either through appropriations or through the issuance or sale of bonds.
             3383          (b) The State Tax Commission may enter into contracts for amounts not to exceed the
             3384      anticipated full project funding but may not allow work to be performed on those contracts in
             3385      excess of the funding already authorized by the Legislature.
             3386          (c) Those contracts shall contain a provision for termination of the contract for the
             3387      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3388          (d) It is also the intent of the Legislature that this authorization to the State Tax
             3389      Commission does not bind future Legislatures to fund projects initiated from this authorization.
             3390          Section 67. Section 63B-7-102 is amended to read:
             3391           63B-7-102. Maximum amount -- Projects authorized.
             3392          (1) The total amount of bonds issued under this part may not exceed $33,600,000.
             3393          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3394      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3395      Subsection (2).
             3396          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3397      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3398      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3399      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3400      covered by construction of the projects plus a period of six months after the end of the
             3401      construction period, and all related engineering, architectural, and legal fees.
             3402          (c) For the division, proceeds shall be provided for the following:
             3403       

PROJECT
DESCRIPTION  


AMOUNT
FUNDED  

ESTIMATED
OPERATIONS
AND
MAINTENANCE  
             3404        Southern Utah University Land Purchase   $4,600,000   $0  
             3405        Salt Lake Community College High Tech Center
- Jordan Campus  
$3,980,700   $507,900  

Text Box

- 114 -
             3406
      
Children's Special Health Care Needs Clinic   $755,400   $247,600  
             3407        Youth Corrections - 2 @ 32 beds
(Vernal / Logan)  
$419,500   $276,000  
             3408        Corrections - Gunnison 288 bed and Lagoon
Expansion  
$8,425,600   $0  
             3409        University of Utah - Cowles Building   $445,500   $101,700  
             3410        Utah Valley State College - Technical Building   $1,166,300   $391,000  
             3411        Sevier Valley Applied Technology Center - Shop
Expansion  
$3,014,300   $443,300  
             3412        Division of Parks and Recreation Statewide
Restrooms  
$1,000,000   $22,700  
             3413        Murray Highway Patrol Office   $2,300,000   $81,000  
             3414        Department of Workforce Services - Davis
County Employment Center  
$2,780,000   $128,100  
             3415        State Hospital - Rampton II   $1,600,000   $462,000  
             3416        Courts - 4th District Land - Provo   $1,368,000   $0  
             3417        Dixie College - Land   $1,000,000   $0  
             3418        TOTAL CAPITAL AND ECONOMIC
DEVELOPMENT  
$32,855,300    
             3419          (d) For purposes of this section, operations and maintenance costs:
             3420          (i) are estimates only;
             3421          (ii) may include any operations and maintenance costs already funded in existing
             3422      agency budgets; and
             3423          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3424      operations and maintenance costs.
             3425          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3426      constitute a limitation on the amount that may be expended for any project.
             3427          (b) The board may revise these estimates and redistribute the amount estimated for a
             3428      project among the projects authorized.
             3429          (c) The commission, by resolution and in consultation with the board, may delete one



Text Box

- 115 -
             3430
     or more projects from this list if the inclusion of that project or those projects in the list could
             3431      be construed to violate state law or federal law or regulation.
             3432          (4) (a) The division may enter into agreements related to these projects before the
             3433      receipt of proceeds of bonds issued under this chapter.
             3434          (b) The division shall make those expenditures from unexpended and unencumbered
             3435      building funds already appropriated to the Capital Projects Fund.
             3436          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3437      of bonds issued under this chapter.
             3438          (d) The commission may, by resolution, make any statement of intent relating to that
             3439      reimbursement that is necessary or desirable to comply with federal tax law.
             3440          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3441      it is the intent of the Legislature that the balance necessary to complete the projects be
             3442      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3443      of bonds.
             3444          (b) For those phased projects, the division may enter into contracts for amounts not to
             3445      exceed the anticipated full project funding but may not allow work to be performed on those
             3446      contracts in excess of the funding already authorized by the Legislature.
             3447          (c) Those contracts shall contain a provision for termination of the contract for the
             3448      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3449          (d) It is also the intent of the Legislature that this authorization to the division does not
             3450      bind future Legislatures to fund projects initiated from this authorization.
             3451          Section 68. Section 63B-7-402 is amended to read:
             3452           63B-7-402. Maximum amount -- Projects authorized.
             3453          (1) The total amount of bonds issued under this part may not exceed $16,500,000.
             3454          (2) (a) Proceeds from the issuance of bonds shall be provided to the State Tax
             3455      Commission to provide funds to pay all or part of the cost of the project described in this
             3456      Subsection (2).
             3457          (b) These costs may include:
             3458          (i) the cost of acquisition, development, and conversion of computer hardware and
             3459      software for motor vehicle fee systems and tax collection and accounting systems of the state;
             3460          (ii) interest estimated to accrue on these bonds during the period to be covered by that



Text Box

- 116 -
             3461
     development and conversion, plus a period of six months following the completion of the
             3462      development and conversion; and
             3463          (iii) all related engineering, consulting, and legal fees.
             3464          (c) For the State Tax Commission, proceeds shall be provided for the following:
             3465          PROJECT
DESCRIPTION  
AMOUNT
FUNDED  
             3466          UTAX SYSTEMS ACQUISITION AND
DEVELOPMENT  
$15,650,000  
             3467          (3) The commission, by resolution may decline to issue bonds if the project could be
             3468      construed to violate state law or federal law or regulation.
             3469          (4) (a) For this project, for which only partial funding is provided in Subsection (2), it
             3470      is the intent of the Legislature that the balance necessary to complete the project be addressed
             3471      by future Legislatures, either through appropriations or through the issuance or sale of bonds.
             3472          (b) The State Tax Commission may enter into contracts for amounts not to exceed the
             3473      anticipated full project funding but may not allow work to be performed on those contracts in
             3474      excess of the funding already authorized by the Legislature.
             3475          (c) Those contracts shall contain a provision for termination of the contract for the
             3476      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3477          (d) It is also the intent of the Legislature that this authorization to the State Tax
             3478      Commission does not bind future Legislatures to fund projects initiated from this authorization.
             3479          Section 69. Section 63B-8-102 is amended to read:
             3480           63B-8-102. Maximum amount -- Projects authorized.
             3481          (1) The total amount of bonds issued under this part may not exceed $48,500,000.
             3482          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3483      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3484      Subsection (2).
             3485          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3486      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3487      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3488      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3489      covered by construction of the projects plus a period of six months after the end of the



Text Box

- 117 -
             3490
     construction period, and all related engineering, architectural, and legal fees.
             3491          (c) For the division, proceeds shall be provided for the following:
             3492       

PROJECT
DESCRIPTION  


AMOUNT
FUNDED  

ESTIMATED
OPERATIONS
AND
MAINTENANCE  
             3493        Southern Utah University - Physical Education
Building  
$2,493,200   $447,744  
             3494        Utah Valley State College - Information Sciences
Building  
$29,000,000   $721,875  
             3495        University of Utah - Cowles Building Renovation   $7,268,500   $140,217  
             3496        Vernal District Court   $4,539,500   $149,989  
             3497        Salt Lake Community College - Applied Education
Center  
$4,200,000   $281,784  
             3498        TOTAL CAPITAL AND ECONOMIC
DEVELOPMENT  
$47,501,200    
             3499          (d) For purposes of this section, operations and maintenance costs:
             3500          (i) are estimates only;
             3501          (ii) may include any operations and maintenance costs already funded in existing
             3502      agency budgets; and
             3503          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3504      operations and maintenance costs.
             3505          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3506      constitute a limitation on the amount that may be expended for any project.
             3507          (b) The board may revise these estimates and redistribute the amount estimated for a
             3508      project among the projects authorized.
             3509          (c) The commission, by resolution and in consultation with the board, may delete one
             3510      or more projects from this list if the inclusion of that project or those projects in the list could
             3511      be construed to violate state law or federal law or regulation.
             3512          (4) (a) The division may enter into agreements related to these projects before the



Text Box

- 118 -
             3513
     receipt of proceeds of bonds issued under this chapter.
             3514          (b) The division shall make those expenditures from unexpended and unencumbered
             3515      building funds already appropriated to the Capital Projects Fund.
             3516          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3517      of bonds issued under this chapter.
             3518          (d) The commission may, by resolution, make any statement of intent relating to that
             3519      reimbursement that is necessary or desirable to comply with federal tax law.
             3520          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3521      it is the intent of the Legislature that the balance necessary to complete the projects be
             3522      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3523      of bonds.
             3524          (b) For those phased projects, the division may enter into contracts for amounts not to
             3525      exceed the anticipated full project funding but may not allow work to be performed on those
             3526      contracts in excess of the funding already authorized by the Legislature.
             3527          (c) Those contracts shall contain a provision for termination of the contract for the
             3528      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3529          (d) It is also the intent of the Legislature that this authorization to the division does not
             3530      bind future Legislatures to fund projects initiated from this authorization.
             3531          Section 70. Section 63B-8-402 is amended to read:
             3532           63B-8-402. Maximum amount -- Projects authorized.
             3533          (1) The total amount of bonds issued under this part may not exceed $7,400,000.
             3534          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3535      funds to pay all or part of the cost of acquiring and constructing the project listed in this
             3536      Subsection (2).
             3537          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3538      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3539      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3540      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3541      covered by construction of the projects plus a period of six months after the end of the
             3542      construction period, and all related engineering, architectural, and legal fees.
             3543          (c) For the division, proceeds shall be provided for the following:



Text Box

- 119 -
             3544         

PROJECT
DESCRIPTION  


AMOUNT
FUNDED  

ESTIMATED
OPERATIONS
AND
MAINTENANCE  
             3545          State Hospital - Rampton II       $7,000,000   $462,000  
             3546          (d) For purposes of this section, operations and maintenance costs:
             3547          (i) are estimates only;
             3548          (ii) may include any operations and maintenance costs already funded in existing
             3549      agency budgets; and
             3550          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3551      operations and maintenance costs.
             3552          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3553      constitute a limitation on the amount that may be expended for any project.
             3554          (b) The board may revise these estimates and redistribute the amount estimated for a
             3555      project among the projects authorized.
             3556          (c) The commission, by resolution and in consultation with the board, may delete one
             3557      or more projects from this list if the inclusion of that project or those projects in the list could
             3558      be construed to violate state law or federal law or regulation.
             3559          (4) (a) The division may enter into agreements related to these projects before the
             3560      receipt of proceeds of bonds issued under this chapter.
             3561          (b) The division shall make those expenditures from unexpended and unencumbered
             3562      building funds already appropriated to the Capital Projects Fund.
             3563          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3564      of bonds issued under this chapter.
             3565          (d) The commission may, by resolution, make any statement of intent relating to that
             3566      reimbursement that is necessary or desirable to comply with federal tax law.
             3567          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3568      it is the intent of the Legislature that the balance necessary to complete the projects be
             3569      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3570      of bonds.
             3571          (b) For those phased projects, the division may enter into contracts for amounts not to



Text Box

- 120 -
             3572
     exceed the anticipated full project funding but may not allow work to be performed on those
             3573      contracts in excess of the funding already authorized by the Legislature.
             3574          (c) Those contracts shall contain a provision for termination of the contract for the
             3575      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3576          (d) It is also the intent of the Legislature that this authorization to the division does not
             3577      bind future Legislatures to fund projects initiated from this authorization.
             3578          Section 71. Section 63B-9-103 is amended to read:
             3579           63B-9-103. Other capital facility authorizations and intent language.
             3580          (1) It is the intent of the Legislature that:
             3581          (a) Utah State University use institutional funds to plan, design, and construct a
             3582      renovation and expansion of the Edith Bowen School under the direction of the director of the
             3583      Division of Facilities Construction and Management unless supervisory authority has been
             3584      delegated;
             3585          (b) no state funds be used for any portion of this project; and
             3586          (c) the university may request state funds for operations and maintenance to the extent
             3587      that the university is able to demonstrate to the Board of Regents that the facility meets
             3588      approved academic and training purposes under Board of Regents policy R710.
             3589          (2) It is the intent of the Legislature that:
             3590          (a) the University of Utah use institutional funds to plan, design, and construct a
             3591      College of Science Math Center under the direction of the director of the Division of Facilities
             3592      Construction and Management unless supervisory authority has been delegated;
             3593          (b) no state funds be used for any portion of this project; and
             3594          (c) the university may request state funds for operations and maintenance to the extent
             3595      that the university is able to demonstrate to the Board of Regents that the facility meets
             3596      approved academic and training purposes under Board of Regents policy R710.
             3597          (3) It is the intent of the Legislature that:
             3598          (a) the University of Utah use institutional funds to plan, design, and construct a
             3599      Burbidge Athletics and Academics Building under the direction of the director of the Division
             3600      of Facilities Construction and Management unless supervisory authority has been delegated;
             3601          (b) no state funds be used for any portion of this project; and
             3602          (c) the university may not request state funds for operations and maintenance.



Text Box

- 121 -
             3603
         (4) It is the intent of the Legislature that:
             3604          (a) the University of Utah use institutional funds to plan, design, and construct an
             3605      expansion to the bookstore under the direction of the director of the Division of Facilities
             3606      Construction and Management unless supervisory authority has been delegated;
             3607          (b) no state funds be used for any portion of this project; and
             3608          (c) the university may not request state funds for operations and maintenance.
             3609          (5) It is the intent of the Legislature that:
             3610          (a) the University of Utah use institutional funds to plan, design, and construct a Health
             3611      Sciences/Basic Sciences Building under the direction of the director of the Division of
             3612      Facilities Construction and Management unless supervisory authority has been delegated;
             3613          (b) no state funds be used for any portion of this project; and
             3614          (c) the university may request state funds for operations and maintenance to the extent
             3615      that the university is able to demonstrate to the Board of Regents that the facility meets
             3616      approved academic and training purposes under Board of Regents policy R710.
             3617          (6) It is the intent of the Legislature that:
             3618          (a) Weber State University use institutional funds to plan, design, and construct an
             3619      expansion to the stadium under the direction of the director of the Division of Facilities
             3620      Construction and Management unless supervisory authority has been delegated;
             3621          (b) no state funds be used for any portion of this project; and
             3622          (c) the university may not request state funds for operations and maintenance.
             3623          (7) It is the intent of the Legislature that:
             3624          (a) Utah Valley State College use institutional funds to plan, design, and construct a
             3625      baseball stadium under the direction of the director of the Division of Facilities Construction
             3626      and Management unless supervisory authority has been delegated;
             3627          (b) no state funds be used for any portion of this project; and
             3628          (c) the college may not request state funds for operations and maintenance.
             3629          (8) It is the intent of the Legislature that:
             3630          (a) Southern Utah University use institutional funds to plan, design, and construct a
             3631      weight training room under the direction of the director of the Division of Facilities
             3632      Construction and Management unless supervisory authority has been delegated;
             3633          (b) no state funds be used for any portion of this project; and



Text Box

- 122 -
             3634
         (c) the university may not request state funds for operations and maintenance.
             3635          (9) It is the intent of the Legislature that:
             3636          (a) Snow College may lease land at the Snow College Richfield campus to a private
             3637      developer for the construction and operation of student housing;
             3638          (b) the oversight and inspection of the construction comply with Section 63A-5-206 ;
             3639          (c) no state funds be used for any portion of this project; and
             3640          (d) the college may not request state funds for operations and maintenance.
             3641          (10) It is the intent of the Legislature that:
             3642          (a) Salt Lake Community College may lease land at the Jordan campus to Jordan
             3643      School District for the construction and operation of an Applied Technology Education Center;
             3644          (b) the oversight and inspection of the construction comply with Section 63A-5-206 ;
             3645          (c) no state funds be used for any portion of this project; and
             3646          (d) the college may not request state funds for operations and maintenance.
             3647          (11) It is the intent of the Legislature that:
             3648          (a) the Department of Transportation exchange its maintenance station at Kimball
             3649      Junction for property located near Highway 40 in Summit County; and
             3650          (b) the Department of Transportation use federal funds, rent paid by the Salt Lake
             3651      Organizing Committee for the use of the maintenance station, and any net proceeds resulting
             3652      from the exchange of property to construct a replacement facility under the direction of the
             3653      director of the Division of Facilities Construction and Management unless supervisory
             3654      authority has been delegated.
             3655          (12) It is the intent of the Legislature that:
             3656          (a) the Department of Transportation sell surplus property in Utah County;
             3657          (b) the Department of Transportation use funds from that sale to remodel existing
             3658      space and add an addition to the Region 3 Complex; and
             3659          (c) the project cost not exceed the funds received through sale of property.
             3660          (13) It is the intent of the Legislature that the Department of Workforce Services use
             3661      proceeds from property sales to purchase additional property adjacent to its state-owned facility
             3662      in Logan.
             3663          (14) (a) It is the intent of the Legislature that, because only partial funding is provided
             3664      for the Heat Plant/Infrastructure Project at Utah State University, the balance necessary to



Text Box

- 123 -
             3665
     complete this project be addressed by future Legislatures, either through appropriations or
             3666      through the issuance of bonds.
             3667          (b) (i) In compliance with Section 63A-5-207 , the division may enter into contracts for
             3668      amounts not to exceed the anticipated full project funding but may not allow work to be
             3669      performed on those contracts in excess of the funding already authorized by the Legislature.
             3670          (ii) Those contracts shall contain a provision for termination of the contract for the
             3671      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3672          (c) It is also the intent of the Legislature that this authorization to the division does not
             3673      bind future Legislatures to fund the Heat Plant/Infrastructure Project at Utah State University.
             3674          Section 72. Section 63B-11-202 is amended to read:
             3675           63B-11-202. Maximum amount -- Projects authorized.
             3676          (1) (a) The total amount of bonds issued under this part may not exceed $21,250,000.
             3677          (b) When Utah State University certifies to the commission that the university has
             3678      obtained reliable commitments, convertible to cash, of $5,000,000 or more in nonstate funds to
             3679      construct an addition to the new engineering building and demolish the existing engineering
             3680      classroom building, the commission may issue and sell general obligation bonds in a total
             3681      amount not to exceed $6,100,000.
             3682          (c) When the University of Utah certifies to the commission that the university has
             3683      obtained reliable commitments, convertible to cash, of $13,000,000 or more in nonstate funds
             3684      to construct a new engineering building, the commission may issue and sell general obligation
             3685      bonds in a total amount not to exceed $15,150,000.
             3686          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3687      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3688      Subsection (2).
             3689          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3690      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3691      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3692      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3693      covered by construction of the projects plus a period of six months after the end of the
             3694      construction period, and all related engineering, architectural, and legal fees.
             3695          (c) For the division, proceeds shall be provided for the following:



Text Box

- 124 -
             3696       

PROJECT
DESCRIPTION  


AMOUNT
FUNDED  

ESTIMATED
OPERATING
AND
MAINTENANCE
COSTS  
             3697        1. Utah State University Engineering Building
Renovation  
$5,943,500   $425,000  
             3698        2. University of Utah New Engineering Building   $15,000,000   $489,000  
             3699        COSTS OF ISSUANCE   $306,500    
             3700        TOTAL CAPITAL AND ECONOMIC DEVELOPMENT   $21,250,000  
             3701          (d) For purposes of this section, operations and maintenance costs:
             3702          (i) are estimates only;
             3703          (ii) may include any operations and maintenance costs already funded in existing
             3704      agency budgets; and
             3705          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3706      operations and maintenance costs.
             3707          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3708      constitute a limitation on the amount that may be expended for any project.
             3709          (b) The board may revise these estimates and redistribute the amount estimated for a
             3710      project among the projects authorized.
             3711          (c) The commission, by resolution and in consultation with the board, may delete one
             3712      or more projects from this list if the inclusion of that project or those projects in the list could
             3713      be construed to violate state law or federal law or regulation.
             3714          (4) (a) The division may enter into agreements related to these projects before the
             3715      receipt of proceeds of bonds issued under this chapter.
             3716          (b) The division shall make those expenditures from unexpended and unencumbered
             3717      building funds already appropriated to the Capital Projects Fund.
             3718          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3719      of bonds issued under this chapter.
             3720          (d) The commission may, by resolution, make any statement of intent relating to that



Text Box

- 125 -
             3721
     reimbursement that is necessary or desirable to comply with federal tax law.
             3722          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3723      it is the intent of the Legislature that the balance necessary to complete the projects be
             3724      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3725      of bonds.
             3726          (b) For those phased projects, the division may enter into contracts for amounts not to
             3727      exceed the anticipated full project funding but may not allow work to be performed on those
             3728      contracts in excess of the funding already authorized by the Legislature.
             3729          (c) Those contracts shall contain a provision for termination of the contract for the
             3730      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3731          (d) It is also the intent of the Legislature that this authorization to the division does not
             3732      bind future Legislatures to fund projects initiated from this authorization.
             3733          Section 73. Section 63C-7-210 is amended to read:
             3734           63C-7-210. Exemption from certain acts.
             3735          (1) The Utah Communications Agency Network is exempt from:
             3736          (a) Title 63J, Chapter 1, Budgetary Procedures Act;
             3737          (b) Title 63A, Utah Administrative Services Code, except as provided in Section
             3738      63A-4-205.5 ;
             3739          (c) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             3740          (d) Title 63G, Chapter 4, Administrative Procedures Act; and
             3741          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
             3742          (2) The board shall adopt budgetary procedures, accounting, procurement, and
             3743      personnel policies substantially similar to those from which they have been exempted in
             3744      Subsection (1).
             3745          Section 74. Section 63C-9-301 is amended to read:
             3746           63C-9-301. Board powers -- Subcommittees.
             3747          (1) The board shall:
             3748          (a) except as provided in Subsection (2), exercise complete jurisdiction and
             3749      stewardship over capitol hill facilities, capitol hill grounds, and the capitol hill complex;
             3750          (b) preserve, maintain, and restore the capitol hill complex, capitol hill facilities,
             3751      capitol hill grounds, and their contents;



Text Box

- 126 -
             3752
         (c) before October 1 of each year, review and approve the executive director's annual
             3753      budget request for submittal to the governor and Legislature;
             3754          (d) by October 1 of each year, prepare and submit a recommended budget request for
             3755      the upcoming fiscal year for the capitol hill complex to:
             3756          (i) the governor, through the Governor's Office of Planning and Budget; and
             3757          (ii) the Legislature's appropriations subcommittee responsible for capitol hill facilities,
             3758      through the Office of Legislative Fiscal Analyst;
             3759          (e) review and approve the executive director's:
             3760          (i) annual work plan;
             3761          (ii) long-range master plan for the capitol hill complex, capitol hill facilities, and
             3762      capitol hill grounds; and
             3763          (iii) furnishings plan for placement and care of objects under the care of the board;
             3764          (f) approve all changes to the buildings and their grounds, including:
             3765          (i) restoration, remodeling, and rehabilitation projects;
             3766          (ii) usual maintenance program; and
             3767          (iii) any transfers or loans of objects under the board's care;
             3768          (g) define and identify all significant aspects of the capitol hill complex, capitol hill
             3769      facilities, and capitol hill grounds, after consultation with the:
             3770          (i) Division of Facilities Construction and Management;
             3771          (ii) State Library Division;
             3772          (iii) Division of Archives and Records Service;
             3773          (iv) Division of State History;
             3774          (v) Office of Museum Services; and
             3775          (vi) Arts Council;
             3776          (h) inventory, define, and identify all significant contents of the buildings and all
             3777      state-owned items of historical significance that were at one time in the buildings, after
             3778      consultation with the:
             3779          (i) Division of Facilities Construction and Management;
             3780          (ii) State Library Division;
             3781          (iii) Division of Archives and Records Service;
             3782          (iv) Division of State History;



Text Box

- 127 -
             3783
         (v) Office of Museum Services; and
             3784          (vi) Arts Council;
             3785          (i) maintain archives relating to the construction and development of the buildings, the
             3786      contents of the buildings and their grounds, including documents such as plans, specifications,
             3787      photographs, purchase orders, and other related documents, the original copies of which shall
             3788      be maintained by the Division of Archives and Records Service;
             3789          (j) comply with federal and state laws related to program and facility accessibility; and
             3790          (k) establish procedures for receiving, hearing, and deciding complaints or other issues
             3791      raised about the capitol hill complex, capitol hill facilities, and capitol hill grounds, or their
             3792      use.
             3793          (2) (a) Notwithstanding Subsection (1)(a), the supervision and control of the legislative
             3794      area, as defined in Section 36-5-1 , is reserved to the Legislature; and
             3795          (b) the supervision and control of the governor's area, as defined in Section 67-1-16 , is
             3796      reserved to the governor.
             3797          (3) (a) The board shall make rules to govern, administer, and regulate the capitol hill
             3798      complex, capitol hill facilities, and capitol hill grounds by following the procedures and
             3799      requirements of Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             3800          (b) A person who violates a rule adopted by the board under the authority of this
             3801      Subsection (3) is subject to a civil penalty not to exceed $2,500 for each violation, plus the
             3802      amount of any actual damages, expenses, and costs related to the violation of the rule that are
             3803      incurred by the state.
             3804          (c) The board may take any other legal action allowed by law.
             3805          (d) If any violation of a rule adopted by the board is also an offense under Title 76,
             3806      Utah Criminal Code, the violation is subject to the civil penalty, damages, expenses, and costs
             3807      allowed under this Subsection (3) in addition to any criminal prosecution.
             3808          (e) The board may not apply this section or rules adopted under the authority of this
             3809      section in a manner that violates a person's rights under the Utah Constitution or the First
             3810      Amendment to the United States Constitution, including the right of persons to peaceably
             3811      assemble.
             3812          (f) The board shall send proposed rules under this section to the legislative general
             3813      counsel and the governor's general counsel for review and comment before the board adopts the



Text Box

- 128 -
             3814
     rules.
             3815          (4) The board is exempt from the requirements of Title 63G, Chapter [6] 6a, Utah
             3816      Procurement Code, but shall adopt procurement rules substantially similar to the requirements
             3817      of that chapter.
             3818          (5) (a) The board may:
             3819          (i) establish subcommittees made up of board members and members of the public to
             3820      assist and support the executive director in accomplishing the executive director's duties;
             3821          (ii) establish fees for the use of capitol hill facilities and capitol hill grounds;
             3822          (iii) assign and allocate specific duties and responsibilities to any other state agency, if
             3823      the other agency agrees to perform the duty or accept the responsibility;
             3824          (iv) contract with another state agency to provide services;
             3825          (v) delegate by specific motion of the board any authority granted to it by this section
             3826      to the executive director;
             3827          (vi) in conjunction with Salt Lake City, expend money to improve or maintain public
             3828      property contiguous to East Capitol Boulevard and capitol hill;
             3829          (vii) provide wireless Internet service to the public without a fee in any capitol hill
             3830      facility; and
             3831          (viii) when necessary, consult with the:
             3832          (A) Division of Facilities Construction and Management;
             3833          (B) State Library Division;
             3834          (C) Division of Archives and Records Service;
             3835          (D) Division of State History;
             3836          (E) Office of Museum Services; and
             3837          (F) Arts Council.
             3838          (b) The board's provision of wireless Internet service under Subsection (5)(a)(vii) shall
             3839      be discontinued in the legislative area if the president of the Senate and the speaker of the
             3840      House of Representatives each submit a signed letter to the board indicating that the service is
             3841      disruptive to the legislative process and is to be discontinued.
             3842          (c) If a budget subcommittee is established by the board, the following shall serve as ex
             3843      officio, nonvoting members of the budget subcommittee:
             3844          (i) the legislative fiscal analyst, or the analyst's designee, who shall be from the Office



Text Box

- 129 -
             3845
     of Legislative Fiscal Analyst; and
             3846          (ii) the director of the Governor's Office of Planning and Budget, or the director's
             3847      designee, who shall be from the Governor's Office of Planning and Budget.
             3848          (d) If a preservation and maintenance subcommittee is established by the board, the
             3849      board may, by majority vote, appoint one or each of the following to serve on the
             3850      subcommittee as voting members of the subcommittee:
             3851          (i) an architect, who shall be selected from a list of three architects submitted by the
             3852      American Institute of Architects; or
             3853          (ii) an engineer, who shall be selected from a list of three engineers submitted by the
             3854      American Civil Engineers Council.
             3855          (e) If the board establishes any subcommittees, the board may, by majority vote,
             3856      appoint up to two people who are not members of the board to serve, at the will of the board, as
             3857      nonvoting members of a subcommittee.
             3858          (f) Members of each subcommittee shall, at the first meeting of each calendar year,
             3859      select one individual to act as chair of the subcommittee for a one-year term.
             3860          (6) (a) The board, and the employees of the board, may not move the office of the
             3861      governor, lieutenant governor, president of the Senate, speaker of the House of
             3862      Representatives, or a member of the Legislature from the State Capitol unless the removal is
             3863      approved by:
             3864          (i) the governor, in the case of the governor's office;
             3865          (ii) the lieutenant governor, in the case of the lieutenant governor's office;
             3866          (iii) the president of the Senate, in the case of the president's office or the office of a
             3867      member of the Senate; or
             3868          (iv) the speaker of the House of Representatives, in the case of the speaker's office or
             3869      the office of a member of the House.
             3870          (b) The board and the employees of the board have no control over the furniture,
             3871      furnishings, and decorative objects in the offices of the governor, lieutenant governor, or the
             3872      members of the Legislature except as necessary to inventory or conserve items of historical
             3873      significance owned by the state.
             3874          (c) The board and the employees of the board have no control over records and
             3875      documents produced by or in the custody of a state agency, official, or employee having an



Text Box

- 130 -
             3876
     office in a building on the capitol hill complex.
             3877          (d) Except for items identified by the board as having historical significance, and
             3878      except as provided in Subsection (6)(b), the board and the employees of the board have no
             3879      control over moveable furnishings and equipment in the custody of a state agency, official, or
             3880      employee having an office in a building on the capitol hill complex.
             3881          Section 75. Section 63C-9-403 is amended to read:
             3882           63C-9-403. Contracting power of executive director -- Health insurance coverage.
             3883          (1) For purposes of this section:
             3884          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
             3885      34A-2-104 who:
             3886          (i) works at least 30 hours per calendar week; and
             3887          (ii) meets employer eligibility waiting requirements for health care insurance which
             3888      may not exceed the first of the calendar month following 90 days from the date of hire.
             3889          (b) "Health benefit plan" has the same meaning as provided in Section 31A-1-301 .
             3890          (c) "Qualified health insurance coverage" is as defined in Section 26-40-115 .
             3891          (d) "Subcontractor" has the same meaning provided for in Section 63A-5-208 .
             3892          (2) (a) Except as provided in Subsection (3), this section applies to a design or
             3893      construction contract entered into by the board or on behalf of the board on or after July 1,
             3894      2009, and to a prime contractor or a subcontractor in accordance with Subsection (2)(b).
             3895          (b) (i) A prime contractor is subject to this section if the prime contract is in the
             3896      amount of $1,500,000 or greater.
             3897          (ii) A subcontractor is subject to this section if a subcontract is in the amount of
             3898      $750,000 or greater.
             3899          (3) This section does not apply if:
             3900          (a) the application of this section jeopardizes the receipt of federal funds;
             3901          (b) the contract is a sole source contract; or
             3902          (c) the contract is an emergency procurement.
             3903          (4) (a) This section does not apply to a change order as defined in Section [ 63G-6-103 ]
             3904      63G-6a-103 , or a modification to a contract, when the contract does not meet the initial
             3905      threshold required by Subsection (2).
             3906          (b) A person who intentionally uses change orders or contract modifications to



Text Box

- 131 -
             3907
     circumvent the requirements of Subsection (2) is guilty of an infraction.
             3908          (5) (a) A contractor subject to Subsection (2) shall demonstrate to the executive
             3909      director that the contractor has and will maintain an offer of qualified health insurance
             3910      coverage for the contractor's employees and the employees' dependents during the duration of
             3911      the contract.
             3912          (b) If a subcontractor of the contractor is subject to Subsection (2)(b), the contractor
             3913      shall demonstrate to the executive director that the subcontractor has and will maintain an offer
             3914      of qualified health insurance coverage for the subcontractor's employees and the employees'
             3915      dependents during the duration of the contract.
             3916          (c) (i) (A) A contractor who fails to meet the requirements of Subsection (5)(a) during
             3917      the duration of the contract is subject to penalties in accordance with administrative rules
             3918      adopted by the division under Subsection (6).
             3919          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
             3920      requirements of Subsection (5)(b).
             3921          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
             3922      the duration of the contract is subject to penalties in accordance with administrative rules
             3923      adopted by the department under Subsection (6).
             3924          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
             3925      requirements of Subsection (5)(a).
             3926          (6) The department shall adopt administrative rules:
             3927          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             3928          (b) in coordination with:
             3929          (i) the Department of Environmental Quality in accordance with Section 19-1-206 ;
             3930          (ii) the Department of Natural Resources in accordance with Section 79-2-404 ;
             3931          (iii) the State Building Board in accordance with Section 63A-5-205 ;
             3932          (iv) a public transit district in accordance with Section 17B-2a-818.5 ;
             3933          (v) the Department of Transportation in accordance with Section 72-6-107.5 ; and
             3934          (vi) the Legislature's Administrative Rules Review Committee; and
             3935          (c) which establish:
             3936          (i) the requirements and procedures a contractor must follow to demonstrate to the
             3937      executive director compliance with this section which shall include:



Text Box

- 132 -
             3938
         (A) that a contractor will not have to demonstrate compliance with Subsection (5)(a) or
             3939      (b) more than twice in any 12-month period; and
             3940          (B) that the actuarially equivalent determination required for the qualified health
             3941      insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
             3942      department or division with a written statement of actuarial equivalency from either:
             3943          (I) the Utah Insurance Department;
             3944          (II) an actuary selected by the contractor or the contractor's insurer; or
             3945          (III) an underwriter who is responsible for developing the employer group's premium
             3946      rates;
             3947          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
             3948      violates the provisions of this section, which may include:
             3949          (A) a three-month suspension of the contractor or subcontractor from entering into
             3950      future contracts with the state upon the first violation;
             3951          (B) a six-month suspension of the contractor or subcontractor from entering into future
             3952      contracts with the state upon the second violation;
             3953          (C) an action for debarment of the contractor or subcontractor in accordance with
             3954      Section [ 63G-6-804 ] 63G-6a-904 upon the third or subsequent violation; and
             3955          (D) monetary penalties which may not exceed 50% of the amount necessary to
             3956      purchase qualified health insurance coverage for employees and dependents of employees of
             3957      the contractor or subcontractor who were not offered qualified health insurance coverage
             3958      during the duration of the contract; and
             3959          (iii) a website on which the department shall post the benchmark for the qualified
             3960      health insurance coverage identified in Subsection (1)(c).
             3961          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c), a contractor or
             3962      subcontractor who intentionally violates the provisions of this section shall be liable to the
             3963      employee for health care costs that would have been covered by qualified health insurance
             3964      coverage.
             3965          (ii) An employer has an affirmative defense to a cause of action under Subsection
             3966      (7)(a)(i) if:
             3967          (A) the employer relied in good faith on a written statement of actuarial equivalency
             3968      provided by:



Text Box

- 133 -
             3969
         (I) an actuary; or
             3970          (II) an underwriter who is responsible for developing the employer group's premium
             3971      rates; or
             3972          (B) the department determines that compliance with this section is not required under
             3973      the provisions of Subsection (3) or (4).
             3974          (b) An employee has a private right of action only against the employee's employer to
             3975      enforce the provisions of this Subsection (7).
             3976          (8) Any penalties imposed and collected under this section shall be deposited into the
             3977      Medicaid Restricted Account created in Section 26-18-402 .
             3978          (9) The failure of a contractor or subcontractor to provide qualified health insurance
             3979      coverage as required by this section:
             3980          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
             3981      or contractor under Section [ 63G-6-801 ] 63G-6a-1603 or any other provision in Title 63G,
             3982      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code; and
             3983          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
             3984      contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
             3985      or construction.
             3986          Section 76. Section 63E-2-109 is amended to read:
             3987           63E-2-109. State statutes.
             3988          (1) Except as specifically modified in its authorizing statute, each independent
             3989      corporation shall be exempt from the statutes governing state agencies, including:
             3990          (a) Title 51, Chapter 5, Funds Consolidation Act;
             3991          (b) Title 51, Chapter 7, State Money Management Act;
             3992          (c) Title 63A, Utah Administrative Services Code;
             3993          (d) Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             3994          (e) Title 63G, Chapter 4, Administrative Procedures Act;
             3995          (f) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             3996          (g) Title 63J, Chapter 1, Budgetary Procedures Act;
             3997          (h) Title 63J, Chapter 2, Revenue Procedures and Control Act; and
             3998          (i) Title 67, Chapter 19, Utah Personnel Management Act.
             3999          (2) Except as specifically modified in its authorizing statute, each independent



Text Box

- 134 -
             4000
     corporation shall be subject to:
             4001          (a) Title 52, Chapter 4, Open and Public Meetings Act; and
             4002          (b) Title 63G, Chapter 2, Government Records Access and Management Act.
             4003          (3) Each independent corporation board may adopt its own policies and procedures
             4004      governing its:
             4005          (a) funds management;
             4006          (b) audits; and
             4007          (c) personnel.
             4008          Section 77. Section 63F-1-205 is amended to read:
             4009           63F-1-205. Approval of acquisitions of information technology.
             4010          (1) (a) Except as provided in Title 63M, Chapter 1, Part 26, Government Procurement
             4011      Private Proposal Program, in accordance with Subsection (2), the chief information officer
             4012      shall approve the acquisition by an executive branch agency of:
             4013          (i) information technology equipment;
             4014          (ii) telecommunications equipment;
             4015          (iii) software;
             4016          (iv) services related to the items listed in Subsections (1)(a)(i) through (iii); and
             4017          (v) data acquisition.
             4018          (b) The chief information officer may negotiate the purchase, lease, or rental of private
             4019      or public information technology or telecommunication services or facilities in accordance with
             4020      this section.
             4021          (c) Where practical, efficient, and economically beneficial, the chief information
             4022      officer shall use existing private and public information technology or telecommunication
             4023      resources.
             4024          (d) Notwithstanding another provision of this section, an acquisition authorized by this
             4025      section shall comply with rules made by the [State Procurement Policy Board] applicable
             4026      rulemaking authority under Title 63G, Chapter [6] 6a, Utah Procurement Code.
             4027          (2) Before negotiating a purchase, lease, or rental under Subsection (1) for an amount
             4028      that exceeds the value established by the chief information officer by rule in accordance with
             4029      Section 63F-1-206 , the chief information officer shall:
             4030          (a) conduct an analysis of the needs of executive branch agencies and subscribers of



Text Box

- 135 -
             4031
     services and the ability of the proposed information technology or telecommunications services
             4032      or supplies to meet those needs; and
             4033          (b) for purchases, leases, or rentals not covered by an existing statewide contract,
             4034      provide in writing to the chief procurement officer in the Division of Purchasing and General
             4035      Services that:
             4036          (i) the analysis required in Subsection (2)(a) was completed; and
             4037          (ii) based on the analysis, the proposed purchase, lease, rental, or master contract of
             4038      services, products, or supplies is practical, efficient, and economically beneficial to the state
             4039      and the executive branch agency or subscriber of services.
             4040          (3) In approving an acquisition described in Subsections (1) and (2), the chief
             4041      information officer shall:
             4042          (a) establish by administrative rule, in accordance with Section 63F-1-206 , standards
             4043      under which an agency must obtain approval from the chief information officer before
             4044      acquiring the items listed in Subsections (1) and (2);
             4045          (b) for those acquisitions requiring approval, determine whether the acquisition is in
             4046      compliance with:
             4047          (i) the executive branch strategic plan;
             4048          (ii) the applicable agency information technology plan;
             4049          (iii) the budget for the executive branch agency or department as adopted by the
             4050      Legislature; and
             4051          (iv) Title 63G, Chapter [6] 6a, Utah Procurement Code; and
             4052          (c) in accordance with Section 63F-1-207 , require coordination of acquisitions between
             4053      two or more executive branch agencies if it is in the best interests of the state.
             4054          (4) (a) Each executive branch agency shall provide the chief information officer with
             4055      complete access to all information technology records, documents, and reports:
             4056          (i) at the request of the chief information officer; and
             4057          (ii) related to the executive branch agency's acquisition of any item listed in Subsection
             4058      (1).
             4059          (b) Beginning July 1, 2006 and in accordance with administrative rules established by
             4060      the department under Section 63F-1-206 , no new technology projects may be initiated by an
             4061      executive branch agency or the department unless the technology project is described in a



Text Box

- 136 -
             4062
     formal project plan and the business case analysis has been approved by the chief information
             4063      officer and agency head. The project plan and business case analysis required by this
             4064      Subsection (4) shall be in the form required by the chief information officer, and shall include:
             4065          (i) a statement of work to be done and existing work to be modified or displaced;
             4066          (ii) total cost of system development and conversion effort, including system analysis
             4067      and programming costs, establishment of master files, testing, documentation, special
             4068      equipment cost and all other costs, including overhead;
             4069          (iii) savings or added operating costs that will result after conversion;
             4070          (iv) other advantages or reasons that justify the work;
             4071          (v) source of funding of the work, including ongoing costs;
             4072          (vi) consistency with budget submissions and planning components of budgets; and
             4073          (vii) whether the work is within the scope of projects or initiatives envisioned when the
             4074      current fiscal year budget was approved.
             4075          (5) (a) The chief information officer and the Division of Purchasing and General
             4076      Services shall work cooperatively to establish procedures under which the chief information
             4077      officer shall monitor and approve acquisitions as provided in this section.
             4078          (b) The procedures established under this section shall include at least the written
             4079      certification required by Subsection [ 63G-6-204 (8)] 63G-6a-303 (5).
             4080          Section 78. Section 63G-6a-101 , which is renumbered from Section 63G-6-101 is
             4081      renumbered and amended to read:
             4082     
CHAPTER 6a. UTAH PROCUREMENT CODE

             4083     
Part 1. General Procurement Provisions

             4084           [63G-6-101].     63G-6a-101. Title.
             4085          (1) This chapter is known as the "Utah Procurement Code."
             4086          (2) This part is known as "General Procurement Provisions."
             4087          Section 79. Section 63G-6a-102 , which is renumbered from Section 63G-6-102 is
             4088      renumbered and amended to read:
             4089           [63G-6-102].     63G-6a-102. Purpose of chapter.
             4090          The underlying purposes and policies of this chapter are:
             4091          (1) to simplify, clarify, and modernize the law governing procurement by this state;
             4092          (2) to ensure the fair and equitable treatment of all persons who deal with the



Text Box

- 137 -
             4093
     procurement system of this state;
             4094          (3) to provide increased economy in state procurement activities; and
             4095          (4) to foster effective broad-based competition within the free enterprise system.
             4096          Section 80. Section 63G-6a-103 , which is renumbered from Section 63G-6-103 is
             4097      renumbered and amended to read:
             4098           [63G-6-103].     63G-6a-103. Definitions.
             4099          As used in this chapter:
             4100          (1) "Appeals board" means:
             4101          (a) the Procurement Appeals Board created under Subsection 63G-6a-1702 (1); or
             4102          (b) a board created under Subsection 63G-6a-1702 (5).
             4103          (2) "Applicable rulemaking authority" means:
             4104          (a) as it relates to the state legislative branch, the Legislative Management Committee,
             4105      except to the extent that the Legislature passes a rule that supercedes or conflicts with a rule
             4106      made by the Legislative Management Committee;
             4107          (b) as it relates to the state judicial branch, the Judicial Council;
             4108          (c) as it relates to a local public procurement unit, other than a local public
             4109      procurement unit described in Subsections (2)(d) through (h), the board; or
             4110          (d) as it relates to a municipality or county that adopts this chapter, the legislative body
             4111      of the municipality or county, not as a delegation of authority from the Legislature, but under
             4112      the municipality's or county's own legislative authority;
             4113          (e) as it relates to a school district or a public school, the Procurement Policy Board,
             4114      except to the extent that a school district makes its own non-administrative rules, with respect
             4115      to a particular subject, that do not conflict with the provisions of this chapter;
             4116          (f) as it relates to a state institution of higher education, the State Board of Regents;
             4117          (g) as it relates to a public transit district organized under Title 17B, Chapter 2a, Part 8,
             4118      Public Transit District Act, the governing board of the public transit district;
             4119          (h) as it relates to a local district or a special service district, the board, except to the
             4120      extent that the local district or special service district enacts its own rules:
             4121          (i) with respect to a subject addressed by board rules; or
             4122          (ii) that are in addition to board rules;
             4123          (i) as it relates to the following entities, but only to the extent that the rules relate to



Text Box

- 138 -
             4124
     procurement authority expressly granted to the entity by statute:
             4125          (i) the State Building Board, created in Section 63A-5-101 ;
             4126          (ii) the Division of Facilities Construction and Management created in Section
             4127      63A-5-201 ;
             4128          (iii) the attorney general's office; or
             4129          (iv) the Department of Transportation, created in Section 72-1-201 ;
             4130          (j) as it relates to the state executive branch and all public procurement units other than
             4131      those described in Subsections (2)(a) through (h), the board; or
             4132          (k) as it relates to an entity described in Subsection (2)(i), except to the extent that the
             4133      rules relate to procurement authority expressly granted to the entity by statute, the board.
             4134          [(1)] (3) "Architect-engineer services" [are those] means:
             4135          (a) professional services within the scope of the practice of architecture as defined in
             4136      Section 58-3a-102 [,] or
             4137          (b) professional engineering as defined in Section 58-22-102 .
             4138          [(2) "Business" means any corporation, partnership, individual, sole proprietorship,
             4139      joint stock company, joint venture, or any other private legal entity.]
             4140          (4) "Bidder" means a person who responds to an invitation for bids.
             4141          (5) "Board" means the Utah State Procurement Policy Board, created in Section
             4142      63G-6a-202 .
             4143          (6) "Building Board" means the State Building Board created in Section 63A-5-101 .
             4144          [(3)] (7) "Change order" means:
             4145          (a) a written order signed by the procurement officer[, directing] that directs the
             4146      contractor to suspend work or make changes, [which the appropriate clauses of the contract
             4147      authorize the procurement officer to order] as authorized by contract, without the consent of the
             4148      contractor; or [any]
             4149          (b) a written alteration in specifications, delivery point, rate of delivery, period of
             4150      performance, price, quantity, or other provisions of [any contract accomplished by mutual
             4151      action] a contract, upon mutual agreement of the parties to the contract.
             4152          (8) "Chief procurement officer" means the chief procurement officer appointed under
             4153      Subsection 63G-6a-302 (1).
             4154          [(4)] (9) (a) "Construction" means the process of building, [renovation, alteration,



Text Box

- 139 -
             4155
     improvement, or repair of any] renovating, altering, improving, or repairing a public building
             4156      or public work.
             4157          (b) "Construction" does not [mean] include the routine operation, routine repair, or
             4158      routine maintenance of an existing [structures, buildings] structure, building, or real property.
             4159          [(5)] (10) (a) "Construction manager/general contractor" means [any] a contractor who
             4160      enters into a contract for the management of a construction project when [that] the contract
             4161      allows the contractor to subcontract for additional labor and materials that [were] are not
             4162      included in the contractor's cost proposal submitted at the time of the procurement of the
             4163      [Construction Manager/General] contractor's services.
             4164          (b) "Construction manager/general contractor" does not [mean] include a contractor
             4165      whose only subcontract work not included in the contractor's cost proposal submitted as part of
             4166      the procurement of [construction] the contractor's services is to meet subcontracted portions of
             4167      change orders approved within the scope of the project.
             4168          [(6)] (11) "Contract" means [any state] an agreement for the procurement or disposal of
             4169      [supplies, services, or construction] a procurement item.
             4170          (12) "Contractor" means a person who is awarded a contract with a public procurement
             4171      unit.
             4172          [(7)] (13) "Cooperative purchasing" means procurement conducted by, or on behalf of,
             4173      more than one public procurement unit, or by a public procurement unit [with] and an external
             4174      procurement unit.
             4175          [(8)] (14) "Cost-reimbursement contract" means a contract under which a contractor is
             4176      reimbursed for costs which are allowed and allocated in accordance with the contract terms and
             4177      the provisions of this chapter, and a fee, if any.
             4178          (15) "Days" means calendar days, unless expressly provided otherwise.
             4179          [(9) (a)] (16) "Design-build" means the procurement of architect-engineer services and
             4180      construction by the use of a single contract with the design-build provider.
             4181          [(b) This method of design and construction can include the design-build provider
             4182      supplying the site as part of the contract.]
             4183          (17) "Director" means the director of the division.
             4184          (18) "Division" means the Division of Purchasing and General Services.
             4185          [(10)] (19) "Established catalogue price" means the price included in a catalogue, price



Text Box

- 140 -
             4186
     list, schedule, or other form that:
             4187          (a) is regularly maintained by a manufacturer or contractor;
             4188          (b) is either published or otherwise available for inspection by customers; and
             4189          (c) states prices at which sales are currently or were last made to a significant number
             4190      of any category of buyers or buyers constituting the general buying public for the supplies or
             4191      services involved.
             4192          [(11) "External procurement unit" means any buying organization not located in this
             4193      state which, if located in this state, would qualify as a public procurement unit. An agency of
             4194      the United States is an external procurement unit.]
             4195          [(12)] (20) (a) "Grant" means [the] furnishing, by [the state] a public entity or by any
             4196      other public or private source [assistance, whether financial or otherwise, to any], financial or
             4197      other assistance to a person to support a program authorized by law. [It]
             4198          (b) "Grant" does not include:
             4199          (i) an award whose primary purpose is to procure an end product[, whether in the form
             4200      of supplies, services, or construction. A contract resulting from the award is not a grant but a
             4201      procurement contract.] or procurement item; or
             4202          (ii) a contract that is awarded as a result of a procurement or a procurement process.
             4203          [(13) "Invitation for bids" means all documents, whether attached or incorporated by
             4204      reference, utilized for soliciting bids.]
             4205          [(14) "Local public procurement unit" means any political subdivision or institution of
             4206      higher education of the state or public agency of any subdivision, public authority, educational,
             4207      health, or other institution, and to the extent provided by law, any other entity which expends
             4208      public funds for the procurement of supplies, services, and construction, but not counties,
             4209      municipalities, political subdivisions created by counties or municipalities under the Interlocal
             4210      Cooperation Act, the Utah Housing Corporation, or the Legislature and its staff offices. It
             4211      includes two or more local public procurement units acting under legislation which authorizes
             4212      intergovernmental cooperation.]
             4213          [(15) "Person" means any business, individual, union, committee, club, other
             4214      organization, or group of individuals, not including a state agency or a local public
             4215      procurement unit.]
             4216          [(16) "Policy board" means the procurement policy board created by Section



Text Box

- 141 -
             4217
     63G-6-201 .]
             4218          (21) "Head of a public procurement unit" means:
             4219          (a) as it relates to the state legislative branch, any person designated by rule made by
             4220      the applicable rulemaking authority;
             4221          (b) as it relates to the state executive branch:
             4222          (i) the director of a division; or
             4223          (ii) any other person designated by the board, by rule;
             4224          (c) as it relates to the state judicial branch:
             4225          (i) the Judicial Council; or
             4226          (ii) any other person designated by the Judicial Council, by rule;
             4227          (d) as it relates to a local public procurement unit, other than a local public
             4228      procurement unit described in Subsections (21)(e) through (i):
             4229          (i) the appointed or elected head of the local public procurement unit; or
             4230          (ii) any other person designated by the board, by rule;
             4231          (e) as it relates to a local public procurement unit that is a municipality or a county:
             4232          (i) the legislative body of the municipality or county; or
             4233          (ii) any other person designated by the municipality or county;
             4234          (f) as it relates to a school district or any school or entity within a school district, the
             4235      board of the school district, or the board's designee;
             4236          (g) as it relates to a charter school, the individual or body with executive authority over
             4237      the charter school, or the individual's or body's designee;
             4238          (h) as it relates to an institution of higher education of the state, the president of the
             4239      institution of higher education, or the president's designee; or
             4240          (i) as it relates to a local district or a special service district, the governing body of the
             4241      local district or special service district.
             4242          (22) "Head of an authorized purchasing entity" means:
             4243          (a) as it relates to the division, the chief procurement officer;
             4244          (b) to the extent that the entities have express statutory authority to engage in a
             4245      procurement without the involvement of the division:
             4246          (i) as it relates to the State Building Board, created in Section 63A-5-101 , the State
             4247      Building Board;



Text Box

- 142 -
             4248
         (ii) as it relates to the Division of Facilities Construction and Management created in
             4249      Section 63A-5-201 , the director of the Division of Facilities Construction and Management;
             4250          (iii) as it relates to the attorney general's office, the attorney general;
             4251          (iv) as it relates to the Department of Transportation, created in Section 72-1-201 , the
             4252      executive director of the Department of Transportation; or
             4253          (v) as it relates to a district court, a person designated by the Judicial Council, by rule;
             4254          (c) as it relates to an institution of higher education of the state, the president of the
             4255      institution of higher education of the state;
             4256          (d) as it relates to a school district, the board of the school district;
             4257          (e) as it relates to a public school, including a local school board, the board of the
             4258      school district;
             4259          (f) as it relates to a charter school, a person designated by the charter school;
             4260          (g) as it relates to a non-executive state procurement unit, a person designated by the
             4261      applicable rulemaking authority; or
             4262          (h) as it relates to a local district or a special service district, the governing body of the
             4263      local district or special service district.
             4264          (23) "Invitation for bids" includes all documents, including documents that are attached
             4265      or incorporated by reference, used for soliciting bids to provide a procurement item to a public
             4266      procurement unit.
             4267          (24) "Multiple award contracts" means the award of a contract for an indefinite
             4268      quantity of a procurement item to more than one bidder or offeror.
             4269          (25) "Multiyear contract" means a contract that extends beyond a one-year period,
             4270      including a contract that permits renewal of the contract, without competition, beyond the first
             4271      year of the contract.
             4272          (26) "Municipality" means a city or a town.
             4273          (27) "Offeror" means a person who responds to a request for proposals.
             4274          [(17)] (28) "Preferred bidder" means a bidder that is entitled to receive a reciprocal
             4275      preference under the requirements of this chapter.
             4276          [(18)] (29) (a) "Procure" or "procurement" means buying, purchasing, renting, leasing,
             4277      leasing with an option to purchase, or otherwise acquiring [any supplies, services, or
             4278      construction. It also] a procurement item.



Text Box

- 143 -
             4279
         (b) "Procure" or "procurement" includes all functions that pertain to the obtaining of
             4280      [any supply, service, or construction] a procurement item, including:
             4281          (i) the description of requirements[,];
             4282          (ii) the selection[, and] process;
             4283          (iii) solicitation of sources[,];
             4284          (iv) the preparation[, and] for soliciting a procurement item;
             4285          (v) the award of a contract[,]; and
             4286          (vi) all phases of contract administration.
             4287          [(19) "Procurement officer" means any person or board duly authorized to enter into
             4288      and administer contracts and make written determinations with respect thereto. It also includes
             4289      an authorized representative acting within the limits of authority.]
             4290          [(20) "Public procurement unit" means either a local public procurement unit or a state
             4291      public procurement unit.]
             4292          [(21) "Purchase description" means the words used in a solicitation to describe the
             4293      supplies, services, or construction to be purchased, and includes specifications attached to or
             4294      made a part of the solicitation.]
             4295          [(22) "Purchasing agency" means any state agency other than the Division of
             4296      Purchasing and General Services that is authorized by this chapter or its implementing
             4297      regulations, or by delegation from the chief procurement officer, to enter into contracts.]
             4298          [(23) "Request for proposals" means all documents, whether attached or incorporated
             4299      by reference, used for soliciting proposals.]
             4300          [(24) "Responsible bidder or offeror" means a person who has the capability in all
             4301      respects to perform fully the contract requirements and who has the integrity and reliability
             4302      which will assure good faith performance.]
             4303          [(25) "Responsive bidder" means a person who has submitted a bid which conforms in
             4304      all material respects to the invitation for bids.]
             4305          (30) "Procurement item" means a supply, a service, construction, or technology.
             4306          (31) "Procurement officer" means:
             4307          (a) as it relates to the state legislative branch, the head of a public procurement unit in
             4308      the legislative branch;
             4309          (b) as it relates to the state judicial branch, the head of a public procurement unit in the



Text Box

- 144 -
             4310
     state judicial branch;
             4311          (c) as it relates to the state executive branch, the chief procurement officer;
             4312          (d) as it relates to a local public procurement unit other than a local public procurement
             4313      unit described in Subsection (31)(e) or (f), the chief procurement officer;
             4314          (e) as it relates to a municipality or county that adopts this chapter, the legislative body
             4315      of the municipality or county; or
             4316          (f) as it relates to a state purchasing unit, the head of the state purchasing unit, or a
             4317      designee of the head of the state purchasing unit.
             4318          (32) "Professional service" means a service that requires a high degree of specialized
             4319      knowledge and discretion in the performance of the service, including:
             4320          (a) legal services;
             4321          (b) consultation services;
             4322          (c) architectural services;
             4323          (d) engineering;
             4324          (e) design;
             4325          (f) underwriting;
             4326          (g) bond counsel;
             4327          (h) financial advice; or
             4328          (i) construction management.
             4329          (33) "Request for information" means a nonbinding process where a public
             4330      procurement unit requests information relating to a procurement item.
             4331          (34) "Request for proposals" includes all documents, including documents that are
             4332      attached or incorporated by reference, used for soliciting proposals to provide a procurement
             4333      item to a public procurement unit.
             4334          (35) "Responsible" means that a bidder or offeror:
             4335          (i) is capable, in all respects, to fully perform the contract requirements solicited in an
             4336      invitation for bids or a request for proposals; and
             4337          (ii) has the integrity and reliability to ensure good faith performance.
             4338          (36) "Responsive" means that a bidder or offeror submits a response to an invitation for
             4339      bids or a request for proposals that conforms in all material respects to the invitation for bids or
             4340      request for proposals.



Text Box

- 145 -
             4341
         [(26)] (37) "Sealed" [does not preclude acceptance of] means manually or
             4342      electronically sealed and submitted bids or proposals [in addition to bids or proposals manually
             4343      sealed and submitted].
             4344          [(27)] (38) (a) "Services" means the furnishing of labor, time, or effort by a contractor,
             4345      not involving the delivery of a specific end product other than [reports which are merely] a
             4346      report that is incidental to the required performance. [It]
             4347          (b) "Services" does not include an employment [agreements] agreement or a collective
             4348      bargaining [agreements] agreement.
             4349          [(28)] (39) "Specification" means any description of the physical or functional
             4350      characteristics, or [of the] nature of a [supply, service, technology, or construction item. It may
             4351      include] procurement item included in an invitation for bids or a request for proposals, or
             4352      otherwise specified or agreed to by a public procurement unit, including a description of [any]:
             4353          (a) a requirement for inspecting[, testing,] or testing a procurement item; or
             4354          (b) preparing a [supply, service, technology, or construction] procurement item for
             4355      delivery.
             4356          [(29) "State agency" or "the state" means any department, division, commission,
             4357      council, board, bureau, committee, institution, government corporation, or other establishment,
             4358      official, or employee of this state.]
             4359          [(30) "State public procurement unit" means the Division of Purchasing and General
             4360      Services and any other purchasing agency of this state.]
             4361          (40) "Standard procurement process" means one of the following methods of obtaining
             4362      a procurement item:
             4363          (a) bidding, as described in Part 6, Bidding;
             4364          (b) request for proposals, as described in Part 7, Request for Proposals; or
             4365          (c) small purchases, in accordance with the requirements established under Section
             4366      63G-6a-408 .
             4367          (41) (a) "Subcontractor" means a person under contract with a contractor or another
             4368      subcontractor to provide services or labor for design or construction.
             4369          (b) "Subcontractor" includes a trade contractor or specialty contractor.
             4370          (c) "Subcontractor" does not include a supplier who provides only materials,
             4371      equipment, or supplies to a contractor or subcontractor.



Text Box

- 146 -
             4372
         [(31)] (42) "Supplies" means all property, including equipment, materials, and printing.
             4373          [(32) "Using agency" means any state agency which utilizes any supplies, services, or
             4374      construction procured under this chapter.]
             4375          (43) "Tie bid" means that the lowest responsive and responsible bids are identical in
             4376      price.
             4377          Section 81. Section 63G-6a-104 is enacted to read:
             4378          63G-6a-104. Definitions of government entities.
             4379          As used in this chapter:
             4380          (1) "Authorized purchasing entity" means:
             4381          (a) a non-executive state procurement unit; or
             4382          (b) a state purchasing unit.
             4383          (2) "External procurement unit" means:
             4384          (a) a buying organization not located in this state which, if located in this state, would
             4385      qualify as a public procurement unit; or
             4386          (b) an agency of the United States.
             4387          (3) "Local government unit" means:
             4388          (a) a county;
             4389          (b) a municipality;
             4390          (c) a political subdivision created by counties or municipalities under Title 11, Chapter
             4391      13, Interlocal Cooperation Act; or
             4392          (d) the Utah Housing Corporation.
             4393          (4) "Local public procurement unit" means:
             4394          (a) a local district, as defined in Section 17B-1-102 ;
             4395          (b) a special service district, as defined in Section 17D-1-102 ;
             4396          (c) a local building authority, as defined in Section 17D-2-102 ;
             4397          (d) a conservation district, as described in Title 17D, Chapter 3, Conservation District
             4398      Act;
             4399          (e) a public corporation, other than the Utah Housing Corporation;
             4400          (f) a community development and renewal agency;
             4401          (g) a school district;
             4402          (h) a public school, including a local school board or a charter school;



Text Box

- 147 -
             4403
         (i) Utah Schools for the Deaf and Blind;
             4404          (j) the Utah Education Network;
             4405          (k) an institution of higher education of the state;
             4406          (l) a county or municipality, and each office or agency of the county or municipality,
             4407      unless the county or municipality adopts its own procurement code by ordinance;
             4408          (m) a county or municipality, and each office or agency of the county or municipality,
             4409      that has adopted this entire chapter by ordinance;
             4410          (n) a county or municipality, and each office or agency of the county or municipality,
             4411      that has adopted a portion of this chapter by ordinance, to the extent that the term is used in the
             4412      adopted portion of this chapter; or
             4413          (o) two or more of the entities described in this Subsection (4), acting under legislation
             4414      that authorizes intergovernmental cooperation.
             4415          (5) "Non-executive state procurement unit" means:
             4416          (a) the state legislative branch;
             4417          (b) a public procurement unit in the state legislative branch;
             4418          (c) the state judicial branch;
             4419          (d) a public procurement unit in the state judicial branch; or
             4420          (e) a public transit district, organized under Title 17B, Chapter 2a, Part 8, Public
             4421      Transit District Act.
             4422          (6) "Public entity" means any state or local government entity, located in Utah,
             4423      including:
             4424          (a) the state legislative branch, including the Legislature and each house, staff office,
             4425      committee, subcommittee, or other part of the state legislative branch;
             4426          (b) the state executive branch, including the governor's office and each department,
             4427      division, agency, office, and bureau in the state executive branch;
             4428          (c) the state judicial branch, including the Utah Supreme Court, the Utah Court of
             4429      Appeals, the Judicial Council, and each court, office, and other part of the state judicial branch;
             4430          (d) a municipality or county, regardless of whether the municipality or county has
             4431      adopted this chapter or any part of this chapter;
             4432          (e) a public procurement unit; and
             4433          (f) any other entity that expends public funds.



Text Box

- 148 -
             4434
         (7) (a) "Public procurement unit" means:
             4435          (i) the Senate;
             4436          (ii) the House of Representatives;
             4437          (iii) a staff office of the state legislative branch;
             4438          (iv) a state executive branch department, division, office, bureau, or agency;
             4439          (v) the Utah State Supreme Court;
             4440          (vi) the Judicial Council;
             4441          (vii) a state judicial district; or
             4442          (viii) a local public procurement unit.
             4443          (b) "Public procurement unit" does not include a political subdivision created by
             4444      counties or municipalities under Title 11, Chapter 13, Interlocal Cooperation Act.
             4445          (8) "State purchasing unit" means:
             4446          (a) the division;
             4447          (b) the following entities, to the extent that the entities have express statutory authority
             4448      to engage in a procurement without the involvement of the division:
             4449          (i) the State Building Board, created in Section 63A-5-101 ;
             4450          (ii) the Division of Facilities Construction and Management, created in Section
             4451      63A-5-201 ;
             4452          (iii) the attorney general's office;
             4453          (iv) the Department of Transportation, created in Section 72-1-201 ; or
             4454          (v) a district court;
             4455          (c) an institution of higher education of the state;
             4456          (d) a school district;
             4457          (e) a public school, including a local school board or a charter school; or
             4458          (f) a local public procurement unit.
             4459          Section 82. Section 63G-6a-105 , which is renumbered from Section 63G-6-104 is
             4460      renumbered and amended to read:
             4461           [63G-6-104].     63G-6a-105. Application of chapter.
             4462          [(1) This chapter applies only to contracts solicited or entered into after the effective
             4463      date of this chapter unless the parties agree to its application to a contract solicited or entered
             4464      into prior to the effective date.]



Text Box

- 149 -
             4465
         (1) The provisions of this chapter that are enacted on July 1, 2012, apply only to a
             4466      procurement advertised, or begun on or after July 1, 2012, unless the parties agree to have the
             4467      provisions apply with respect to a procurement that was advertised or begun before July 1,
             4468      2012, but is not completed before July 1, 2012.
             4469          (2) (a) Except as provided in Section [ 63G-6-105 ] 63G-6a-109 , this chapter shall apply
             4470      to every expenditure of public funds irrespective of [their source] the source of the funds,
             4471      including federal assistance, by any [state agency] public procurement unit, under any contract.
             4472          (b) The provisions of this chapter do not apply to a public entity that is not a public
             4473      procurement unit.
             4474          [(3) (a) Only the following sections shall apply to local public procurement units:
             4475      Sections 63G-6-103 , 63G-6-105 , 63G-6-301 , 63G-6-303 through 63G-6-420 , 63G-6-422 ,
             4476      63G-6-501 through 63G-6-602 , 63G-6-801 through 63G-6-806 , and 63G-6-815 through
             4477      63G-6-819 ; provided, however, that, except as provided in Sections 63G-6-906 and
             4478      63G-6-907 , the jurisdiction of the procurement appeals board is limited to matters involving
             4479      state agencies.]
             4480          [(b) Subsections 63G-6-208 (1)(b), 63G-6-504 (4), and 63G-6-505 (2) also apply to local
             4481      public procurement units.]
             4482          [(c) For the purpose of application of those sections and subsections to a local public
             4483      procurement unit, "state" shall mean "local public procurement unit," "chief procurement
             4484      officer" or "head of a purchasing agency" shall mean any person conducting procurement for a
             4485      local public procurement unit, and "rules and regulations" shall mean ordinances and rules and
             4486      regulations promulgated by a local public procurement unit to implement or supplement those
             4487      sections.]
             4488          [(d) In addition to the sections and subsections listed above and except]
             4489          (3) Except as provided in Subsection 17B-1-108 (3) relating to local districts, each local
             4490      public procurement unit shall adopt ordinances relating to the procurement of
             4491      architect-engineer services not inconsistent with the provisions of Part [7] 15,
             4492      Architect-Engineer Services.
             4493          [(e)] (4) Any [other] section of this chapter, or its implementing regulations, may be
             4494      adopted by any local [public procurement] government unit.
             4495          [(f) Any other implementing regulations adopted by local public procurement units



Text Box

- 150 -
             4496
     may not be inconsistent with the provisions of this chapter.]
             4497          (5) Rules adopted under this chapter shall be consistent with the provisions of this
             4498      chapter.
             4499          (6) A state purchasing unit or a public procurement unit may not adopt rules, policies,
             4500      or regulations that are inconsistent with this chapter.
             4501          [(4)] (7) Unless otherwise provided by statute, this chapter does not apply to
             4502      procurement of real property.
             4503          Section 83. Section 63G-6a-106 , which is renumbered from Section 63G-6-207 is
             4504      renumbered and amended to read:
             4505           [63G-6-207].     63G-6a-106. Specific statutory authority -- Limitations on
             4506      authority of chief procurement officer and division.
             4507          (1) The [authority to procure certain supplies, services, and construction given the
             4508      public procurement units governed by] procurement authority given to a public procurement
             4509      unit under the following provisions shall be retained, and shall be applied only to the extent
             4510      described in those provisions:
             4511          (a) Title 53B, State System of Higher Education;
             4512          (b) Title 63A, Chapter 5, State Building Board - Division of Facilities Construction
             4513      and Management;
             4514          (c) Title 67, Chapter 5, Attorney General;
             4515          (d) Title 72, Transportation Code; and
             4516          (e) Title 78A, Chapter 5, District Courts.
             4517          (2) [This authority extends only to supplies, services, and construction to the extent
             4518      provided in the cited chapters.] Except as otherwise provided in Sections [63G-6-104 and
             4519      63G-6-105 , the respective purchasing agencies shall procure supplies, services, and
             4520      construction] 63G-6a-105 and 63G-6a-109 , a public procurement unit shall conduct a
             4521      procurement in accordance with this chapter.
             4522          (3) (a) The Department of Transportation may make rules governing the procurement
             4523      of highway construction or improvement.
             4524          (b) This Subsection (3) supersedes Subsections (1) and (2).
             4525          [(4) The Legislature may procure supplies and services for its own needs.]
             4526          (4) Except to the extent otherwise agreed to in a memorandum of understanding



Text Box

- 151 -
             4527
     between the division and the following entities, the authority of the chief procurement officer
             4528      and of the division does not extend to:
             4529          (a) a non-executive state procurement unit;
             4530          (b) a local government unit; or
             4531          (c) a state purchasing unit, other than the division.
             4532          (5) An entity described in Subsection (4) or a state purchasing unit, other than the
             4533      division, may, without supervision, interference, or involvement by the chief procurement
             4534      officer or the division, but consistent with the requirements of this chapter:
             4535          (a) engage in a procurement process;
             4536          (b) procure an item under an exception, as provided in this chapter, to the requirement
             4537      to use a procurement process; or
             4538          (c) otherwise engage in an act authorized or required by this chapter.
             4539          (6) The attorney general may, in accordance with the provisions of this chapter, but
             4540      without involvement by the division or the chief procurement officer:
             4541          (a) retain outside counsel; or
             4542          (b) procure litigation support services, including retaining an expert witness.
             4543          (7) A public procurement unit, or a state purchasing unit, that is not represented by the
             4544      attorney general's office may, in accordance with the provisions of this chapter, but without
             4545      involvement by the division or the chief procurement officer:
             4546          (a) retain outside counsel; or
             4547          (b) procure litigation support services, including retaining an expert witness.
             4548          (8) The state auditor's office may, in accordance with the provisions of this chapter, but
             4549      without involvement by the division or the chief procurement officer, procure audit services.
             4550          (9) The state treasurer may, in accordance with the provisions of this chapter, but
             4551      without involvement by the division or the chief procurement officer, procure:
             4552          (a) deposit and investment services; and
             4553          (b) services related to issuing bonds.
             4554          Section 84. Section 63G-6a-109 , which is renumbered from Section 63G-6-105 is
             4555      renumbered and amended to read:
             4556           [63G-6-105].     63G-6a-109. Exemptions from chapter -- Compliance with
             4557      federal law.



Text Box

- 152 -
             4558
         (1) [This chapter is] Except for Part 23, Unlawful Conduct and Penalties, the
             4559      provisions of this chapter are not applicable to:
             4560          (a) funds administered under the Percent-for-Art Program of the Utah Percent-for-Art
             4561      Act[.];
             4562          [(2) This chapter is not applicable to]
             4563          (b) grants awarded by the state or contracts between the state and a local public
             4564      procurement [units] unit, except as provided in Part [9] 21, Intergovernmental Relations[.]; or
             4565          (c) any action taken by a majority of both houses of the Legislature.
             4566          [(3)] (2) This chapter [shall] does not prevent the state or a local public procurement
             4567      unit from complying with the terms and conditions of any grant, gift, or bequest that is
             4568      otherwise consistent with law.
             4569          [(4)] (3) [When] Notwithstanding any conflicting provision of this chapter, when a
             4570      procurement involves the expenditure of federal assistance [or], federal contract funds, or
             4571      federal financial participation funds, the [chief procurement officer or head of a purchasing
             4572      agency] public procurement unit or state purchasing unit shall comply with mandatory
             4573      applicable federal law and regulations not reflected in this chapter.
             4574          [(5)] (4) This chapter [may] does not supersede the requirements for retention or
             4575      withholding of construction proceeds and release of construction proceeds as provided in
             4576      Section 13-8-5 .
             4577          Section 85. Section 63G-6a-110 is enacted to read:
             4578          63G-6a-110. Procurements under direction and control of division -- Exception.
             4579          (1) Except as provided in Subsection (2), a public procurement unit may not engage in
             4580      a procurement unless:
             4581          (a) the procurement is made under the direction and control of the division; or
             4582          (b) the division, pursuant to rules made by the board, permits the public procurement
             4583      unit to make the procurement on its own.
             4584          (2) Subsection (1) does not apply to a public procurement unit that is:
             4585          (a) a non-executive state procurement unit;
             4586          (b) a local government unit; or
             4587          (c) a state purchasing unit, other than the division.
             4588          Section 86. Section 63G-6a-201 is enacted to read:



Text Box

- 153 -
             4589
    
Part 2. Procurement Policy Board

             4590          63G-6a-201. Title.
             4591          This part is known as "Procurement Policy Board."
             4592          Section 87. Section 63G-6a-202 , which is renumbered from Section 63G-6-201 is
             4593      renumbered and amended to read:
             4594           [63G-6-201].     63G-6a-202. Creation of procurement policy board.
             4595          (1) [(a)] There is created [a state procurement policy board] the Utah State
             4596      Procurement Policy Board.
             4597          [(b)] (2) The [policy board shall consist of] board consists of up to 10 members as
             4598      follows:
             4599          [(i)] (a) an employee of a state institution of higher education, appointed by the board
             4600      of regents;
             4601          [(ii)] (b) an employee of the Department of Human Services, appointed by the
             4602      executive director of that department;
             4603          [(iii)] (c) an employee of the Department of Transportation, appointed by the executive
             4604      director of that department;
             4605          [(iv)] (d) an employee of a school district appointed by a cooperative purchasing entity
             4606      for school districts;
             4607          [(v)] (e) an employee of the Division of Facilities Construction and Management
             4608      appointed by the director of that division;
             4609          [(vi)] (f) an employee of a county, appointed by the Utah Association of Counties;
             4610          [(vii)] (g) an employee of a city, appointed by the Utah League of Cities and Towns;
             4611          [(viii)] (h) an employee of a local district or special service district, appointed by the
             4612      Utah Association of Special Districts;
             4613          [(ix)] (i) the executive director of the Department of Technology Services or the
             4614      executive director's designee; and
             4615          [(x)] (j) the chief procurement officer or the chief procurement officer's designee.
             4616          [(c)] (3) Members of the [policy] board shall be knowledgeable and experienced in,
             4617      and have supervisory responsibility for, procurement in their official positions.
             4618          [(2)] (4) A board member [shall] may serve as long as the member meets the
             4619      description in Subsection [(1)(b)] (2) unless removed by the person or entity [who appointed]



Text Box

- 154 -
             4620
     with the authority to appoint the board member.
             4621          [(3)] (5) (a) The [policy] board shall:
             4622          (i) adopt rules of procedure for conducting its business; and
             4623          (ii) elect a chair to serve for one year.
             4624          (b) The chair of the board shall be selected by a majority of the members of the board
             4625      and may be elected to succeeding terms.
             4626          (c) The chief procurement officer shall designate an employee of the [Division of
             4627      Purchasing and General Services] division to serve as the nonvoting secretary to the policy
             4628      board.
             4629          [(4)] (6) A member of the board may not receive compensation or benefits for the
             4630      member's service, but may receive per diem and travel expenses in accordance with:
             4631          (a) Section 63A-3-106 ;
             4632          (b) Section 63A-3-107 ; and
             4633          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             4634      63A-3-107 .
             4635          Section 88. Section 63G-6a-203 , which is renumbered from Section 63G-6-202 is
             4636      renumbered and amended to read:
             4637           [63G-6-202].     63G-6a-203. Powers and duties of board.
             4638          [(1) Except as otherwise provided in Section 63G-6-104 and Subsection
             4639      63G-6-208 (1)(b), the policy board shall:]
             4640          [(a) make rules, consistent with this chapter, governing the procurement, management,
             4641      and control of any and all supplies, services, technology, and construction to be procured by the
             4642      state; and]
             4643          [(b)] (1) In addition to making rules in accordance with Section 63G-6a-402 and the
             4644      other provisions of this chapter, the board shall consider and decide matters of policy within
             4645      the provisions of this chapter, including those referred to it by the chief procurement officer.
             4646          (2) (a) The [policy] board may:
             4647          (i) audit and monitor the implementation of its rules and the requirements of this
             4648      chapter;
             4649          (ii) upon the request of a local public procurement unit, review that local public
             4650      procurement unit's proposed rules to ensure that they are not inconsistent with the provisions of



Text Box

- 155 -
             4651
     this chapter or rules made by the board; and
             4652          (iii) approve the use of innovative procurement [methods proposed by local public
             4653      procurement units] processes.
             4654          (b) The [policy] board may not exercise authority over the award or administration of:
             4655          (i) any particular [contact] contract; or
             4656          (ii) [over] any dispute, claim, or litigation pertaining to any particular contract.
             4657          (3) The board does not have authority over a matter involving:
             4658          (a) a non-executive state procurement unit;
             4659          (b) a local government unit; or
             4660          (c) except as otherwise expressly provided in this chapter, a local public procurement
             4661      unit.
             4662          Section 89. Section 63G-6a-204 , which is renumbered from Section 63G-6-208 is
             4663      renumbered and amended to read:
             4664           [63G-6-208].     63G-6a-204. Applicability of rules and regulations of Utah
             4665      State Procurement Policy Board and State Building Board -- Report to interim
             4666      committee.
             4667          [(1) (a) Except as provided in Subsection (2), the policy board shall make rules
             4668      governing state procurement by complying with the procedures and requirements of Title 63G,
             4669      Chapter 3, the Utah Administrative Rulemaking Act.]
             4670          [(b) Except for rules made under Subsection (1)(c), the procurement rules adopted by
             4671      the policy board under this section apply to all local public procurement units unless the local
             4672      public procurement unit's legislative body has adopted separate rules governing procurement.]
             4673          [(c) The rules shall include provisions consistent with federal contract prohibition
             4674      provisions of the Sudan Accountability and Divestment Act of 2007 (Pub. L. No. 110-174) that
             4675      prohibit a state agency from contracting with a person doing business in Sudan.]
             4676          (1) Except as provided in Subsection (2), rules made by the board under this chapter
             4677      shall govern all public procurement units for which the board is the applicable rulemaking
             4678      authority.
             4679          (2) The [State Building Board] building board rules governing procurement of
             4680      construction, architect-engineer services, and leases apply to the procurement of construction,
             4681      architect-engineer services, and leases of real property by the Division of Facilities



Text Box

- 156 -
             4682
     Construction and Management.
             4683          (3) An applicable rulemaking authority may make its own rules, consistent with this
             4684      chapter, governing procurement by a person over which the applicable rulemaking authority
             4685      has rulemaking authority.
             4686          [(3)] (4) The board shall make a report [by] on or before July 1 of each year to [an
             4687      appropriate] a legislative interim committee, designated by the Legislative Management
             4688      Committee created under Section 36-12-6 , on the establishment, implementation, and
             4689      enforcement of the rules made under [Subsection (1)(c)] Section 63G-6a-203 .
             4690          Section 90. Section 63G-6a-205 , which is renumbered from Section 63G-6-209 is
             4691      renumbered and amended to read:
             4692           [63G-6-209].     63G-6a-205. Procurement advisory councils.
             4693          [(1) The policy board may establish a Procurement Advisory Council, which shall meet
             4694      at least once a year for the discussion of problems and recommendations for improvement of
             4695      the procurement process. When requested by the policy board, the Procurement Advisory
             4696      Council may conduct studies, research, analyses, and make reports and recommendations with
             4697      respect to subjects or matters within the jurisdiction of the policy board. The Procurement
             4698      Advisory Council shall consist of representatives of state and local government and any other
             4699      persons the policy board considers desirable.]
             4700          [(2)] The chief procurement officer may appoint advisory [groups] councils to provide
             4701      advice regarding any matters within the authority of the chief procurement officer.
             4702          [(3) Members of the Procurement Advisory Council and other advisory groups may be
             4703      reimbursed for expenses incurred in the performance of their duties, as provided by the policy
             4704      board.]
             4705          Section 91. Section 63G-6a-301 is enacted to read:
             4706     
Part 3. Chief Procurement Officer

             4707          63G-6a-301. Title.
             4708          This part is known as "Chief Procurement Officer."
             4709          Section 92. Section 63G-6a-302 , which is renumbered from Section 63G-6-203 is
             4710      renumbered and amended to read:
             4711           [63G-6-203].     63G-6a-302. Chief procurement officer -- Appointment --
             4712      Qualifications -- Authority.



Text Box

- 157 -
             4713
         (1) The executive director of the Department of Administrative Services, with the
             4714      consent of the governor, shall appoint the chief procurement officer after considering
             4715      recommendations from the [policy] board.
             4716          (2) The chief procurement officer shall:
             4717          (a) have a minimum of eight years' experience in the large-scale procurement of
             4718      supplies and services or services and construction, at least five years of which shall have been
             4719      in public or comparable private procurement within 12 years preceding the date of
             4720      appointment; and
             4721          (b) be a person with demonstrated executive and organizational ability.
             4722          (3) The chief procurement officer appointed under Subsection (1) is also the director of
             4723      the Division of Purchasing and General Services.
             4724          (4) Except as otherwise expressly provided in this chapter, the chief procurement
             4725      officer has authority over procurements by a public procurement unit, other than:
             4726          (a) a non-executive procurement unit;
             4727          (b) a local government unit; or
             4728          (c) a state purchasing unit, other than the division.
             4729          Section 93. Section 63G-6a-303 , which is renumbered from Section 63G-6-204 is
             4730      renumbered and amended to read:
             4731           [63G-6-204].     63G-6a-303. Duties of chief procurement officer.
             4732          Except as otherwise specifically provided in this chapter, the chief procurement officer
             4733      serves as the central procurement officer of the state and shall:
             4734          (1) adopt office policies governing the internal functions of the [Division of Purchasing
             4735      and General Services] division;
             4736          (2) procure or supervise [the] each procurement [of all supplies, services, and
             4737      construction needed by the state] over which the chief procurement officer has authority;
             4738          [(3) exercise general supervision and control over all inventories or supplies belonging
             4739      to the state;]
             4740          [(4)] (3) establish and maintain programs for the inspection, testing, and acceptance of
             4741      [supplies, services, and construction] each procurement item over which the chief procurement
             4742      officer has authority;
             4743          [(5)] (4) prepare statistical data concerning [the procurement and usage of all supplies,



Text Box

- 158 -
             4744
     services, and construction] each procurement and procurement usage of a state procurement
             4745      unit;
             4746          [(6) before June 1, 1990, notify all public procurement units of the requirements of
             4747      Section 63G-6-406 regarding purchases of recycled paper and recycled paper products,
             4748      recycling requirements, and provide guidelines on the availability of recycled paper and paper
             4749      products, including the sources of supply and the potential uses of various grades of recycled
             4750      paper;]
             4751          [(7) before July 1, 1992:]
             4752          [(a) establish standards and specifications for determining which supplies are
             4753      considered recycled, based upon the chief procurement officer's review of current definitions
             4754      and standards employed by national procurement, product recycling, and other relevant
             4755      organizations and the federal Environmental Protection Agency;]
             4756          [(b) compile and update as necessary the specifications, a list of recycled supplies
             4757      available on state contract, and sources where the supplies may be obtained;]
             4758          [(c) make the compiled information under Subsection (7)(b) available to:]
             4759          [(i) all local government entities under Section 11-37-101 ;]
             4760          [(ii) all local health departments under Section 26A-1-108.7 ;]
             4761          [(iii) all procurement officers or other persons responsible for purchasing supplies
             4762      within the public school system under Title 53A, State System of Public Education;]
             4763          [(iv) all procurement officers or other persons responsible for purchasing supplies
             4764      within the state system of higher education under Title 53B, State System of Higher Education;
             4765      and]
             4766          [(v) all procurement officers or other persons responsible for purchasing supplies for
             4767      all public procurement units as defined in Section 63G-6-103 ; and]
             4768          [(d) present a written report to the Natural Resources, Agriculture, and Environment
             4769      Interim Committee annually prior to November 30 regarding the purchases of recycled goods
             4770      on state contracts during the prior fiscal year; and]
             4771          [(8)] (5) ensure that:
             4772          (a) before approving a [purchase, lease, or rental] procurement not covered by an
             4773      existing statewide contract for information technology or telecommunications supplies or
             4774      services, the chief information officer and the agency have [provided] stated in writing to the



Text Box

- 159 -
             4775
     division[,] that the needs analysis required in Section 63F-1-205 was completed, unless the
             4776      [purchase, lease, or rental] procurement is approved in accordance with Title 63M, Chapter 1,
             4777      Part 26, Government Procurement Private Proposal Program; and
             4778          (b) the oversight authority required by Subsection [(8)](5)(a) is not delegated outside
             4779      the [Division of Purchasing and General Services.] division; and
             4780          (6) provide training to public procurement units and to persons who do business with
             4781      public procurement units.
             4782          Section 94. Section 63G-6a-304 , which is renumbered from Section 63G-6-205 is
             4783      renumbered and amended to read:
             4784           [63G-6-205].     63G-6a-304. Delegation of authority.
             4785          [Subject to rules and regulations]
             4786          (1) In accordance with rules made by the board, the chief procurement officer may
             4787      delegate authority to designees or to any department, agency, or official.
             4788          (2) For a procurement [process] under Title 63M, Chapter 1, Part 26, Government
             4789      Procurement Private Proposal Program, any delegation by the chief procurement officer under
             4790      this section shall be made to the Governor's Office of Economic Development.
             4791          Section 95. Section 63G-6a-305 , which is renumbered from Section 63G-6-302 is
             4792      renumbered and amended to read:
             4793           [63G-6-302].     63G-6a-305. Duty of chief procurement officer in
             4794      maintaining specifications.
             4795          (1) The chief procurement officer [shall] may prepare, issue, revise, maintain, and
             4796      monitor the use of specifications for [supplies, services, construction, and technology required
             4797      by the state] each procurement over which the chief procurement officer has authority.
             4798          (2) The chief procurement officer shall obtain expert advice and assistance from
             4799      personnel of [using agencies] public procurement units in the development of specifications
             4800      and may delegate in writing to a [using agency] public procurement unit the authority to
             4801      prepare and utilize its own specifications.
             4802          (3) For a procurement [process] under Title 63M, Chapter 1, Part 26, Government
             4803      Procurement Private Proposal Program, any delegation by the chief procurement officer under
             4804      this section shall be made to the Governor's Office of Economic Development.
             4805          Section 96. Section 63G-6a-401 is enacted to read:



Text Box

- 160 -
             4806
    
Part 4. General Procurement Provisions

             4807          63G-6a-401. Title.
             4808          This part is known as "General Procurement Provisions."
             4809          Section 97. Section 63G-6a-402 is enacted to read:
             4810          63G-6a-402. Public procurement unit required to comply with Utah Procurement
             4811      Code and applicable rules -- Rulemaking authority -- Reporting.
             4812          (1) Except as otherwise provided in Section 63G-6a-109 , Section 63G-6a-403 , Part 8,
             4813      Exceptions to Procurement Requirements, or elsewhere in this chapter, a public procurement
             4814      unit may not obtain a procurement item, unless:
             4815          (a) if the public procurement unit is an authorized purchasing entity, the public
             4816      procurement unit:
             4817          (i) uses a procurement process; and
             4818          (ii) complies with:
             4819          (A) the requirements of this chapter; and
             4820          (B) the rules made pursuant to this chapter by the applicable rulemaking authority;
             4821          (b) except as provided in Subsection (2)(a), if the public procurement unit is a local
             4822      government unit, the public procurement unit complies with:
             4823          (i) the requirements of this chapter that are adopted by the local government unit; and
             4824          (ii) all other procurement requirements that the local government unit is required to
             4825      comply with; or
             4826          (c) if the public procurement unit is not a public procurement unit described in
             4827      Subsections (1)(a) or (b), the public procurement unit:
             4828          (i) obtains the procurement item under the direction and approval of the division,
             4829      unless otherwise provided by a rule made by the board;
             4830          (ii) uses a procurement process; and
             4831          (iii) complies with:
             4832          (A) the requirements of this chapter; and
             4833          (B) the rules made pursuant to this chapter by the applicable rulemaking authority.
             4834          (2) (a) Subsection (1)(b) does not apply to a political subdivision created by counties or
             4835      municipalities under Title 11, Chapter 13, Interlocal Cooperation Act, if the political
             4836      subdivision does not receive or expend tax revenue.



Text Box

- 161 -
             4837
         (b) Subject to Subsection (3), the applicable rulemaking authority shall make rules
             4838      relating to the management and control of procurements and procurement procedures by a
             4839      public procurement unit.
             4840          (3) (a) Rules made under Subsection (2) shall ensure compliance with the federal
             4841      contract prohibition provisions of the Sudan Accountability and Divestment Act of 2007 (Pub.
             4842      L. No. 110-174) that prohibit contracting with a person doing business in Sudan.
             4843          (b) The State Building Board rules governing procurement of construction,
             4844      architect-engineer services, and leases apply to the procurement of construction,
             4845      architect-engineer services, and leases of real property by the Division of Facilities
             4846      Construction and Management.
             4847          (4) An applicable rulemaking authority that is subject to Title 63G, Chapter 3, Utah
             4848      Administrative Rulemaking Act, shall make the rules described in this chapter in accordance
             4849      with the provisions of Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             4850          (5) The State Building Board shall make a report on or before July 1 of each year to a
             4851      legislative interim committee, designated by the Legislative Management Committee created
             4852      under Section 36-12-6 , on the establishment, implementation, and enforcement of the rules
             4853      made by the State Building Board under this chapter.
             4854          Section 98. Section 63G-6a-403 is enacted to read:
             4855          63G-6a-403. Prequalification of potential bidders or offerers.
             4856          (1) A public procurement unit may, in accordance with this section:
             4857          (a) prequalify potential bidders or offerors to provide any type of procurement item
             4858      specified by the public procurement unit; and
             4859          (b) limit participation in an invitation for bids or a request for proposals to the
             4860      prequalified potential bidders or offerors for the specified type of procurement item.
             4861          (2) To prequalify potential bidders or offerors to provide a specified type of
             4862      procurement item, a public procurement unit shall issue a request for qualifications.
             4863          (3) A public procurement unit that issues a request for qualifications shall:
             4864          (a) publish the request for qualifications in accordance with the requirements of
             4865      Section 63G-6a-402 ;
             4866          (b) state in the request for qualifications:
             4867          (i) the type of procurement item to which the request for qualifications relates;



Text Box

- 162 -
             4868
         (ii) the scope of work to be performed;
             4869          (iii) the instructions and the deadline for providing information in response to the
             4870      request for qualifications;
             4871          (iv) the minimum criteria for prequalification;
             4872          (v) the period of time during which the list of prequalified potential bidders or offerors
             4873      will remain in effect, which may not be longer than 18 months after the list of prequalified
             4874      potential bidders or offerors is made available to the public under Subsection (8)(b); and
             4875          (vi) that a public procurement unit may limit participation in an invitation for bids or a
             4876      request for proposals, during the time period described in Subsection (3)(b)(v), to the potential
             4877      bidders or offerors that are prequalified to provide the specified type of procurement item.
             4878          (4) The minimum criteria described in Subsection (3)(b)(iv):
             4879          (a) shall include the prequalification requirements unique to the procurement;
             4880          (b) may include performance rating criteria; and
             4881          (c) may not be so restrictive that the criteria unreasonably limit competition.
             4882          (5) A public procurement unit may, before making a final list of prequalified bidders or
             4883      offerors, request additional information to clarify responses made to the request for
             4884      prequalifications.
             4885          (6) A potential bidder or offeror shall be included on the list of prequalified potential
             4886      bidders or offerors if the bidder or offeror:
             4887          (a) submits a timely, responsive response to the request for prequalifications; and
             4888          (b) meets the minimum criteria for qualification described in Subsection (3)(b)(iv).
             4889          (7) If a request for qualifications will result in only one potential bidder or offeror
             4890      being placed on the list of prequalified potential bidders or offerors:
             4891          (a) the public procurement unit shall cancel the request for qualifications; and
             4892          (b) the list may not be used by the public procurement unit.
             4893          (8) The public procurement unit shall:
             4894          (a) before making the list of prequalified potential bidders or offerors available to the
             4895      public, provide each potential bidder or offeror who provided information in response to the
             4896      request, but who did not meet the minimum qualifications for placement on the list, a written
             4897      justification statement describing why the potential bidder or offeror did not meet the criteria
             4898      for inclusion on the list; and



Text Box

- 163 -
             4899
         (b) within 30 days after the day of the deadline described in Subsection (3)(b)(iii),
             4900      make the list of prequalified potential bidders or offerors available to the public.
             4901          Section 99. Section 63G-6a-404 is enacted to read:
             4902          63G-6a-404. Approved contractor list.
             4903          (1) An authorized purchasing entity may compile a list of approved contractors from
             4904      which procurement items may be obtained.
             4905          (2) An approved contractor list may only be compiled from:
             4906          (a) timely, responsive bids or responses received in response to:
             4907          (i) an invitation for bids; or
             4908          (ii) a request for proposals; or
             4909          (b) timely, responsive responses to:
             4910          (i) the prequalification process described in Section 63G-6a-403 ; or
             4911          (ii) the process described in Part 15, Architect-Engineer Services.
             4912          (3) In order to ensure equal treatment of all contractors on a contractor list, an
             4913      authorized purchasing entity shall use one of the following methods in an unbiased manner:
             4914          (a) a rotation system, organized alphabetically, numerically, or randomly;
             4915          (b) assigning contractors to a specified geographical area; or
             4916          (c) classifying each contractor based on each contractor's particular expertise or field.
             4917          Section 100. Section 63G-6a-405 is enacted to read:
             4918          63G-6a-405. Multiple award contracts.
             4919          (1) An authorized purchasing entity may enter into multiple award contracts with
             4920      bidders or offerors.
             4921          (2) Multiple award contracts may be in an authorized purchasing entity's best interest if
             4922      award to two or more bidders or offerors for similar procurement items is needed or desired for
             4923      adequate delivery, service, availability, or product compatibility.
             4924          (3) An authorized purchasing entity shall:
             4925          (a) exercise care to protect and promote competition among bidders or offerors when
             4926      seeking to enter into multiple award contracts;
             4927          (b) name all eligible users of the multiple award contracts in the invitation for bids or
             4928      request for proposals; and
             4929          (c) if the authorized purchasing entity anticipates entering into multiple award



Text Box

- 164 -
             4930
     contracts before issuing the invitation for bids or request for proposals, state in the invitation
             4931      for bids or request for proposals that the authorized purchasing entity may enter into multiple
             4932      award contracts at the end of the procurement process.
             4933          (4) An authorized purchasing entity that enters into multiple award contracts shall:
             4934          (a) obtain all of its normal, recurring requirements for the procurement items that are
             4935      the subject of the contracts until the contracts terminate; and
             4936          (b) reserve the right to obtain the procurement items described in Subsection (4)(a)
             4937      separately from the contracts if:
             4938          (i) there is a need to obtain a quantity of the procurement items that exceeds the
             4939      amount specified in the contracts; or
             4940          (ii) the procurement officer makes a written finding that the procurement items
             4941      available under the contract will not effectively or efficiently meet a nonrecurring special need
             4942      of a public procurement unit.
             4943          (5) Notwithstanding Subsection (3)(b), if an authorized purchasing entity enters into a
             4944      multiple award contract under this section, another authorized purchasing entity that is not a
             4945      signatory to the contract may, but is not required to, obtain a procurement item under the
             4946      contract.
             4947          (6) An applicable rulemaking authority may make rules to further regulate a
             4948      procurement under this section.
             4949          Section 101. Section 63G-6a-406 is enacted to read:
             4950          63G-6a-406. Public notice of procurement process.
             4951          (1) An authorized purchasing entity that issues an invitation for bids, a request for
             4952      proposals, or another document required by this chapter to be published in accordance with this
             4953      section, shall provide public notice that includes:
             4954          (a) the name of the authorized purchasing entity and the public procurement unit
             4955      acquiring the procurement item;
             4956          (b) information on how to contact the authorized purchasing entity in relation to the
             4957      invitation for bids, request for proposals, or other document;
             4958          (c) for an invitation for bids or a request for proposals, the date of the opening and
             4959      closing of the invitation for bids or request for proposals;
             4960          (d) information on how to obtain a copy of the invitation for bids, request for



Text Box

- 165 -
             4961
     proposals, or other document; and
             4962          (e) a general description of the procurement items that will be obtained through the
             4963      procurement process.
             4964          (2) Except as provided in Subsection (3), the authorized purchasing entity shall publish
             4965      the notice described in Subsection (1), using at least one of the following methods:
             4966          (a) at least 10 days before the day of the deadline for submission of a bid or other
             4967      response, publish the notice:
             4968          (i) in a newspaper of general circulation in the state; or
             4969          (ii) in a newspaper of local circulation in the area:
             4970          (A) directly impacted by the procurement; or
             4971          (B) over which the public procurement unit has jurisdiction; or
             4972          (b) at least 10 consecutive days before the day of the deadline for submission of a bid
             4973      or other response, publish the notice:
             4974          (i) on the main website for the authorized purchasing entity or public procurement unit;
             4975      or
             4976          (ii) on a state website that is owned, managed by, or provided under contract with, the
             4977      division for posting a public procurement notice.
             4978          (3) An authorized purchasing entity may reduce the 10-day period described in
             4979      Subsection (2), if the procurement officer or the procurement officer's designee signs a written
             4980      statement that:
             4981          (a) states that a shorter time is needed; and
             4982          (b) as it relates to an invitation for bids or a request for proposals, determines that
             4983      competition from multiple sources may be obtained within the shorter period of time.
             4984          (4) An authorized purchasing entity shall make a copy of an invitation for bids, a
             4985      request for proposals, or any other document described in Subsection (1), available for public
             4986      inspection at the main office of the authorized purchasing entity or on the website described in
             4987      Subsection (2)(b).
             4988          Section 102. Section 63G-6a-407 , which is renumbered from Section 63G-6-303 is
             4989      renumbered and amended to read:
             4990           [63G-6-303].     63G-6a-407. Purpose of specifications.
             4991          (1) All specifications shall seek to promote the overall economy and best use for the



Text Box

- 166 -
             4992
     purposes intended and encourage competition in satisfying the [state's] needs of the public
             4993      procurement unit, and [shall] may not be unduly restrictive.
             4994          (2) The requirements of this part regarding the purposes and nonrestrictiveness of
             4995      specifications shall apply to all specifications, including[, but not limited to,] those prepared by
             4996      architects, engineers, designers, and draftsmen for public contracts.
             4997          Section 103. Section 63G-6a-408 is enacted to read:
             4998          63G-6a-408. Small purchases.
             4999          (1) The applicable rulemaking authority may make rules governing small purchases,
             5000      including:
             5001          (a) establishing the maximum expenditure that may qualify as a small purchase, unless
             5002      otherwise provided by statute;
             5003          (b) establishing expenditure thresholds and procurement requirements related to those
             5004      thresholds; and
             5005          (c) the use of electronic, telephone, or written quotes.
             5006          (2) (a) Except as provided in Subsection (2)(b), a public procurement unit may not
             5007      obtain a procurement item through a small purchase procurement process if the procurement
             5008      item may be obtained through a state contract.
             5009          (b) Subsection (2)(a) does not apply:
             5010          (i) to a non-executive state procurement unit;
             5011          (ii) if the procurement officer or the head of the state purchasing unit authorizes an
             5012      exception to the requirement; or
             5013          (iii) to a local public procurement unit.
             5014          (c) An entity that is exempt from the requirements of Subsection (2)(a) is encouraged,
             5015      but not required, to comply with Subsection (2)(a).
             5016          (3) (a) Except as provided in Subsection (3)(b), a public procurement unit:
             5017          (i) may not use the small purchase procurement process described in this section for
             5018      ongoing, continuous, and regularly scheduled procurements; and
             5019          (ii) shall make its ongoing, continuous, and regularly scheduled procurements through
             5020      a contract awarded through a procurement process described in this chapter or an applicable
             5021      exception to a procurement process.
             5022          (b) Subsection (3)(a) does not apply to an ongoing, continuous, or regularly scheduled



Text Box

- 167 -
             5023
     procurement to the extent that the total expenditures for the procurement during a fiscal year do
             5024      not exceed the maximum expenditure that the public procurement unit is permitted to make
             5025      under this section, as established by rule made by the applicable rulemaking authority.
             5026          (4) It is unlawful for a person to intentionally or knowingly divide a procurement into
             5027      one or more smaller procurements with the intent to make a procurement:
             5028          (a) qualify as a small purchase, if, before dividing the procurement, it would not have
             5029      qualified as a small purchase; or
             5030          (b) meet a threshold established by rule made by the applicable rulemaking authority,
             5031      if, before dividing the procurement, it would not have met the threshold.
             5032          (5) A division of a procurement that is prohibited under Subsection (4) includes doing
             5033      any of the following with the intent or knowledge described in Subsection (4):
             5034          (a) making two or more separate purchases;
             5035          (b) dividing an invoice or purchase order into two or more invoices or purchase orders;
             5036      or
             5037          (c) making smaller purchases over a period of time.
             5038          (6) A person who violates Subsection (4) is subject to the criminal penalties described
             5039      in Section 63G-6a-2305 .
             5040          (7) The Division of Finance within the Department of Administrative Services may
             5041      conduct an audit of a public procurement unit in the state executive branch to verify
             5042      compliance with the requirements of this section.
             5043          (8) A public procurement unit in the state executive branch may not make a small
             5044      purchase after January 1, 2013, unless the chief procurement officer certifies that the person
             5045      responsible for procurements in the public procurement unit has satisfactorily completed
             5046      training on this section and the rules made under this section.
             5047          Section 104. Section 63G-6a-501 is enacted to read:
             5048     
Part 5. Request for Information

             5049          63G-6a-501. Title.
             5050          This part is known as "Request for Information."
             5051          Section 105. Section 63G-6a-502 is enacted to read:
             5052          63G-6a-502. Purpose of request for information.
             5053          (1) The purpose of a request for information is to:



Text Box

- 168 -
             5054
         (a) obtain information, comments, or suggestions from potential bidders or offerors
             5055      before issuing an invitation for bids or request for proposals;
             5056          (b) determine whether to issue an invitation for bids or a request for proposals; and
             5057          (c) generate interest in a potential invitation for bids or a request for proposals.
             5058          (2) A request for information may be useful in order to:
             5059          (a) prepare to issue an invitation for bids or request for proposals for an unfamiliar or
             5060      complex procurement;
             5061          (b) determine the market availability of a procurement item; or
             5062          (c) determine best practices, industry standards, performance standards, product
             5063      specifications, and innovations relating to a procurement item.
             5064          Section 106. Section 63G-6a-503 is enacted to read:
             5065          63G-6a-503. Request for information and response nonbinding.
             5066          (1) A request for information is not a procurement process and may not be used to
             5067      make a purchase or enter into a contract. A public procurement unit is required to use a
             5068      procurement process, or comply with an exception to the requirement to use a procurement
             5069      process, in order to make a purchase or enter into a contract.
             5070          (2) A response to a request for information is not an offer and may not be accepted to
             5071      form a binding contract.
             5072          Section 107. Section 63G-6a-504 is enacted to read:
             5073          63G-6a-504. Contents of request for information -- Public notice.
             5074          A request for information may seek a wide range of information, including:
             5075          (1) availability of a procurement item;
             5076          (2) delivery schedules;
             5077          (3) industry standards and practices;
             5078          (4) product specifications;
             5079          (5) training;
             5080          (6) new technologies;
             5081          (7) capabilities of potential providers of a procurement item; and
             5082          (8) alternate solutions.
             5083          Section 108. Section 63G-6a-601 is enacted to read:
             5084     
Part 6. Bidding



Text Box

- 169 -
             5085
         63G-6a-601. Title.
             5086          This part is known as "Bidding."
             5087          Section 109. Section 63G-6a-602 is enacted to read:
             5088          63G-6a-602. Contracts awarded by bidding.
             5089          (1) Except as otherwise provided in this chapter, an authorized purchasing entity shall
             5090      award a contract for a procurement by bidding, in accordance with the rules of the applicable
             5091      rulemaking authority.
             5092          (2) The bidding procurement process is appropriate to use when cost is the major factor
             5093      in determining the award of a procurement.
             5094          Section 110. Section 63G-6a-603 is enacted to read:
             5095          63G-6a-603. Invitation for bids -- Contents -- Notice.
             5096          (1) The bidding procurement process begins when the authorized purchasing entity
             5097      issues an invitation for bids.
             5098          (2) An invitation for bids shall:
             5099          (a) state the period of time during which bids will be accepted;
             5100          (b) describe the manner in which a bid shall be submitted;
             5101          (c) state the place where a bid shall be submitted; and
             5102          (d) include, or incorporate by reference:
             5103          (i) a description of the procurement items sought;
             5104          (ii) the objective criteria that will be used to evaluate the bids; and
             5105          (iii) the required contractual terms and conditions.
             5106          (3) An authorized purchasing entity shall publish an invitation for bids in accordance
             5107      with the requirements of Section 63G-6a-406 .
             5108          Section 111. Section 63G-6a-604 is enacted to read:
             5109          63G-6a-604. Bid opening and acceptance.
             5110          (1) Bids shall be opened:
             5111          (a) publicly, except as provided in Section 63G-6a-611 ;
             5112          (b) in the presence of one or more witnesses, unless an electronic bid opening process
             5113      is used where bidders may see the opening of the bid electronically; and
             5114          (c) at the time and place indicated in the invitation for bids.
             5115          (2) Bids shall be accepted unconditionally, without alteration or correction, except as



Text Box

- 170 -
             5116
     otherwise authorized by this chapter.
             5117          (3) (a) The procurement officer shall reject a bid that is not responsive or responsible.
             5118          (b) A bid that is not responsive includes a bid that:
             5119          (i) is conditional;
             5120          (ii) attempts to modify the bid requirements;
             5121          (iii) contains additional terms or conditions; or
             5122          (iv) fails to conform with the requirements or specifications of the invitation for bids.
             5123          (c) A bid that is not responsible includes a bid where the procurement officer
             5124      reasonably concludes that the bidder or an employee, agent, or subcontractor of the bidder, at
             5125      any tier, is unable to satisfactorily fulfill the bid requirements.
             5126          (4) An authorized purchasing entity may not accept a bid after the time for submission
             5127      of a bid has expired.
             5128          (5) The procurement officer shall:
             5129          (a) record the name of each bidder and the amount of each bid; and
             5130          (b) after the bid is awarded, make the information described in Subsection (5)(a)
             5131      available for public disclosure.
             5132          Section 112. Section 63G-6a-605 is enacted to read:
             5133          63G-6a-605. Correction or withdrawal of bids -- Cancellation of award.
             5134          (1) Correction or withdrawal of inadvertently erroneous bids, or the cancellation of an
             5135      award or a contract that is based on an unintentionally erroneous bid, may be made in
             5136      accordance with the rules of the applicable rulemaking authority.
             5137          (2) Notwithstanding Subsection (1), the following changes may not be made to a bid
             5138      after the bid opening:
             5139          (a) changes in bid pricing;
             5140          (b) changes in the cost evaluation formula; or
             5141          (c) changes in other provisions that are prejudicial to fair competition or to the interest
             5142      of the public procurement unit.
             5143          (3) A decision to permit the correction or withdrawal of a bid or the cancellation of an
             5144      award or a contract under Subsection (1) shall be supported in a written document, signed by
             5145      the procurement officer or the head of the authorized purchasing entity.
             5146          Section 113. Section 63G-6a-606 is enacted to read:



Text Box

- 171 -
             5147
         63G-6a-606. Evaluation of bids -- Award -- Cancellation -- Disqualification.
             5148          (1) An authorized purchasing entity shall evaluate each bid using the objective criteria
             5149      described in the invitation for bids, which may include:
             5150          (a) experience;
             5151          (b) performance ratings;
             5152          (c) inspection;
             5153          (d) testing;
             5154          (e) quality;
             5155          (f) workmanship;
             5156          (g) time and manner of delivery;
             5157          (h) references;
             5158          (i) financial stability;
             5159          (j) cost;
             5160          (k) suitability for a particular purpose; or
             5161          (l) other objective criteria specified in the invitation for bids.
             5162          (2) Criteria not described in the invitation for bids may not be used to evaluate a bid.
             5163          (3) The authorized purchasing entity shall:
             5164          (a) award the contract as soon as practicable to:
             5165          (i) the lowest responsive and responsible bidder who meets the objective criteria
             5166      described in the invitation for bids; or
             5167          (ii) if, in accordance with Subsection (4), the procurement officer or the head of the
             5168      authorized purchasing entity disqualifies the bidder described in Subsection (3)(a)(i), the next
             5169      lowest responsive and responsible bidder who meets the objective criteria described in the
             5170      invitation for bids; or
             5171          (b) cancel the invitation for bids without awarding a contract.
             5172          (4) In accordance with Subsection (5), the procurement officer or the head of the
             5173      authorized purchasing entity may disqualify a bidder for:
             5174          (a) a violation of this chapter;
             5175          (b) a violation of a requirement of the invitation for bids;
             5176          (c) unlawful or unethical conduct; or
             5177          (d) a change in circumstance that, had the change been known at the time the bid was



Text Box

- 172 -
             5178
     submitted, would have caused the bidder to not be the lowest responsive and responsible bidder
             5179      who meets the objective criteria described in the invitation for bids.
             5180          (5) A procurement officer or head of an authorized purchasing entity who disqualifies a
             5181      bidder under Subsection (4) shall:
             5182          (a) make a written finding, stating the reasons for disqualification; and
             5183          (b) provide a copy of the written finding to the disqualified bidder.
             5184          (6) If an authorized purchasing entity cancels an invitation for bids without awarding a
             5185      contract, the authorized purchasing entity shall make available for public inspection a written
             5186      justification for the cancellation.
             5187          Section 114. Section 63G-6a-607 is enacted to read:
             5188          63G-6a-607. Action when all bids are over budget.
             5189          (1) Except as provided in Subsection (2) or (3), if the fiscal officer for the public
             5190      procurement unit certifies that all accepted bids exceed available funds and that the lowest
             5191      responsive and responsible bidder does not exceed the available funds by more than 5%, the
             5192      procurement officer may negotiate an adjustment of the bid price and bid requirements with the
             5193      lowest responsive and responsible bidder in order to bring the bid within the amount of
             5194      available funds.
             5195          (2) A procurement officer may not adjust the bid requirements under Subsection (1) if
             5196      there is a substantial likelihood that, had the adjustment been included in the invitation for
             5197      bids, a person that did not submit a bid would have submitted a responsive, responsible, and
             5198      competitive bid.
             5199          (3) The Division of Facilities Construction and Management is exempt from the
             5200      requirements of this section if:
             5201          (a) the building board adopts rules governing procedures when all accepted bids exceed
             5202      available funds; and
             5203          (b) the Division of Facilities Construction and Management complies with the rules
             5204      described in Subsection (3)(a).
             5205          Section 115. Section 63G-6a-608 is enacted to read:
             5206          63G-6a-608. Tie bids -- Resolution -- Copies provided to attorney general.
             5207          (1) A procurement officer shall resolve a tie bid in accordance with a method
             5208      established by rule made by the applicable rulemaking authority. The method may include



Text Box

- 173 -
             5209
     awarding the tie bid:
             5210          (a) to the tie bidder who:
             5211          (i) is provider of state products, if no other tie bidder is a responsive provider of state
             5212      products;
             5213          (ii) is closest to the point of delivery;
             5214          (iii) received the previous award; or
             5215          (iv) will provide the earliest delivery date;
             5216          (b) by drawing lots; or
             5217          (c) by any other reasonable method of resolving a tie bid.
             5218          (2) The method chosen by the procurement officer to resolve a tie bid shall be at the
             5219      sole discretion of the procurement officer, subject to the rules established under Subsection (1).
             5220          (3) A public procurement unit in the state executive branch shall provide a copy of the
             5221      procurement to the attorney general if an award of a contract to a tie bidder exceeds $100,000
             5222      in expenditures.
             5223          Section 116. Section 63G-6a-609 is enacted to read:
             5224          63G-6a-609. Multiple stage bidding process.
             5225          (1) An authorized purchasing entity may conduct a bid in multiple stages, to:
             5226          (a) narrow the number of bidders who will progress to a subsequent stage;
             5227          (b) prequalify bidders for subsequent stages, in accordance with Section 63G-6a-403 ;
             5228          (c) enter into a contract for a single procurement; or
             5229          (d) award multiple contracts for a series of upcoming procurements.
             5230          (2) The invitation for bids for a multiple stage bidding process shall:
             5231          (a) describe the requirements for, and purpose of, each stage of the process;
             5232          (b) indicate whether the authorized purchasing entity intends to award:
             5233          (i) a single contract; or
             5234          (ii) multiple contracts for a series of upcoming procurements; and
             5235          (c) state that:
             5236          (i) the first stage is for prequalification only;
             5237          (ii) a bidder may not submit any pricing information in the first stage of the process;
             5238      and
             5239          (iii) bids in the second stage will only be accepted from a person who prequalifies in



Text Box

- 174 -
             5240
     the first stage.
             5241          (3) During the first stage, the authorized purchasing entity:
             5242          (a) shall prequalify bidders to participate in subsequent stages, in accordance with
             5243      Section 63G-6a-403 ;
             5244          (b) shall prohibit the submission of pricing information until the final stage; and
             5245          (c) may, before beginning the second stage, request additional information to clarify
             5246      the qualifications of the bidders who submit timely responses.
             5247          (4) Contracts may only be awarded for a procurement item described in stage one of
             5248      the invitation for bids.
             5249          (5) An authorized purchasing entity may conduct a bid in as many stages as it
             5250      determines to be appropriate.
             5251          (6) Except as otherwise expressly provided in this section, an authorized purchasing
             5252      entity shall conduct a multiple stage process in accordance with this part.
             5253          (7) The applicable rulemaking authority may make rules governing the use of a
             5254      multiple stage process described in this section.
             5255          Section 117. Section 63G-6a-610 is enacted to read:
             5256          63G-6a-610. Contracts awarded by reverse auction.
             5257          (1) Reverse auction bidding may be used if the procurement officer determines, in
             5258      writing, that reverse auction bidding will provide the best value to the public procurement unit.
             5259          (2) Reverse auction bidding is appropriate to use when there are multiple prequalified
             5260      providers of a procurement item.
             5261          Section 118. Section 63G-6a-611 is enacted to read:
             5262          63G-6a-611. Invitation for bids for reverse auction -- Notice contents --
             5263      Agreement to terms and conditions.
             5264          (1) The reverse auction bidding process begins when an authorized purchasing entity
             5265      issues an invitation for bids to prequalify bidders to participate in the reverse auction.
             5266          (2) The invitation for bids shall:
             5267          (a) state the period of time during which bids will be accepted;
             5268          (b) state that the bid will be conducted by reverse auction;
             5269          (c) describe the procurement items sought;
             5270          (d) describe the minimum requirements to become prequalified;



Text Box

- 175 -
             5271
         (e) state the required contractual terms and conditions; and
             5272          (f) describe the procedure that the authorized purchasing entity will follow in
             5273      conducting the reverse auction.
             5274          (3) In order to participate in a reverse auction, a bidder shall agree to:
             5275          (a) the specifications, and contractual terms and conditions, of the procurement; and
             5276          (b) be trained in, and abide by, the procedure that the authorized purchasing entity will
             5277      follow in conducting the reverse auction.
             5278          (4) An authorized purchasing entity shall publish an invitation for bids for a reverse
             5279      auction in accordance with the requirements of Section 63G-6a-406 .
             5280          Section 119. Section 63G-6a-612 is enacted to read:
             5281          63G-6a-612. Conduct of reverse auction.
             5282          (1) When conducting a reverse auction, an authorized purchasing entity:
             5283          (a) may conduct the reverse auction at a physical location or by electronic means;
             5284          (b) shall permit all prequalified bidders to participate in the reverse auction;
             5285          (c) may not permit a bidder to participate in the reverse auction if the bidder did not
             5286      prequalify to participate in the reverse auction;
             5287          (d) may not accept a bid after the time for submission of a bid has expired;
             5288          (e) shall update the bids on a real time basis; and
             5289          (f) shall conduct the reverse auction in a manner that permits each bidder to:
             5290          (i) bid against each other; and
             5291          (ii) lower the bidder's price below the lowest bid before the reverse auction closes.
             5292          (2) At the end of the reverse auction, the authorized purchasing entity shall:
             5293          (a) award the contract as soon as practicable to the lowest responsive and responsible
             5294      bidder who meets the objective criteria described in the invitation for bids; or
             5295          (b) cancel the reverse auction without awarding a contract.
             5296          (3) After the reverse auction is finished, the procurement officer shall make publicly
             5297      available:
             5298          (a) (i) the amount of the final bid submitted by each bidder during the reverse auction;
             5299      and
             5300          (ii) the identity of the bidder that submitted each final bid; and
             5301          (b) if practicable:



Text Box

- 176 -
             5302
         (i) the amount of each bid submitted during the reverse auction; and
             5303          (ii) the identity of the bidder that submitted each bid.
             5304          Section 120. Section 63G-6a-701 is enacted to read:
             5305     
Part 7. Request for Proposals

             5306          63G-6a-701. Title.
             5307          This part is known as "Request for Proposals."
             5308          Section 121. Section 63G-6a-702 is enacted to read:
             5309          63G-6a-702. Contracts awarded by request for proposals.
             5310          (1) A request for proposals procurement process may be used instead of bidding if the
             5311      procurement officer determines, in writing, that the request for proposals procurement process
             5312      will provide the best value to the public procurement unit.
             5313          (2) The request for proposals procurement process is appropriate to use for:
             5314          (a) the procurement of professional services;
             5315          (b) a design-build procurement;
             5316          (c) when cost is not the most important factor to be considered in making the selection
             5317      that is most advantageous to the public procurement unit; or
             5318          (d) when factors, in addition to cost, are highly significant in making the selection that
             5319      is most advantageous to the public procurement unit.
             5320          Section 122. Section 63G-6a-703 is enacted to read:
             5321          63G-6a-703. Request for proposals -- Notice -- Contents.
             5322          (1) The request for proposals procurement process begins when the authorized
             5323      purchasing entity issues a request for proposals.
             5324          (2) A request for proposals shall:
             5325          (a) state the period of time during which a proposal will be accepted;
             5326          (b) describe the manner in which a proposal shall be submitted;
             5327          (c) state the place where a proposal shall be submitted;
             5328          (d) include, or incorporate by reference:
             5329          (i) a description of the procurement items sought;
             5330          (ii) a description of the subjective and objective criteria that will be used to evaluate
             5331      the proposal; and
             5332          (iii) the standard contractual terms and conditions required by the authorized



Text Box

- 177 -
             5333
     purchasing entity;
             5334          (e) state the relative weight that will be given to each score awarded for the criteria
             5335      described in Subsection (2)(d)(ii), including cost;
             5336          (f) state the formula that will be used to determine the score awarded for the cost of
             5337      each proposal;
             5338          (g) if the request for proposals will be conducted in multiple stages, as described in
             5339      Section 63G-6a-710 , include a description of the stages and the criteria and scoring that will be
             5340      used to screen offerors at each stage; and
             5341          (h) state that discussions may be conducted with offerors who submit proposals
             5342      determined to be reasonably susceptible of being selected for award, followed by an
             5343      opportunity to make best and final offers, but that proposals may be accepted without
             5344      discussions.
             5345          (3) An authorized purchasing entity shall publish a request for proposals in accordance
             5346      with the requirements of Section 63G-6a-406 .
             5347          Section 123. Section 63G-6a-704 is enacted to read:
             5348          63G-6a-704. Opening of proposals and acceptance.
             5349          (1) An authorized purchasing entity shall ensure that proposals are opened in a manner
             5350      that avoids disclosing the contents to competing offerors during the evaluation process.
             5351          (2) An authorized purchasing entity may not accept a proposal:
             5352          (a) after the time for submission of a proposal has expired; or
             5353          (b) that is not responsive to the request for proposals.
             5354          Section 124. Section 63G-6a-705 is enacted to read:
             5355          63G-6a-705. Discussions -- Best and final offers.
             5356          (1) After proposals are received and opened, the authorized purchasing entity may
             5357      conduct discussions with the offerors and allow the offerors to make best and final offers after
             5358      the discussions.
             5359          (2) The authorized purchasing entity shall:
             5360          (a) ensure that each offeror receives fair and equal treatment with respect to the other
             5361      offerors;
             5362          (b) establish a schedule and procedures for conducting discussions;
             5363          (c) ensure that information in each proposal and information gathered during



Text Box

- 178 -
             5364
     discussions is not shared with other offerors until the contract is awarded;
             5365          (d) ensure that auction tactics are not used in the discussion process, including
             5366      discussing and comparing the costs and features of other proposals; and
             5367          (e) set a common date and time for the submission of best and final offers.
             5368          (3) If an offeror chooses not to participate in a discussion or does not make a timely
             5369      best and final offer, the offer submitted by the offerors before the conduct of discussions shall
             5370      be treated as the offeror's best and final offer.
             5371          Section 125. Section 63G-6a-706 is enacted to read:
             5372          63G-6a-706. Correction or withdrawal of proposal -- Cancellation of award.
             5373          (1) Correction or withdrawal of an unintentionally erroneous proposal, or the
             5374      cancellation of an award or contract that is based on an unintentionally erroneous proposal,
             5375      may be made in accordance with the rules of the applicable rulemaking authority.
             5376          (2) A decision to permit the correction or withdrawal of a proposal or the cancellation
             5377      of an award or a contract under Subsection (1) shall be supported in a written document, signed
             5378      by the procurement officer.
             5379          Section 126. Section 63G-6a-707 is enacted to read:
             5380          63G-6a-707. Evaluation of proposals -- Evaluation committee.
             5381          (1) Each proposal shall be evaluated using the criteria described in the request for
             5382      proposals, which may include:
             5383          (a) experience;
             5384          (b) performance ratings;
             5385          (c) inspection;
             5386          (d) testing;
             5387          (e) quality;
             5388          (f) workmanship;
             5389          (g) time, manner, or schedule of delivery;
             5390          (h) references;
             5391          (i) financial stability;
             5392          (j) suitability for a particular purpose;
             5393          (k) management plans;
             5394          (l) cost; or



Text Box

- 179 -
House Floor Amendments 3-7-2012 le/trv
             5395
         (m) other subjective or objective criteria specified in the request for proposals.
             5396          (2) Criteria not described in the request for proposals may not be used to evaluate a
             5397      proposal.
             5398          (3) The authorized purchasing entity shall:
             5399          (a) appoint an evaluation committee consisting of at least three individuals H. at least one
             5399a      of which is a representative of the user agency .H ; and
             5400          (b) ensure that the evaluation committee and each member of the evaluation
             5401      committee:
             5402          (i) does not have a conflict of interest with any of the offerors;
             5403          (ii) can fairly evaluate each proposal;
             5404          (iii) does not contact or communicate with an offeror for any reason other than
             5405      conducting the procurement process; and
             5406          (iv) conducts the evaluation in a manner that ensures a fair and competitive process
             5407      and avoids the appearance of impropriety.
             5408          (4) The evaluation committee may conduct interviews with, or participate in
             5409      presentations by, the offerors.
             5410          (5) Except as provided in Subsection (6) or (7), each member of the evaluation
             5411      committee is prohibited from knowing, or having access to, any information relating to the
             5412      cost, or the scoring of the cost, of a proposal until after the evaluation committee submits its
             5413      final recommended scores on all other criteria to the authorized purchasing entity.
             5414          (6) (a) As used in this Subsection (6), "management fee" includes only the following
             5415      fees of the construction manager/general contractor:
             5416          (i) preconstruction phase services;
             5417          (ii) monthly supervision fees for the construction phase; and
             5418          (iii) overhead and profit for the construction phase.
             5419          (b) When selecting a construction manager/general contractor for a construction
             5420      project, the evaluation committee:
             5421          (i) may, at any time after the opening of the responses to the request for proposals, have
             5422      access to, and consider, the management fee proposed by the offerors; and
             5423          (ii) except as provided in Subsection (7), may not know or have access to any other
             5424      information relating to the cost of construction submitted by the offerors, until after the
             5425      evaluation committee submits its final recommended scores on all other criteria to the



Text Box

- 180 -
             5426
     authorized purchasing entity.
             5427          (7) An authorized purchasing entity is not required to comply with Subsection (5) if,
             5428      before opening the responses to the request for proposals, the head of the authorized purchasing
             5429      entity or a person designated by rule made by the applicable rulemaking authority:
             5430          (a) signs a written statement:
             5431          (i) indicating that, due to the nature of the proposal or other circumstances, it is in the
             5432      best interest of the state to waive compliance with Subsection (5); and
             5433          (ii) describing the nature of the proposal and the other circumstances relied upon to
             5434      waive compliance with Subsection (5); and
             5435          (b) makes the written statement available to the public, upon request.
             5436          Section 127. Section 63G-6a-708 is enacted to read:
             5437          63G-6a-708. Publication of award and scores -- Cost-benefit analysis.
             5438          (1) The authorized purchasing entity shall, on the day on which the selection is
             5439      announced, make available to each offeror and to the public a written statement that includes:
             5440          (a) the name of the offeror found by the authorized purchasing entity to provide the
             5441      greatest overall value to the public procurement unit, taking into account the cost and the other
             5442      evaluation criteria described in the request for proposals; and
             5443          (b) the scores awarded to each offeror by the evaluation committee for each evaluation
             5444      criteria category described in the request for proposals.
             5445          (2) If the contract is awarded to an offeror other than the lowest cost offeror, and the
             5446      difference between the cost of the accepted proposal and the lowest proposal exceeds the
             5447      greater of $10,000 or 5% of the lowest cost offer, an authorized purchasing entity shall include,
             5448      with the statement described in Subsection (1), an informal written cost-benefit analysis that:
             5449          (a) explains, in general terms, the advantage to the public procurement unit of
             5450      awarding the contract to the higher cost offeror;
             5451          (b) includes, except as provided in Subsection (2)(c), the estimated added financial
             5452      value to the public procurement unit of each criteria that justifies awarding the contract to the
             5453      higher cost offeror;
             5454          (c) includes, to the extent that assigning a financial value to a particular criteria is not
             5455      practicable, a statement describing:
             5456          (i) why it is not practicable to assign a financial value to the criteria; and



Text Box

- 181 -
             5457
         (ii) in nonfinancial terms, the advantage to the public procurement unit, based on the
             5458      particular criteria, of awarding the contract to the higher cost offeror;
             5459          (d) demonstrates that the value of the advantage to the public procurement unit of
             5460      awarding the contract to the higher cost offeror exceeds the value of the difference between the
             5461      cost of the higher cost offeror and the cost of the lower cost offerors; and
             5462          (e) includes any other information required by rule made by the applicable rulemaking
             5463      authority.
             5464          Section 128. Section 63G-6a-709 is enacted to read:
             5465          63G-6a-709. Award of contract -- Cancellation -- Disqualification.
             5466          (1) After the evaluation and scoring of proposals is completed, the authorized
             5467      purchasing entity shall:
             5468          (a) award the contract as soon as practicable to:
             5469          (i) the responsive and responsible offeror with the highest total score; or
             5470          (ii) if, in accordance with Subsection (2), the procurement officer or the head of the
             5471      authorized purchasing entity disqualifies the offeror described in Subsection (1)(a)(i), the
             5472      responsive and responsible offeror with the next highest total score; or
             5473          (b) cancel the request for proposals without awarding a contract.
             5474          (2) In accordance with Subsection (3), the procurement officer or the head of the
             5475      authorized purchasing entity may disqualify an offeror for:
             5476          (a) a violation of this chapter;
             5477          (b) a violation of a requirement of the request for proposals;
             5478          (c) unlawful or unethical conduct; or
             5479          (d) a change in circumstance that, had the change been known at the time the proposal
             5480      was submitted, would have caused the proposal to not have the highest score.
             5481          (3) A procurement officer or head of an authorized purchasing entity who disqualifies
             5482      an offeror under Subsection (2) shall:
             5483          (a) make a written finding, stating the reasons for disqualification; and
             5484          (b) provide a copy of the written finding to the disqualified offeror.
             5485          (4) If an authorized purchasing entity cancels a request for proposals without awarding
             5486      a contract, the authorized purchasing entity shall make available for public inspection a written
             5487      justification for the cancellation.



Text Box

- 182 -
             5488
         Section 129. Section 63G-6a-710 is enacted to read:
             5489          63G-6a-710. Multiple stage process.
             5490          (1) An authorized purchasing entity may conduct a request for proposals in stages,
             5491      where an earlier stage is used to qualify offerors for subsequent stages or to narrow the number
             5492      of offerors that will move on to subsequent stages.
             5493          (2) Except as otherwise expressly provided in this section, an authorized purchasing
             5494      entity shall conduct a multiple stage process in accordance with this part.
             5495          Section 130. Section 63G-6a-711 , which is renumbered from Section 63G-6-408.5 is
             5496      renumbered and amended to read:
             5497           [63G-6-408.5].     63G-6a-711. Procurement for submitted proposal.
             5498          (1) As used in this section:
             5499          (a) "Committee" is as defined in Section 63M-1-2602 .
             5500          (b) "Initial proposal" is a proposal submitted by a private entity under Section
             5501      63M-1-2605 .
             5502          (2) After receipt by the chief procurement officer of a copy of an initial proposal from
             5503      the committee in accordance with Subsection 63M-1-2606 (5), including any comment,
             5504      suggestion, or modification to the initial proposal, the chief procurement officer shall initiate a
             5505      procurement process in compliance with [Title 63G, Chapter 6, Utah Procurement Code] this
             5506      chapter.
             5507          (3) The chief procurement officer or designee shall:
             5508          (a) review each detailed proposal received in accordance with Title 63M, Chapter 1,
             5509      Part 26, Government Procurement Private Proposal Program; and
             5510          (b) submit all detailed proposals that meet the guidelines established under Subsection
             5511      63M-1-2608 (1) to the committee for review under Section 63M-1-2609 .
             5512          (4) For purposes of this chapter, the Governor's Office of Economic Development is
             5513      considered the state purchasing [agency] unit for a procurement process under Title 63M,
             5514      Chapter 1, Part 26, Government Procurement Private Proposal Program.
             5515          Section 131. Section 63G-6a-801 is enacted to read:
             5516     
Part 8. Exceptions to Procurement Requirements

             5517          63G-6a-801. Title.
             5518          This part is known as "Exceptions to Procurement Requirements."



Text Box

- 183 -
             5519
         Section 132. Section 63G-6a-802 , which is renumbered from Section 63G-6-410 is
             5520      renumbered and amended to read:
             5521           [63G-6-410].     63G-6a-802. Sole source -- Award of contract without
             5522      competition -- Notice.
             5523          (1) As used in this section:
             5524          (a) "Transitional costs" mean the costs of changing from an existing provider of, or
             5525      type of, a procurement item to another provider of, or type of, procurement item.
             5526          (b) "Transitional costs" include:
             5527          (i) training costs;
             5528          (ii) conversion costs;
             5529          (iii) compatibility costs;
             5530          (iv) system downtime;
             5531          (v) disruption of service;
             5532          (vi) staff time necessary to put the transition into effect;
             5533          (vii) installation costs; and
             5534          (viii) ancillary software, hardware, equipment, or construction costs.
             5535          (c) "Transitional costs" do not include:
             5536          (i) the costs of preparing for or engaging in a procurement process; or
             5537          (ii) contract negotiation or contract drafting costs.
             5538          (2) A contract may be awarded for a [supply, service, or construction] procurement
             5539      item without competition [when, under rules and regulations, the chief] if the procurement
             5540      officer, the head of [a purchasing agency, or a designee of either officer above the level of
             5541      procurement officer] an authorized purchasing entity, or a designee of either who is senior to
             5542      the procurement officer or the head of the authorized purchasing entity, determines in writing
             5543      that:
             5544          [(1)] (a) there is only one source for the [required supply, service, or construction]
             5545      procurement item; or
             5546          [(2)] (b) the award to a specific supplier, service provider, or contractor is a condition
             5547      of a donation that will fund the full cost of the supply, service, or construction item.
             5548          (3) Circumstances under which there is only one source for a procurement item may
             5549      include:



Text Box

- 184 -
             5550
         (a) where the most important consideration in obtaining a procurement item is the
             5551      compatibility of equipment, technology, software, accessories, replacement parts, or service;
             5552          (b) where a procurement item is needed for trial use or testing;
             5553          (c) where transitional costs are unreasonable or cost prohibitive; or
             5554          (d) procurement of public utility services.
             5555          (4) The applicable rulemaking authority shall make rules regarding the publication of
             5556      notice for a sole source procurement that, at a minimum, require publication of notice of a sole
             5557      source procurement, in accordance with Section 63G-6a-406 , if the cost of the procurement
             5558      exceeds $50,000.
             5559          (5) An authorized purchasing entity who awards a sole source contract on behalf of a
             5560      public procurement unit shall negotiate with the contractor to ensure that the terms of the
             5561      contract, including price and delivery, are in the best interest of the state.
             5562          (6) A public procurement unit may extend a contract for a reasonable period of time
             5563      without engaging in a procurement process, if:
             5564          (a) the award of a new contract for the procurement item is delayed due to a protest or
             5565      appeal;
             5566          (b) the procurement process is delayed due to unintentional error;
             5567          (c) changes in industry standards require significant changes to specifications for the
             5568      procurement item;
             5569          (d) the extension is necessary to prevent the loss of federal funds;
             5570          (e) the extension is necessary to address a circumstance where the appropriation of
             5571      state or federal funds has been delayed; or
             5572          (f) the extension covers the period of time during which contract negotiations with a
             5573      new provider are being conducted.
             5574          Section 133. Section 63G-6a-803 is enacted to read:
             5575          63G-6a-803. Emergency procurement.
             5576          (1) Notwithstanding any other provision of this chapter, a procurement officer or the
             5577      procurement officer's designee may authorize an emergency procurement without using a
             5578      standard procurement process when an emergency condition exists.
             5579          (2) A procurement officer who authorizes an emergency procurement under Subsection
             5580      (1) shall:



Text Box

- 185 -
             5581
         (a) make the authorization in writing, stating the emergency condition upon which the
             5582      emergency procurement is made; and
             5583          (b) ensure that the procurement is made with as much competition as reasonably
             5584      practicable while avoiding harm, or a risk of harm, to the public health, safety, welfare, or
             5585      property.
             5586          Section 134. Section 63G-6a-804 , which is renumbered from Section 63G-6-423 is
             5587      renumbered and amended to read:
             5588           [63G-6-423].     63G-6a-804. Purchase of prison industry goods.
             5589          (1) [All] (a) A public procurement [units] unit that is not a political subdivision shall
             5590      purchase goods and services produced by the Utah Correctional Industries Division as provided
             5591      [by] in this section[, which is an exemption from this chapter. All political subdivisions].
             5592          (b) A political subdivision of the state may, and is encouraged to, purchase [these]
             5593      goods and services [and are encouraged to do so when feasible] under this section.
             5594          (c) A public procurement unit is not required to use a procurement process to purchase
             5595      goods or services under this section.
             5596          (2) [By] On or before July 1 of each year, the director of the Utah Correctional
             5597      Industries shall:
             5598          (a) publish and distribute to all [state agencies and interested political subdivisions]
             5599      public procurement units and other interested public entities a catalog of goods and services
             5600      provided by the Correctional Industries Division[. The catalog shall include], including a
             5601      description and price of each item offered for sale[. The catalog shall be updated and revised];
             5602      and
             5603          (b) update and revise the catalog described in Subsection (2)(a) during the year as the
             5604      director considers necessary.
             5605          (3) (a) [State departments, agencies, and institutions] A procurement unit that is not a
             5606      political subdivision of the state may not purchase any goods or services provided by the
             5607      Correctional Industries Division from any other source unless it has been determined in writing
             5608      by the director of Correctional Industries and by the [state] procurement officer or in the case
             5609      of institutions of higher education, the institutional procurement officer, that purchase from the
             5610      Correctional Industries Division is not feasible due to one of the following circumstances:
             5611          (i) the good or service offered by the division does not meet the reasonable



Text Box

- 186 -
             5612
     requirements of the [purchasing agency] public procurement unit;
             5613          (ii) the good or service cannot be supplied within a reasonable time by the division; or
             5614          (iii) the cost of the good or service, including basic price, transportation costs, and
             5615      other expenses of acquisition, is not competitive with the cost of procuring the item from
             5616      another source.
             5617          (b) In cases of disagreement[,] under Subsection (3)(a):
             5618          (i) the decision may be appealed to a board consisting of:
             5619          (A) the director of the Department of Corrections[,];
             5620          (B) the director of Administrative Services[,]; and
             5621          (C) a neutral third party agreed upon by the other two members [or,] of the board;
             5622          (ii) in the case of [institutions] an institution of higher education of the state, the
             5623      president of the [involved] institution, or the president's designee, shall make the final
             5624      decision[.]; or
             5625          (iii) in the case of a non-executive state procurement unit, a person designated by the
             5626      applicable rulemaking authority shall make the final decision.
             5627          Section 135. Section 63G-6a-805 , which is renumbered from Section 63G-6-425 is
             5628      renumbered and amended to read:
             5629           [63G-6-425].     63G-6a-805. Purchase from community rehabilitation
             5630      programs.
             5631          (1) As used in this section:
             5632          (a) ["Board"] "Advisory board" means the Purchasing from Persons with Disabilities
             5633      Advisory Board created under this section.
             5634          (b) "Central not-for-profit association" means a group of experts designated by the
             5635      advisory board to do the following, under guidelines established by the advisory board:
             5636          (i) assist the advisory board with its functions; and
             5637          (ii) facilitate the implementation of advisory board policies.
             5638          (c) (i) "Community rehabilitation program" means a program that is operated primarily
             5639      for the purpose of the employment and training of persons with a disability by a government
             5640      agency or qualified nonprofit organization which is an income tax exempt organization under
             5641      26 U.S.C. Sec. 501(c)(3) of the Internal Revenue Code.
             5642          (ii) A community rehabilitation program:



Text Box

- 187 -
             5643
         (A) maintains an employment ratio of at least 75% of the program employees under the
             5644      procurement contract in question have severe disabilities;
             5645          (B) (I) complies with any applicable occupational health and safety standards
             5646      prescribed by the United States Department of Labor; or
             5647          (II) is a supported employment program approved by the Utah State Office of
             5648      Rehabilitation;
             5649          (C) has its principal place of business in Utah;
             5650          (D) produces any good provided under this section in Utah; and
             5651          (E) provides any service that is provided by individuals with a majority of whom
             5652      domiciled in Utah.
             5653          (d) "Person with a disability" means a person with any disability as defined by and
             5654      covered under the Americans with Disabilities Act of 1990, 42 U.S.C. 12102.
             5655          (2) [(a)] There is created within the division the Purchasing from Persons with
             5656      Disabilities Advisory Board [within the Division of Purchasing and General Services of the
             5657      Department of Administrative Services. The board shall be composed of the following three
             5658      members:].
             5659          (3) The advisory board shall consist of three members, as follows:
             5660          [(i)] (a) the director of the [Division of Purchasing and General Services created under
             5661      Section 63A-2-101 or a] division or the director's designee;
             5662          [(ii)] (b) the executive director of the Utah State Office of Rehabilitation, created under
             5663      Section 53A-24-103 , or [a] the executive director's designee; and
             5664          [(iii)] (c) a representative of the private business community who shall be appointed to
             5665      a three-year term by the governor with the advice and consent of the Senate.
             5666          [(b)] (4) The advisory board shall meet, as needed, to facilitate the procurement of
             5667      goods and services from community rehabilitation programs by a public procurement unit
             5668      under this chapter by:
             5669          [(i)] (a) identifying goods and services that are available from community rehabilitation
             5670      programs [according to the requirements under Subsection (4)] in accordance with the
             5671      requirements of Subsection (7);
             5672          [(ii)] (b) approving prices in accordance with Subsection [(4)] (7)(c) for goods and
             5673      services that are identified under Subsection [(2)(b)(i)] (4)(a);



Text Box

- 188 -
             5674
         [(iii)] (c) developing, maintaining, and approving a preferred procurement contract list
             5675      of goods and services identified and priced under Subsections [(2)(b)(i) and (ii)] (4)(a) and (b);
             5676          [(iv)] (d) reviewing bids received by a community rehabilitation program; and
             5677          [(v)] (e) awarding and renewing specified contracts for set contract times, without
             5678      competitive bidding, for the purchase of goods and services under Subsection [(4)] (7).
             5679          [(c)] (5) The provisions of Subsections [(2)(b)] (4) and [(4)] (7)(a) are an exception to
             5680      the procurement provisions under this chapter.
             5681          [(3)] (6) (a) The advisory board may designate a central not-for-profit association,
             5682      appoint its members, and establish guidelines for its duties.
             5683          (b) The designated central not-for-profit association serves at the pleasure of the
             5684      advisory board [and the]. The central not-for-profit association or its individual members may
             5685      be removed by the advisory board at any time by a majority vote of the advisory board.
             5686          (c) Subject to the advisory board guidelines and discretion, a designated central
             5687      not-for-profit association may be assigned to perform the following duties:
             5688          (i) identify qualified community rehabilitation programs and the goods and services
             5689      that they provide or have the potential to provide;
             5690          (ii) help ensure that goods and services are provided at reasonable quality and delivery
             5691      levels;
             5692          (iii) recommend pricing for goods and services;
             5693          (iv) [reviewing] review bids and [recommending] recommend the award of contracts
             5694      under the advisory board's direction;
             5695          (v) [collecting and reporting] collect and report program data to the advisory board and
             5696      to the division; and
             5697          (vi) other duties specified by the advisory board.
             5698          [(4)] (7) Except as provided under Subsection [(6)] (9), notwithstanding any provision
             5699      [in] of this chapter to the contrary, each public procurement unit shall purchase goods and
             5700      services produced by a community rehabilitation program using the preferred procurement
             5701      contract list approved under Subsection [(2)(b)(iii)] (4)(c) if:
             5702          (a) the good or service offered for sale by a community rehabilitation program
             5703      reasonably conforms to the needs and specifications of the public procurement unit;
             5704          (b) the community rehabilitation program can supply the good or service within a



Text Box

- 189 -
             5705
     reasonable time; and
             5706          (c) the price of the good or service is reasonably competitive with the cost of procuring
             5707      the good or service from another source.
             5708          [(5)] (8) Each community rehabilitation program:
             5709          (a) may submit a bid to the advisory board at any time and not necessarily in response
             5710      to [a request] an invitation for bids; and
             5711          (b) shall certify on any bid it submits to the advisory board or to a public procurement
             5712      unit under this section that it is claiming a preference under this section.
             5713          [(6)] (9) During a fiscal year, the requirement for a public procurement unit to purchase
             5714      goods and services produced by a community rehabilitation program under the preferred
             5715      procurement list under Subsection [(4)] (7) does not apply if the [Division of Purchasing and
             5716      General Services] division determines that the total amount of procurement contracts with
             5717      community rehabilitation programs has reached $5 million for that fiscal year.
             5718          [(7)] (10) In the case of conflict between a purchase under this section and a purchase
             5719      under Section [ 63G-6-423 ] 63G-6a-804 , this section prevails.
             5720          Section 136. Section 63G-6a-901 is enacted to read:
             5721     
Part 9. Cancellations, Rejections, and Debarment

             5722          63G-6a-901. Title.
             5723          This part is known as "Cancellations, Rejections, and Debarment."
             5724          Section 137. Section 63G-6a-902 , which is renumbered from Section 63G-6-412 is
             5725      renumbered and amended to read:
             5726           [63G-6-412].     63G-6a-902. Cancellation and rejection of bids and
             5727      proposals.
             5728          [An] (1) An authorized purchasing entity may cancel an invitation for bids, a request
             5729      for proposals, or other solicitation [may be cancelled, or any or all bids or proposals may be
             5730      rejected] or reject any or all bids or proposal responses, in whole or in part, as may be specified
             5731      in the solicitation, when it is in the best interests of the [state] public procurement unit in
             5732      accordance with [rules and regulations] the rules of the applicable rulemaking authority.
             5733          (2) The reasons for a cancellation or rejection described in Subsection (1) shall be
             5734      made part of the contract file.
             5735          Section 138. Section 63G-6a-903 , which is renumbered from Section 63G-6-413 is



Text Box

- 190 -
             5736
     renumbered and amended to read:
             5737           [63G-6-413].     63G-6a-903. Determination of nonresponsibility of bidder or
             5738      offeror.
             5739          (1) A [written] determination of nonresponsibility of a bidder or offeror made by an
             5740      authorized purchasing entity shall be made in writing, in accordance with [rules and
             5741      regulations] the rules of the applicable rulemaking authority.
             5742          (2) The unreasonable failure of a bidder or offeror to promptly supply information in
             5743      connection with an inquiry with respect to responsibility may be grounds for a determination of
             5744      nonresponsibility with respect to the bidder or offeror. [Information]
             5745          (3) Subject to Title 63G, Chapter 2, Government Records Access and Management
             5746      Act, information furnished by a bidder or offeror pursuant to this section [shall] may not be
             5747      disclosed outside of the [purchasing division or the purchasing agency] public procurement
             5748      unit or authorized purchasing entity without prior written consent by the bidder or offeror.
             5749          Section 139. Section 63G-6a-904 , which is renumbered from Section 63G-6-804 is
             5750      renumbered and amended to read:
             5751           [63G-6-804].     63G-6a-904. Debarment from consideration for award of
             5752      contracts -- Causes for debarment.
             5753          (1) After reasonable notice to the person involved and reasonable opportunity for that
             5754      person to be heard, [the chief procurement officer or the head of a purchasing agency,] a
             5755      procurement officer or the head of an authorized purchasing entity may, after consultation with
             5756      the [using agency and] public procurement unit and, if the public procurement unit is in the
             5757      state executive branch, the attorney general[, shall have authority to]:
             5758          (a) debar a person for cause from consideration for award of contracts[. The debarment
             5759      shall not be for a period exceeding three years. The same officer, after consultation with the
             5760      using agency and the attorney general, shall have authority to] for a period not to exceed three
             5761      years; or
             5762          (b) suspend a person from consideration for award of contracts if there is probable
             5763      cause to believe that the person has engaged in any activity [which] that might lead to
             5764      debarment. [The suspension shall]
             5765          (2) A suspension described in Subsection (1)(b) may not be for a period exceeding
             5766      three months, unless an indictment has been issued for an offense which would be a cause for



Text Box

- 191 -
             5767
     debarment under Subsection [(2)] (3), in which case the suspension shall, at the request of the
             5768      attorney general, remain in effect until after the trial of the suspended person.
             5769          [(2)] (3) The causes for debarment include the following:
             5770          (a) conviction of a criminal offense as an incident to obtaining or attempting to obtain a
             5771      public or private contract or subcontract or in the performance of [such] a public or private
             5772      contract or subcontract;
             5773          (b) conviction under state or federal statutes of embezzlement, theft, forgery, bribery,
             5774      falsification or destruction of records, receiving stolen property, or any other offense indicating
             5775      a lack of business integrity or business honesty which currently, seriously, and directly affects
             5776      responsibility as a state contractor;
             5777          (c) conviction under state or federal antitrust statutes;
             5778          (d) failure without good cause to perform in accordance with the terms of the contract;
             5779      [or]
             5780          (e) a violation of this chapter, including Part 22, Ethical Requirements; or
             5781          [(e)] (f) any other cause the [chief] procurement officer, or the head of [a purchasing
             5782      agency] an authorized purchasing entity determines to be so serious and compelling as to affect
             5783      responsibility as a state contractor, including debarment by another governmental entity [for
             5784      any cause listed in rules and regulations].
             5785          Section 140. Section 63G-6a-1001 is enacted to read:
             5786     
Part 10. Preferences

             5787          63G-6a-1001. Title.
             5788          This part is known as "Preferences."
             5789          Section 141. Section 63G-6a-1002 , which is renumbered from Section 63G-6-404 is
             5790      renumbered and amended to read:
             5791           [63G-6-404].     63G-6a-1002. Reciprocal preference for providers of state
             5792      products.
             5793          (1) (a) [All public procurement units shall, in all purchases of goods, supplies,
             5794      equipment, materials, and printing] An authorized purchasing entity shall, for all procurements,
             5795      give a reciprocal preference to those bidders offering [goods, supplies, equipment, materials, or
             5796      printing] procurement items that are produced, manufactured, mined, grown, or performed in
             5797      Utah [as against] over those bidders offering [goods, supplies, equipment, materials, or



Text Box

- 192 -
             5798
     printing] procurement items that are produced, manufactured, mined, grown, or performed in
             5799      any state that gives or requires a preference to [goods, supplies, equipment, materials, or
             5800      printing] procurement items that are produced, manufactured, mined, grown, or performed in
             5801      that state.
             5802          (b) The amount of reciprocal preference shall be equal to the amount of the preference
             5803      applied by the other state for that particular [good, supply, equipment, material, or printing]
             5804      procurement item.
             5805          (c) [(i) The] In order to receive a reciprocal preference under this section, the bidder
             5806      shall certify on the bid that the [goods, supplies, equipment, materials, or printing] procurement
             5807      items offered are produced, manufactured, mined, grown, or performed in Utah.
             5808          [(ii)] (d) The reciprocal preference is waived if [that] the certification described in
             5809      Subsection (1)(c) does not appear on the bid.
             5810          (2) (a) If the bidder submitting the lowest responsive and responsible bid offers [goods,
             5811      supplies, equipment, materials, or printing] procurement items that are produced,
             5812      manufactured, mined, grown, or performed in a state that gives or requires a preference, and if
             5813      another bidder has submitted a responsive and responsible bid offering [goods, supplies,
             5814      equipment, materials, or printing] procurement items that are produced, manufactured, mined,
             5815      grown, or performed in Utah, and with the benefit of the reciprocal preference, [his] the bid of
             5816      the other bidder is equal to or less than the original lowest bid, the [procurement officer]
             5817      authorized purchasing entity shall:
             5818          (i) give notice to the bidder offering [goods, supplies, equipment, materials, or
             5819      printing] procurement items that are produced, manufactured, mined, grown, or performed in
             5820      Utah that the bidder qualifies as a preferred bidder; and
             5821          (ii) make the purchase from the preferred bidder if[,] the bidder agrees, in writing, to
             5822      meet the low bid within 72 hours after notification that the bidder is a preferred bidder.
             5823          (b) The [procurement officer] authorized purchasing entity shall include the exact price
             5824      submitted by the lowest bidder in the notice the [procurement officer] authorized purchasing
             5825      entity submits to the preferred bidder.
             5826          (c) The [procurement officer] authorized purchasing entity may not enter into a
             5827      contract with any other bidder for the purchase until 72 hours have elapsed after notification to
             5828      the preferred bidder.



Text Box

- 193 -
             5829
         (3) (a) If there is more than one preferred bidder, the [procurement officer] authorized
             5830      purchasing entity shall award the contract to the willing preferred bidder who was the lowest
             5831      preferred bidder originally.
             5832          (b) If there were two or more equally low preferred bidders, the [procurement officer]
             5833      authorized purchasing entity shall comply with the rules [adopted by the Procurement Policy
             5834      Board] of the applicable rulemaking authority to determine which bidder should be awarded
             5835      the contract.
             5836          (4) The provisions of this section do not apply if application of this section might
             5837      jeopardize the receipt of federal funds.
             5838          Section 142. Section 63G-6a-1003 , which is renumbered from Section 63G-6-405 is
             5839      renumbered and amended to read:
             5840           [63G-6-405].     63G-6a-1003. Preference for resident contractors.
             5841          (1) As used in this section, "resident contractor" means a person, partnership,
             5842      corporation, or other business entity that:
             5843          (a) either has its principal place of business in Utah or that employs workers who are
             5844      residents of this state when available; and
             5845          (b) was transacting business on the date when bids for the public contract were first
             5846      solicited.
             5847          (2) (a) When awarding contracts for construction, [a public procurement unit] an
             5848      authorized purchasing entity shall grant a resident contractor a reciprocal preference [as
             5849      against] over a nonresident contractor from any state that gives or requires a preference to
             5850      contractors from that state.
             5851          (b) The amount of the reciprocal preference shall be equal to the amount of the
             5852      preference applied by the state of the nonresident contractor.
             5853          (3) (a) [The] In order to receive the reciprocal preference under this section, the bidder
             5854      shall certify on the bid that the bidder qualifies as a resident contractor.
             5855          (b) The reciprocal preference is waived if [that] the certification described in
             5856      Subsection (2)(a) does not appear on the bid.
             5857          (4) (a) If the contractor submitting the lowest responsive and responsible bid is not a
             5858      resident contractor [and has his] whose principal place of business [in any] is in a state that
             5859      gives or requires a preference to contractors from that state, and if a resident contractor has also



Text Box

- 194 -
             5860
     submitted a responsive and responsible bid, and, with the benefit of the reciprocal preference,
             5861      the resident contractor's bid is equal to or less than the original lowest bid, the [procurement
             5862      officer] authorized purchasing entity shall:
             5863          (i) give notice to the resident contractor that the resident contractor qualifies as a
             5864      preferred resident contractor; and
             5865          (ii) issue the contract to the resident contractor if the resident contractor agrees, in
             5866      writing, to meet the low bid within 72 hours after notification that the resident contractor is a
             5867      preferred resident contractor.
             5868          (b) The [procurement officer] authorized purchasing entity shall include the exact price
             5869      submitted by the lowest bidder in the notice [the procurement officer] that the authorized
             5870      purchasing entity submits to the preferred resident contractor.
             5871          (c) The [procurement officer] authorized purchasing entity may not enter into a
             5872      contract with any other bidder for the construction until 72 hours have elapsed after notification
             5873      to the preferred resident contractor.
             5874          (5) (a) If there is more than one preferred resident contractor, the [procurement officer]
             5875      authorized purchasing entity shall award the contract to the willing preferred resident
             5876      contractor who was the lowest preferred resident contractor originally.
             5877          (b) If there were two or more equally low preferred resident contractors, the
             5878      [procurement officer] authorized purchasing entity shall comply with the rules [adopted by the
             5879      Procurement Policy Board] of the applicable rulemaking authority to determine which bidder
             5880      should be awarded the contract.
             5881          (6) The provisions of this section do not apply if application of this section might
             5882      jeopardize the receipt of federal funds.
             5883          Section 143. Section 63G-6a-1004 is enacted to read:
             5884          63G-6a-1004. Exception for federally funded contracts.
             5885          This part does not apply to the extent it conflicts with federal requirements relating to a
             5886      procurement that involves the expenditure of federal assistance, federal contract funds, or
             5887      federal financial participation funds.
             5888          Section 144. Section 63G-6a-1101 is enacted to read:
             5889     
Part 11. Bonds

             5890          63G-6a-1101. Title.



Text Box

- 195 -
             5891
         This part is known as "Bonds."
             5892          Section 145. Section 63G-6a-1102 , which is renumbered from Section 63G-6-504 is
             5893      renumbered and amended to read:
             5894           [63G-6-504].     63G-6a-1102. Bid security requirements -- Directed
             5895      suretyship prohibited -- Penalty.
             5896          (1) Bid security in an amount equal to at least 5% of the amount of the bid shall be
             5897      required for all competitive [sealed] bidding for construction contracts. Bid security shall be a
             5898      bond provided by a surety company authorized to do business in this state, the equivalent in
             5899      cash, or any other form satisfactory to the state.
             5900          (2) When a bidder fails to comply with the requirement for bid security [set forth]
             5901      described in the invitation for bids, the bid shall be rejected unless, pursuant to rules[, it is
             5902      determined] of the applicable rulemaking authority, the authorized purchasing entity
             5903      determines that the failure to comply with the security requirements is nonsubstantial.
             5904          (3) After the bids are opened, they shall be irrevocable for the period specified in the
             5905      invitation for bids, except as provided in [Subsection 63G-6-401 (6)] Section 63G-6a-605 . If a
             5906      bidder is permitted to withdraw a bid before award, no action shall be taken against the bidder
             5907      or the bid security.
             5908          (4) (a) When issuing an invitation for a bid under this chapter, the [chief] procurement
             5909      officer or the head of [the purchasing agency] an authorized purchasing entity responsible for
             5910      carrying out a construction project may not require a person or entity who is bidding for a
             5911      contract to obtain a bond of the type [referred to] described in Subsection (1) from a specific
             5912      insurance or surety company, producer, agent, or broker.
             5913          (b) A person who violates Subsection (4)(a) is guilty of an infraction.
             5914          Section 146. Section 63G-6a-1103 , which is renumbered from Section 63G-6-505 is
             5915      renumbered and amended to read:
             5916           [63G-6-505].     63G-6a-1103. Bonds necessary when contract is awarded --
             5917      Waiver -- Action -- Attorney fees.
             5918          (1) When a construction contract is awarded under this chapter, the contractor to whom
             5919      the contract is awarded shall deliver the following bonds or security to the state, which shall
             5920      become binding on the parties upon the execution of the contract:
             5921          (a) a performance bond satisfactory to the state that is in an amount equal to 100% of



Text Box

- 196 -
             5922
     the price specified in the contract and is executed by a surety company authorized to do
             5923      business in this state or any other form satisfactory to the state; and
             5924          (b) a payment bond satisfactory to the state that is in an amount equal to 100% of the
             5925      price specified in the contract and is executed by a surety company authorized to do business in
             5926      this state or any other form satisfactory to the state, which is for the protection of each person
             5927      supplying labor, service, equipment, or material for the performance of the work provided for
             5928      in the contract.
             5929          (2) (a) When a construction contract is awarded under this chapter, the [chief]
             5930      procurement officer or the head of the [purchasing agency] authorized purchasing entity
             5931      responsible for carrying out [a] the construction project may not require a contractor to whom a
             5932      contract is awarded to obtain a bond of the types referred to in Subsection (1) from a specific
             5933      insurance or surety company, producer, agent, or broker.
             5934          (b) A person who violates Subsection (2)(a) is guilty of an infraction.
             5935          (3) Rules of the applicable rulemaking authority may provide for waiver of the
             5936      requirement of a bid, performance, or payment bond for circumstances in which the [state]
             5937      procurement officer considers any or all of the bonds to be unnecessary to protect the [state]
             5938      public procurement unit.
             5939          (4) A person shall have a right of action on a payment bond under this section for any
             5940      unpaid amount due [him] to the person if:
             5941          (a) the person has furnished labor, service, equipment, or material for the work
             5942      provided for in the contract for which the payment bond is furnished under this section; and
             5943          (b) the person has not been paid in full within 90 days after the last [date] day on which
             5944      the person performed the labor or service or supplied the equipment or material for which the
             5945      claim is made.
             5946          (5) An action upon a payment bond [shall] may only be brought in a court of
             5947      competent jurisdiction in [any] a county where the construction contract was to be performed
             5948      [and not elsewhere]. The action is barred if not commenced within one year after the last day
             5949      on which the claimant performed the labor or service or supplied the equipment or material on
             5950      which the claim is based. The obligee named in the bond need not be joined as a party to the
             5951      action.
             5952          (6) In any suit upon a payment bond, the court shall award reasonable attorney fees to



Text Box

- 197 -
             5953
     the prevailing party, which fees shall be taxed as costs in the action.
             5954          Section 147. Section 63G-6a-1104 , which is renumbered from Section 63G-6-506 is
             5955      renumbered and amended to read:
             5956           [63G-6-506].     63G-6a-1104. Preliminary notice requirement.
             5957          (1) Any person furnishing labor, service, equipment, or material for which a payment
             5958      bond claim may be made under this chapter shall provide preliminary notice to the designated
             5959      agent as prescribed by Section 38-1-32.5 , except that this section does not apply:
             5960          (a) to a person performing labor for wages; or
             5961          (b) if a notice of commencement is not filed as prescribed in Section 38-1-31.5 for the
             5962      project or improvement for which labor, service, equipment, or material is furnished.
             5963          (2) Any person who fails to provide the preliminary notice required by Subsection (1)
             5964      may not make a payment bond claim under this chapter.
             5965          (3) The preliminary notice required by Subsection (1) must be provided before
             5966      commencement of any action on the payment bond.
             5967          Section 148. Section 63G-6a-1105 , which is renumbered from Section 63G-6-507 is
             5968      renumbered and amended to read:
             5969           [63G-6-507].     63G-6a-1105. Form of bonds -- Effect of certified copy.
             5970          The form of the bonds required by this part shall be established by [rules and
             5971      regulations] rule made by the applicable rulemaking authority. Any person may obtain from
             5972      the state a certified copy of a bond upon payment of the cost of reproduction of the bond and
             5973      postage, if any. A certified copy of a bond shall be prima facie evidence of the contents,
             5974      execution, and delivery of the original.
             5975          Section 149. Section 63G-6a-1201 is enacted to read:
             5976     
Part 12. Contracts and Change Orders

             5977          63G-6a-1201. Title.
             5978          This part is known as "Contracts and Change Orders."
             5979          Section 150. Section 63G-6a-1202 , which is renumbered from Section 63G-6-601 is
             5980      renumbered and amended to read:
             5981           [63G-6-601].     63G-6a-1202. Required contract clauses -- Computation of
             5982      price adjustments -- Use of rules and regulations.
             5983          (1) [Rules and regulations] The rules of the applicable rulemaking authority shall



Text Box

- 198 -
             5984
     require for state construction contracts, and may permit or require for [state] contracts for
             5985      supplies and services, the inclusion of clauses providing for adjustments in prices, time of
             5986      performance, or other appropriate contract provisions, and covering the following subjects:
             5987          (a) the unilateral right of the [state] procurement officer to order in writing changes in
             5988      the work within the scope of the contract and changes in the time of performance of the
             5989      contract that do not alter the scope of the contract work;
             5990          (b) variations occurring between estimated quantities of work in a contract and actual
             5991      quantities;
             5992          (c) suspension of work ordered by the [state] procurement officer; and
             5993          (d) site conditions differing from those indicated in the construction contract, or
             5994      ordinarily encountered, except that differing site conditions clauses required by the rules [and
             5995      regulations] need not be included in a construction contract when:
             5996          (i) the contract is negotiated[, when];
             5997          (ii) the contractor provides the site or design[, or when]; or
             5998          (iii) the parties have otherwise agreed with respect to the risk of differing site
             5999      conditions.
             6000          (2) Adjustments in price pursuant to clauses [promulgated under] described in
             6001      Subsection (1) shall be computed in one or more of the following ways:
             6002          (a) by agreement on a fixed price adjustment before commencement of the pertinent
             6003      performance or as soon thereafter as practicable;
             6004          (b) by unit prices specified in the contract or subsequently agreed upon;
             6005          (c) by the costs attributable to the events or situations under the clauses with
             6006      adjustment of profit or fee, all as specified in the contract or subsequently agreed upon;
             6007          (d) in any other manner as the contracting parties may mutually agree; or
             6008          (e) in the absence of agreement by the parties, by a unilateral determination by the
             6009      [state] procurement officer of the costs attributable to the events or situations under the clauses
             6010      with adjustment of profit or fee, all as computed by the [state] procurement officer in
             6011      accordance with applicable [sections of the] rules and [regulations issued under Subsection
             6012      63G-6-415 (1) and] subject to the provisions of Part [8, Legal and Contractual Remedies] 17,
             6013      Procurement Appeals Board, and Part 18, Appeals to Court and Court Proceedings.
             6014          (3) A contractor shall be required to submit cost or pricing data if any adjustment in



Text Box

- 199 -
             6015
     contract price is subject to the provisions of Section [ 63G-6-415 ] 63G-6a-1206 .
             6016          (4) [Rules and regulations] The rules of the applicable rulemaking authority shall
             6017      require for [state] construction contracts, and may permit or require for [state] contracts for
             6018      supplies and services, the inclusion of clauses providing for appropriate remedies and covering
             6019      at least the following subjects:
             6020          (a) liquidated damages as appropriate;
             6021          (b) specified excuses for delay or nonperformance;
             6022          (c) termination of the contract for default; and
             6023          (d) termination of the contract in whole or in part for the convenience of the [state]
             6024      public procurement unit.
             6025          (5) The contract clauses [promulgated under] described in this section shall be [set
             6026      forth in rules and regulations] established by rule. However, the [chief] procurement officer or
             6027      the head of [a purchasing agency] an authorized purchasing entity may modify the clauses for
             6028      inclusion in any particular contract. [Any] The applicable rulemaking authority may, by rule,
             6029      require that:
             6030          (a) variations [shall] be supported by a written determination that describes the
             6031      circumstances justifying the variations[,]; and
             6032          (b) notice of any material variation shall be included in the invitation for bids or
             6033      request for proposals.
             6034          Section 151. Section 63G-6a-1203 , which is renumbered from Section 63G-6-603 is
             6035      renumbered and amended to read:
             6036           [63G-6-603].     63G-6a-1203. Contracts -- Certain indemnification
             6037      provisions forbidden.
             6038          (1) As used in this section, "design professional" means:
             6039          (a) an architect, licensed under Title 58, Chapter 3a, Architects Licensing Act;
             6040          (b) a landscape architect, licensed under Title 58, Chapter 53, Landscape Architects
             6041      Licensing Act; and
             6042          (c) a professional engineer or professional land surveyor, licensed under Title 58,
             6043      Chapter 22, Professional Engineers and Professional Land Surveyors Licensing Act.
             6044          (2) (a) [Beginning May 12, 2009, a] A contract, including an amendment to an existing
             6045      contract, entered into under [authority of] this chapter may not require that a design



Text Box

- 200 -
             6046
     professional indemnify another from liability claims that arise out of the design professional's
             6047      services, unless the liability claim arises from the design professional's negligent act, wrongful
             6048      act, error or omission, or other liability imposed by law.
             6049          (b) Subsection (2)(a) may not be waived by contract.
             6050          (c) Notwithstanding Subsections (2)(a) and (b), a design professional may be required
             6051      to indemnify a person for whom the design professional has direct or indirect control or
             6052      responsibility.
             6053          Section 152. Section 63G-6a-1204 is enacted to read:
             6054          63G-6a-1204. Multiyear contracts.
             6055          (1) Except as provided in Subsection (7), a public procurement unit may enter into a
             6056      multiyear contract resulting from an invitation for bids or a request for proposals, if:
             6057          (a) the procurement officer determines, in the discretion of the procurement officer,
             6058      that entering into a multiyear contract is in the best interest of the public procurement unit; and
             6059          (b) the invitation for bids or request for proposals:
             6060          (i) states the term of the contract, including all possible renewals of the contract;
             6061          (ii) states the conditions for renewal of the contract; and
             6062          (iii) includes the provisions of Subsections (3) through (5) that are applicable to the
             6063      contract.
             6064          (2) In making the determination described in Subsection (1)(a), the procurement officer
             6065      shall consider whether entering into a multiyear contract will:
             6066          (a) result in significant savings to the public procurement unit, including:
             6067          (i) reduction of the administrative burden in procuring, negotiating, or administering
             6068      contracts;
             6069          (ii) continuity in operations of the public procurement unit; or
             6070          (iii) the ability to obtain a volume or term discount;
             6071          (b) encourage participation by a person who might not otherwise be willing or able to
             6072      compete for a shorter term contract; or
             6073          (c) provide an incentive for a bidder or offeror to improve productivity through capital
             6074      investment or better technology.
             6075          (3) (a) The determination described in Subsection (1)(a) is discretionary and is not
             6076      required to be in writing or otherwise recorded.



Text Box

- 201 -
             6077
         (b) Except as provided in Subsections (4) and (5), notwithstanding any provision of an
             6078      invitation for bids, a request for proposals, or a contract to the contrary, a multiyear contract,
             6079      including a contract that was awarded outside of an invitation for bids or request for proposals
             6080      process, may not continue or be renewed for any year after the first year of the multiyear
             6081      contract if adequate funds are not appropriated to continue or renew the contract.
             6082          (4) A multiyear contract that is funded solely by federal funds may be continued or
             6083      renewed for any year after the first year of the multiyear contract if:
             6084          (a) adequate funds to continue or renew the contract have not been, but are expected to
             6085      be appropriated by, and received from, the federal government;
             6086          (b) continuation or renewal of the contract before the money is appropriated or
             6087      received is permitted by the federal government; and
             6088          (c) the contract states that it may be cancelled, without penalty, if the anticipated
             6089      federal funds are not appropriated or received.
             6090          (5) A multiyear contract that is funded in part by federal funds may be continued or
             6091      renewed for any year after the first year of the multiyear contract if:
             6092          (a) the portion of the contract that is to be funded by funds of a public entity are
             6093      appropriated;
             6094          (b) adequate federal funds to continue or renew the contract have not been, but are
             6095      expected to be, appropriated by, and received from, the federal government;
             6096          (c) continuation or renewal of the contract before the federal money is appropriated or
             6097      received is permitted by the federal government; and
             6098          (d) the contract states that it may be cancelled, without penalty, if the anticipated
             6099      federal funds are not appropriated or received.
             6100          (6) A public procurement unit may not continue or renew a multiyear contract after the
             6101      end of the multiyear contract term or the renewal periods described in the contract, unless the
             6102      public procurement unit engages in a new procurement process or complies with an exception,
             6103      described in this chapter, to using a standard procurement process.
             6104          (7) A multiyear contract, including any renewal periods, may not exceed a period of
             6105      five years, unless:
             6106          (a) the procurement officer determines, in writing, that:
             6107          (i) a longer period is necessary in order to obtain the procurement item;



Text Box

- 202 -
             6108
         (ii) a longer period is customary for industry standards; or
             6109          (iii) a longer period is in the best interest of the public procurement unit; and
             6110          (b) the written determination described in subsection (7)(a) is included in the file
             6111      relating to the procurement.
             6112          (8) This section does not apply to a contract for the design or construction of a facility,
             6113      a road, or a public transit project.
             6114          Section 153. Section 63G-6a-1205 , which is renumbered from Section 63G-6-416 is
             6115      renumbered and amended to read:
             6116           [63G-6-416].     63G-6a-1205. Cost-plus-a-percentage-of-cost contract
             6117      prohibited.
             6118          (1) [Subject to the limitations of] Except as otherwise provided in this section, a public
             6119      procurement unit may use any type of contract [which] that will promote the best interests of
             6120      the state [may be used; provided that the use of].
             6121          (2) A public procurement unit may not use a cost-plus-a-percentage-of-cost contract [is
             6122      prohibited. A].
             6123          (3) A public procurement unit may not use a cost-reimbursement contract [may be used
             6124      only when a determination is made in writing that such] unless the procurement officer makes a
             6125      written determination that:
             6126          (a) the contract is likely to be less costly to the [state] public procurement unit than any
             6127      other type of contract; or [that]
             6128          (b) it is impracticable to obtain the [supplies, services, or construction required except
             6129      under such a] procurement item under another type of contract.
             6130          [(2) Except with respect to firm fixed-price contracts, no contract type shall be used
             6131      unless it has been determined in writing by the chief procurement officer, the head of a
             6132      purchasing agency, or a designee of either officer that:]
             6133          (4) A procurement officer, the head of an authorized procurement entity, or a designee
             6134      of either, may not use a type of contract, other than a firm fixed-price contract, unless the
             6135      procurement officer makes a written determination that:
             6136          (a) the proposed contractor's accounting system will permit timely development of all
             6137      necessary cost data in the form required by the specific contract type contemplated; and
             6138          (b) the proposed contractor's accounting system is adequate to allocate costs in



Text Box

- 203 -
             6139
     accordance with generally accepted accounting principles.
             6140          Section 154. Section 63G-6a-1206 , which is renumbered from Section 63G-6-415 is
             6141      renumbered and amended to read:
             6142           [63G-6-415].     63G-6a-1206. Rules and regulations to determine allowable
             6143      incurred costs -- Required information -- Auditing of books.
             6144          [(1) Rules and regulations may be promulgated to set forth cost principles to be used to
             6145      determine the allowability of incurred costs for the purpose of reimbursing costs under contract
             6146      provisions which provide for the reimbursement of costs; provided that if a written
             6147      determination is approved at a level above the procurement officer, the cost principles may be
             6148      modified by contract.]
             6149          [(2) A person shall, except as provided in Subsection (4), submit cost or pricing data
             6150      and shall certify that, to the best of the person's knowledge and belief, the cost or pricing data
             6151      submitted were accurate, complete, and current as of a mutually determined specified date prior
             6152      to the date of:]
             6153          (1) (a) The applicable rulemaking authority may, by rule, establish the cost principles
             6154      to be included in a cost-reimbursement contract to determine incurred costs for the purpose of
             6155      calculating a reimbursement.
             6156          (b) The cost principles established by rule under Subsection (1)(a) may be modified, by
             6157      contract, if the procurement officer or head of the authorized procurement entity approves the
             6158      modification.
             6159          (2) Except as provided in Subsection (5), a person who seeks to be, or is, a party in a
             6160      cost-based contract with a public procurement unit shall:
             6161          (a) submit cost or pricing data relating to determining the cost or pricing amount; and
             6162          (b) certify that, to the best of the contractor's knowledge and belief, the cost or pricing
             6163      data submitted is accurate and complete as of the date specified by the public procurement unit.
             6164          (3) The procurement officer shall ensure that the date specified under Subsection (2)(b)
             6165      is before:
             6166          (a) the pricing of any contract awarded by [competitive sealed proposals] a
             6167      procurement process or pursuant to [the] a sole source procurement [authority, where], if the
             6168      total contract price is expected to exceed an amount established by [rules and regulations] rule
             6169      made by the applicable rulemaking authority; or



Text Box

- 204 -
             6170
         (b) the pricing of any change order [which] that is expected to exceed an amount
             6171      established by [rules and regulations] rule made by the applicable rulemaking authority.
             6172          [(3) Any] (4) A contract or change order [under which a certificate is required shall
             6173      contain] that requires a certification described in Subsection (2) shall include a provision that
             6174      the price to the [state] public procurement unit, including profit or fee, shall be adjusted to
             6175      exclude any significant sums by which the [state] public procurement unit finds that the price
             6176      was increased because the [contractor-furnished] contractor provided cost or pricing data
             6177      [were] that was inaccurate, incomplete, or not current as of the date [agreed upon between the
             6178      parties] specified by the procurement officer.
             6179          [(4) The requirements of Subsections (2) and (3) need not be applied to contracts:]
             6180          (5) A public procurement unit is not required to comply with Subsection (2) if:
             6181          (a) [where] the contract price is based on adequate price competition;
             6182          (b) [where] the contract price is based on established catalogue prices or market prices;
             6183          (c) [where contract prices are] the contract price is set by law or [regulation] rule; or
             6184          (d) [where it is determined] the procurement states, in writing:
             6185          (i) that, in accordance with rules [and regulations that] made by the applicable
             6186      rulemaking authority, the requirements of [this section] Subsection (2) may be waived[,]; and
             6187          (ii) the reasons for [such] the waiver [are stated in writing].
             6188          [(5)] (6) The [state] procurement officer may, at reasonable times and places, only to
             6189      the extent that the books and records relate to the applicable cost or pricing data, audit the
             6190      books and records of [any]:
             6191          (a) a person who has submitted cost or pricing data pursuant to this section; or [any]
             6192          (b) a contractor or subcontractor under [any negotiated] a contract or subcontract other
             6193      than a firm fixed-price contract [to the extent that the books and records relate to the cost or
             6194      pricing data, contract, or subcontract. The].
             6195          (7) Unless a shorter time is provided for by contract:
             6196          (a) a person described in Subsection (6)(a) shall maintain the books and records [shall
             6197      be maintained by the contractor] described in Subsection (6) for three years [following the end
             6198      of] after the day on which the fiscal year in which final payment is made under the [prime
             6199      contract and by the subcontractor for three years following the end of the] contract ends;
             6200          (b) a contractor shall maintain the books and records described in Subsection (6) for



Text Box

- 205 -
             6201
     three years after the day on which the fiscal year in which final payment under the prime
             6202      contract ends; and
             6203          (c) a subcontractor shall maintain the books and records described in Subsection (6) for
             6204      three years after the day on which the fiscal year in which final payment is made under the
             6205      subcontract[, unless a shorter period is otherwise authorized in writing] ends.
             6206          Section 155. Section 63G-6a-1207 , which is renumbered from Section 63G-6-602 is
             6207      renumbered and amended to read:
             6208           [63G-6-602].     63G-6a-1207. Certification of change order.
             6209          (1) Under a construction contract, [any] a change order [which] that increases the
             6210      contract amount [shall be subject to] may not be made without prior written certification that
             6211      the change order is within the determined project or contract budget[. The certification shall be
             6212      made] by:
             6213          (a) the fiscal officer of the entity responsible for funding the project or [the] contract;
             6214      or [other]
             6215          (b) the official responsible for monitoring and reporting upon the status of the costs of
             6216      the total project or contract budget. [If the certification discloses a resulting]
             6217          (2) If a change order will result in an increase in the total project or contract budget,
             6218      [the procurement officer shall not execute or make] the change order may not be made, unless:
             6219          (a) sufficient funds are [available] added to the project contract or budget; or
             6220          (b) the scope of the project or contract is adjusted to permit the degree of completion
             6221      feasible within the total project or contract budget as it existed [prior to] before the change
             6222      order under consideration. [However, with respect to the validity, as to the contractor, of any
             6223      executed change order upon which the contractor has reasonably relied, it shall be presumed
             6224      that there has been compliance with the provisions of this section.]
             6225          (3) Notwithstanding any other provision of this section, it shall be presumed that this
             6226      section has been complied with if the contractor reasonably relies on an executed change order.
             6227          Section 156. Section 63G-6a-1301 is enacted to read:
             6228     
Part 13. General Construction Provisions

             6229          63G-6a-1301. Title.
             6230          This part is known as "General Construction Provisions."
             6231          Section 157. Section 63G-6a-1302 , which is renumbered from Section 63G-6-501 is



Text Box

- 206 -
             6232
     renumbered and amended to read:
             6233           [63G-6-501].     63G-6a-1302. Alternative methods of construction
             6234      contracting management.
             6235          (1) [(a) Rules shall] The applicable rulemaking authority shall, by rule provide as many
             6236      alternative methods of construction contracting management as determined to be feasible.
             6237          [(b) These rules shall:]
             6238          (2) The rules described in Subsection (1) shall:
             6239          [(i)] (a) grant to the [chief] procurement officer or the head of the state purchasing
             6240      [agency] unit responsible for carrying out the construction project the discretion to select the
             6241      appropriate method of construction contracting management for a particular project; and
             6242          [(ii)] (b) require the procurement officer to execute and include in the contract file a
             6243      written statement [setting forth] describing the facts [which] that led to the selection of a
             6244      particular method of construction contracting management for each project.
             6245          [(c)] (3) Before choosing a construction contracting management method, the [chief]
             6246      procurement officer or the head of the state purchasing [agency] unit responsible for carrying
             6247      out the construction project shall consider the following factors:
             6248          [(i)] (a) when the project must be ready to be occupied;
             6249          [(ii)] (b) the type of project;
             6250          [(iii)] (c) the extent to which the requirements of the [procuring agencies] public
             6251      procurement unit, and the [ways in which] way they are to be met are known;
             6252          [(iv)] (d) the location of the project;
             6253          [(v)] (e) the size, scope, complexity, and economics of the project;
             6254          [(vi)] (f) the source of funding and any resulting constraints necessitated by the funding
             6255      source;
             6256          [(vii)] (g) the availability, qualification, and experience of [state] public personnel to
             6257      be assigned to the project and [how much time the state] the amount of time that the public
             6258      personnel can devote to the project; and
             6259          [(viii)] (h) the availability, qualifications, and experience of outside consultants and
             6260      contractors to complete the project under the various methods being considered.
             6261          [(2) (a) Rules adopted by state public procurement units and local public procurement
             6262      units to implement this section may authorize the use of a Construction Manager/General



Text Box

- 207 -
             6263
     Contractor as one method of construction contracting management.]
             6264          [(b) Those rules shall require that:]
             6265          [(i) the Construction Manager/General Contractor shall be selected using one of the
             6266      source selection methods provided for in Part 4, Source Selections and Contract Formation,
             6267      and Section 63G-6-502 ; and]
             6268          [(ii) when entering into any subcontract that was not specifically included in the
             6269      Construction Manager/General Contractor's cost proposal submitted under the requirements of
             6270      Subsection (2)(b)(i), the Construction Manager/General Contractor shall procure that
             6271      subcontractor by using one of the source selection methods provided for in Part 4, Source
             6272      Selections and Contract Formation, in the same manner as if the subcontract work was
             6273      procured directly by the state.]
             6274          (4) An applicable rulemaking authority may make rules that authorize the use of a
             6275      construction manager/general contractor as one method of construction contracting
             6276      management.
             6277          (5) The rules described in Subsection (2) shall require that:
             6278          (a) the construction manager/general contractor be selected using:
             6279          (i) a procurement process; or
             6280          (ii) an exception to the requirement to use a procurement process; and
             6281          (b) when entering into a subcontract that was not specifically included in the
             6282      construction manager/general contractor's cost proposal, the construction manager/general
             6283      contractor shall procure the subcontractor by using a procurement process, or an exception to
             6284      the requirement to use a procurement process, in the same manner as if the subcontract work
             6285      was procured directly by the public procurement unit.
             6286          [(3)] (6) Procurement rules adopted by the State Building Board under [Subsection (1)]
             6287      Subsections (1) through (3) for state building construction projects may authorize the use of a
             6288      design-build provider as one method of construction contracting management.
             6289          (7) A design-build contract may include a provision for obtaining the site for the
             6290      construction project.
             6291          (8) A design-build contract or a construction manager/general contractor contract may
             6292      include provision by the contractor of operations, maintenance, or financing.
             6293          Section 158. Section 63G-6a-1303 , which is renumbered from Section 63G-6-604 is



Text Box

- 208 -
             6294
     renumbered and amended to read:
             6295           [63G-6-604].     63G-6a-1303. Drug and alcohol testing required for state
             6296      construction contracts.
             6297          (1) As used in this section:
             6298          (a) "Contractor" means a person who is or may be awarded a state construction
             6299      contract.
             6300          (b) "Covered individual" means an individual who:
             6301          (i) on behalf of a contractor or subcontractor provides services directly related to
             6302      design or construction under a state construction contract; and
             6303          (ii) is in a safety sensitive position, including a design position that has responsibilities
             6304      that directly affect the safety of an improvement to real property that is the subject of a state
             6305      construction contract.
             6306          (c) "Drug and alcohol testing policy" means a policy under which a contractor or
             6307      subcontractor tests a covered individual to establish, maintain, or enforce the prohibition of:
             6308          (i) the manufacture, distribution, dispensing, possession, or use of drugs or alcohol,
             6309      except the medically prescribed possession and use of a drug; or
             6310          (ii) the impairment of judgment or physical abilities due to the use of drugs or alcohol.
             6311          (d) "Random testing" means that a covered individual is subject to periodic testing for
             6312      drugs and alcohol:
             6313          (i) in accordance with a drug and alcohol testing policy; and
             6314          (ii) on the basis of a random selection process.
             6315          [(e) For purposes of Subsection (6), "state" includes any of the following of the state:]
             6316          (e) "State executive entity" means:
             6317          (i) a state executive branch:
             6318          [(i) a] (A) department;
             6319          [(ii) a] (B) division;
             6320          [(iii) an] (C) agency;
             6321          [(iv) a] (D) board;
             6322          [(v) a] (E) commission;
             6323          [(vi) a] (F) council;
             6324          [(vii) a] (G) committee; [and] or



Text Box

- 209 -
             6325
         [(viii) an] (H) institution[, including a state institution of higher education, as defined
             6326      under Section 53B-3-102 .]; or
             6327          (ii) a state institution of higher education, as defined in Section 53B-3-102 .
             6328          (f) "State construction contract" means a contract for design or construction entered
             6329      into by a state [public procurement unit] executive entity.
             6330          [(g) (i) "Subcontractor" means a person under contract with a contractor or another
             6331      subcontractor to provide services or labor for design or construction.]
             6332          [(ii) "Subcontractor" includes a trade contractor or specialty contractor.]
             6333          [(iii) "Subcontractor" does not include a supplier who provides only materials,
             6334      equipment, or supplies to a contractor or subcontractor.]
             6335          (2) Except as provided in Subsection (7), [on and after July 1, 2010,] a state [public
             6336      procurement unit] executive entity may not enter into a state construction contract unless the
             6337      [state] public construction contract requires [the following] that the contractor demonstrate to
             6338      the state executive entity that the contractor:
             6339          [(a) A contractor shall demonstrate to the state public procurement unit that the
             6340      contractor:]
             6341          [(i)] (a) has and will maintain a drug and alcohol testing policy during the period of the
             6342      state construction contract that applies to the covered individuals hired by the contractor;
             6343          [(ii)] (b) posts in one or more conspicuous places notice to covered individuals hired
             6344      by the contractor that the contractor has the drug and alcohol testing policy described in
             6345      Subsection (2)(a)[(i); and];
             6346          [(iii)] (c) subjects the covered individuals to random testing under the drug and alcohol
             6347      testing policy described in Subsection (2)(a)[(i)] if at any time during the period of the state
             6348      construction contract there are 10 or more individuals who are covered individuals hired by the
             6349      contractor[.]; and
             6350          [(b) A contractor shall demonstrate to the state public procurement unit that the
             6351      contractor]
             6352          (d) requires that as a condition of contracting with the contractor, a subcontractor:
             6353          (i) has and will maintain a drug and alcohol testing policy during the period of the state
             6354      construction contract that applies to the covered individuals hired by the subcontractor;
             6355          (ii) posts in one or more conspicuous places notice to covered individuals hired by the



Text Box

- 210 -
             6356
     subcontractor that the subcontractor has the drug and alcohol testing policy described in
             6357      Subsection (2)[(b)](d)(i); and
             6358          (iii) subjects the covered individuals hired by the subcontractor to random testing under
             6359      the drug and alcohol testing policy described in Subsection (2)[(b)](d)(i) if at any time during
             6360      the period of the state construction contract there are 10 or more individuals who are covered
             6361      individuals hired by the subcontractor.
             6362          (3) (a) Except as otherwise provided in this Subsection (3), if a contractor or
             6363      subcontractor fails to comply with Subsection (2), the contractor or subcontractor may be
             6364      suspended or debarred in accordance with this chapter.
             6365          (b) [On and after July 1, 2010, a] A state [public procurement unit] executive entity
             6366      shall include in a state construction contract:
             6367          (i) a reference to the rules described in Subsection (4)(b); or
             6368          (ii) if the [state public procurement unit] applicable rulemaking authority has not made
             6369      the rules described in Subsection (4)(b), a process that provides a contractor or subcontractor
             6370      reasonable notice and opportunity to cure a violation of this section before suspension or
             6371      debarment of the contractor or subcontractor in light of the circumstances of the state
             6372      construction contract or the violation.
             6373          (c) (i) A contractor is not subject to penalties for the failure of a subcontractor to
             6374      comply with Subsection (2).
             6375          (ii) A subcontractor is not subject to penalties for the failure of a contractor to comply
             6376      with Subsection (2).
             6377          [(4) If otherwise authorized to make rules, in accordance with Title 63G, Chapter 3,
             6378      Utah Administrative Rulemaking Act, a state public procurement unit:]
             6379          (4) An authorized rulemaking authority:
             6380          (a) may make rules that establish the requirements and procedures a contractor [shall]
             6381      is required to follow to comply with Subsection (2); and
             6382          (b) shall make rules that establish:
             6383          (i) the penalties that may be imposed in accordance with Subsection (3); and
             6384          (ii) a process that provides a contractor or subcontractor reasonable notice and
             6385      opportunity to cure a violation of this section before suspension or debarment of the contractor
             6386      or subcontractor in light of the circumstances of the state construction contract or the violation.



Text Box

- 211 -
             6387
         (5) The failure of a contractor or subcontractor to meet the requirements of Subsection
             6388      (2):
             6389          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
             6390      or contractor under Part [8, Legal and Contractual Remedies] 17, Procurement Appeals Board,
             6391      or Part 18, Appeals to Court and Court Proceedings; and
             6392          (b) may not be used by a state public procurement unit, a prospective bidder, an
             6393      offeror, a contractor, or a subcontractor as a basis for an action that would suspend, disrupt, or
             6394      terminate the design or construction under a state construction contract.
             6395          (6) (a) After a state [public procurement unit] executive entity enters into a state
             6396      construction contract in compliance with this section, the state is not required to audit, monitor,
             6397      or take any other action to ensure compliance with this section.
             6398          (b) The state is not liable in any action related to this section, including not being liable
             6399      in relation to:
             6400          (i) a contractor or subcontractor having or not having a drug and alcohol testing policy;
             6401          (ii) failure to test for a drug or alcohol under a contractor's or subcontractor's drug and
             6402      alcohol testing policy;
             6403          (iii) the requirements of a contractor's or subcontractor's drug and alcohol testing
             6404      policy;
             6405          (iv) a contractor's or subcontractor's implementation of a drug and alcohol testing
             6406      policy, including procedures for:
             6407          (A) collection of a sample;
             6408          (B) testing of a sample;
             6409          (C) evaluation of a test; or
             6410          (D) disciplinary or rehabilitative action on the basis of a test result;
             6411          (v) an individual being under the influence of drugs or alcohol; or
             6412          (vi) an individual under the influence of drugs or alcohol harming another person or
             6413      causing property damage.
             6414          (7) This section does not apply if the state [public procurement unit] executive entity
             6415      determines that the application of this section would severely disrupt the operation of a [state
             6416      agency] public procurement unit to the detriment of the [state agency] public procurement unit
             6417      or the general public, including:



Text Box

- 212 -
             6418
         (a) jeopardizing the receipt of federal funds;
             6419          (b) causing the state construction contract [being] to be a sole source contract; or
             6420          (c) causing the state construction contract [being] to be an emergency procurement.
             6421          (8) If a contractor or subcontractor meets the requirements of this section, this section
             6422      may not be construed to restrict the contractor's or subcontractor's ability to impose or
             6423      implement an otherwise lawful provision as part of a drug and alcohol testing policy.
             6424          Section 159. Section 63G-6a-1401 is enacted to read:
             6425     
Part 14. Transportation Contracts

             6426          63G-6a-1401. Title.
             6427          This part is known as "Transportation Contracts."
             6428          Section 160. Section 63G-6a-1402 , which is renumbered from Section 63G-6-502 is
             6429      renumbered and amended to read:
             6430           [63G-6-502].     63G-6a-1402. Procurement of design-build transportation
             6431      project contracts.
             6432          (1) As used in this section:
             6433          (a) "Design-build transportation project contract" means the procurement of both the
             6434      design and construction of a transportation project in a single contract with a company or
             6435      combination of companies capable of providing the necessary engineering services and
             6436      construction.
             6437          (b) "Transportation agency" means:
             6438          (i) the Department of Transportation;
             6439          (ii) a county of the first or second class, as defined in Section 17-50-501 ;
             6440          (iii) a municipality of the first class, as defined in Section 10-2-301 ;
             6441          (iv) a public transit district that has more than 200,000 people residing within its
             6442      boundaries; and
             6443          (v) a public airport authority.
             6444          (2) Except as provided in Subsection (3), a transportation agency may award a
             6445      design-build transportation project contract for any transportation project that has an estimated
             6446      cost of at least $50,000,000 by following the requirements of this section.
             6447          (3) (a) The Department of Transportation:
             6448          (i) may award a design-build transportation project contract for any transportation



Text Box

- 213 -
             6449
     project by following the requirements of this section; and
             6450          (ii) shall make rules, [by following the procedures and requirements of] in accordance
             6451      with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establishing requirements for
             6452      the procurement of its design-build transportation project contracts in addition to those required
             6453      by this section.
             6454          (b) A public transit district that has more than 200,000 people residing within its
             6455      boundaries:
             6456          (i) may award a design-build transportation project contract for any transportation
             6457      project by following the requirements of this section; and
             6458          (ii) shall pass ordinances or a resolution establishing requirements for the procurement
             6459      of its design-build transportation project contracts in addition to those required by this section.
             6460          (c) A design-build transportation project contract authorized under this Subsection (3)
             6461      is not subject to the estimated cost threshold [under] described in Subsection (2).
             6462          (d) A design-build transportation project contract may include provision by the
             6463      contractor of operations, maintenance, or financing.
             6464          (4) (a) Before entering into a design-build transportation project contract, a
             6465      transportation agency may issue a request for qualifications to prequalify potential contractors.
             6466          (b) Public notice of the request for qualifications shall be given in accordance with
             6467      [policy] board rules.
             6468          (c) A transportation agency shall require, as part of the qualifications specified in the
             6469      request for qualifications, that potential contractors at least demonstrate their:
             6470          (i) construction experience;
             6471          (ii) design experience;
             6472          (iii) financial, manpower, and equipment resources available for the project; and
             6473          (iv) experience in other design-build transportation projects with attributes similar to
             6474      the project being procured.
             6475          (d) The request for qualifications shall identify the number of eligible competing
             6476      proposers that the transportation agency will select to submit a proposal, which [must be at
             6477      least] may not be less than two.
             6478          (5) [(a)] The transportation agency shall:
             6479          [(i)] (a) evaluate the responses received from the request for qualifications;



Text Box

- 214 -
             6480
         [(ii)] (b) select from their number those qualified to submit proposals; and
             6481          [(iii)] (c) invite those respondents to submit proposals based upon the transportation
             6482      agency's request for proposals.
             6483          [(b) (i)] (6) Except as provided in Subsection [(5)(b)(ii)] (7), if the transportation
             6484      agency fails to receive at least two qualified eligible competing [proposers] proposals, the
             6485      transportation agency shall readvertise the project.
             6486          [(ii)] (7) A transportation agency may award a contract for a transportation project that
             6487      has an estimated cost of $5,000,000 or less to a qualified eligible proposer if:
             6488          [(A)] (a) only a single proposal is received; and
             6489          [(B)] (b) the transportation agency determines that:
             6490          [(I)] (i) the proposal is advantageous to the state; and
             6491          [(II)] (ii) the proposal price is reasonable.
             6492          [(6)] (8) The transportation agency shall issue a request for proposals to those qualified
             6493      respondents that:
             6494          (a) includes a scope of work statement constituting an information for proposal that
             6495      may include:
             6496          (i) preliminary design concepts;
             6497          (ii) design criteria, needs, and objectives;
             6498          (iii) warranty and quality control requirements;
             6499          (iv) applicable standards;
             6500          (v) environmental documents;
             6501          (vi) constraints;
             6502          (vii) time expectations or limitations;
             6503          (viii) incentives or disincentives; and
             6504          (ix) other special considerations;
             6505          (b) requires submitters to provide:
             6506          (i) a sealed cost proposal;
             6507          (ii) a critical path matrix schedule, including cash flow requirements;
             6508          (iii) proposal security; and
             6509          (iv) other items required by the department for the project; and
             6510          (c) may include award of a stipulated fee to be paid to [submitters] offerors who submit



Text Box

- 215 -
             6511
     unsuccessful proposals.
             6512          [(7)] (9) The transportation agency shall:
             6513          (a) evaluate the submissions received in response to the request for proposals from the
             6514      prequalified [proposers] offerors;
             6515          (b) comply with rules relating to discussion of proposals, best and final offers, and
             6516      evaluations of the proposals submitted; and
             6517          (c) after considering price and other identified factors, award the contract to the
             6518      responsive and responsible [proposer] offeror whose proposal is most advantageous to the
             6519      state.
             6520          Section 161. Section 63G-6a-1403 , which is renumbered from Section 63G-6-503 is
             6521      renumbered and amended to read:
             6522           [63G-6-503].     63G-6a-1403. Procurement of tollway development
             6523      agreements.
             6524          (1) As used in this section[: (a) "Department" means the Department of
             6525      Transportation. (b) "Tollway], "tollway development agreement" [has the same meaning] is as
             6526      defined in Section 72-6-202 .
             6527          (2) The [department] Department of Transportation and the Transportation
             6528      Commission:
             6529          (a) may solicit a tollway development agreement proposal by following the
             6530      requirements of this section;
             6531          (b) may award a solicited tollway development agreement contract for any tollway
             6532      project by following the requirements of this section; and
             6533          (c) shall make rules, [by following the procedures and requirements of] in accordance
             6534      with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establishing requirements for
             6535      the procurement of tollway development agreement proposals in addition to those required by
             6536      this section.
             6537          (3) (a) Before entering into a tollway development agreement, the [department]
             6538      Department of Transportation may issue a request for qualifications to prequalify potential
             6539      contractors.
             6540          (b) Public notice of the request for qualifications shall be given in accordance with
             6541      [policy] board rules.



Text Box

- 216 -
             6542
         (c) The [department] Department of Transportation shall require, as part of the
             6543      qualifications specified in the request for qualifications, that potential contractors at least
             6544      provide:
             6545          (i) a demonstration of their experience with other transportation concession projects
             6546      with attributes similar to the project being procured;
             6547          (ii) a financial statement of the firm or consortium of firms making the proposal;
             6548          (iii) a conceptual project development plan and financing plan;
             6549          (iv) the legal structure of the firm or consortium of firms making the proposal;
             6550          (v) the organizational structure for the project; and
             6551          (vi) a statement describing why the firm or consortium of firms is best qualified for the
             6552      project.
             6553          (d) The request for qualifications shall identify the number of eligible competing
             6554      [proposers] offerors that the [department] Department of Transportation will select to submit a
             6555      proposal.
             6556          (4) The [department] Department of Transportation shall:
             6557          (a) evaluate the responses received from the request for qualifications;
             6558          (b) select from their number those qualified to submit proposals; and
             6559          (c) invite those respondents to submit proposals based upon the [department's]
             6560      Department of Transportation's request for proposals.
             6561          (5) The [department] Department of Transportation shall issue a request for proposals
             6562      to those qualified respondents that may require, as appropriate for the procurement:
             6563          (a) a description of the proposed project or projects;
             6564          (b) a financial plan for the project, including:
             6565          (i) the anticipated financial commitment of all parties;
             6566          (ii) equity, debt, and other financing mechanisms;
             6567          (iii) an analysis of the projected return, rate of return, or both; and
             6568          (iv) the monetary benefit and other value to a government entity;
             6569          (c) assumptions about user fees or toll rates;
             6570          (d) a project development and management plan, including:
             6571          (i) the contracting structure;
             6572          (ii) the plan for quality management;



Text Box

- 217 -
             6573
         (iii) the proposed toll enforcement plan; and
             6574          (iv) the plan for safety management; and
             6575          (e) that the proposal to comply with the minimum guidelines for tollway development
             6576      agreement proposals under Section 72-6-204 .
             6577          (6) The [department] Department of Transportation and the Transportation
             6578      Commission:
             6579          (a) shall evaluate the submissions received in response to the request for proposals
             6580      from the prequalified [proposers] offerors;
             6581          (b) shall comply with rules relating to discussion of proposals, best and final offers,
             6582      and evaluations of the proposals submitted; and
             6583          (c) may, after considering price and other identified factors and complying with the
             6584      requirements of Section 72-6-206 , award the contract to the responsive and responsible
             6585      [proposer] offeror whose proposal is most advantageous to the state.
             6586          Section 162. Section 63G-6a-1501 is enacted to read:
             6587     
Part 15. Architect-Engineer Services

             6588          63G-6a-1501. Title.
             6589          This part is known as "Architect-Engineer Services."
             6590          Section 163. Section 63G-6a-1502 , which is renumbered from Section 63G-6-701 is
             6591      renumbered and amended to read:
             6592           [63G-6-701].     63G-6a-1502. Policy regarding architect-engineer services.
             6593          (1) It is the policy of this state to publicly announce all requirements for
             6594      architect-engineer services and to negotiate contracts for architect-engineer services on the
             6595      basis of demonstrated competence and qualification for the type of services required, and at fair
             6596      and reasonable prices.
             6597          (2) Architect-engineer services shall be procured as provided in this part except as
             6598      authorized by Sections [ 63G-6-409 through 63G-6-411 ] 63G-6a-408 , 63G-6a-802 , and
             6599      63G-6a-803 .
             6600          (3) This part does not affect the authority of, and does not apply to procedures
             6601      undertaken by, a public procurement unit to obtain the services of architects or engineers in the
             6602      capacity of employees of [such] the public procurement unit.
             6603          Section 164. Section 63G-6a-1503 , which is renumbered from Section 63G-6-702 is



Text Box

- 218 -
             6604
     renumbered and amended to read:
             6605           [63G-6-702].     63G-6a-1503. Selection committee for architect-engineer
             6606      services.
             6607          (1) In the procurement of architect-engineer services, the [chief] procurement officer or
             6608      the head of a state purchasing [agency] unit shall encourage firms engaged in the lawful
             6609      practice of their profession to submit annually a statement of qualifications and performance
             6610      data.
             6611          (2) The Building Board shall be the [selection] evaluation committee for
             6612      architect-engineer services contracts under its authority. [Selection committees]
             6613          (3) An evaluation committee for architect-engineer services contracts not under the
             6614      authority of the Building Board shall be established in accordance with rules [and regulations
             6615      promulgated by the policy board. Selection committees shall] made by the applicable
             6616      rulemaking authority.
             6617          (4) An evaluation committee shall:
             6618          (a) evaluate current statements of qualifications and performance data on file with the
             6619      state, together with those that may be submitted by other firms in response to the
             6620      announcement of the proposed contract[. Selection committees shall];
             6621          (b) consider no less than three firms [and then shall select therefrom,]; and
             6622          (c) based upon criteria established and published by the [selection committees,]
             6623      authorized purchasing entity, select no less than three of the firms considered to be the most
             6624      highly qualified to provide the services required.
             6625          Section 165. Section 63G-6a-1504 , which is renumbered from Section 63G-6-703 is
             6626      renumbered and amended to read:
             6627           [63G-6-703].     63G-6a-1504. Selection as part of design-build or lease.
             6628          Notwithstanding any other provision of this chapter, architect-engineer services may be
             6629      procured under Title 63A, Chapter 5, State Building Board - Division of Facilities Construction
             6630      and Management, as part of the services obtained in a design-build contract or as part of the
             6631      services obtained in a lease contract for real property, [provided that] if the qualifications of
             6632      those providing the architect-engineer services are part of the consideration in the selection
             6633      process.
             6634          Section 166. Section 63G-6a-1505 , which is renumbered from Section 63G-6-704 is



Text Box

- 219 -
             6635
     renumbered and amended to read:
             6636           [63G-6-704].     63G-6a-1505. Determination of compensation for
             6637      architect-engineer services.
             6638          (1) The procurement officer shall award a contract to a qualified firm at compensation
             6639      [which] that the procurement officer determines, in writing, to be fair and reasonable to the
             6640      state.
             6641          (2) In making [this decision,] the determination described in Subsection (1), the
             6642      procurement officer shall take into account the services':
             6643          (a) estimated value[, the];
             6644          (b) scope[, and];
             6645          (c) complexity[,]; and [the]
             6646          (d) professional nature [of the services to be rendered. Should].
             6647          (3) If the procurement officer [be] is unable to agree to a satisfactory contract with the
             6648      firm first selected, at a price the procurement officer determines to be fair and reasonable to the
             6649      state, [discussions with that firm shall be formally terminated. The] the procurement officer
             6650      shall [then]:
             6651          (a) formally terminate discussions with that firm; and
             6652          (b) undertake discussions with a second qualified firm. [Failing accord with the
             6653      second firm, the procurement officer shall formally terminate discussions. The procurement
             6654      officer shall then]
             6655          (4) If the procurement officer is unable to agree to a satisfactory contract with the
             6656      second firm selected, at a price the procurement officer determines to be fair and reasonable to
             6657      the state, the procurement officer shall:
             6658          (a) formally terminate discussions with that firm; and
             6659          (b) undertake discussions with a third qualified firm. [Should the procurement officer
             6660      be]
             6661          (5) If the procurement officer is unable to award a contract at a fair and reasonable
             6662      price [with] to any of the selected firms, the procurement officer shall:
             6663          (a) select additional firms[,]; and [the procurement officer shall]
             6664          (b) continue discussions in accordance with this part until an agreement is reached.
             6665          Section 167. Section 63G-6a-1506 , which is renumbered from Section 63G-6-705 is



Text Box

- 220 -
             6666
     renumbered and amended to read:
             6667           [63G-6-705].     63G-6a-1506. Restrictions on procurement of
             6668      architect-engineer services.
             6669          (1) Except as provided in Subsection (2), when [a public procurement unit] an
             6670      authorized purchasing entity, in accordance with Section [ 63G-6-701 ] 63G-6a-1502 , elects to
             6671      obtain architect or engineering services by using a competitive procurement process and has
             6672      provided public notice of its competitive procurement process:
             6673          (a) a higher education entity, or any part of one, may not submit a proposal in response
             6674      to the [public procurement unit's] authorized purchasing entity's competitive procurement
             6675      process; and
             6676          (b) the [public procurement unit] authorized purchasing entity may not award a
             6677      contract to perform the architect or engineering services solicited in the competitive
             6678      procurement process to a higher education entity or any part of one.
             6679          (2) [A public procurement unit need not comply with the requirements of] Subsection
             6680      (1) does not apply when the [public procurement unit] authorized purchasing entity is
             6681      procuring architect or engineer services for contracts related to research activities and
             6682      technology transfer.
             6683          Section 168. Section 63G-6a-1601 is enacted to read:
             6684     
Part 16. Controversies and Protests

             6685          63G-6a-1601. Title.
             6686          This part is known as "Controversies and Protests."
             6687          Section 169. Section 63G-6a-1602 , which is renumbered from Section 63G-6-805 is
             6688      renumbered and amended to read:
             6689           [63G-6-805].     63G-6a-1602. Authority to resolve controversy between
             6690      public procurement unit and contractor.
             6691          The [chief] procurement officer, the head of [a purchasing agency] an authorized
             6692      purchasing entity, or a designee of either [officer is authorized, prior to] may, before
             6693      commencement of an action in court concerning the controversy, [to] settle and resolve a
             6694      controversy [which] that arises between [the state] a public procurement unit or an authorized
             6695      purchasing entity and a contractor [under or by virtue of a contract between them. This
             6696      includes, without limitation, controversies] in relation to a contract or a procurement, including



Text Box

- 221 -
             6697
     a controversy based upon breach of contract, [mistakes] a mistake, misrepresentation, or other
             6698      cause for contract modification or rescission.
             6699          Section 170. Section 63G-6a-1603 , which is renumbered from Section 63G-6-801 is
             6700      renumbered and amended to read:
             6701           [63G-6-801].     63G-6a-1603. Protest to procurement officer -- Time --
             6702      Authority to resolve protest.
             6703          (1) Any actual or prospective bidder, offeror, or contractor who is aggrieved in
             6704      connection with the solicitation or award of a contract may protest to the [chief] procurement
             6705      officer or the head of [a purchasing agency] an authorized purchasing entity. A protest with
             6706      respect to an invitation for bids or a request for proposals shall be submitted in writing [prior
             6707      to] before the opening of bids or the closing date for proposals, unless the aggrieved person did
             6708      not know and should not have known of the facts giving rise to the protest [prior to] before the
             6709      bid opening or the closing date for proposals. [The protest shall be submitted] An aggrieved
             6710      person shall submit a protest in writing within [five working] seven days after the aggrieved
             6711      person knows or should have known of the facts giving rise [thereto] to the protest.
             6712          (2) Subject to the applicable requirements in Section 63G-10-403 , the [chief]
             6713      procurement officer, the head of [a purchasing agency] an authorized purchasing entity, or a
             6714      designee of either [officer shall have the authority, prior to], may, before the commencement of
             6715      an action in court concerning the controversy, [to] settle and resolve the protest.
             6716          Section 171. Section 63G-6a-1604 , which is renumbered from Section 63G-6-806 is
             6717      renumbered and amended to read:
             6718           [63G-6-806].     63G-6a-1604. Decisions to be in writing -- Effect of no
             6719      writing.
             6720          (1) The [chief procurement officer, the head of a purchasing agency, or the designee of
             6721      either officer] person who conducts a hearing under Section 63G-6a-1603 shall promptly issue
             6722      a written decision regarding any protest, debarment [or], suspension, or contract controversy if
             6723      it is not settled by a mutual agreement.
             6724          (2) The decision shall state the reasons for the action taken and inform the protestor,
             6725      contractor, or prospective contractor of the right to judicial or administrative review as
             6726      provided in this chapter.
             6727          [(2)] (3) A decision [shall be] described in this section is effective until stayed or



Text Box

- 222 -
             6728
     reversed on appeal, except to the extent provided in Section [ 63G-6-802 ] 63G-6a-1607 . [A
             6729      copy of the decision under Subsection (1) shall be mailed]
             6730          (4) A person who issues a decision under this section shall mail or otherwise
             6731      [furnished] immediately furnish a copy of the decision to the protestor, prospective contractor,
             6732      or contractor.
             6733          (5) The decision shall be final and conclusive unless the protestor, prospective
             6734      contractor, or contractor:
             6735          (a) appeals administratively to the [procurement] applicable appeals board, if any, in
             6736      accordance with Subsection [ 63G-6-810 ] 63G-6a-1703 (2); or [the protestor, prospective
             6737      contractor, or contractor]
             6738          (b) if there is not an applicable appeals board, commences an action in district court in
             6739      accordance with Section [ 63G-6-815 ] 63G-6a-1803 .
             6740          [(3)] (6) If the [chief] procurement officer, the head of [a purchasing agency] an
             6741      authorized purchasing entity, or the designee of either [officer] does not issue the written
             6742      decision [regarding a contract controversy] as required by this section within 60 [calendar] days
             6743      after the day on which a written request for a final decision is made, or within [such] a longer
             6744      period as may be agreed upon by the parties, then the protestor, contractor, or prospective
             6745      contractor may proceed as if an adverse decision had been received.
             6746          Section 172. Section 63G-6a-1605 , which is renumbered from Section 63G-6-907 is
             6747      renumbered and amended to read:
             6748           [63G-6-907].     63G-6a-1605. Resolution of local public procurement
             6749      controversies.
             6750          [Any] A local public procurement unit [is authorized to] may enter into an agreement
             6751      with the State Procurement Appeals Board to resolve controversies between the local public
             6752      procurement unit and its bidders, offerors, contractors, regardless of whether [or not such] the
             6753      controversy arose from a cooperative purchasing agreement.
             6754          Section 173. Section 63G-6a-1606 , which is renumbered from Section 63G-6-802 is
             6755      renumbered and amended to read:
             6756           [63G-6-802].     63G-6a-1606. Effect of timely protest.
             6757          In the event of a timely protest under Subsection [ 63G-6-801 (1), 63G-6-810 (1), or
             6758      63G-6-815 (1), the state shall] 63G-6a-1603 (1), 63G-6a-1703 (1), or 63G-6a-1803 (1), an



Text Box

- 223 -
             6759
     authorized purchasing entity may not proceed further with the solicitation or with the award of
             6760      the contract until all administrative and judicial remedies [have been] are exhausted or until the
             6761      [chief] procurement officer, after consultation with the head of the [using agency] public
             6762      procurement unit or the head of [a purchasing agency] an authorized purchasing entity, makes a
             6763      written determination that the award of the contract without delay is necessary to protect
             6764      substantial interests of the state.
             6765          Section 174. Section 63G-6a-1607 , which is renumbered from Section 63G-6-803 is
             6766      renumbered and amended to read:
             6767           [63G-6-803].     63G-6a-1607. Costs to or against protestor.
             6768          (1) When a protest is sustained administratively or upon administrative or judicial
             6769      review and the protesting bidder or offeror should have been awarded the contract under the
             6770      solicitation but is not, the protestor shall be entitled to the following relief as a claim against
             6771      the state:
             6772          (a) the reasonable costs incurred in connection with the solicitation, including bid
             6773      preparation and appeal costs; and
             6774          (b) any equitable relief determined to be appropriate by the reviewing administrative or
             6775      judicial body.
             6776          (2) When a protest is not sustained by the [Procurement Appeals Board] appeals board,
             6777      the protestor shall reimburse the [Division of Purchasing and General Services] public
             6778      procurement unit for the per diem and expenses paid by the [division] public procurement unit
             6779      to witnesses or appeals board members and any additional expenses incurred by the [state
             6780      agency] staff of the public procurement unit who have provided materials and administrative
             6781      services to the appeals board for that case.
             6782          Section 175. Section 63G-6a-1701 is enacted to read:
             6783     
Part 17. Procurement Appeals Board

             6784          63G-6a-1701. Title.
             6785          This part is known as "Procurement Appeals Board."
             6786          Section 176. Section 63G-6a-1702 , which is renumbered from Section 63G-6-807 is
             6787      renumbered and amended to read:
             6788           [63G-6-807].     63G-6a-1702. Creation of Procurement Appeals Board --
             6789      Creation of other appeals boards.



Text Box

- 224 -
             6790
         (1) (a) A Procurement Appeals Board is created in the executive branch. The
             6791      Procurement Appeals Board shall be composed of a chair and one other member, to be
             6792      appointed by the governor, and a third member to be designated by the two appointed members
             6793      on a case-by-case basis.
             6794          (b) None of the members of the Procurement Appeals Board shall otherwise be
             6795      full-time employees of the state.
             6796          (c) The appointed members of the Procurement Appeals Board shall have been
             6797      members in good standing of the state bar for at least five years and shall be experienced in
             6798      contract or commercial matters.
             6799          (d) The designated member shall possess the technical expertise and experience needed
             6800      for the proper disposition of the factual issues presented by the case.
             6801          (2) (a) Except as required by Subsection (2)(b), as terms of current [board] members
             6802      expire, the governor shall appoint each new member or reappointed member to a four-year
             6803      term.
             6804          (b) Notwithstanding the requirements of Subsection (2)(a), the governor shall, at the
             6805      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             6806      [board] members are staggered so that approximately half of the [board is] members of the
             6807      Procurement Appeals Board are appointed every two years.
             6808          (c) The designated member shall serve for the case on which designated until the final
             6809      disposition of the case.
             6810          (d) Appointed members may be reappointed for succeeding terms and may continue to
             6811      serve after the expiration of their terms until a successor takes office.
             6812          (e) Qualified persons may be redesignated as members.
             6813          (3) When a vacancy occurs in the membership for any reason, the replacement shall be
             6814      appointed for the unexpired term.
             6815          (4) A member may not receive compensation or benefits for the member's service, but
             6816      may receive per diem and travel expenses in accordance with:
             6817          (a) Section 63A-3-106 ;
             6818          (b) Section 63A-3-107 ; and
             6819          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             6820      63A-3-107 .



Text Box

- 225 -
             6821
         (5) A local public procurement unit, a non-executive state procurement unit, or a state
             6822      institution of higher education may form its own appeals board to hear procurement protests.
             6823          Section 177. Section 63G-6a-1703 , which is renumbered from Section 63G-6-810 is
             6824      renumbered and amended to read:
             6825           [63G-6-810].     63G-6a-1703. Jurisdiction of appeals board.
             6826          Unless an action has been initiated previously in district courts for essentially the same
             6827      cause of action, [the] an appeals board shall have jurisdiction to review and determine de novo:
             6828          (1) any protest of a solicitation or award of a contract addressed to the appeals board by
             6829      an aggrieved actual or prospective bidder or offeror, or a contractor; and
             6830          (2) any appeal by an aggrieved party from a decision rendered or considered to have
             6831      been rendered pursuant to Section [ 63G-6-806 ] 63G-6a-1604 .
             6832          Section 178. Section 63G-6a-1704 , which is renumbered from Section 63G-6-808 is
             6833      renumbered and amended to read:
             6834           [63G-6-808].     63G-6a-1704. Rules of procedure to be adopted.
             6835          The Procurement Appeals Board:
             6836          (1) shall adopt rules of procedure [which] that, to the fullest extent possible, [will]
             6837      provide for the expeditious resolution of controversies, including procedures to encourage
             6838      agreements between the parties to a controversy prior to a hearing[. The board]; and
             6839          (2) may adopt small claims procedures for the resolution of controversies involving
             6840      claims of less than $15,000.
             6841          Section 179. Section 63G-6a-1705 , which is renumbered from Section 63G-6-809 is
             6842      renumbered and amended to read:
             6843           [63G-6-809].     63G-6a-1705. Decisions of appeals board to be in writing.
             6844          [The Procurement Appeals Board shall]
             6845          An appeals board shall:
             6846          (1) issue a decision in writing or take other appropriate action of each appeal
             6847      submitted[. A]; and
             6848          (2) provide a copy of any decision [shall be provided] to all parties and the [chief]
             6849      procurement officer or the head of [a purchasing agency] an authorized purchasing entity.
             6850          Section 180. Section 63G-6a-1706 , which is renumbered from Section 63G-6-811 is
             6851      renumbered and amended to read:



Text Box

- 226 -
             6852
          [63G-6-811].     63G-6a-1706. Time limits to file protest or appeal -- Effect of
             6853      filing.
             6854          (1) For a protest under Subsection [ 63G-6-810 ] 63G-6a-1703 (1), the aggrieved person
             6855      shall file a protest with the appeals board within [five working] seven days after the aggrieved
             6856      person knows or should have known of the facts and circumstances upon which the protest is
             6857      based[; provided, however,] except that a protest with respect to an invitation for bids or
             6858      request for proposals shall be filed [prior to] before the opening of bids or the closing date for
             6859      proposals unless the aggrieved person did not know and should not have known of the facts
             6860      giving rise to the protest [prior to] before the bid opening or the closing date for proposals.
             6861          (2) For an appeal from a decision regarding a protested solicitation or award, the
             6862      aggrieved person shall file an appeal within seven [calendar days of receipt of a] days after the
             6863      day on which the decision is rendered or considered to have been rendered [pursuant to Section
             6864      63G-6-806 ] under Section 63G-6a-1604 .
             6865          (3) For an appeal from a decision regarding a debarment, suspension, or contract
             6866      controversy, the aggrieved person shall file an appeal within 60 [calendar days of receipt of]
             6867      days after the day on which the person receives a decision rendered or considered to have been
             6868      rendered [pursuant to Section 63G-6-806 ] under Section 63G-6a-1604 .
             6869          Section 181. Section 63G-6a-1707 , which is renumbered from Section 63G-6-812 is
             6870      renumbered and amended to read:
             6871           [63G-6-812].     63G-6a-1707. Discontinued appeal with prejudice, except as
             6872      authorized.
             6873          After notice of an appeal [has been] is filed with the [Procurement Appeals Board]
             6874      applicable appeals board, no party may discontinue the appeal without prejudice, except as
             6875      authorized by the [Procurement Appeals Board] applicable appeals board.
             6876          Section 182. Section 63G-6a-1708 , which is renumbered from Section 63G-6-813 is
             6877      renumbered and amended to read:
             6878           [63G-6-813].     63G-6a-1708. Factual determination of appeals board final
             6879      and conclusive.
             6880          (1) On any protest or appeal under Section [ 63G-6-810 ] 63G-6a-1703 , the
             6881      [Procurement Appeals Board] applicable appeals board shall promptly decide the contract
             6882      controversy or whether the [solicitation] procurement or award was in accordance with this



Text Box

- 227 -
             6883
     chapter. Any prior determinations by administrative officials regarding protests of
             6884      [solicitations] procurements or awards, suspension or debarments, contract controversies, or
             6885      breach of contract controversies [shall not be] are not final or conclusive.
             6886          (2) A determination of an issue of fact by the [Procurement Appeals Board] applicable
             6887      appeals board under Subsection (1) [shall be] is final and conclusive unless arbitrary and
             6888      capricious or clearly erroneous. No determination on an issue of law [shall be] by the
             6889      applicable appeals board is final or conclusive.
             6890          (3) The applicable appeals board may, without a hearing, determine, in writing, that a
             6891      protest is without merit.
             6892          Section 183. Section 63G-6a-1801 is enacted to read:
             6893     
Part 18. Appeals to Court and Court Proceedings

             6894          63G-6a-1801. Title.
             6895          This part is known as "Appeals to Court and Court Proceedings."
             6896          Section 184. Section 63G-6a-1802 , which is renumbered from Section 63G-6-814 is
             6897      renumbered and amended to read:
             6898           [63G-6-814].     63G-6a-1802. Right to appeal to Court of Appeals.
             6899          Any person receiving an adverse decision, or the state, may appeal a decision of [the
             6900      Procurement Appeals Board] an appeals board to the Court of Appeals. [However, no appeal
             6901      may be made by the state] The state may not appeal a decision of an appeals board unless:
             6902          (1) recommended by the chief procurement officer or the head of the state purchasing
             6903      [agency] unit involved, and approved by the attorney general[.]; or
             6904          (2) for a non-executive state procurement unit, approved by a person authorized by rule
             6905      made by the applicable rulemaking authority.
             6906          Section 185. Section 63G-6a-1803 , which is renumbered from Section 63G-6-815 is
             6907      renumbered and amended to read:
             6908           [63G-6-815].     63G-6a-1803. Jurisdiction of district court.
             6909          (1) The district court shall have jurisdiction over an action, whether the action is at law
             6910      or in equity, between the state and:
             6911          (a) a bidder, offeror, or contractor, prospective or actual, who is aggrieved in
             6912      connection with the [solicitation] procurement or award of a contract;
             6913          (b) a person who is subject to a suspension or debarment proceeding; and



Text Box

- 228 -
             6914
         (c) a contractor, for any cause of action [which] that arises under, or [by virtue of] or in
             6915      relation to a contract.
             6916          (2) The provisions of Title 63G, Chapter 7, Part 4, Notice of Claim Against a
             6917      Governmental Entity or a Government Employee, and Section 63G-7-601 do not apply to
             6918      actions brought under this chapter by an aggrieved party for equitable relief or reasonable costs
             6919      incurred in preparing or appealing an unsuccessful bid or offer.
             6920          Section 186. Section 63G-6a-1804 , which is renumbered from Section 63G-6-817 is
             6921      renumbered and amended to read:
             6922           [63G-6-817].     63G-6a-1804. Statutes of limitations.
             6923          (1) [Any] An action under Subsection [ 63G-6-815 ] 63G-6a-1803 (1)(a) shall be
             6924      initiated [as follows]:
             6925          (a) within 20 [calendar] days after the day on which the aggrieved person knows or
             6926      should have known of the facts giving rise to the action; [provided, however, that an action]
             6927          (b) with respect to an invitation for bids or request for proposals [shall be initiated
             6928      prior to], before the opening of bids or the closing date for proposals unless the aggrieved
             6929      person did not know and should not have known of the facts giving rise to the action [prior to
             6930      bid opening or the closing date for proposals]; or
             6931          [(b)] (c) within 14 [calendar] days after receipt of a final administrative decision
             6932      pursuant to either Section [ 63G-6-806 or Section 63G-6-813 ] 63G-6a-1604 or 63G-6a-1708 ,
             6933      whichever is applicable.
             6934          (2) [Any] An action under Subsection [ 63G-6-815 ] 63G-6a-1803 (1)(b) shall be
             6935      commenced within six months after receipt of a final administrative decision, pursuant to
             6936      Section [ 63G-6-806 or Section 63G-6-813 , whichever is applicable] 63G-6a-1604 or
             6937      63G-6a-1708 .
             6938          (3) The statutory limitations on an action between private persons on a contract or for
             6939      breach of contract shall apply to any action commenced pursuant to Subsection [ 63G-6-815 ]
             6940      63G-6a-1803 (1)(c), except notice of appeals from [the Procurement Appeals Board] an appeals
             6941      board pursuant to Section [ 63G-6-814 ] 63G-6a-1802 concerning actions on a contract or for
             6942      breach of contract, shall be filed within one year after the [date of the Procurement Appeals
             6943      Board decision] day on which the decision of the appeals board is made.
             6944          Section 187. Section 63G-6a-1805 , which is renumbered from Section 63G-6-816 is



Text Box

- 229 -
             6945
     renumbered and amended to read:
             6946           [63G-6-816].     63G-6a-1805. Effect of prior determination by agents of
             6947      state.
             6948          In any judicial action under Section [ 63G-6-815 ] 63G-6a-1803 , determinations by
             6949      employees, agents, or other persons appointed by the state shall be final and conclusive only as
             6950      provided in Sections [ 63G-6-419 and 63G-6-806 ] 63G-6a-1604 and 63G-6a-1902 , and
             6951      Subsection [ 63G-6-813 ] 63G-6a-1708 (2).
             6952          Section 188. Section 63G-6a-1901 is enacted to read:
             6953     
Part 19. General Provisions Related to Protest or Appeal

             6954          63G-6a-1901. Title.
             6955          This part is known as "General Provisions Related to Protest or Appeal."
             6956          Section 189. Section 63G-6a-1902 , which is renumbered from Section 63G-6-419 is
             6957      renumbered and amended to read:
             6958           [63G-6-419].     63G-6a-1902. Determinations final except when arbitrary
             6959      and capricious.
             6960          The determinations required [by Subsections 63G-6-401 (6), 63G-6-408 (1) and (6),
             6961      Sections 63G-6-410 , 63G-6-411 , 63G-6-413 , Subsection 63G-6-415 (4), Section 63G-6-416 ,
             6962      and Subsection 63G-6-417 (2)] under the following provisions are final and conclusive unless
             6963      they are arbitrary and capricious or clearly erroneous[.]:
             6964          (1) Section 63G-6a-605 ;
             6965          (2) Section 63G-6a-702 ;
             6966          (3) Subsection 63G-6a-708 (1)(a);
             6967          (4) Subsection 63G-6a-709 (1);
             6968          (5) Section 63G-6a-803 ;
             6969          (6) Section 63G-6a-804 ;
             6970          (7) Section 63G-6a-903 ;
             6971          (8) Subsection 63G-6a-1204 (1) or (2);
             6972          (9) Subsection 63G-6a-1204 (5);
             6973          (10) Section 63G-6a-1205 ; or
             6974          (11) Subsection 63G-6a-1206 (5).
             6975          Section 190. Section 63G-6a-1903 , which is renumbered from Section 63G-6-818 is



Text Box

- 230 -
             6976
     renumbered and amended to read:
             6977           [63G-6-818].     63G-6a-1903. Effect of violation prior to award of contract.
             6978          If [prior to], before award of a contract, it is determined administratively or upon
             6979      administrative or judicial review that a [solicitation] procurement or proposed award of a
             6980      contract is in violation of law, the [solicitation] procurement or proposed award shall be
             6981      cancelled or revised to comply with the law.
             6982          Section 191. Section 63G-6a-1904 , which is renumbered from Section 63G-6-819 is
             6983      renumbered and amended to read:
             6984           [63G-6-819].     63G-6a-1904. Effect of violation after award of contract.
             6985          If, after [an] award of a contract, it is determined administratively or upon
             6986      administrative or judicial review that a [solicitation] procurement or award of a contract is in
             6987      violation of law:
             6988          (1) if the person awarded the contract [has not acted] did not act fraudulently or in bad
             6989      faith:
             6990          (a) the contract may be ratified and affirmed if it is [determined that doing so is] in the
             6991      best interests of the state; or
             6992          (b) (i) the contract may be terminated; and
             6993          (ii) the person awarded the contract shall be compensated for the actual expenses
             6994      reasonably incurred under the contract [prior to] before the termination, plus a reasonable
             6995      profit;
             6996          (2) if the person awarded the contract has acted fraudulently or in bad faith:
             6997          (a) the contract may be declared null and void; or
             6998          (b) the contract may be ratified and affirmed if [such action] it is in the best interests of
             6999      the state, without prejudice to the state's rights to any appropriate damages.
             7000          Section 192. Section 63G-6a-1905 , which is renumbered from Section 63G-6-820 is
             7001      renumbered and amended to read:
             7002           [63G-6-820].     63G-6a-1905. Interest rate.
             7003          (1) Except as provided in Subsection (2), in controversies between the state and
             7004      contractors under this part, Part 16, Controversies and Protests, Part 17, Procurement Appeals
             7005      Board, or Part 18, Appeals to Court and Court Proceedings, interest on amounts ultimately
             7006      determined to be due to a contractor or [to] the state are payable at the rate applicable to



Text Box

- 231 -
             7007
     judgments from the date the claim arose through the date of decision or judgment, whichever is
             7008      later.
             7009          (2) This section does not apply to public assistance benefits programs.
             7010          Section 193. Section 63G-6a-2001 is enacted to read:
             7011     
Part 20. Records

             7012          63G-6a-2001. Title.
             7013          This part is known as "Records."
             7014          Section 194. Section 63G-6a-2002 , which is renumbered from Section 63G-6-106 is
             7015      renumbered and amended to read:
             7016           [63G-6-106].     63G-6a-2002. Records -- Retention.
             7017          (1) All procurement records shall be retained and disposed of in accordance with Title
             7018      63G, Chapter 2, Government Records Access and Management Act.
             7019          (2) Written determinations required by this chapter shall [also] be retained in the
             7020      appropriate official contract file of [the Division of Purchasing and General Services or the
             7021      purchasing agency.]:
             7022          (a) the division;
             7023          (b) the state purchasing unit; or
             7024          (c) for a non-executive state procurement unit, the person designated by rule made by
             7025      the applicable rulemaking authority.
             7026          (3) A public procurement unit shall keep, and make available to the public, upon
             7027      request, a written record of all procurements made under this section for which an expenditure
             7028      of $50 or more is made, for the longer of:
             7029          (a) four years;
             7030          (b) the time otherwise required by law; or
             7031          (c) the time period provided by rule made by the applicable rulemaking authority.
             7032          (4) The written record described in Subsection (3) shall include:
             7033          (a) the name of the provider from whom the procurement was made;
             7034          (b) a description of the procurement item;
             7035          (c) the date of the procurement; and
             7036          (d) the expenditure made for the procurement.
             7037          Section 195. Section 63G-6a-2003 , which is renumbered from Section 63G-6-421 is



Text Box

- 232 -
             7038
     renumbered and amended to read:
             7039           [63G-6-421].     63G-6a-2003. Records of contracts made -- Audits --
             7040      Contract requirements.
             7041          The [chief] procurement officer or the head of [a purchasing agency] an authorized
             7042      purchasing entity shall maintain a record listing all contracts made under Section [ 63G-6-410
             7043      or 63G-6-411 and shall maintain the record] 63G-6a-408 , 63G-6a-802 , or 63G-6a-803 , in
             7044      accordance with Title 63G, Chapter 2, Government Records Access and Management Act.
             7045      The record shall contain each contractor's name, the amount and type of each contract, and a
             7046      listing of the [supplies, services, or construction procured under each contract] procurement
             7047      items to which the contract relates .
             7048          Section 196. Section 63G-6a-2004 , which is renumbered from Section 63G-6-905 is
             7049      renumbered and amended to read:
             7050           [63G-6-905].     63G-6a-2004. Chief procurement officer's collection of
             7051      information on procurement items.
             7052          (1) To the extent possible, the chief procurement officer may collect information
             7053      concerning the type, cost, quality, and quantity of commonly used [supplies, services, or
             7054      construction being] procurement items procured or used by [state] public procurement units
             7055      [and local public procurement units].
             7056          (2) The chief procurement officer may make the information described in Subsection
             7057      (1) available to any public procurement unit upon request.
             7058          Section 197. Section 63G-6a-2101 is enacted to read:
             7059     
Part 21. Interaction Between Public Procurement Units

             7060          63G-6a-2101. Title.
             7061          This part is known as "Interaction Between Public Procurement Units."
             7062          Section 198. Section 63G-6a-2102 , which is renumbered from Section 63G-6-901 is
             7063      renumbered and amended to read:
             7064           [63G-6-901].     63G-6a-2102. Agreements between public procurement
             7065      units.
             7066          [Under the terms agreed upon among the parties, any]
             7067          (1) For purposes of this section only, "public procurement unit" includes an external
             7068      procurement unit.



Text Box

- 233 -
             7069
         (2) A public procurement unit may enter into [agreements] an agreement with one or
             7070      more other public procurement units to:
             7071          [(1)] (a) sponsor, conduct, or administer a cooperative agreement for the procurement
             7072      or disposal of [any supplies, services, or construction] a procurement item;
             7073          [(2)] (b) cooperatively use [supplies or services] a procurement item;
             7074          [(3)] (c) commonly use or share warehousing facilities, capital equipment, and other
             7075      facilities;
             7076          [(4)] (d) provide personnel[; provided that the requesting], if the receiving public
             7077      procurement unit [shall pay] pays the public procurement unit providing the personnel the
             7078      direct and indirect cost of providing the personnel, in accordance with the agreement; or
             7079          [(5)] (e) make available informational, technical, and other services, [provided that], if:
             7080          (i) the requirements of the public procurement unit tendering the services [shall] have
             7081      precedence over the [requesting] public procurement unit that receives the services; and [that]
             7082          (ii) the [requesting] receiving public procurement unit [shall pay for] pays the expenses
             7083      of the services [so] provided, in accordance with the agreement.
             7084          (3) If a public procurement unit does not have the expertise necessary to administer a
             7085      particular procurement, the public procurement unit may enter into an agreement for
             7086      administration of the procurement with:
             7087          (a) another public procurement unit; or
             7088          (b) a person that is under contract to administer procurements.
             7089          Section 199. Section 63G-6a-2103 , which is renumbered from Section 63G-6-902 is
             7090      renumbered and amended to read:
             7091           [63G-6-902].     63G-6a-2103. Services between public procurement units.
             7092          (1) Upon request, [any] a public procurement unit may make services available to
             7093      [other] another public procurement [units the following services, among others] unit, including:
             7094          (a) standard forms;
             7095          (b) printed manuals;
             7096          (c) qualified products lists;
             7097          (d) source information;
             7098          (e) common use commodities listings;
             7099          (f) supplier prequalification information;



Text Box

- 234 -
             7100
         (g) supplier performance ratings;
             7101          (h) debarred and suspended bidders lists;
             7102          (i) forms for invitation for bids, requests for proposals, instructions to bidders, general
             7103      contract provisions, and [other] contract forms; [and] or
             7104          (j) contracts or published summaries [thereof] of contracts, including price and time of
             7105      delivery information.
             7106          (2) [Any] A public procurement unit may provide [the following] technical services[,]
             7107      [among others, to other] to another public procurement [units;] unit, including:
             7108          (a) development of specifications;
             7109          (b) development of quality assurance test methods, including receiving, inspection, and
             7110      acceptance procedures;
             7111          (c) use of testing and inspection facilities; [and] or
             7112          (d) use of personnel training programs.
             7113          (3) Public procurement units may enter into contractual arrangements and publish a
             7114      schedule of fees for the services provided under Subsections (1) and (2).
             7115          Section 200. Section 63G-6a-2104 , which is renumbered from Section 63G-6-904 is
             7116      renumbered and amended to read:
             7117           [63G-6-904].     63G-6a-2104. Compliance by one public procurement unit
             7118      pursuant to agreement considered compliance by others to agreement.
             7119          [Where the] (1) When a public procurement unit [administering] that administers a
             7120      cooperative purchase complies with the requirements of this chapter, any public procurement
             7121      unit participating in [such a] the purchase [shall be] is considered to have complied with this
             7122      chapter. [Public procurement units]
             7123          (2) A public procurement unit may not enter into a cooperative purchasing agreement
             7124      for the purpose of circumventing this chapter.
             7125          Section 201. Section 63G-6a-2105 , which is renumbered from Section 63G-6-424 is
             7126      renumbered and amended to read:
             7127           [63G-6-424].     63G-6a-2105. Participation of counties, municipalities, and
             7128      public procurement units in agreements or contracts of public procurement units.
             7129          [Utah counties, municipalities, and local public procurement units]
             7130          (1) A Utah county or municipality may purchase [from] under or otherwise participate



Text Box

- 235 -
             7131
     in [state public procurement unit agreements and contracts.] an agreement or contract of a Utah
             7132      public procurement unit.
             7133          (2) A state purchasing unit or a Utah public procurement unit may:
             7134          (a) contract with the federal government without going through a procurement process
             7135      or an exception to a procurement process;
             7136          (b) purchase under, or otherwise participate in, an agreement or contract of another
             7137      Utah public procurement unit; or
             7138          (c) purchase under, or otherwise participate in, an agreement or contract of an external
             7139      public procurement unit, if:
             7140          (i) the procurement was conducted in accordance with the requirements of this chapter;
             7141      and
             7142          (ii) the Utah participating addendum to the contract contains the terms and conditions
             7143      required by the applicable rulemaking authority that enters into the Utah participating
             7144      addendum.
             7145          (3) A public transit district, organized under Title 17B, Chapter 2a, Part 8, Public
             7146      Transit District Act, may, without going through a procurement process or an exception to a
             7147      procurement process, contract with a county or municipality to receive money from the county
             7148      or municipality to fund a transportation project.
             7149          Section 202. Section 63G-6a-2201 is enacted to read:
             7150     
Part 22. Ethical Requirements

             7151          63G-6a-2201. Title.
             7152          This part is known as "Ethical Requirements."
             7153          Section 203. Section 63G-6a-2202 is enacted to read:
             7154          63G-6a-2202. Ethical requirements for public procurement.
             7155          (1) As used in this section, "ethics provisions of the model procurement code" means
             7156      the following provisions of Article 12 of the 2000 American Bar Association Model
             7157      Procurement Code for State and Local Governments:
             7158          (a) Section 12-202, General Standards of Ethical Conduct;
             7159          (b) Section 12-204, Employee Conflict of Interest;
             7160          (c) Section 12-205, Employee Disclosure Requirements;
             7161          (d) Section 12-206, Gratuities and Kickbacks;



Text Box

- 236 -
             7162
         (e) Section 12-207, Prohibition Against Contingent Fees;
             7163          (f) Section 12-208, Restrictions on Employment of Present and Former Employees;
             7164      and
             7165          (g) Section 12-209, Use of Confidential Information.
             7166          (2) The applicable rulemaking authority shall make rules that prescribe ethical
             7167      standards for its agents and employees in relation to a procurement.
             7168          (3) The ethical standards described in Subsection (2) shall be based upon the general
             7169      principles of the ethics provisions of the model procurement code.
             7170          (4) The applicable rulemaking authority:
             7171          (a) is not required to adopt or implement any of the specific provisions of the ethics
             7172      provisions of the model procurement code; and
             7173          (b) may not adopt any provision of the ethics provisions of the model procurement
             7174      code that conflict with this chapter.
             7175          (5) A public procurement unit shall advise its employees and agents who are involved
             7176      in a procurement process for the public procurement unit regarding the following provisions
             7177      and the penalties associated with those provisions:
             7178          (a) the provisions of this part and rules made under this part;
             7179          (b) Subsections 63G-6a-408 (4) and (5), relating to artificially dividing a procurement;
             7180          (c) Section 63G-6a-2303 , Offering a gratuity;
             7181          (d) Section 63G-6a-2304 , Accepting or requesting a gratuity;
             7182          (e) Title 67, Chapter 16, Utah Public Officers' and Employees' Ethics Act;
             7183          (f) Section 76-8-103 , Bribery or offering a bribe;
             7184          (g) Section 76-8-105 , Receiving or soliciting bribe or bribery by public servant; and
             7185          (h) Section 76-8-402 , Misusing public money.
             7186          Section 204. Section 63G-6a-2301 is enacted to read:
             7187     
Part 23. Unlawful Conduct and Penalties

             7188          63G-6a-2301. Title.
             7189          This part is known as "Unlawful Conduct and Penalties."
             7190          Section 205. Section 63G-6a-2302 , which is renumbered from Section 63G-6-420 is
             7191      renumbered and amended to read:
             7192           [63G-6-420].     63G-6a-2302. Factual information to attorney general if



Text Box

- 237 -
             7193
     collusion suspected.
             7194          [When for any reason] If a public procurement unit suspects collusion or other
             7195      anticompetitive practices [are suspected] among bidders or offerors, the public procurement
             7196      unit shall transmit a notice of the relevant facts [shall be transmitted] to the attorney general.
             7197          Section 206. Section 63G-6a-2303 is enacted to read:
             7198          63G-6a-2303. Offering a gratuity.
             7199          (1) As used in this section, "interested person" means a person who is interested in any
             7200      way in the sale of a procurement item, real property, or insurance to a public procurement unit.
             7201          (2) Except as provided in Subsection (5), it is unlawful for an interested person to give,
             7202      offer, or promise to give an emolument, gratuity, contribution, loan, or reward to:
             7203          (a) a procurement officer of the public procurement unit that is seeking to obtain the
             7204      procurement item;
             7205          (b) any employee, official, or agent of the public procurement unit that is seeking to
             7206      obtain the procurement item; or
             7207          (c) another person or entity on behalf of a person described in Subsection (2)(a) or (b).
             7208          (3) The conduct described in Subsection (2) is unlawful, regardless of whether the
             7209      emolument, gratuity, contribution, loan, or reward is given for:
             7210          (a) the person's own use; or
             7211          (b) the use or benefit of any other person.
             7212          (4) A person who violates this section is guilty of:
             7213          (a) a felony of the second degree if the total value of the emolument, gratuity,
             7214      contribution, loan, or reward is $1,000 or more;
             7215          (b) a felony of the third degree if the total value of the emolument, gratuity,
             7216      contribution, loan, or reward is $250 or more, but less then $1,000;
             7217          (c) a class A misdemeanor if the value of the emolument, gratuity, contribution, loan,
             7218      or reward is $100 or more, but less than $250; or
             7219          (d) a class B misdemeanor if the value of the emolument, gratuity, contribution, loan,
             7220      or reward is less than $100.
             7221          (5) A person is not guilty of a violation of this section if:
             7222          (a) (i) the gift is an item of less than $10 in value;
             7223          (ii) the total value of all gifts given by the person to a person described in Subsection



Text Box

- 238 -
             7224
     (2), or another person in that person's behalf, during that calendar year does not exceed $50;
             7225      and
             7226          (iii) the gift is not given with the intent to induce a person to make a procurement
             7227      decision in reciprocation for the gift; or
             7228          (b) the gift:
             7229          (i) is a philanthropic donation to a public procurement unit; and
             7230          (ii) is not given with the intent to induce a person to make a procurement decision in
             7231      reciprocation for the gift.
             7232          Section 207. Section 63G-6a-2304 is enacted to read:
             7233          63G-6a-2304. Accepting or requesting a gratuity.
             7234          (1) As used in this section, "associate" means any of the following:
             7235          (a) the chief procurement officer;
             7236          (b) a procurement officer;
             7237          (c) a public employee;
             7238          (d) a public official; or
             7239          (e) an agent of a public procurement unit.
             7240          (2) Except as provided in Subsection (4), it is unlawful for an associate of a public
             7241      procurement unit that is engaged in obtaining a procurement item, real property, or insurance to
             7242      ask, receive, offer to receive, accept, or ask for a promise to receive, an emolument, gratuity,
             7243      contribution, loan, or reward for the associate's own use or benefit, or the use or benefit of any
             7244      other person interested in the procurement item, real property, or insurance.
             7245          (3) A person who violates this section is guilty of:
             7246          (a) a felony of the second degree if the total value of the emolument, gratuity,
             7247      contribution, loan, or reward is $1,000 or more;
             7248          (b) a felony of the third degree if the total value of the emolument, gratuity,
             7249      contribution, loan, or reward is $250 or more, but less then $1,000;
             7250          (c) a class A misdemeanor if the value of the emolument, gratuity, contribution, loan,
             7251      or reward is $100 or more, but less than $250; or
             7252          (d) a class B misdemeanor if the value of the emolument, gratuity, contribution, loan,
             7253      or reward is less than $100.
             7254          (4) A person is not guilty of a violation of this section if:



Text Box

- 239 -
             7255
         (a) (i) the associate receives a gift of less than $10 in value;
             7256          (ii) the total value of all gifts received by the associate from the same person during
             7257      that calendar year does not exceed $50; and
             7258          (iii) the associate does not make a procurement decision, or intend to make a
             7259      procurement decision, in reciprocation for the gift; or
             7260          (b) the associate:
             7261          (i) receives a philanthropic donation on behalf of a public procurement unit; and
             7262          (ii) does not make a procurement decision, or intend to make a procurement decision,
             7263      in reciprocation for the donation.
             7264          Section 208. Section 63G-6a-2305 is enacted to read:
             7265          63G-6a-2305. Penalties for artificially dividing a purchase.
             7266          A person who violates Subsection 63G-6a-408 (4) or (5) is guilty of:
             7267          (1) a felony of the second degree if the total value of the divided procurements is
             7268      $1,000,000 or more;
             7269          (2) a felony of the third degree if the total value of the divided procurements is
             7270      $250,000 or more, but less than $1,000,000;
             7271          (3) a class A misdemeanor if the total value of the divided procurements is $100,000 or
             7272      more, but less than $250,000; or
             7273          (4) a class B misdemeanor if the total value of the divided procurements is less than
             7274      $100,000.
             7275          Section 209. Section 63G-6a-2306 is enacted to read:
             7276          63G-6a-2306. Penalties.
             7277          (1) Except as provided in Subsection (2), in addition to any penalty contained in any
             7278      other provision of law, a public officer or public employee who intentionally violates a
             7279      provision of Section 63G-6a-2303 , Section 63G-6a-2304 , or Section 63G-6a-2305 shall be
             7280      dismissed from employment or removed from office.
             7281          (2) An elected official who intentionally violates a provision of Section 63G-6a-2303 ,
             7282      Section 63G-6a-2304 , or Section 63G-6a-2305 may only be removed from office in accordance
             7283      with the requirements of law relating to removal of the elected official from office.
             7284          (3) Except as provided in Subsection (4), a public officer or public employee who
             7285      intentionally violates a provision of this chapter, including Part 22, Ethical Requirements, is



Text Box

- 240 -
             7286
     subject to disciplinary action, up to and including dismissal from employment or dismissal
             7287      from office.
             7288          (4) An elected official who intentionally violates a provision of this chapter, including
             7289      Part 22, Ethical Requirements, may only be disciplined or removed from office in accordance
             7290      with the requirements of law relating to discipline of the elected official or removal of the
             7291      elected official from office.
             7292          Section 210. Section 63G-6a-2307 is enacted to read:
             7293          63G-6a-2307. Contract awarded in relation to criminal conduct void.
             7294          If a person who is awarded a contract intentionally violates a provision of Section
             7295      63G-6a-2303 or Section 63G-6a-2304 in relation to the contract, the contract is void and
             7296      unenforceable.
             7297          Section 211. Section 63G-7-804 is amended to read:
             7298           63G-7-804. Liability insurance -- Methods for purchase or renewal.
             7299          (1) Except as provided in Subsection (2), a contract or policy of insurance may be
             7300      purchased or renewed under this chapter only upon public bid to be let to the lowest and best
             7301      bidder.
             7302          (2) The purchase or renewal of insurance by the state shall be conducted in accordance
             7303      with the provisions of Title 63G, Chapter [6] 6a, Utah Procurement Code.
             7304          Section 212. Section 63G-10-403 is amended to read:
             7305           63G-10-403. Department of Transportation bid or request for proposals protest
             7306      settlement agreement approval and review.
             7307          (1) As used in this section:
             7308          (a) "Department" means the Department of Transportation created in Section 72-1-201 .
             7309          (b) "Settlement agreement" includes stipulations, consent decrees, settlement
             7310      agreements, or other legally binding documents or representations resolving a dispute between
             7311      the department and another party when the department is required to pay money or required to
             7312      take legally binding action.
             7313          (2) The department shall obtain the approval of the Transportation Commission or the
             7314      governor or review by the Legislative Management Committee of a settlement agreement that
             7315      involves a bid or request for proposal protest in accordance with this section.
             7316          (3) A settlement agreement that is being settled by the department as part of a bid or



Text Box

- 241 -
             7317
     request for proposal protest, in accordance with Section [ 63G-6-801 ] 63G-6a-1603 , that might
             7318      cost government entities more than $100,000 to implement shall be presented to the
             7319      Transportation Commission for approval or rejection.
             7320          (4) A settlement agreement that is being settled by the department as part of a bid or
             7321      request for proposal protest, in accordance with Section [ 63G-6-801 ] 63G-6a-1603 , that might
             7322      cost government entities more than $500,000 to implement shall be presented:
             7323          (a) to the Transportation Commission for approval or rejection; and
             7324          (b) to the governor for approval or rejection.
             7325          (5) (a) A settlement agreement that is being settled by the department as part of a bid or
             7326      request for proposal protest, in accordance with Section [ 63G-6-801 ] 63G-6a-1603 , that might
             7327      cost government entities more than $1,000,000 to implement shall be presented:
             7328          (i) to the Transportation Commission for approval or rejection;
             7329          (ii) to the governor for approval or rejection; and
             7330          (iii) if the settlement agreement is approved by the Transportation Commission and the
             7331      governor, to the Legislative Management Committee.
             7332          (b) The Legislative Management Committee may recommend approval or rejection of
             7333      the settlement agreement.
             7334          (6) (a) The department may not enter into a settlement agreement that resolves a bid or
             7335      request for proposal protest, in accordance with Section [ 63G-6-801 ] 63G-6a-1603 , that might
             7336      cost government entities more than $100,000 to implement until the Transportation
             7337      Commission has approved the agreement.
             7338          (b) The department may not enter into a settlement agreement that resolves a bid or
             7339      request for proposal protest, in accordance with Section [ 63G-6-801 ] 63G-6a-1603 , that might
             7340      cost government entities more than $500,000 to implement until the Transportation
             7341      Commission and the governor have approved the agreement.
             7342          (c) The department may not enter into a settlement agreement that resolves a bid or
             7343      request for proposal protest, in accordance with Section [ 63G-6-801 ] 63G-6a-1603 , that might
             7344      cost government entities more than $1,000,000 to implement until:
             7345          (i) the Transportation Commission has approved the agreement;
             7346          (ii) the governor has approved the agreement; and
             7347          (iii) the Legislative Management Committee has reviewed the agreement.



Text Box

- 242 -
             7348
         Section 213. Section 63H-2-504 is amended to read:
             7349           63H-2-504. Relation to other state statutes.
             7350          (1) The authority is subject to review by the Retirement and Independent Entities
             7351      Committee in accordance with Title 63E, Chapter 1, Independent Entities Act.
             7352          (2) The authority is subject to:
             7353          (a) Title 51, Chapter 5, Funds Consolidation Act;
             7354          (b) Title 51, Chapter 7, State Money Management Act;
             7355          (c) Title 52, Chapter 4, Open and Public Meetings Act;
             7356          (d) Title 63A, Utah Administrative Services Code;
             7357          (e) Title 63G, Chapter 2, Government Records Access and Management Act;
             7358          (f) Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             7359          (g) Title 63G, Chapter 4, Administrative Procedures Act;
             7360          (h) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             7361          (i) Title 63J, Chapter 1, Budgetary Procedures Act;
             7362          (j) Title 63J, Chapter 2, Revenue Procedures and Control Act; and
             7363          (k) Title 67, Chapter 19, Utah State Personnel Management Act.
             7364          Section 214. Section 63H-3-109 is amended to read:
             7365           63H-3-109. Relation to certain acts.
             7366          (1) The authority is exempt from:
             7367          (a) Title 51, Chapter 5, Funds Consolidation Act;
             7368          (b) Title 63A, Chapter 1, Department of Administrative Services;
             7369          (c) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             7370          (d) Title 63J, Chapter 1, Budgetary Procedures Act; and
             7371          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
             7372          (2) The authority is subject to audit by:
             7373          (a) the state auditor pursuant to Title 67, Chapter 3, Auditor; and
             7374          (b) the legislative auditor general pursuant to Section 36-12-15 .
             7375          (3) The authority shall annually report to the Retirement and Independent Entities
             7376      Committee created under Section 63E-1-201 concerning the authority's implementation of this
             7377      part.
             7378          Section 215. Section 63H-4-108 is amended to read:



Text Box

- 243 -
             7379
          63H-4-108. Relation to certain acts.
             7380          (1) The authority is exempt from:
             7381          (a) Title 51, Chapter 5, Funds Consolidation Act;
             7382          (b) Title 63A, Utah Administrative Services Code;
             7383          (c) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             7384          (d) Title 63J, Chapter 1, Budgetary Procedures Act; and
             7385          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
             7386          (2) The authority is subject to audit by the state auditor pursuant to Title 67, Chapter 3,
             7387      Auditor, and by the legislative auditor general pursuant to Section 36-12-15 .
             7388          Section 216. Section 63H-5-108 is amended to read:
             7389           63H-5-108. Relation to certain acts.
             7390          (1) The authority is exempt from:
             7391          (a) Title 51, Chapter 5, Funds Consolidation Act;
             7392          (b) Title 63A, Chapter 1, Department of Administrative Services;
             7393          (c) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             7394          (d) Title 63J, Chapter 1, Budgetary Procedures Act; and
             7395          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
             7396          (2) The authority is subject to audit by the state auditor pursuant to Title 67, Chapter 3,
             7397      Auditor, and by the legislative auditor general pursuant to Section 36-12-15 .
             7398          Section 217. Section 63H-6-103 is amended to read:
             7399           63H-6-103. Utah State Fair Corporation -- Legal status -- Powers.
             7400          (1) There is created an independent public nonprofit corporation known as the "Utah
             7401      State Fair Corporation."
             7402          (2) The board shall file articles of incorporation for the corporation with the Division
             7403      of Corporations and Commercial Code.
             7404          (3) The corporation, subject to this chapter, has all powers and authority permitted
             7405      nonprofit corporations by law.
             7406          (4) The corporation shall, subject to approval of the board:
             7407          (a) have general management, supervision, and control over all activities relating to the
             7408      state fair and have charge of all state expositions except as otherwise provided by statute;
             7409          (b) for public entertainment, displays, and exhibits or similar events:



Text Box

- 244 -
             7410
         (i) provide, sponsor, or arrange the events;
             7411          (ii) publicize and promote the events; and
             7412          (iii) secure funds to cover the cost of the exhibits from:
             7413          (A) private contributions;
             7414          (B) public appropriations;
             7415          (C) admission charges; and
             7416          (D) other lawful means;
             7417          (c) establish the time, place, and purpose of state expositions; and
             7418          (d) acquire and designate exposition sites.
             7419          (5) (a) The corporation shall:
             7420          (i) use generally accepted accounting principals in accounting for its assets, liabilities,
             7421      and operations;
             7422          (ii) seek corporate sponsorships for the state fair park and for individual buildings or
             7423      facilities within the fair park;
             7424          (iii) work with county and municipal governments, the Salt Lake Convention and
             7425      Visitor's Bureau, the Utah Travel Council, and other entities to develop and promote
             7426      expositions and the use of the state fair park;
             7427          (iv) develop and maintain a marketing program to promote expositions and the use of
             7428      the state fair park;
             7429          (v) in cooperation with the Division of Facilities Construction and Management,
             7430      maintain the physical appearance and structural integrity of the state fair park and the buildings
             7431      located at the state fair park;
             7432          (vi) hold an annual exhibition that:
             7433          (A) is called the state fair or a similar name;
             7434          (B) includes expositions of livestock, poultry, agricultural, domestic science,
             7435      horticultural, floricultural, mineral, and industrial products, manufactured articles, and
             7436      domestic animals that, in the corporation's opinion will best stimulate agricultural, industrial,
             7437      artistic, and educational pursuits and the sharing of talents among the people of Utah;
             7438          (C) includes the award of premiums for the best specimens of the exhibited articles and
             7439      animals;
             7440          (D) permits competition by livestock exhibited by citizens of other states and territories



Text Box

- 245 -
             7441
     of the United States; and
             7442          (E) is arranged according to plans approved by the board;
             7443          (vii) fix the conditions of entry to the exposition described in Subsection (5)(a)(vi); and
             7444          (viii) publish a list of premiums that will be awarded at the exhibition described in
             7445      Subsection (5)(a)(vi) for the best specimens of exhibited articles and animals.
             7446          (b) In addition to the state fair to be held in accordance with Subsection (5)(a)(vi), the
             7447      corporation may hold other exhibitions of livestock, poultry, agricultural, domestic science,
             7448      horticultural, floricultural, mineral, and industrial products, manufactured articles, and
             7449      domestic animals that, in its opinion, will best stimulate agricultural, industrial, artistic, and
             7450      educational pursuits and the sharing of talents among the people of Utah.
             7451          (6) The corporation may:
             7452          (a) employ advisers, consultants, and agents, including financial experts and
             7453      independent legal counsel, and fix their compensation;
             7454          (b) procure insurance against any loss in connection with its property and other assets,
             7455      including mortgage loans;
             7456          (c) receive and accept aid or contributions of money, property, labor, or other things of
             7457      value from any source, including any grants or appropriations from any department, agency, or
             7458      instrumentality of the United States or Utah;
             7459          (d) hold, use, loan, grant, and apply that aid and those contributions to carry out the
             7460      purposes of the corporation, subject to the conditions, if any, upon which the aid and
             7461      contributions were made;
             7462          (e) enter into management agreements with any person or entity for the performance of
             7463      its functions or powers;
             7464          (f) establish whatever accounts and procedures as necessary to budget, receive, and
             7465      disburse, account for, and audit all funds received, appropriated, or generated;
             7466          (g) enter into agreements for the leasing of any of the facilities at the state fair park, if
             7467      approved by the board; and
             7468          (h) sponsor events as approved by the board.
             7469          (7) (a) Except as provided in Subsection (7)(c), as an independent agency of Utah, the
             7470      corporation is exempt from:
             7471          (i) Title 51, Chapter 5, Funds Consolidation Act;



Text Box

- 246 -
             7472
         (ii) Title 51, Chapter 7, State Money Management Act;
             7473          (iii) Title 63A, Utah Administrative Services Code;
             7474          (iv) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             7475          (v) Title 63J, Chapter 1, Budgetary Procedures Act; and
             7476          (vi) Title 67, Chapter 19, Utah State Personnel Management Act.
             7477          (b) The board shall adopt policies parallel to and consistent with:
             7478          (i) Title 51, Chapter 5, Funds Consolidation Act;
             7479          (ii) Title 51, Chapter 7, State Money Management Act;
             7480          (iii) Title 63A, Utah Administrative Services Code;
             7481          (iv) Title 63G, Chapter [6] 6a, Utah Procurement Code; and
             7482          (v) Title 63J, Chapter 1, Budgetary Procedures Act.
             7483          (c) The corporation shall comply with the legislative approval requirements for new
             7484      facilities established in Subsection 63A-5-104 (3).
             7485          Section 218. Section 63I-1-263 is amended to read:
             7486           63I-1-263. Repeal dates, Titles 63A to 63M.
             7487          (1) Section 63A-4-204 , authorizing the Risk Management Fund to provide coverage to
             7488      any public school district which chooses to participate, is repealed July 1, 2016.
             7489          (2) Section 63A-5-603 , State Facility Energy Efficiency Fund, is repealed July 1, 2016.
             7490          (3) Section 63C-8-106 , rural residency training program, is repealed July 1, 2015.
             7491          (4) Title 63C, Chapter 13, Prison Relocation and Development Authority Act, is
             7492      repealed July 1, 2014.
             7493          (5) Subsection [ 63G-6-502 (5)(b)(ii)] 63G-6a-1402 (7) authorizing certain transportation
             7494      agencies to award a contract for a design-build transportation project in certain circumstances,
             7495      is repealed July 1, 2015.
             7496          (6) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
             7497      2020.
             7498          (7) The Resource Development Coordinating Committee, created in Section
             7499      63J-4-501 , is repealed July 1, 2015.
             7500          (8) Title 63M, Chapter 1, Part 4, Enterprise Zone Act, is repealed July 1, 2018.
             7501          (9) (a) Title 63M, Chapter 1, Part 11, Recycling Market Development Zone Act, is
             7502      repealed January 1, 2021.



Text Box

- 247 -
             7503
         (b) Subject to Subsection (9)(c), Sections 59-7-610 and 59-10-1007 regarding tax
             7504      credits for certain persons in recycling market development zones, are repealed for taxable
             7505      years beginning on or after January 1, 2012.
             7506          (c) A person may not claim a tax credit under Section 59-7-610 or 59-10-1007 :
             7507          (i) for the purchase price of machinery or equipment described in Section 59-7-610 or
             7508      59-10-1007 , if the machinery or equipment is purchased on or after January 1, 2012; or
             7509          (ii) for an expenditure described in Subsection 59-7-610 (1)(b) or 59-10-1007 (1)(b), if
             7510      the expenditure is made on or after January 1, 2012.
             7511          (d) Notwithstanding Subsections (9)(b) and (c), a person may carry forward a tax credit
             7512      in accordance with Section 59-7-610 or 59-10-1007 if:
             7513          (i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007 ; and
             7514          (ii) (A) for the purchase price of machinery or equipment described in Section
             7515      59-7-610 or 59-10-1007 , the machinery or equipment is purchased on or before December 31,
             7516      2011; or
             7517          (B) for an expenditure described in Subsection 59-7-610 (1)(b) or 59-10-1007 (1)(b), the
             7518      expenditure is made on or before December 31, 2011.
             7519          (10) The Crime Victim Reparations and Assistance Board, created in Section
             7520      63M-7-504 , is repealed July 1, 2017.
             7521          (11) Title 63M, Chapter 8, Utah Commission for Women and Families Act, is repealed
             7522      July 1, 2011.
             7523          (12) Title 63M, Chapter 9, Families, Agencies, and Communities Together for
             7524      Children and Youth At Risk Act, is repealed July 1, 2016.
             7525          (13) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2012.
             7526          Section 219. Section 63M-1-2602 is amended to read:
             7527           63M-1-2602. Definitions.
             7528          As used in this part:
             7529          (1) "Affected department" means, as applicable, the Board of Education or the
             7530      Department of Technology Services.
             7531          (2) "Board" means the Board of Business and Economic Development created under
             7532      Section 63M-1-301 .
             7533          (3) "Board of Education" means the Utah State Board of Education.



Text Box

- 248 -
             7534
         (4) "Chief procurement officer" means the chief procurement officer appointed under
             7535      Section [ 63G-6-203 ] 63G-6a-302 .
             7536          (5) "Committee" means the proposal review committee created under Section
             7537      63M-1-2604 .
             7538          (6) "Day" means a calendar day.
             7539          (7) "Director" is as defined in Section 63M-1-102 .
             7540          (8) "Executive Appropriations Committee" means the Legislature's Executive
             7541      Appropriations Committee.
             7542          (9) "Information technology" is as defined in Section 63F-1-102 .
             7543          (10) "Office" means the Governor's Office of Economic Development created under
             7544      Section 63M-1-201 .
             7545          (11) "Private entity" means a person submitting a proposal under this part for the
             7546      purpose of entering into a project.
             7547          (12) "Project" means the subject of a proposal or an agreement for the procurement or
             7548      disposal of:
             7549          (a) information technology or telecommunications products or services; or
             7550          (b) supplies or services for or on behalf of the Department of Technology Services or
             7551      the Board of Education.
             7552          (13) "Proposal" means an unsolicited offer by a private entity to undertake a project,
             7553      including an initial proposal under Section 63M-1-2605 and a detailed proposal under Section
             7554      63M-1-2608 .
             7555          (14) "Services" is as defined in Section [ 63G-6-103 ] 63G-6a-103 .
             7556          (15) "Supplies" is as defined in Section [ 63G-6-103 ] 63G-6a-103 .
             7557          (16) "Telecommunications" is as defined in Section 63F-1-102 .
             7558          Section 220. Section 63M-1-2603 is amended to read:
             7559           63M-1-2603. Government Procurement Private Proposal Program -- Proposals --
             7560      Rulemaking.
             7561          (1) There is created within the office the Government Procurement Private Proposal
             7562      Program.
             7563          (2) In accordance with this part, the board may:
             7564          (a) accept a proposal for a project;



Text Box

- 249 -
             7565
         (b) solicit comments, suggestions, and modifications to a project in accordance with
             7566      Section [ 63G-6-408.5 ] 63G-6a-711 ; and
             7567          (c) make rules in accordance with Title 63G, Chapter 3, Utah Administrative
             7568      Rulemaking Act, establishing requirements, including time limits for any action required by the
             7569      affected department, a directly affected state entity or school district, or the Governor's Office
             7570      of Planning and Budget, for the procurement of a project to the extent not governed by Title
             7571      63G, Chapter [6] 6a, Utah Procurement Code.
             7572          Section 221. Section 63M-1-2605 is amended to read:
             7573           63M-1-2605. Initial proposal -- Requirements.
             7574          (1) In accordance with this part, a private entity may at any time submit to the
             7575      committee an initial proposal for a project.
             7576          (2) An initial proposal shall include:
             7577          (a) a conceptual description of the project;
             7578          (b) a description of the economic benefit of the project to the state and the affected
             7579      department;
             7580          (c) information concerning the products, services, and supplies currently being
             7581      provided by the state, that are similar to the project;
             7582          (d) an estimate of the following costs associated with the project:
             7583          (i) design;
             7584          (ii) implementation;
             7585          (iii) operation and maintenance; and
             7586          (iv) any other related project cost; and
             7587          (e) the name and address of a person who may be contacted for further information
             7588      concerning the initial proposal.
             7589          (3) A private entity submitting an initial proposal under this section shall pay the fee
             7590      required by Section 63M-1-2612 when the initial proposal is submitted.
             7591          (4) An initial proposal submitted under this section is a protected record under Title
             7592      63G, Chapter 2, Government Records Access and Management Act, until the chief
             7593      procurement officer initiates a procurement process in accordance with Section [ 63G-6-408.5 ]
             7594      63G-6a-711 .
             7595          (5) The board shall make rules in accordance with Title 63G, Chapter 3, Utah



Text Box

- 250 -
             7596
     Administrative Rulemaking Act, detailing the portions of an initial proposal that remain
             7597      protected after the chief procurement officer initiates a procurement process.
             7598          Section 222. Section 63M-1-2606 is amended to read:
             7599           63M-1-2606. Review of initial proposal -- Affected department review.
             7600          (1) The committee shall review and evaluate an initial proposal submitted in
             7601      accordance with:
             7602          (a) this part; and
             7603          (b) any rule established by the board under Section 63M-1-2603 .
             7604          (2) If the committee, in its sole discretion, determines to proceed with the project, the
             7605      committee shall submit a copy of the initial proposal to:
             7606          (a) the affected department; and
             7607          (b) the Governor's Office of Planning and Budget.
             7608          (3) (a) An affected department, directly affected state entity, and school district
             7609      receiving a copy of the initial proposal under Subsection (2) or (4) shall review the initial
             7610      proposal and provide the committee with any comment, suggestion, or modification to the
             7611      project.
             7612          (b) After receiving an initial proposal, the Governor's Office of Planning and Budget
             7613      shall prepare an economic feasibility report containing:
             7614          (i) information concerning the economic feasibility and effectiveness of the project
             7615      based upon competent evidence;
             7616          (ii) a dollar amount representing the total estimated fiscal impact of the project to the
             7617      affected department and the state; and
             7618          (iii) any other matter the committee requests or is required by the board by rule.
             7619          (4) In reviewing an initial proposal, the affected department shall share the initial
             7620      proposal with any other state entity or school district that will be directly affected if the
             7621      proposal is ultimately adopted, if the confidentiality of the initial proposal is maintained.
             7622          (5) If the committee determines to proceed with the project, the committee shall submit
             7623      a copy of the initial proposal, including any comment, suggestion, or modification to the initial
             7624      proposal, to:
             7625          (a) the chief procurement officer in accordance with Section [ 63G-6-408.5 ]
             7626      63G-6a-711 ; and



Text Box

- 251 -
             7627
         (b) the Executive Appropriations Committee, for informational purposes.
             7628          (6) Before taking any action under Subsection (5), the committee shall consider:
             7629          (a) any comment, suggestion, or modification to the initial proposal submitted in
             7630      accordance with Subsection (3);
             7631          (b) the extent to which the project is practical, efficient, and economically beneficial to
             7632      the state and the affected department;
             7633          (c) the economic feasibility report prepared by the Governor's Office of Planning and
             7634      Budget; and
             7635          (d) any other reasonable factor identified by the committee or required by the board by
             7636      rule.
             7637          Section 223. Section 63M-1-2607 is amended to read:
             7638           63M-1-2607. Acceptance of initial proposal -- Obtaining detailed proposals.
             7639          (1) If an initial proposal is accepted under Section 63M-1-2606 , the chief procurement
             7640      officer shall:
             7641          (a) take action under Section [ 63G-6-408.5 ] 63G-6a-711 to initiate a procurement
             7642      process to obtain one or more detailed proposals using information from portions of the initial
             7643      proposal that are not protected records under Title 63G, Chapter 2, Government Records [and]
             7644      Access and Management Act;
             7645          (b) consult with the committee during the procurement process; and
             7646          (c) submit all detailed proposals that meet the guidelines established under Subsection
             7647      63M-1-2608 (1), including the detailed proposal submitted by the private entity that submitted
             7648      the initial proposal for the project, to:
             7649          (i) the committee; and
             7650          (ii) the Governor's Office of Planning and Budget.
             7651          (2) The office is considered the purchasing agency for a procurement process initiated
             7652      under this part.
             7653          Section 224. Section 63M-1-2608 is amended to read:
             7654           63M-1-2608. Detailed proposal -- Requirements -- Cooperation of affected
             7655      department.
             7656          (1) A detailed proposal submitted in response to a procurement process initiated under
             7657      Section 63M-1-2607 shall include:



Text Box

- 252 -
             7658
         (a) a conceptual description of the project, including the scope of the work;
             7659          (b) a description of the economic benefit of the project to the state and the affected
             7660      department;
             7661          (c) an estimate of the design, implementation, operation, maintenance, or other costs
             7662      associated with the project;
             7663          (d) information concerning the information technology or telecommunication product
             7664      and service or other supply or service currently provided by the state that is similar to the
             7665      project being proposed, if applicable;
             7666          (e) a statement setting forth the private entity's general plan for financing the project,
             7667      including any appropriation by the Legislature or other public money and, if applicable, the
             7668      sources of the private entity's funds and identification of any dedicated revenue source or
             7669      proposed debt or equity investment on behalf of the private entity;
             7670          (f) the name and address of the person who may be contacted for further information
             7671      concerning the detailed proposal;
             7672          (g) a statement describing the private entity's experience with other similar projects and
             7673      a description of why the private entity is best qualified for the project; and
             7674          (h) any other information:
             7675          (i) reasonably requested by the affected department or the committee, or required by
             7676      the board by rule; or
             7677          (ii) that the private entity considers necessary or appropriate to complete or describe
             7678      the detailed proposal.
             7679          (2) To assist each private entity in preparing a detailed proposal:
             7680          (a) the affected department shall provide each private entity with access to all
             7681      information, records, documents, and reports related to the proposal and the project that are
             7682      designated public records under Title 63G, Chapter 2, Government Records Access and
             7683      Management Act; and
             7684          (b) the affected department and the committee shall cooperate with each private entity
             7685      to assist the private entity in the development of a detailed proposal that is:
             7686          (i) practical;
             7687          (ii) efficient; and
             7688          (iii) economically beneficial to the state and the affected department.



Text Box

- 253 -
             7689
         (3) The committee or any private entity may choose to terminate the development of
             7690      the detailed proposal at any time before the submission of the detailed proposal to the chief
             7691      procurement officer under Section [ 63G-6-408.5 ] 63G-6a-711 .
             7692          Section 225. Section 63M-1-2610 is amended to read:
             7693           63M-1-2610. Project agreement.
             7694          (1) If the board accepts the detailed proposal, the director shall:
             7695          (a) prepare a project agreement in consultation with the affected department and any
             7696      other state entity directly impacted by the detailed proposal; and
             7697          (b) enter into the project agreement with the private entity.
             7698          (2) A project agreement shall be signed by the director, the affected department, a
             7699      directly affected state entity or school district, and the private entity.
             7700          (3) A project agreement shall include provisions concerning:
             7701          (a) the scope of the project;
             7702          (b) the pricing method of the project;
             7703          (c) the director's or the state's ability to terminate for convenience or for default, and
             7704      any termination compensation to be paid to the private entity, if applicable;
             7705          (d) the ability to monitor performance under the project agreement;
             7706          (e) the appropriate limits of liability;
             7707          (f) the appropriate transition of services, if applicable;
             7708          (g) the exceptions from applicable rules and procedures for the implementation and
             7709      administration of the project by the affected department, if any;
             7710          (h) the clauses and remedies applicable to state contracts under Title 63G, Chapter [6,
             7711      Part 6, Contract Clauses] 6a, Part 12, Contracts and Change Orders; and
             7712          (i) any other matter reasonably requested by the committee or required by the board by
             7713      rule.
             7714          (4) A copy of the signed project agreement shall be submitted to:
             7715          (a) the affected department; and
             7716          (b) the Executive Appropriations Committee.
             7717          (5) A project agreement is considered a contract under Title 63G, Chapter [6] 6a, Utah
             7718      Procurement Code.
             7719          (6) The affected department shall implement and administer the project agreement in



Text Box

- 254 -
             7720
     accordance with rules made under Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             7721      except as modified by the project agreement under Subsection (3)(g).
             7722          Section 226. Section 64-13a-13 is amended to read:
             7723           64-13a-13. Purchases of material -- Exemption.
             7724          (1) The Division of Correctional Industries is exempt from the provisions of Title 63G,
             7725      Chapter [6] 6a, Utah Procurement Code, in respect to goods or services purchased by or sold to
             7726      the department.
             7727          (2) The purchase of raw materials for use by the division in manufacturing or
             7728      processing products for resale is exempt from the powers and duties of the state purchasing
             7729      agent.
             7730          Section 227. Section 67-16-4 is amended to read:
             7731           67-16-4. Improperly disclosing or using private, controlled, or protected
             7732      information -- Using position to secure privileges or exemptions -- Accepting employment
             7733      which would impair independence of judgment or ethical performance -- Exceptions.
             7734          (1) Except as provided in Subsection (3), it is an offense for a public officer, public
             7735      employee, or legislator, under circumstances not amounting to a violation of Section
             7736      [ 63G-6-1001 ] 63G-6a-2304 or 76-8-105 , to:
             7737          (a) accept employment or engage in any business or professional activity that he might
             7738      reasonably expect would require or induce him to improperly disclose controlled information
             7739      that he has gained by reason of his official position;
             7740          (b) disclose or improperly use controlled, private, or protected information acquired by
             7741      reason of his official position or in the course of official duties in order to further substantially
             7742      the officer's or employee's personal economic interest or to secure special privileges or
             7743      exemptions for himself or others;
             7744          (c) use or attempt to use his official position to:
             7745          (i) further substantially the officer's or employee's personal economic interest; or
             7746          (ii) secure special privileges or exemptions for himself or others;
             7747          (d) accept other employment that he might expect would impair his independence of
             7748      judgment in the performance of his public duties; or
             7749          (e) accept other employment that he might expect would interfere with the ethical
             7750      performance of his public duties.



Text Box

- 255 -
             7751
         (2) (a) Subsection (1) does not apply to the provision of education-related services to
             7752      public school students by public education employees acting outside their regular employment.
             7753          (b) The conduct referred to in Subsection (2)(a) is subject to Section 53A-1-402.5 .
             7754          (3) A county legislative body member who does not participate in the process of
             7755      selecting a mental health or substance abuse service provider does not commit an offense under
             7756      Subsection (1)(a) or (b) by:
             7757          (a) serving also as a member of the governing board of the provider of mental health or
             7758      substance abuse services under contract with the county; or
             7759          (b) discharging, in good faith, the duties and responsibilities of each position.
             7760          Section 228. Section 67-16-5 is amended to read:
             7761           67-16-5. Accepting gift, compensation, or loan -- When prohibited.
             7762          (1) As used in this section, "economic benefit tantamount to a gift" includes:
             7763          (a) a loan at an interest rate that is substantially lower than the commercial rate then
             7764      currently prevalent for similar loans; and
             7765          (b) compensation received for private services rendered at a rate substantially
             7766      exceeding the fair market value of the services.
             7767          (2) It is an offense for a public officer or public employee, under circumstances not
             7768      amounting to a violation of Section [ 63G-6-1001 ] 63G-6a-2304 or 76-8-105 , to knowingly
             7769      receive, accept, take, seek, or solicit, directly or indirectly for himself or another a gift of
             7770      substantial value or a substantial economic benefit tantamount to a gift:
             7771          (a) that would tend improperly to influence a reasonable person in the person's position
             7772      to depart from the faithful and impartial discharge of the person's public duties;
             7773          (b) that the public officer or public employee knows or that a reasonable person in that
             7774      position should know under the circumstances is primarily for the purpose of rewarding the
             7775      public officer or public employee for official action taken; or
             7776          (c) if the public officer or public employee recently has been, is now, or in the near
             7777      future may be involved in any governmental action directly affecting the donor or lender,
             7778      unless a disclosure of the gift, compensation, or loan and other relevant information has been
             7779      made in the manner provided in Section 67-16-6 .
             7780          (3) Subsection (2) does not apply to:
             7781          (a) an occasional nonpecuniary gift, having a value of not in excess of $50;



Text Box

- 256 -
             7782
         (b) an award publicly presented in recognition of public services;
             7783          (c) any bona fide loan made in the ordinary course of business; or
             7784          (d) a political campaign contribution.
             7785          Section 229. Section 67-16-5.3 is amended to read:
             7786           67-16-5.3. Requiring donation, payment, or service to government agency in
             7787      exchange for approval -- When prohibited.
             7788          (1) It is an offense for a public officer, public employee, or legislator, under
             7789      circumstances not amounting to a violation of Section [ 63G-6-1001 ] 63G-6a-2304 or 76-8-105 ,
             7790      to demand from any person as a condition of granting any application or request for a permit,
             7791      approval, or other authorization, that the person donate personal property, money, or services to
             7792      any agency.
             7793          (2) (a) Subsection (1) does not apply to any donation of property, funds, or services to
             7794      an agency that is:
             7795          (i) expressly required by statute, ordinance, or agency rule;
             7796          (ii) mutually agreed to between the applicant and the entity issuing the permit,
             7797      approval, or other authorization;
             7798          (iii) made voluntarily by the applicant; or
             7799          (iv) a condition of a consent decree, settlement agreement, or other binding instrument
             7800      entered into to resolve, in whole or in part, an actual or threatened agency enforcement action.
             7801          (b) If a person donates property, funds, or services to an agency, the agency shall, as
             7802      part of the permit or other written authorization:
             7803          (i) identify that a donation has been made;
             7804          (ii) describe the donation;
             7805          (iii) certify, in writing, that the donation was voluntary; and
             7806          (iv) place that information in its files.
             7807          Section 230. Section 67-16-6 is amended to read:
             7808           67-16-6. Receiving compensation for assistance in transaction involving an
             7809      agency -- Filing sworn statement.
             7810          (1) It is an offense for a public officer or public employee, under circumstances not
             7811      amounting to a violation of Section [ 63G-6-1001 ] 63G-6a-2304 or 76-8-105 , to receive or
             7812      agree to receive compensation for assisting any person or business entity in any transaction



Text Box

- 257 -
             7813
     involving an agency unless the public officer or public employee files a sworn, written
             7814      statement containing the information required by Subsection (2) with:
             7815          (a) the head of the officer or employee's own agency;
             7816          (b) the agency head of the agency with which the transaction is being conducted; and
             7817          (c) the state attorney general.
             7818          (2) The statement shall contain:
             7819          (a) the name and address of the public officer or public employee involved;
             7820          (b) the name of the public officer's or public employee's agency;
             7821          (c) the name and address of the person or business entity being or to be assisted; and
             7822          (d) a brief description of:
             7823          (i) the transaction as to which service is rendered or is to be rendered; and
             7824          (ii) the nature of the service performed or to be performed.
             7825          (3) The statement required to be filed under Subsection (1) shall be filed within 10
             7826      days after the date of any agreement between the public officer or public employee and the
             7827      person or business entity being assisted or the receipt of compensation, whichever is earlier.
             7828          (4) The statement is public information and shall be available for examination by the
             7829      public.
             7830          Section 231. Section 72-6-107 is amended to read:
             7831           72-6-107. Construction or improvement of highway -- Contracts -- Retainage --
             7832      Certain indemnification provisions forbidden.
             7833          (1) As used in this section, "design professional" means:
             7834          (a) an architect, licensed under Title 58, Chapter 3a, Architects Licensing Act;
             7835          (b) a landscape architect, licensed under Title 58, Chapter 53, Landscape Architects
             7836      Licensing Act; and
             7837          (c) a professional engineer or professional land surveyor, licensed under Title 58,
             7838      Chapter 22, Professional Engineers and Professional Land Surveyors Licensing Act.
             7839          (2) (a) The department shall make plans, specifications, and estimates prior to the
             7840      construction or improvement of any state highway.
             7841          (b) Except as provided in Section [ 63G-6-502 ] 63G-6a-1402 and except for
             7842      construction or improvements performed with state prison labor, a construction or
             7843      improvement project with an estimated cost exceeding the bid limit as defined in Section



Text Box

- 258 -
             7844
     72-6-109 for labor and materials shall be performed under contract awarded to the lowest
             7845      responsible bidder.
             7846          (c) (i) The department:
             7847          (A) shall publish an advertisement for bids in accordance with Section 45-1-101 , for a
             7848      period of two weeks ending no more than 10 days before bids are opened; and
             7849          (B) may publish an advertisement for bids in a newspaper of general circulation in the
             7850      county in which the work is to be performed.
             7851          (ii) If the department publishes an advertisement for bids in a newspaper under
             7852      Subsection (2)(c)(i)(B), the department shall publish the advertisement at least once a week for
             7853      two consecutive weeks, with the last publication at least 10 days before bids are opened.
             7854          (d) The department shall receive sealed bids and open the bids at the time and place
             7855      designated in the advertisement. The department may then award the contract but may reject
             7856      any and all bids.
             7857          (e) If the department's estimates are substantially lower than any responsible bid
             7858      received, the department may perform any work by force account.
             7859          (3) If any payment on a contract with a private contractor for construction or
             7860      improvement of a state highway is retained or withheld, the payment shall be retained or
             7861      withheld and released as provided in Section 13-8-5 .
             7862          (4) If the department performs a construction or improvement project by force account,
             7863      the department shall:
             7864          (a) provide an accounting of the costs and expenditures of the improvement including
             7865      material and labor;
             7866          (b) disclose the costs and expenditures to any person upon request and allow the person
             7867      to make a copy and pay for the actual cost of the copy; and
             7868          (c) perform the work using the same specifications and standards that would apply to a
             7869      private contractor.
             7870          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             7871      department shall establish procedures for:
             7872          (a) hearing evidence that a region within the department violated this section; and
             7873          (b) administering sanctions against the region if the region is found in violation.
             7874          (6) (a) Beginning May 12, 2009, a contract, including an amendment to an existing



Text Box

- 259 -
             7875
     contract, entered into under authority of this chapter may not require that a design professional
             7876      indemnify another from liability claims that arise out of the design professional's services,
             7877      unless the liability claim arises from the design professional's negligent act, wrongful act, error
             7878      or omission, or other liability imposed by law.
             7879          (b) Subsection (6)(a) may not be waived by contract.
             7880          (c) Notwithstanding Subsections (6)(a) and (b), a design professional may be required
             7881      to indemnify a person for whom the design professional has direct or indirect control or
             7882      responsibility.
             7883          Section 232. Section 72-6-107.5 is amended to read:
             7884           72-6-107.5. Construction of improvements of highway -- Contracts -- Health
             7885      insurance coverage.
             7886          (1) For purposes of this section:
             7887          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
             7888      34A-2-104 who:
             7889          (i) works at least 30 hours per calendar week; and
             7890          (ii) meets employer eligibility waiting requirements for health care insurance which
             7891      may not exceed the first day of the calendar month following 90 days from the date of hire.
             7892          (b) "Health benefit plan" has the same meaning as provided in Section 31A-1-301 .
             7893          (c) "Qualified health insurance coverage" is as defined in Section 26-40-115 .
             7894          (d) "Subcontractor" has the same meaning provided for in Section 63A-5-208 .
             7895          (2) (a) Except as provided in Subsection (3), this section applies to contracts entered
             7896      into by the department on or after July 1, 2009, for construction or design of highways and to a
             7897      prime contractor or to a subcontractor in accordance with Subsection (2)(b).
             7898          (b) (i) A prime contractor is subject to this section if the prime contract is in the
             7899      amount of $1,500,000 or greater.
             7900          (ii) A subcontractor is subject to this section if a subcontract is in the amount of
             7901      $750,000 or greater.
             7902          (3) This section does not apply if:
             7903          (a) the application of this section jeopardizes the receipt of federal funds;
             7904          (b) the contract is a sole source contract; or
             7905          (c) the contract is an emergency procurement.



Text Box

- 260 -
             7906
         (4) (a) This section does not apply to a change order as defined in Section [ 63G-6-103 ]
             7907      63G-6a-103 , or a modification to a contract, when the contract does not meet the initial
             7908      threshold required by Subsection (2).
             7909          (b) A person who intentionally uses change orders or contract modifications to
             7910      circumvent the requirements of Subsection (2) is guilty of an infraction.
             7911          (5) (a) A contractor subject to Subsection (2) shall demonstrate to the department that
             7912      the contractor has and will maintain an offer of qualified health insurance coverage for the
             7913      contractor's employees and the employees' dependents during the duration of the contract.
             7914          (b) If a subcontractor of the contractor is subject to Subsection (2), the contractor shall
             7915      demonstrate to the department that the subcontractor has and will maintain an offer of qualified
             7916      health insurance coverage for the subcontractor's employees and the employees' dependents
             7917      during the duration of the contract.
             7918          (c) (i) (A) A contractor who fails to meet the requirements of Subsection (5)(a) during
             7919      the duration of the contract is subject to penalties in accordance with administrative rules
             7920      adopted by the department under Subsection (6).
             7921          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
             7922      requirements of Subsection (5)(b).
             7923          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
             7924      the duration of the contract is subject to penalties in accordance with administrative rules
             7925      adopted by the department under Subsection (6).
             7926          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
             7927      requirements of Subsection (5)(a).
             7928          (6) The department shall adopt administrative rules:
             7929          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             7930          (b) in coordination with:
             7931          (i) the Department of Environmental Quality in accordance with Section 19-1-206 ;
             7932          (ii) the Department of Natural Resources in accordance with Section 79-2-404 ;
             7933          (iii) the State Building Board in accordance with Section 63A-5-205 ;
             7934          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403 ;
             7935          (v) a public transit district in accordance with Section 17B-2a-818.5 ; and
             7936          (vi) the Legislature's Administrative Rules Review Committee; and



Text Box

- 261 -
             7937
         (c) which establish:
             7938          (i) the requirements and procedures a contractor must follow to demonstrate to the
             7939      department compliance with this section which shall include:
             7940          (A) that a contractor will not have to demonstrate compliance with Subsection (5)(a) or
             7941      (b) more than twice in any 12-month period; and
             7942          (B) that the actuarially equivalent determination required for qualified health insurance
             7943      coverage in Subsection (1) is met by the contractor if the contractor provides the department or
             7944      division with a written statement of actuarial equivalency from either:
             7945          (I) the Utah Insurance Department;
             7946          (II) an actuary selected by the contractor or the contractor's insurer; or
             7947          (III) an underwriter who is responsible for developing the employer group's premium
             7948      rates;
             7949          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
             7950      violates the provisions of this section, which may include:
             7951          (A) a three-month suspension of the contractor or subcontractor from entering into
             7952      future contracts with the state upon the first violation;
             7953          (B) a six-month suspension of the contractor or subcontractor from entering into future
             7954      contracts with the state upon the second violation;
             7955          (C) an action for debarment of the contractor or subcontractor in accordance with
             7956      Section [ 63G-6-804 ] 63G-6a-904 upon the third or subsequent violation; and
             7957          (D) monetary penalties which may not exceed 50% of the amount necessary to
             7958      purchase qualified health insurance coverage for an employee and a dependent of the employee
             7959      of the contractor or subcontractor who was not offered qualified health insurance coverage
             7960      during the duration of the contract; and
             7961          (iii) a website on which the department shall post the benchmark for the qualified
             7962      health insurance coverage identified in Subsection (1)(c).
             7963          (7) (a) (i) In addition to the penalties imposed under Subsection (6), a contractor or
             7964      subcontractor who intentionally violates the provisions of this section shall be liable to the
             7965      employee for health care costs that would have been covered by qualified health insurance
             7966      coverage.
             7967          (ii) An employer has an affirmative defense to a cause of action under Subsection



Text Box

- 262 -
             7968
     (7)(a)(i) if:
             7969          (A) the employer relied in good faith on a written statement of actuarial equivalency
             7970      provided by:
             7971          (I) an actuary; or
             7972          (II) an underwriter who is responsible for developing the employer group's premium
             7973      rates; or
             7974          (B) the department determines that compliance with this section is not required under
             7975      the provisions of Subsection (3) or (4).
             7976          (b) An employee has a private right of action only against the employee's employer to
             7977      enforce the provisions of this Subsection (7).
             7978          (8) Any penalties imposed and collected under this section shall be deposited into the
             7979      Medicaid Restricted Account created in Section 26-18-402 .
             7980          (9) The failure of a contractor or subcontractor to provide qualified health insurance
             7981      coverage as required by this section:
             7982          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
             7983      or contractor under Section [ 63G-6-801 ] 63G-6a-1603 or any other provision in Title 63G,
             7984      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code; and
             7985          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
             7986      contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
             7987      or construction.
             7988          Section 233. Section 72-6-108 is amended to read:
             7989           72-6-108. Class B and C roads -- Improvement projects -- Contracts -- Retainage.
             7990          (1) A county executive for class B roads and the municipal executive for class C roads
             7991      shall cause plans, specifications, and estimates to be made prior to the construction of any
             7992      improvement project, as defined in Section 72-6-109 , on a class B or C road if the estimated
             7993      cost for any one project exceeds the bid limit as defined in Section 72-6-109 for labor,
             7994      equipment, and materials.
             7995          (2) (a) All projects in excess of the bid limit shall be performed under contract to be let
             7996      to the lowest responsible bidder.
             7997          (b) If the estimated cost of the improvement project exceeds the bid limit for labor,
             7998      equipment, and materials, the project may not be divided to permit the construction in parts,



Text Box

- 263 -
             7999
     unless each part is done by contract.
             8000          (3) (a) The advertisement on bids shall be published:
             8001          (i) in a newspaper of general circulation in the county in which the work is to be
             8002      performed at least once a week for three consecutive weeks; and
             8003          (ii) in accordance with Section 45-1-101 for three weeks.
             8004          (b) If there is no newspaper of general circulation as described in Subsection (3)(a)(i),
             8005      the notice shall be posted for at least 20 days in at least five public places in the county.
             8006          (4) The county or municipal executive or their designee shall receive sealed bids and
             8007      open the bids at the time and place designated in the advertisement. The county or municipal
             8008      executive or their designee may then award the contract but may reject any and all bids.
             8009          (5) The person, firm, or corporation that is awarded a contract under this section is
             8010      subject to the provisions of Title 63G, Chapter [6] 6a, Utah Procurement Code.
             8011          (6) If any payment on a contract with a private contractor for construction or
             8012      improvement of a class B or C road is retained or withheld, the payment shall be retained or
             8013      withheld and released as provided in Section 13-8-5 .
             8014          Section 234. Section 72-6-205 is amended to read:
             8015           72-6-205. Solicited and unsolicited tollway development agreement proposals.
             8016          (1) In accordance with this section, the department may:
             8017          (a) accept unsolicited tollway development agreement proposals; or
             8018          (b) solicit tollway development agreement proposals for a proposed project.
             8019          (2) The department shall solicit tollway development agreement proposals in
             8020      accordance with Section [ 63G-6-503 ] 63G-6a-1403 .
             8021          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             8022      department and the commission shall establish rules and procedures for accepting unsolicited
             8023      proposals that require the:
             8024          (a) private entity that submits the unsolicited proposal to comply with the minimum
             8025      requirements for tollway development agreement proposals under Section 72-6-204 ;
             8026          (b) department to issue a request for competing proposals and qualifications that
             8027      includes:
             8028          (i) a description of the proposed tollway development facility and the terms and
             8029      conditions of a tollway development agreement;



Text Box

- 264 -
             8030
         (ii) submittal requirements;
             8031          (iii) the criteria to be used to evaluate the proposals;
             8032          (iv) the relative weight given to the criteria; and
             8033          (v) the deadline by which competing proposals must be received; and
             8034          (c) department to publish a notice advertising the request for competing proposals and
             8035      providing information regarding how to obtain a copy of the request.
             8036          (4) (a) The department may establish a fee in accordance with Section 63J-1-504 for
             8037      reviewing unsolicited proposals and competing proposals submitted under this section.
             8038          (b) The department may waive the fee under Subsection (4)(a) if it determines that it is
             8039      reasonable and in the best interest of the state.
             8040          Section 235. Section 72-7-504 is amended to read:
             8041           72-7-504. Advertising prohibited near interstate or primary system -- Exceptions
             8042      -- Logo advertising -- Department rules.
             8043          (1) Outdoor advertising that is capable of being read or comprehended from any place
             8044      on the main-traveled way of an interstate or primary system may not be erected or maintained,
             8045      except:
             8046          (a) directional and other official signs and notices authorized or required by law,
             8047      including signs and notices pertaining to natural wonders and scenic and historic attractions,
             8048      informational or directional signs regarding utility service, emergency telephone signs, buried
             8049      or underground utility markers, and above ground utility closure signs;
             8050          (b) signs advertising the sale or lease of property upon which they are located;
             8051          (c) signs advertising activities conducted on the property where they are located,
             8052      including signs on the premises of a public assembly facility as provided in Section 72-7-504.5 ;
             8053          (d) signs located in a commercial or industrial zone;
             8054          (e) signs located in unzoned industrial or commercial areas as determined from actual
             8055      land uses; and
             8056          (f) logo advertising under Subsection (2).
             8057          (2) (a) The department may itself or by contract erect, administer, and maintain
             8058      informational signs on the main-traveled way of an interstate or primary system for the display
             8059      of logo advertising and information of interest to the traveling public if:
             8060          (i) the department complies with Title 63G, Chapter [6] 6a, Utah Procurement Code, in



Text Box

- 265 -
             8061
     the lease or other contract agreement with a private party for the sign or sign space; and
             8062          (ii) the private party for the lease of the sign or sign space pays an amount set by the
             8063      department to be paid to the department or the party under contract with the department under
             8064      this Subsection (2).
             8065          (b) The amount shall be sufficient to cover the costs of erecting, administering, and
             8066      maintaining the signs or sign spaces.
             8067          (c) The department may consult the Governor's Office of Economic Development in
             8068      carrying out this Subsection (2).
             8069          (3) (a) Revenue generated under Subsection (2) shall be:
             8070          (i) applied first to cover department costs under Subsection (2); and
             8071          (ii) deposited in the Transportation Fund.
             8072          (b) Revenue in excess of costs under Subsection (2)(a) shall be deposited in the
             8073      General Fund as a dedicated credit for use by the Governor's Office of Economic Development
             8074      no later than the following fiscal year.
             8075          (4) Outdoor advertising under Subsections (1)(a), (d), (e), and (f) shall conform to the
             8076      rules made by the department under Sections 72-7-506 and 72-7-507 .
             8077          Section 236. Section 73-10-27 is amended to read:
             8078           73-10-27. Definitions -- Project priorities -- Considerations -- Determinations of
             8079      feasibility -- Bids and contracts -- Definitions -- Retainage.
             8080          (1) As used in this section:
             8081          (a) "Board" means the Board of Water Resources created in Section 73-10-1.5 .
             8082          (b) "Estimated cost" means the cost of the labor, material, and equipment necessary for
             8083      construction of the contemplated project.
             8084          (c) "Lowest responsible bidder" means a licensed contractor:
             8085          (i) who:
             8086          (A) submits the lowest bid; and
             8087          (B) furnishes a payment bond and a performance bond under Sections 14-1-18 and
             8088      [ 63G-6-505 ] 63G-6a-1103 ; and
             8089          (ii) whose bid:
             8090          (A) is in compliance with the invitation for a bid; and
             8091          (B) meets the plans and specifications.



Text Box

- 266 -
             8092
         (2) In considering the priority for a project to be built or financed with funds made
             8093      available under Section 73-10-24 , the board shall give preference to a project that:
             8094          (a) is sponsored by, or for the benefit of, the state or a political subdivision of the state;
             8095          (b) meets a critical local need;
             8096          (c) has greater economic feasibility;
             8097          (d) will yield revenue to the state within a reasonable time or will return a reasonable
             8098      rate of interest, based on financial feasibility; and
             8099          (e) meets other considerations deemed necessary by the board, including wildlife
             8100      management and recreational needs.
             8101          (3) (a) In determining the economic feasibility, the board shall establish a
             8102      benefit-to-cost ratio for each project, using a uniform standard of procedure for all projects.
             8103          (b) In considering whether a project should be built, the benefit-to-cost ratio for each
             8104      project shall be weighted based on the relative cost of the project.
             8105          (c) A project, when considered in total with all other projects constructed under this
             8106      chapter and still the subject of a repayment contract, may not cause the accumulative
             8107      benefit-to-cost ratio of the projects to be less than one to one.
             8108          (4) A project may not be built if the project is not:
             8109          (a) in the public interest, as determined by the board; or
             8110          (b) adequately designed based on sound engineering and geologic considerations.
             8111          (5) In preparing a project constructed by the board, the board shall:
             8112          (a) based on a competitive bid, award a contract for:
             8113          (i) a flood control project:
             8114          (A) involving a city or county; and
             8115          (B) costing in excess of $35,000;
             8116          (ii) the construction of a storage reservoir in excess of 100 acre-feet; or
             8117          (iii) the construction of a hydroelectric generating facility;
             8118          (b) publish an advertisement for a competitive bid:
             8119          (i) at least once a week for three consecutive weeks in a newspaper with general
             8120      circulation in the state, with the last date of publication appearing at least five days before the
             8121      schedule bid opening; and
             8122          (ii) indicating that the board:



Text Box

- 267 -
             8123
         (A) will award the contract to the lowest responsible bidder; and
             8124          (B) reserves the right to reject any and all bids;
             8125          (c) readvertise the project in the manner specified in Subsection (5)(b) if the board
             8126      rejects all of the initial bids on the project; and
             8127          (d) keep an accurate record of all facts and representations relied upon in preparing the
             8128      board's estimated cost for a project that is subject to the competitive bidding requirements of
             8129      this section.
             8130          (6) If no satisfactory bid is received by the board upon the readvertisement of the
             8131      project in accordance with Subsection (5), the board may proceed to construct the project in
             8132      accordance with the plan and specifications used to calculate the estimated cost of the project.
             8133          (7) If a payment on a contract with a private contractor for construction of a project
             8134      under this section is retained or withheld, it shall be retained or withheld and released as
             8135      provided in Section 13-8-5 .
             8136          Section 237. Section 73-23-3 is amended to read:
             8137           73-23-3. Duties and powers of Division of Water Resources.
             8138          For purposes of this chapter, the Division of Water Resources:
             8139          (1) shall provide for the construction, operation, and maintenance of the West Desert
             8140      Pumping Project;
             8141          (2) may enter into agreements as necessary to provide for all or any portion of the West
             8142      Desert Pumping Project, including any indemnification agreements required by the federal
             8143      government;
             8144          (3) may acquire land or any other property right by any lawful means, including
             8145      eminent domain;
             8146          (4) is exempt from Title 63G, Chapter [6, the] 6a, Utah Procurement Code; and
             8147          (5) may proceed without obtaining water right approval from the state engineer.
             8148          Section 238. Section 76-10-1602 is amended to read:
             8149           76-10-1602. Definitions.
             8150          As used in this part:
             8151          (1) "Enterprise" means any individual, sole proprietorship, partnership, corporation,
             8152      business trust, association, or other legal entity, and any union or group of individuals
             8153      associated in fact although not a legal entity, and includes illicit as well as licit entities.



Text Box

- 268 -
             8154
         (2) "Pattern of unlawful activity" means engaging in conduct which constitutes the
             8155      commission of at least three episodes of unlawful activity, which episodes are not isolated, but
             8156      have the same or similar purposes, results, participants, victims, or methods of commission, or
             8157      otherwise are interrelated by distinguishing characteristics. Taken together, the episodes shall
             8158      demonstrate continuing unlawful conduct and be related either to each other or to the
             8159      enterprise. At least one of the episodes comprising a pattern of unlawful activity shall have
             8160      occurred after July 31, 1981. The most recent act constituting part of a pattern of unlawful
             8161      activity as defined by this part shall have occurred within five years of the commission of the
             8162      next preceding act alleged as part of the pattern.
             8163          (3) "Person" includes any individual or entity capable of holding a legal or beneficial
             8164      interest in property, including state, county, and local governmental entities.
             8165          (4) "Unlawful activity" means to directly engage in conduct or to solicit, request,
             8166      command, encourage, or intentionally aid another person to engage in conduct which would
             8167      constitute any offense described by the following crimes or categories of crimes, or to attempt
             8168      or conspire to engage in an act which would constitute any of those offenses, regardless of
             8169      whether the act is in fact charged or indicted by any authority or is classified as a misdemeanor
             8170      or a felony:
             8171          (a) any act prohibited by the criminal provisions of Title 13, Chapter 10, Unauthorized
             8172      Recording Practices Act;
             8173          (b) any act prohibited by the criminal provisions of Title 19, Environmental Quality
             8174      Code, Sections 19-1-101 through 19-7-109 ;
             8175          (c) taking, destroying, or possessing wildlife or parts of wildlife for the primary
             8176      purpose of sale, trade, or other pecuniary gain, in violation of Title 23, Wildlife Resources
             8177      Code of Utah, or Section 23-20-4 ;
             8178          (d) false claims for medical benefits, kickbacks, and any other act prohibited by Title
             8179      26, Chapter 20, Utah False Claims Act, Sections 26-20-1 through 26-20-12 ;
             8180          (e) any act prohibited by the criminal provisions of Title 32B, Chapter 4, Criminal
             8181      Offenses and Procedure Act;
             8182          (f) any act prohibited by the criminal provisions of Title 57, Chapter 11, Utah Uniform
             8183      Land Sales Practices Act;
             8184          (g) any act prohibited by the criminal provisions of Title 58, Chapter 37, Utah



Text Box

- 269 -
             8185
     Controlled Substances Act, or Title 58, Chapter 37b, Imitation Controlled Substances Act,
             8186      Title 58, Chapter 37c, Utah Controlled Substance Precursor Act, or Title 58, Chapter 37d,
             8187      Clandestine Drug Lab Act;
             8188          (h) any act prohibited by the criminal provisions of Title 61, Chapter 1, Utah Uniform
             8189      Securities Act;
             8190          (i) any act prohibited by the criminal provisions of Title 63G, Chapter [6] 6a, Utah
             8191      Procurement Code;
             8192          (j) assault or aggravated assault, Sections 76-5-102 and 76-5-103 ;
             8193          (k) a threat of terrorism, Section 76-5-107.3 ;
             8194          (l) criminal homicide, Sections 76-5-201 , 76-5-202 , and 76-5-203 ;
             8195          (m) kidnapping or aggravated kidnapping, Sections 76-5-301 and 76-5-302 ;
             8196          (n) sexual exploitation of a minor, Section 76-5b-201 ;
             8197          (o) arson or aggravated arson, Sections 76-6-102 and 76-6-103 ;
             8198          (p) causing a catastrophe, Section 76-6-105 ;
             8199          (q) burglary or aggravated burglary, Sections 76-6-202 and 76-6-203 ;
             8200          (r) burglary of a vehicle, Section 76-6-204 ;
             8201          (s) manufacture or possession of an instrument for burglary or theft, Section 76-6-205 ;
             8202          (t) robbery or aggravated robbery, Sections 76-6-301 and 76-6-302 ;
             8203          (u) theft, Section 76-6-404 ;
             8204          (v) theft by deception, Section 76-6-405 ;
             8205          (w) theft by extortion, Section 76-6-406 ;
             8206          (x) receiving stolen property, Section 76-6-408 ;
             8207          (y) theft of services, Section 76-6-409 ;
             8208          (z) forgery, Section 76-6-501 ;
             8209          (aa) fraudulent use of a credit card, Sections 76-6-506.2 , 76-6-506.3 , 76-6-506.5 , and
             8210      76-6-506.6 ;
             8211          (bb) deceptive business practices, Section 76-6-507 ;
             8212          (cc) bribery or receiving bribe by person in the business of selection, appraisal, or
             8213      criticism of goods, Section 76-6-508 ;
             8214          (dd) bribery of a labor official, Section 76-6-509 ;
             8215          (ee) defrauding creditors, Section 76-6-511 ;



Text Box

- 270 -
             8216
         (ff) acceptance of deposit by insolvent financial institution, Section 76-6-512 ;
             8217          (gg) unlawful dealing with property by fiduciary, Section 76-6-513 ;
             8218          (hh) bribery or threat to influence contest, Section 76-6-514 ;
             8219          (ii) making a false credit report, Section 76-6-517 ;
             8220          (jj) criminal simulation, Section 76-6-518 ;
             8221          (kk) criminal usury, Section 76-6-520 ;
             8222          (ll) fraudulent insurance act, Section 76-6-521 ;
             8223          (mm) retail theft, Section 76-6-602 ;
             8224          (nn) computer crimes, Section 76-6-703 ;
             8225          (oo) identity fraud, Section 76-6-1102 ;
             8226          (pp) mortgage fraud, Section 76-6-1203 ;
             8227          (qq) sale of a child, Section 76-7-203 ;
             8228          (rr) bribery to influence official or political actions, Section 76-8-103 ;
             8229          (ss) threats to influence official or political action, Section 76-8-104 ;
             8230          (tt) receiving bribe or bribery by public servant, Section 76-8-105 ;
             8231          (uu) receiving bribe or bribery for endorsement of person as public servant, Section
             8232      76-8-106 ;
             8233          (vv) official misconduct, Sections 76-8-201 and 76-8-202 ;
             8234          (ww) obstruction of justice, Section 76-8-306 ;
             8235          (xx) acceptance of bribe or bribery to prevent criminal prosecution, Section 76-8-308 ;
             8236          (yy) false or inconsistent material statements, Section 76-8-502 ;
             8237          (zz) false or inconsistent statements, Section 76-8-503 ;
             8238          (aaa) written false statements, Section 76-8-504 ;
             8239          (bbb) tampering with a witness or soliciting or receiving a bribe, Section 76-8-508 ;
             8240          (ccc) retaliation against a witness, victim, or informant, Section 76-8-508.3 ;
             8241          (ddd) extortion or bribery to dismiss criminal proceeding, Section 76-8-509 ;
             8242          (eee) public assistance fraud in violation of Section 76-8-1203 , 76-8-1204 , or
             8243      76-8-1205 ;
             8244          (fff) unemployment insurance fraud, Section 76-8-1301 ;
             8245          (ggg) intentionally or knowingly causing one animal to fight with another, Subsection
             8246      76-9-301 (2)(d) or (e), or Section 76-9-301.1 ;



Text Box

- 271 -
             8247
         (hhh) possession, use, or removal of explosives, chemical, or incendiary devices or
             8248      parts, Section 76-10-306 ;
             8249          (iii) delivery to common carrier, mailing, or placement on premises of an incendiary
             8250      device, Section 76-10-307 ;
             8251          (jjj) possession of a deadly weapon with intent to assault, Section 76-10-507 ;
             8252          (kkk) unlawful marking of pistol or revolver, Section 76-10-521 ;
             8253          (lll) alteration of number or mark on pistol or revolver, Section 76-10-522 ;
             8254          (mmm) forging or counterfeiting trademarks, trade name, or trade device, Section
             8255      76-10-1002 ;
             8256          (nnn) selling goods under counterfeited trademark, trade name, or trade devices,
             8257      Section 76-10-1003 ;
             8258          (ooo) sales in containers bearing registered trademark of substituted articles, Section
             8259      76-10-1004 ;
             8260          (ppp) selling or dealing with article bearing registered trademark or service mark with
             8261      intent to defraud, Section 76-10-1006 ;
             8262          (qqq) gambling, Section 76-10-1102 ;
             8263          (rrr) gambling fraud, Section 76-10-1103 ;
             8264          (sss) gambling promotion, Section 76-10-1104 ;
             8265          (ttt) possessing a gambling device or record, Section 76-10-1105 ;
             8266          (uuu) confidence game, Section 76-10-1109 ;
             8267          (vvv) distributing pornographic material, Section 76-10-1204 ;
             8268          (www) inducing acceptance of pornographic material, Section 76-10-1205 ;
             8269          (xxx) dealing in harmful material to a minor, Section 76-10-1206 ;
             8270          (yyy) distribution of pornographic films, Section 76-10-1222 ;
             8271          (zzz) indecent public displays, Section 76-10-1228 ;
             8272          (aaaa) prostitution, Section 76-10-1302 ;
             8273          (bbbb) aiding prostitution, Section 76-10-1304 ;
             8274          (cccc) exploiting prostitution, Section 76-10-1305 ;
             8275          (dddd) aggravated exploitation of prostitution, Section 76-10-1306 ;
             8276          (eeee) communications fraud, Section 76-10-1801 ;
             8277          (ffff) any act prohibited by the criminal provisions of [Chapter 10,] Part 19, Money



Text Box

- 272 -
             8278
     Laundering and Currency Transaction Reporting Act;
             8279          (gggg) vehicle compartment for contraband, Section 76-10-2801 ;
             8280          (hhhh) any act prohibited by the criminal provisions of the laws governing taxation in
             8281      this state; and
             8282          (iiii) any act illegal under the laws of the United States and enumerated in 18 U.S.C.
             8283      Sec. 1961 (1)(B), (C), and (D).
             8284          Section 239. Section 78A-2-112 is amended to read:
             8285           78A-2-112. Grants to nonprofit legal assistance organization.
             8286          Subject to legislative appropriation, the state court administrator shall, in accordance
             8287      with Title 63G, Chapter [6] 6a, Utah Procurement Code, solicit requests for proposals and
             8288      award grants to nonprofit legal assistance providers to provide legal assistance throughout the
             8289      state to:
             8290          (1) low to moderate income victims of domestic violence; and
             8291          (2) low to moderate income individuals in family law matters.
             8292          Section 240. Section 79-2-404 is amended to read:
             8293           79-2-404. Contracting powers of department -- Health insurance coverage.
             8294          (1) For purposes of this section:
             8295          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
             8296      34A-2-104 who:
             8297          (i) works at least 30 hours per calendar week; and
             8298          (ii) meets employer eligibility waiting requirements for health care insurance which
             8299      may not exceed the first day of the calendar month following 90 days from the date of hire.
             8300          (b) "Health benefit plan" has the same meaning as provided in Section 31A-1-301 .
             8301          (c) "Qualified health insurance coverage" is as defined in Section 26-40-115 .
             8302          (d) "Subcontractor" has the same meaning provided for in Section 63A-5-208 .
             8303          (2) (a) Except as provided in Subsection (3), this section applies a design or
             8304      construction contract entered into by, or delegated to, the department or a division, board, or
             8305      council of the department on or after July 1, 2009, and to a prime contractor or to a
             8306      subcontractor in accordance with Subsection (2)(b).
             8307          (b) (i) A prime contractor is subject to this section if the prime contract is in the
             8308      amount of $1,500,000 or greater.



Text Box

- 273 -
             8309
         (ii) A subcontractor is subject to this section if a subcontract is in the amount of
             8310      $750,000 or greater.
             8311          (3) This section does not apply to contracts entered into by the department or a
             8312      division, board, or council of the department if:
             8313          (a) the application of this section jeopardizes the receipt of federal funds;
             8314          (b) the contract or agreement is between:
             8315          (i) the department or a division, board, or council of the department; and
             8316          (ii) (A) another agency of the state;
             8317          (B) the federal government;
             8318          (C) another state;
             8319          (D) an interstate agency;
             8320          (E) a political subdivision of this state; or
             8321          (F) a political subdivision of another state; or
             8322          (c) the contract or agreement is:
             8323          (i) for the purpose of disbursing grants or loans authorized by statute;
             8324          (ii) a sole source contract; or
             8325          (iii) an emergency procurement.
             8326          (4) (a) This section does not apply to a change order as defined in Section [ 63G-6-103 ]
             8327      63G-6a-103 , or a modification to a contract, when the contract does not meet the initial
             8328      threshold required by Subsection (2).
             8329          (b) A person who intentionally uses change orders or contract modifications to
             8330      circumvent the requirements of Subsection (2) is guilty of an infraction.
             8331          (5) (a) A contractor subject to Subsection (2)(b)(i) shall demonstrate to the department
             8332      that the contractor has and will maintain an offer of qualified health insurance coverage for the
             8333      contractor's employees and the employees' dependents during the duration of the contract.
             8334          (b) If a subcontractor of the contractor is subject to Subsection (2)(b)(ii), the contractor
             8335      shall demonstrate to the department that the subcontractor has and will maintain an offer of
             8336      qualified health insurance coverage for the subcontractor's employees and the employees'
             8337      dependents during the duration of the contract.
             8338          (c) (i) (A) A contractor who fails to meet the requirements of Subsection (5)(a) during
             8339      the duration of the contract is subject to penalties in accordance with administrative rules



Text Box

- 274 -
             8340
     adopted by the department under Subsection (6).
             8341          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
             8342      requirements of Subsection (5)(b).
             8343          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
             8344      the duration of the contract is subject to penalties in accordance with administrative rules
             8345      adopted by the department under Subsection (6).
             8346          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
             8347      requirements of Subsection (5)(a).
             8348          (6) The department shall adopt administrative rules:
             8349          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             8350          (b) in coordination with:
             8351          (i) the Department of Environmental Quality in accordance with Section 19-1-206 ;
             8352          (ii) a public transit district in accordance with Section 17B-2a-818.5 ;
             8353          (iii) the State Building Board in accordance with Section 63A-5-205 ;
             8354          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403 ;
             8355          (v) the Department of Transportation in accordance with Section 72-6-107.5 ; and
             8356          (vi) the Legislature's Administrative Rules Review Committee; and
             8357          (c) which establish:
             8358          (i) the requirements and procedures a contractor must follow to demonstrate
             8359      compliance with this section to the department which shall include:
             8360          (A) that a contractor will not have to demonstrate compliance with Subsection (5)(a) or
             8361      (b) more than twice in any 12-month period; and
             8362          (B) that the actuarially equivalent determination required for qualified health insurance
             8363      coverage in Subsection (1) is met by the contractor if the contractor provides the department or
             8364      division with a written statement of actuarial equivalency from either:
             8365          (I) the Utah Insurance Department;
             8366          (II) an actuary selected by the contractor or the contractor's insurer; or
             8367          (III) an underwriter who is responsible for developing the employer group's premium
             8368      rates;
             8369          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
             8370      violates the provisions of this section, which may include:



Text Box

- 275 -
             8371
         (A) a three-month suspension of the contractor or subcontractor from entering into
             8372      future contracts with the state upon the first violation;
             8373          (B) a six-month suspension of the contractor or subcontractor from entering into future
             8374      contracts with the state upon the second violation;
             8375          (C) an action for debarment of the contractor or subcontractor in accordance with
             8376      Section [ 63G-6-804 ] 63G-6a-904 upon the third or subsequent violation; and
             8377          (D) monetary penalties which may not exceed 50% of the amount necessary to
             8378      purchase qualified health insurance coverage for an employee and a dependent of an employee
             8379      of the contractor or subcontractor who was not offered qualified health insurance coverage
             8380      during the duration of the contract; and
             8381          (iii) a website on which the department shall post the benchmark for the qualified
             8382      health insurance coverage identified in Subsection (1)(c).
             8383          (7) (a) (i) In addition to the penalties imposed under Subsection (6), a contractor or
             8384      subcontractor who intentionally violates the provisions of this section shall be liable to the
             8385      employee for health care costs that would have been covered by qualified health insurance
             8386      coverage.
             8387          (ii) An employer has an affirmative defense to a cause of action under Subsection
             8388      (7)(a)(i) if:
             8389          (A) the employer relied in good faith on a written statement of actuarial equivalency
             8390      provided by:
             8391          (I) an actuary; or
             8392          (II) an underwriter who is responsible for developing the employer group's premium
             8393      rates; or
             8394          (B) the department determines that compliance with this section is not required under
             8395      the provisions of Subsection (3) or (4).
             8396          (b) An employee has a private right of action only against the employee's employer to
             8397      enforce the provisions of this Subsection (7).
             8398          (8) Any penalties imposed and collected under this section shall be deposited into the
             8399      Medicaid Restricted Account created in Section 26-18-402 .
             8400          (9) The failure of a contractor or subcontractor to provide qualified health insurance
             8401      coverage as required by this section:



Text Box

- 276 -
             8402
         (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
             8403      or contractor under Section [ 63G-6-801 ] 63G-6a-1603 or any other provision in Title 63G,
             8404      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code; and
             8405          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
             8406      contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
             8407      or construction.
             8408          Section 241. Section 79-4-203 is amended to read:
             8409           79-4-203. Powers and duties of division.
             8410          (1) As used in this section, "real property" includes land under water, upland, and all
             8411      other property commonly or legally defined as real property.
             8412          (2) The Division of Wildlife Resources shall retain the power and jurisdiction
             8413      conferred upon it by law within state parks and on property controlled by the Division of Parks
             8414      and Recreation with reference to fish and game.
             8415          (3) The division shall permit multiple use of state parks and property controlled by it
             8416      for purposes such as grazing, fishing, hunting, mining, and the development and utilization of
             8417      water and other natural resources.
             8418          (4) (a) The division may acquire real and personal property in the name of the state by
             8419      all legal and proper means, including purchase, gift, devise, eminent domain, lease, exchange,
             8420      or otherwise, subject to the approval of the executive director and the governor.
             8421          (b) In acquiring any real or personal property, the credit of the state may not be pledged
             8422      without the consent of the Legislature.
             8423          (5) (a) Before acquiring any real property, the division shall notify the county
             8424      legislative body of the county where the property is situated of its intention to acquire the
             8425      property.
             8426          (b) If the county legislative body requests a hearing within 10 days of receipt of the
             8427      notice, the division shall hold a public hearing in the county concerning the matter.
             8428          (6) Acceptance of gifts or devises of land or other property is at the discretion of the
             8429      division, subject to the approval of the executive director and the governor.
             8430          (7) The division shall acquire property by eminent domain in the manner authorized by
             8431      Title 78B, Chapter 6, Part 5, Eminent Domain.
             8432          (8) (a) The division may make charges for special services and use of facilities, the



Text Box

- 277 -
             8433
     income from which is available for park and recreation purposes.
             8434          (b) The division may conduct and operate those services necessary for the comfort and
             8435      convenience of the public.
             8436          (9) (a) The division may lease or rent concessions of all lawful kinds and nature in state
             8437      parks and property to persons, partnerships, and corporations for a valuable consideration upon
             8438      the recommendation of the board.
             8439          (b) The division shall comply with Title 63G, Chapter [6] 6a, Utah Procurement Code,
             8440      in selecting concessionaires.
             8441          (10) The division shall proceed without delay to negotiate with the federal government
             8442      concerning the Weber Basin and other recreation and reclamation projects.
             8443          (11) The division shall receive and distribute voluntary contributions collected under
             8444      Section 41-1a-422 in accordance with Section 79-4-404 .
             8445          Section 242. Repealer.
             8446          This bill repeals:
             8447          Section 10-7-87, Procurement -- Use of recycled goods.
             8448          Section 11-37-101, Definition -- Procurement -- Use of recycled goods.
             8449          Section 17-15-24, Procurement -- Use of recycled goods.
             8450          Section 17B-1-109, Procurement -- Use of recycled goods.
             8451          Section 26A-1-108.7, Procurement -- Use of recycled goods.
             8452          Section 63G-6-206, Transfer of power to policy board.
             8453          Section 63G-6-301, Rules for specifications.
             8454          Section 63G-6-401, Contracts awarded by sealed bidding -- Procedure.
             8455          Section 63G-6-402, Contracts awarded by reverse auction.
             8456          Section 63G-6-403, Procurement -- Use of recycled goods.
             8457          Section 63G-6-406, Preference for recycled paper and paper products.
             8458          Section 63G-6-407, Use of alkaline paper.
             8459          Section 63G-6-408, Use of competitive sealed proposals in lieu of bids -- Procedure.
             8460          Section 63G-6-409, Small purchases.
             8461          Section 63G-6-411, Emergency procurements.
             8462          Section 63G-6-414, Prequalification of suppliers.
             8463          Section 63G-6-417, Period of time for contract of supplies.



Text Box

- 278 -
             8464
         Section 63G-6-418, Right of state to inspect place of business of contractor or
             8465      subcontractor.
             8466          Section 63G-6-422, Exemptions from source selection and contract requirements --
             8467      Violation penalty.
             8468          Section 63G-6-426, Tie bids -- Preference for providers of state products --
             8469      Resolution of tie bids -- Record of tie bids.
             8470          Section 63G-6-903, Payments between public procurement units.
             8471          Section 63G-6-906, Resolving controversy arising under a cooperative purchasing
             8472      agreement.
             8473          Section 63G-6-1001, Felony to accept emolument.
             8474          Section 63G-6-1002, Felony to offer emolument.
             8475          Section 243. Effective date.
             8476          This bill takes effect on May 1, 2013.
             8477          Section 244. Coordinating S.B. 153 with S.B. 114 -- Substantive and technical
             8478      amendments.
             8479          If this S.B. 153 and S.B. 114, Contesting Public Procurements, both pass and become
             8480      law, the Legislature intends that the Office of Legislative Research and General Counsel shall
             8481      prepare the Utah Code database for publication on May 1, 2013, as follows:
             8482          (1) by amending Subsection 26-8a-405.3(5)(b) to read:
             8483          "(b) [The Procurement Appeals Board created in Section 63G-6-807] A procurement
             8484      appeals panel described in Section 63G-6a-1702 shall have jurisdiction to review and
             8485      determine an appeal of an offeror under this section[ in the same manner as provided in Section
             8486      63G-6-810].";
             8487          (2) by amending Subsection 26-8a-405.3(5)(c)(ii) to read:
             8488          "(ii) [The factual determination required by Subsection 63G-6-813(1) shall be based on]
             8489      A procurement appeals panel described in Section 63G-6a-1702 shall determine whether the
             8490      solicitation or award was made in accordance with the procedures set forth in this section and
             8491      Section 26-8a-405.2.";
             8492          (3) by amending Subsection 63A-5-208(6)(d)(ii) to read:
             8493          "(ii) may not pursue claims or disputes under the dispute resolution process established
             8494      in [Sections 63G-6-805 through 63G-6-814] Title 63G, Chapter 6a, Utah Procurement Code.";



Text Box

- 279 -
             8495
         (4) by adding the following definition to Section 63G-6a-103 and renumbering the
             8496      remaining subsections in Section 63G-6a-103 accordingly:
             8497          "(33) "Protest officer" means:
             8498          (a) as it relates to a state purchasing unit, the head of the state purchasing unit or a
             8499      designee of the head of the state purchasing unit;
             8500          (b) as it relates to a local public procurement unit, the purchasing officer or the
             8501      governing body of the local public procurement unit, or a designee of either; or
             8502          (c) as it relates to a public procurement unit other than a public procurement unit
             8503      described in Subsection (1)(a) or (b), the chief procurement officer or the chief procurement
             8504      officer's designee.";
             8505          (5) the changes to Section 63G-6a-105 (renumbered from Section 63G-6-104) in S.B.
             8506      153 supersede the changes to Section 63G-6-104 in S.B. 114;
             8507          (6) by amending Section 63G-6a-202 (renumbered from Section 63G-6-201) to read:
             8508          " [63G-6-201] 63G-6a-202. Creation of Procurement Policy Board.
             8509          (1) [(a)] There is created [a state procurement policy board] the Utah State Procurement
             8510      Policy Board.
             8511          [(b)] (2) The [policy board shall consist of 10] board consists of up to 15 members as
             8512      follows:
             8513          [(i) an employee of a state institution]
             8514          (a) two representatives of state institutions of higher education, appointed by the board
             8515      of regents;
             8516          [(ii) an employee]
             8517          (b) a representative of the Department of Human Services, appointed by the executive
             8518      director of that department;
             8519          [(iii) an employee]
             8520          (c) a representative of the Department of Transportation, appointed by the executive
             8521      director of that department;
             8522          [(iv) an employee of a school district]
             8523          (d) two representatives of school districts, appointed by [a cooperative purchasing entity
             8524      for school districts] the State Office of Education;
             8525          [(v) an employee]



Text Box

- 280 -
             8526
         (e) a representative of the Division of Facilities Construction and Management
             8527      appointed by the director of that division;
             8528          [(vi) an employee of a county]
             8529          (f) one representative of a county, appointed by the Utah Association of Counties;
             8530          [(vii) an employee of a city]
             8531          (g) one representative of a city or town, appointed by the Utah League of Cities and
             8532      Towns;
             8533          [(viii) an employee of a local district]
             8534          (h) two representatives of local districts or special service [district] districts, appointed
             8535      by the Utah Association of Special Districts;
             8536          [(ix)] (i) the executive director of the Department of Technology Services or the
             8537      executive director's designee; [and]
             8538          [(x)] (j) the chief procurement officer or the chief procurement officer's designee[.]; and
             8539          (k) two representatives of state agencies, other than a state agency already represented
             8540      on the board, appointed by the executive director of the Department of Administrative
             8541      Services, with the approval of the executive director of the state agency that employs the
             8542      employee.
             8543          [(c)] (3) Members of the [policy] board shall be knowledgeable and experienced in, and
             8544      have supervisory responsibility for, procurement in their official positions.
             8545          [(2)] (4) A board member [shall] may serve as long as the member meets the
             8546      description in Subsection [(1)(b)] (2) unless removed by the person or entity [who appointed]
             8547      with the authority to appoint the board member.
             8548          [(3)] (5) (a) The [policy] board shall:
             8549          (i) adopt rules of procedure for conducting its business; and
             8550          (ii) elect a chair to serve for one year.
             8551          (b) The chair of the board shall be selected by a majority of the members of the board
             8552      and may be elected to succeeding terms.
             8553          (c) The chief procurement officer shall designate an employee of the [Division of
             8554      Purchasing and General Services] division to serve as the nonvoting secretary to the policy
             8555      board.
             8556          [(4)] (6) A member of the board may not receive compensation or benefits for the



Text Box

- 281 -
             8557
     member's service, but may receive per diem and travel expenses in accordance with:
             8558          (a) Section 63A-3-106;
             8559          (b) Section 63A-3-107; and
             8560          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             8561      63A-3-107.";
             8562          (7) by amending Section 63G-6a-203 (renumbered from Section 63G-6-202) to read:
             8563          " [63G-6-202.] 63G-6a-203. Powers and duties of board.
             8564          [(1) Except as otherwise provided in Section 63G-6-104 and Subsection
             8565      63G-6-208(1)(b), the policy board shall:]
             8566          [(a) make rules, consistent with this chapter, governing the procurement, management,
             8567      and control of any and all supplies, services, technology, and construction to be procured by the
             8568      state; and]
             8569          [(b)] (1) In addition to making rules in accordance with Section 63G-6a-402 and the
             8570      other provisions of this chapter, the board shall consider and decide matters of policy within
             8571      the provisions of this chapter, including those referred to it by the chief procurement officer.
             8572          (2) (a) The [policy] board may:
             8573          (i) audit and monitor the implementation of its rules and the requirements of this
             8574      chapter;
             8575          (ii) upon the request of a local public procurement unit, review that local public
             8576      procurement unit's proposed rules to ensure that they are not inconsistent with the provisions of
             8577      this chapter or rules made by the board; and
             8578          (iii) approve the use of innovative procurement [methods proposed by local public
             8579      procurement units] processes.
             8580          (b) [The policy] Except as provided in Section 63G-6a-1702, the board may not
             8581      exercise authority over the award or administration of:
             8582          (i) any particular [contact] contract; or
             8583          (ii) [over] any dispute, claim, or litigation pertaining to any particular contract.
             8584          (3) The board does not have authority over a matter involving:
             8585          (a) a non-executive state procurement unit;
             8586          (b) a local government unit; or
             8587          (c) except as expressly provided in this chapter, a local public procurement unit.";



Text Box

- 282 -
             8588
         (8) the changes to Section 63G-6a-1602 (renumbered from Section 63G-6-805) in S.B.
             8589      153 do not go into effect;
             8590          (9) by renumbering and amending Section 63G-6-801 to Section 63G-6a-1602, to read:
             8591          " [63G-6-801.] 63G-6a-1602. Protest to chief procurement officer or head of a
             8592      purchasing agency -- Time -- Authority to resolve protest.
             8593          (1) [Any] Except as provided in Subsection (2), a person who is an actual or
             8594      prospective bidder, offeror, or contractor who is aggrieved in connection with [the solicitation]
             8595      a procurement or award of a contract may protest to the [chief procurement officer or the head
             8596      of a purchasing agency. A] protest officer as follows:
             8597          (a) with respect to an invitation for bids or a request for proposals[ shall be submitted in
             8598      writing prior to]:
             8599          (i) before the opening of bids or the closing date for proposals[, unless]; or
             8600          (ii) if the [aggrieved] person did not know and should not have known of the facts
             8601      giving rise to the protest [prior to] before the bid opening or the closing date for proposals[.
             8602      The protest shall be submitted in writing within five working days after the aggrieved person
             8603      knows or should have known of the facts giving rise thereto.], within seven days after the day
             8604      on which the person knows or should have known of the facts giving rise to the protest; or
             8605          [(2) Subject to the applicable requirements in Section 63G-10-403, the chief
             8606      procurement officer, the head of a purchasing agency, or a designee of either officer shall have
             8607      the authority, prior to the commencement of an action in court concerning the controversy, to
             8608      settle and resolve the protest.]
             8609          (b) if Subsection (1)(a) does not apply, within seven days after the day on which the
             8610      person knows or should have known of the facts giving rise to the protest.
             8611          (2) A person who is debarred or suspended under this chapter may protest the
             8612      debarment or suspension to the protest officer that ordered the debarment, as applicable, within
             8613      seven days after the day on which the debarment or suspension is ordered.
             8614          (3) A person who files a protest under this section shall include in the filing document:
             8615          (a) the person's address of record and email address of record; and
             8616          (b) a concise statement of the grounds upon which the protest is made.
             8617          (4) A person described in Subsection (1), (2), or (3) who fails to timely file a protest
             8618      under this section may not bring a protest, action, or appeal challenging a solicitation or award



Text Box

- 283 -
             8619
     of a contract, or a debarment or suspension, before the protest officer, an appeals panel, a court,
             8620      or any other forum.
             8621          (5) Subject to the applicable requirements of Section 63G-10-403, a protest officer, or
             8622      the protest officer's designee, may enter into a settlement agreement to resolve a protest.";
             8623          (10) the changes to Section 63G-6a-1603 (renumbered from Section 63G-6-801) in S.B.
             8624      153 do not go into effect;
             8625          (11) by renumbering and amending Section 63G-6-806 to Section 63G-6a-1603, to
             8626      read:
             8627          " [63G-6-806.] 63G-6a-1603. Decisions of protest officer to be in writing -- Effect of
             8628      no writing.
             8629          [(1)The chief procurement officer, the head of a purchasing agency, or the designee of
             8630      either officer]
             8631          (1) After a timely protest is filed in accordance with Section 63G-6a-1602, the protest
             8632      officer:
             8633          (a) shall consider the protest; and
             8634          (b) may hold a hearing on the protest.
             8635          (2) (a) The protest officer may:
             8636          (i) subpoena witnesses and compel their attendance at a protest hearing; or
             8637          (ii) subpoena documents for production at a protest hearing.
             8638          (b) The Rules of Evidence do not apply to a protest hearing.
             8639          (c) The Procurement Policy Board shall make rules relating to intervention in a protest,
             8640      including designating:
             8641          (i) who may intervene; and
             8642          (ii) the time and manner of intervention.
             8643          (d) If a hearing on a protest is held under this section, the protest officer shall:
             8644          (i) record the hearing;
             8645          (ii) preserve all evidence presented at the hearing; and
             8646          (iii) preserve all records and other evidence relied upon in reaching the written decision
             8647      described in this section.
             8648          (e) Regardless of whether a hearing on a protest is held under this section, the protest
             8649      officer shall preserve all records and other evidence relied upon in reaching the written



Text Box

- 284 -
             8650
     decision.
             8651          (f) The records described in Subsections (2)(d) and (e) may not be destroyed until the
             8652          decision, and any appeal of the decision, becomes final.
             8653          (g) A protest officer who holds a hearing, considers a protest, or issues a written
             8654      decision under this section does not waive the right to, at a later date, question or challenge the
             8655      protest officer's jurisdiction to hold the hearing, consider the protest, or render the decision.
             8656          (3) A protest officer, or the protest officer's designee, shall promptly issue a written
             8657      decision regarding any protest, debarment [or], suspension, or contract controversy if it is not
             8658      settled by [a] mutual agreement. The decision shall state the reasons for the action taken and
             8659      inform the protestor, contractor, or prospective contractor of the right to judicial or
             8660      administrative review as provided in this chapter.
             8661          [(2)] (4) A decision [shall be] described in this section is effective until stayed or
             8662      reversed on appeal, except to the extent provided in Section [63G-6-802] 63G-6a-1903. A
             8663      [copy of the] person who issues a decision [under] described in Subsection (1) shall [be mailed
             8664      or otherwise furnished immediately] mail, email, or otherwise immediately furnish a copy of
             8665      the decision to the protestor, prospective contractor, or contractor. The decision shall be final
             8666      and conclusive unless the protestor, prospective contractor, or contractor [appeals
             8667      administratively to the procurement appeals board in accordance with Subsection
             8668      63G-6-810(2) or the protestor, prospective contractor, or contractor]:
             8669          (a) for a controversy described in Section 63G-6a-1905, commences an action in district
             8670      court in accordance with [Section 63G-6-815.] Subsection 63G-6a-1802(5);
             8671          (b) for a controversy related to a solicitation or the award of a contract, files an appeal
             8672      under Section 63G-6a-1702; or
             8673          (c) for a debarment or suspension, files an appeal under Section 63G-6a-1702.
             8674          [(3)] (5) If the [chief procurement officer, the head of a purchasing agency, or the
             8675      designee of either] protest officer does not issue the written decision regarding a protest or a
             8676      contract controversy within [60] 30 calendar days after the day on which a written request for a
             8677      final decision is filed with the protest officer, or within [such] a longer period as may be agreed
             8678      upon by the parties, [then] the protester, prospective contractor, or contractor may proceed as if
             8679      an adverse decision had been received.
             8680          (6) Except for a controversy described in Section 63G-6a-1905, a determination under



Text Box

- 285 -
             8681
     this section by the protest officer regarding an issue of fact may not be overturned on appeal
             8682      unless the decision is arbitrary and capricious or clearly erroneous.";
             8683          (12) the changes to Section 63G-6a-1604 (renumbered from Section 63G-6-806) in S.B.
             8684      153 do not go into effect;
             8685          (13) by enacting Section 63G-6a-1604 to read:
             8686          " 63G-6a-1604. Dismissal of protest not filed in accordance with requirements.
             8687          The protest officer may dismiss a protest described in Section 63G-6a-1602 that is not
             8688      filed in accordance with the requirements of this part.";
             8689          (14) the changes to Section 63G-6a-1607 (renumbered from Section 63G-6-803) in S.B.
             8690      153 do not go into effect;
             8691          (15) the changes to Section 63G-6a-1702 (renumbered from Section 63G-6-807) in S.B.
             8692      153 do not go into effect;
             8693          (16) by renumbering and amending Section 63G-6-807 to Section 63G-6a-1702, to
             8694      read:
             8695          " [63G-6-807] 63G-6a-1702. Appeal to procurement policy board -- Appointment of
             8696      procurement appeals panel -- Proceedings.
             8697          (1) A party to a protest may appeal the protest decision to the procurement policy board
             8698      by:
             8699          (a) filing a written notice of appeal with the chair of the procurement policy board
             8700      within seven days after:
             8701          (i) the day on which the written decision described in Section 63G-6a-1603 is:
             8702          (A) personally served on the party or the party's representative; or
             8703          (B) emailed or mailed to the address or email address of record provided by the party
             8704      under Subsection 63G-6a-1602(3); or
             8705          (ii) the day on which the 30-day period described in Subsection 63G-6a-1603(5) ends, if
             8706      a written decision is not issued before the end of the 30-day period;
             8707          (b) including in the filing document the person's address of record and email address of
             8708      record; and
             8709          (c) at the time that the notice of appeal described in Subsection (1)(a) is filed,
             8710      complying with the requirements of Section 63G-6a-1703 regarding the posting of a security
             8711      deposit or a bond.



Text Box

- 286 -
             8712
         (2) A person may not appeal from a protest described in Section 63G-6a-1602, unless:
             8713          (a) a decision on the protest has been issued; or
             8714          (b) a decision is not issued and the 30-day period described in Subsection
             8715      63G-6a-1603(5) has passed.
             8716          (3) The chair of the procurement policy board or a designee of the chair who is not
             8717      employed by the public procurement unit responsible for the solicitation, contract award, or
             8718      other action complained of:
             8719          (a) shall, within seven days after the day on which the chair receives a timely written
             8720      notice of appeal under Subsection (1), appoint:
             8721          (i) a procurement appeals panel to hear and decide the appeal, consisting of at least
             8722      three individuals, each of whom shall be:
             8723          (A) a member of the Procurement Policy Board; or
             8724          (B) a designee of a member appointed under Subsection (3)(a)(i)(A), if the designee is
             8725      approved by the chair; and
             8726          (ii) one of the members of the procurement appeals panel to be the chair of the panel;
             8727          (b) may:
             8728          (i) appoint the same procurement appeals panel to hear more than one appeal; or
             8729          (ii) appoint a separate procurement appeals panel for each appeal; and
             8730          (c) may not appoint a person to a procurement appeals panel if the person is employed
             8731      by the public procurement unit responsible for the solicitation, contract award, or other action
             8732      complained of.
             8733          (4) A procurement appeals panel described in Subsection (3) shall:
             8734          (a) consist of an odd number of members;
             8735          (b) except as provided in Subsection (5), conduct an informal proceeding on the appeal
             8736      within 60 days after the day on which the procurement appeals panel is appointed, unless all
             8737      parties stipulate to a later date;
             8738          (c) at least seven days before the proceeding, mail, email, or hand-deliver a written
             8739      notice of the proceeding to the parties to the appeal; and
             8740          (d) within seven days after the day on which the proceeding ends:
             8741          (i) issue a written decision on the appeal; and
             8742          (ii) mail, email, or hand-deliver the written decision on the appeal to the parties to the



Text Box

- 287 -
             8743
     appeal and to the protest officer.
             8744          (5) A procurement appeals panel may continue a procurement appeals proceeding
             8745      beyond the 60-day period described in Subsection (4)(b) if the procurement appeals panel
             8746      determines that the continuance is in the interests of justice.
             8747          (6) A procurement appeals panel:
             8748          (a) shall consider the appeal based solely on:
             8749          (i) the protest decision;
             8750          (ii) the record considered by the person who issued the protest decision; and
             8751          (iii) if a protest hearing was held, the record of the protest hearing;
             8752          (b) may not take additional evidence; and
             8753          (c) shall uphold the decision of the protest officer, unless the decision is arbitrary and
             8754      capricious or clearly erroneous.
             8755          (7) If a procurement appeals panel determines that the decision of the protest officer is
             8756      arbitrary and a capricious or clearly erroneous, the procurement appeals panel:
             8757          (a) shall remand the matter to the protest officer, to cure the problem or render a new
             8758      decision;
             8759          (b) may recommend action that the protest officer should take; and
             8760          (c) may not order that:
             8761          (i) a contract be awarded to a certain person;
             8762          (ii) a contract or solicitation be cancelled; or
             8763          (iii) any other action be taken other than the action described in Subsection (7)(a).
             8764          (8) The Procurement Policy Board shall make rules relating to the conduct of an appeals
             8765      proceeding, including rules that provide for:
             8766          (a) expedited proceedings; and
             8767          (b) electronic participation in the proceedings by panel members and participants.
             8768          (9) The Rules of Evidence do not apply to an appeals proceeding.";
             8769          (17) the changes to Section 63G-6a-1703 (renumbered from Section 63G-6-810) in S.B.
             8770      153 do not go into effect and Section 63G-6-810 in S.B. 114 remains repealed;
             8771          (18) by renumbering and amending Section 63G-6-807.5, which was enacted by S.B.
             8772      114, to Section 63G-6a-1703 to read:
             8773          " [63G-6-807.5.] 63G-6a-1703. Requirement to post a security deposit or bond --



Text Box

- 288 -
             8774
     Exceptions -- Forfeiture of security deposit or bond.
             8775          (1) Except as provided by rule made under Subsection (2)(a), a person who files an
             8776      appeal under Section 63G-6a-1702 shall, at the time that the appeal is filed, pay a security
             8777      deposit or post a bond with the protest officer in an amount that is the greater of:
             8778          (a) for the appeal of a debarment or suspension, $1,000;
             8779          (b) for any type of procurement, $1,000;
             8780          (c) for an invitation for bids, 5% of:
             8781          (i) the lowest bid amount, if the bid opening has occurred; or
             8782          (ii) the estimated contract cost, established in accordance with Subsection (2)(b), if the
             8783      bid opening has not yet occurred;
             8784          (d) for a request for proposals, 5% of:
             8785          (i) the lowest cost proposed in a response to a request for proposals, if the opening of
             8786      proposals has occurred; or
             8787          (ii) the estimated contract cost, established in accordance with Subsection (2)(b), if the
             8788      opening of proposals has not occurred; or
             8789          (e) for a type of procurement other than an invitation for bids or a request for proposals,
             8790      the amount established in accordance with Subsection (2).
             8791          (2) The Procurement Policy Board shall make rules, in accordance with Title 63G,
             8792      Chapter 3, Utah Administrative Rulemaking Act, that establish:
             8793          (a) circumstances and procedures under which the requirement for paying a security
             8794      deposit or posting a bond may be waived or reduced on grounds, including:
             8795          (i) that the person filing the appeal is impecunious;
             8796          (ii) circumstances where certain small purchases are involved; or
             8797          (iii) other grounds determined by the Division of Purchasing and General Services to be
             8798      appropriate; and
             8799          (b) the method used to determine:
             8800          (i) the estimated contract cost described in Subsections (1)(c)(ii) and (1)(d)(ii); and
             8801          (ii) the amount described in Subsection (1)(e).
             8802          (3) The chair of the Procurement Policy Board shall a dismiss a protest filed under
             8803      Section 63G-6a-1702 if the actual or prospective bidder, offeror, or contractor fails to timely
             8804      pay the security deposit or post the bond required under Subsection (1).



Text Box

- 289 -
             8805
         (4) The chair of the Procurement Policy Board shall:
             8806          (a) retain the security deposit or bond until the protest and any appeal of the protest
             8807      decision is final;
             8808          (b) as it relates to a security deposit:
             8809          (i) deposit the security deposit into an interest-bearing account; and
             8810          (ii) after any appeal of the protest decision becomes final, return the security deposit
             8811      and the interest it accrues to the person who paid the security deposit, unless the security
             8812      deposit is forfeited to the General Fund under Subsection (5); and
             8813          (c) as it relates to a bond:
             8814          (i) retain the bond until the protest and any appeal of the protest decision becomes final;
             8815      and
             8816          (ii) after the protest and any appeal of the protest decision becomes final, return the
             8817      bond to the person who posted the bond, unless the bond is forfeited to the General Fund under
             8818      Subsection (5).
             8819          (5) A security deposit that is paid, or a bond that is posted, under this section shall
             8820      forfeit to the General Fund if:
             8821          (a) the person who paid the security deposit or posted the bond fails to ultimately
             8822      prevail on appeal; and
             8823          (b) the procurement appeals panel finds that the protest or appeal is frivolous or that its
             8824      primary purpose is to harass or cause a delay.";
             8825          (19) the changes to Section 63G-6a-1704 (renumbered from Section 63G-6-808) in S.B.
             8826      153 do not go into effect and Section 63G-6-808 in S.B. 114 remains repealed;
             8827          (20) by renumbering and amending Section 63G-6-812 to Section 63G-6a-1704, to
             8828      read:
             8829          " [63G-6-812.] 63G-6a-1704. Discontinued appeal with prejudice, except as
             8830      authorized.
             8831          After notice of an appeal [has been filed with the Procurement Appeals Board] to the
             8832      procurement policy board is filed under Section 63G-6a-1702, no party may discontinue the
             8833      appeal without prejudice, except as authorized by the [Procurement Appeals Board]
             8834      procurement appeals panel appointed for the appeal.";
             8835          (21) the changes to Section 63G-6a-1705 (renumbered from Section 63G-6-809) in S.B.



Text Box

- 290 -
             8836
     153 do not go into effect and Section 63G-6-809 in S.B. 114 remains repealed;
             8837          (22) by renumbering and amending Section 63G-6-813 to Section 63G-6a-1705, to
             8838      read:
             8839          " [63G-6-813.] 63G-6a-1705. Factual determination of procurement appeals panel
             8840      final and conclusive.
             8841          [(1) On any protest or appeal under Section 63G-6-810, the Procurement Appeals Board
             8842      shall promptly decide the contract controversy or whether the solicitation or award was in
             8843      accordance with this chapter. Any prior determinations by administrative officials regarding
             8844      protests of solicitations or awards, suspension or debarments, contract controversies, or breach
             8845      of contract controversies shall not be final or conclusive.]
             8846          [(2)] A determination of an issue of fact by [the Procurement Appeals Board under
             8847      Subsection (1) shall be final and conclusive unless] a procurement appeals panel may not be
             8848      overturned on appeal, unless the determination is arbitrary and capricious or clearly erroneous.
             8849          [No determination on an issue of law shall be final or conclusive.]";
             8850          (23) by repealing Section 63G-6-814.5;
             8851          (24) the changes to Section 63G-6a-1706 (renumbered from Section 63G-6-811) in S.B.
             8852      153 do not go into effect and Section 63G-6-811 in S.B. 114 remains repealed;
             8853          (25) by enacting Section 63G-6a-1706 to read:
             8854          " 63G-6a-1706. Dismissal of an appeal not filed in compliance with requirements.
             8855          A procurement appeals panel may dismiss an appeal that is assigned to the procurement
             8856      appeals panel if the appeal is not filed in accordance with the requirements of this chapter.";
             8857          (26) the changes to Section 63G-6a-1707 (renumbered from Section 63G-6-812) in S.B.
             8858      153 do not go into effect;
             8859          (27) the changes to Section 63G-6a-1708 (renumbered from Section 63G-6-813) in S.B.
             8860      153 do not go into effect;
             8861          (28) the changes to Section 63G-6a-1802 (renumbered from Section 63G-6-814) in S.B.
             8862      153 do not go into effect and Section 63G-6-814 in S.B. 114 remains repealed;
             8863          (29) by renumbering and amending Section 63G-6-815 to Section 63G-6a-1802, to
             8864      read:
             8865          " [63G-6-815.] 63G-6a-1802. Appeal to Utah Court of Appeals -- Jurisdiction of
             8866      district court.



Text Box

- 291 -
             8867
         (1) Subject to Subsection (2), a person who receives an adverse decision, or the state,
             8868      may appeal a decision of a procurement appeals panel to the Utah Court of Appeals within
             8869      seven days after the day on which the decision is issued.
             8870          (2) An agency in the state executive branch or a local public procurement unit may not
             8871      appeal the decision of a procurement appeals panel, unless the appeal is:
             8872          (a) recommended by the protest officer involved; and
             8873          (b) except for a local public procurement unit that is not represented by the attorney
             8874      general's office, approved by the attorney general.
             8875          (3) The Utah Court of Appeals:
             8876          (a) shall consider the appeal as an appellate court;
             8877          (b) may not hear the matter as a trial de novo; and
             8878          (c) may not overturn a finding or decision of the protest officer or a procurement
             8879      appeals panel, unless the finding or decision is arbitrary and capricious or clearly erroneous.
             8880          (4) The Utah Court of Appeals is encouraged to:
             8881          (a) give an appeal made under Subsection (1) priority; and
             8882          (b) consider the appeal and render a decision in an expeditious manner.
             8883          (5) The district court shall have original jurisdiction in a cause of action between a
             8884      contractor and the state for any cause of action that arises under, or in relation to, an existing
             8885      contract between the contractor and the state.";
             8886          (30) the changes to Section 63G-6a-1803 (renumbered from Section 63G-6-815) in S.B.
             8887      153 do not go into effect;
             8888          (31) by renumbering and amending Section 63G-6-817 to Section 63G-6a-1803, to
             8889      read:
             8890          " [63G-6-817.] 63G-6a-1803. Statutes of limitations.
             8891          [(1) Any action under Subsection 63G-6-815(1)(a) shall be initiated as follows:]
             8892          [(a) within 20 calendar days after the aggrieved person knows or should have known of
             8893      he facts giving rise to the action; provided, however, that an action with respect to an invitation
             8894      for bids or request for proposals shall be initiated prior to the opening of bids or the closing
             8895      date for proposals unless the aggrieved person did not know and should not have known of the
             8896      facts giving rise to the action prior to bid opening or the closing date for proposals; or]
             8897          [(b) within 14 calendar days after receipt of a final administrative decision pursuant to



Text Box

- 292 -
             8898
     either Section 63G-6-806 or Section 63G-6-813, whichever is applicable.]
             8899          [(2) Any] (1) An action [under] described in Subsection [63G-6-815(1)(b)]
             8900      63G-6a-1802(5) shall be commenced within six months after [receipt of a final administrative
             8901      decision pursuant to Section 63G-6-806 or Section 63G-6-813, whichever is applicable] the
             8902      person bringing the action knew or should have known of the circumstances upon which the
             8903      action is based.
             8904          [(3)] (2) The statutory limitations on an action between private persons on a contract or
             8905      for breach of contract shall apply to any action commenced pursuant to Subsection
             8906          [63G-6-815(1)(c)(2), except notice of appeals from the Procurement Appeals Board
             8907      pursuant to Section 63G-6-814 concerning actions on a contract or for breach of contract shall
             8908      be filed within one year after the date of the Procurement Appeals Board decision]
             8909      63G-6a-1802(5).";
             8910          (32) the changes to Section 63G-6a-1804 (renumbered from Section 63G-6-817) in S.B.
             8911      153 do not go into effect;
             8912          (33) the changes to Section 63G-6a-1805 (renumbered from Section 63G-6-816) in S.B.
             8913      153 do not go into effect;
             8914          (34) by renumbering Section 63G-6a-1902 to Section 63G-6a-1911;
             8915          (35) by renumbering and amending Section 63G-6-801.5, that was enacted in S.B. 114,
             8916      to Section 63G-6a-1902, to read:
             8917          " [63G-6-801.5.] 63G-6a-1902. Requirement to exhaust administrative remedies --
             8918      Protests and appeals.
             8919          (1) A person may not challenge a procurement, a procurement process, the award of a
             8920      contract relating to a procurement, a debarment, or a suspension, in a court, before an
             8921      administrative officer or body, or in any other forum other than the forum permitted in this
             8922      chapter.
             8923          (2) A person who desires to challenge a procurement, a procurement process, the award
             8924      of a contract relating to a procurement, a debarment, or a suspension, shall bring the challenge,
             8925      in accordance with the requirements of this chapter, by timely filing:
             8926          (a) a protest in accordance with Section 63G-6a-1602;
             8927          (b) any appeal of the protest decision in accordance with Section 63G-6a-1702; and
             8928          (c) any appeal from a procurement appeals panel in accordance with Section



Text Box

- 293 -
             8929
     63G-6a-1802.
             8930          (3) A person who files a protest or appeal under this chapter is limited to protesting or
             8931      appealing on the grounds specified in the filing document described in Subsection
             8932      63G-6a-1602.
             8933          (4) In hearing a protest or an appeal under this chapter relating to an expenditure of
             8934      federal assistance, federal contract funds, or a federal grant, the person who hears the appeal
             8935      shall ensure compliance with federal law and regulations relating to the expenditure.";
             8936          (36) by renumbering Section 63G-6a-1903 (renumbered from Section 63G-6-818) in
             8937      S.B 153 to Section 63G-6a-1909;
             8938          (37) the changes to Section 63G-6a-1606 (renumbered from Section 63G-6-802) in S.B.
             8939      153 do not go into effect;
             8940          (38) by renumbering and amending Section 63G-6-802 to Section 63G-6a-1903, to
             8941      read:
             8942           "[63G-6-802.] 63G-6a-1903. Effect of timely protest or appeal.
             8943          In the event of a timely protest under [Subsection 63G-6-801(1), 63G-6-810(1), or
             8944      63G-6-815(1), the state shall] Subsection 63G-6a-1602(1), or a timely appeal of the protest
             8945      under Section 63G-6a-1702 or 63G-6a-1802, a state executive branch agency or a local public
             8946      procurement unit may not proceed further with the solicitation or with the award of the contract
             8947      until:
             8948          (1) all administrative and judicial remedies [have been] are exhausted [or until];
             8949          (2) for a protest under Section 63G-6a-1602 or an appeal under Section 63G-6a-1702:
             8950          (a) the chief procurement officer, after consultation with the attorney general's office
             8951      and the head of the using agency [or the head of a purchasing agency], makes a written
             8952      determination that [the] award of the contract without delay is necessary to protect substantial
             8953      interests of the state[.];
             8954          (b) the head of the purchasing agency, after consultation with the attorney general's
             8955      office, makes a written determination that award of the contract without delay is necessary to
             8956      protect substantial interests of the state; or
             8957          (c) for a local public procurement unit that is not represented by the attorney general's
             8958      office, the local public procurement unit, after consulting with the attorney for the local public
             8959      procurement unit, makes a written determination that award of the contract without delay is



Text Box

- 294 -
             8960
     necessary to protect substantial interests of the local public procurement unit; or
             8961          (3) for an appeal under Section 63G-6a-1802, or an appeal to a higher court than district
             8962      court:
             8963          (a) the chief procurement officer, after consultation with the attorney general's office
             8964      and the head of the using agency, makes a written determination that award of the contract
             8965      without delay is in the best interest of the state;
             8966          (b) the head of the purchasing agency, after consultation with the attorney general's
             8967      office, makes a written determination that award of the contract without delay is in the best
             8968      interest of the state; or
             8969          (c) for a local public procurement unit that is not represented by the attorney general's
             8970      office, the local public procurement unit, after consulting with the attorney for the local public
             8971      procurement unit, makes a written determination that award of the contract without delay is
             8972      necessary to protect the best interest of the local public procurement unit.";
             8973          (39) the changes to Section 63G-6a-1904 (renumbered from Section 63G-6-819) in S.B.
             8974      153 do not go into effect;
             8975          (40) by renumbering and amending Section 63G-6-803 to Section 63G-6a-1904, to
             8976      read:
             8977          " [63G-6-803.] 63G-6a-1904. Costs to or against protestor.
             8978          (1) When a protest is sustained administratively or upon administrative or judicial
             8979      review and the protesting bidder or offeror should have been awarded the contract under the
             8980      solicitation but is not, the protestor shall be entitled to the following relief as a claim against
             8981      the state:
             8982          (a) the reasonable costs incurred in connection with the solicitation, including bid
             8983      preparation and appeal costs; and
             8984          (b) any equitable relief determined to be appropriate by the reviewing administrative or
             8985      judicial body.
             8986          (2) When a protest is not sustained by [the Procurement Appeals Board] a procurement
             8987      appeals panel, the protestor shall reimburse the [Division of Purchasing and General Services]
             8988      public procurement unit for the per diem and expenses paid by the [division] public
             8989      procurement unit to witnesses or appeals [board] panel members and any additional expenses
             8990      incurred by the [state agency] staff of the public procurement unit who have provided materials



Text Box

- 295 -
             8991
     and administrative services to the [board] procurement appeals panel for that case.
             8992          (3) The provisions of Title 63G, Chapter 7, Part 4, Notice of Claim Against a
             8993      Governmental Entity or a Government Employee, and Section 63G-7-601 do not apply to
             8994      actions brought under this chapter by an aggrieved party for equitable relief or reasonable costs
             8995      incurred in preparing or appealing an unsuccessful bid or offer.";
             8996          (41) the changes to Section 63G-6a-1905 (renumbered from Section 63G-6-820) in S.B.
             8997      153 do not go into effect;
             8998          (42) by renumbering and amending Section 63G-6-805 to Section 63G-6a-1905, to
             8999      read:
             9000          " [63G-6-805.] 63G-6a-1905. Authority to resolve controversy between state and
             9001      contractor.
             9002          [The chief procurement officer, the head of a purchasing agency, or a designee of either
             9003      officer] A protest officer, or the protest officer's designee, is authorized, [prior to] before
             9004      commencement of an action in court concerning [the controversy, to settle and resolve] a
             9005      controversy [which] that arises between the state and a contractor [under or by virtue of a
             9006      contract between them. This includes, without limitation,] in relation to an existing contract
             9007      between the state and the contractor, including controversies based upon breach of contract,
             9008      [mistakes] mistake, misrepresentation, or other cause for contract modification or rescission, to
             9009      settle and resolve the controversy.";
             9010          (43) by renumbering and amending Section 63G-6-816 to Section 63G-6a-1906, to
             9011      read:
             9012          " [63G-6-816.] 63G-6a-1906. Effect of prior determination by agents of state.
             9013          In any judicial action under Section [63G-6-815] 63G-6a-1802, determinations by
             9014      employees, agents, or other persons appointed by the state shall be final and conclusive only as
             9015      provided in Sections [63G-6-419 and 63G-6-806, and Subsection 63G-6-813(2)] 63G-6a-1911,
             9016      63G-6a-1603, and 63G-6a-1705.";
             9017          (44) by renumbering and amending Section 63G-6-819 to Section 63G-6a-1907, to
             9018      read:
             9019          " [63G-6-819.] 63G-6a-1907. Effect of violation after award of contract.
             9020          (1) If after [an] award of a contract it is determined administratively or upon
             9021      administrative or judicial review that a [solicitation] procurement or award of a contract is in



Text Box

- 296 -
             9022
     violation of law:
             9023          [(1) If] (a) (i) if the person awarded the contract [has not acted] did not act fraudulently
             9024      or in bad faith:
             9025          [(a) The] (A) the contract may be ratified and affirmed if it [is determined that doing so]
             9026      is in the best interests of the state; or
             9027          [(b) The] (B) the contract may be terminated; and
             9028          (ii) the person awarded the contract shall be compensated for the actual expenses
             9029      reasonably incurred under the contract [prior to] before the termination, plus a reasonable
             9030      profit; or
             9031          [(2) If] (b) if the person awarded the contract [has] acted fraudulently or in bad faith:
             9032          [(a) The] (i) the contract may be declared null and void; or
             9033          [(b) The] (ii) the contract may be ratified and affirmed if [such action] it is in the best
             9034      interests of the state, without prejudice to the state's rights to any appropriate damages.
             9035          (2) Under no circumstances is a person entitled to consequential damages in relation to
             9036      a solicitation or award of a contract under this chapter, including consequential damages for
             9037      lost profits, loss of business opportunities, or damage to reputation.";
             9038          (45) by renumbering and amending Section 63G-6-820 to Section 63G-6a-1910, to
             9039      read:
             9040          " [63G-6-820.] 63G-6a-1910. Interest rate.
             9041          (1) Except as provided in Subsection (2), in controversies between the state and
             9042      contractors under this [part,] chapter, interest on amounts ultimately determined to be due to a
             9043      contractor or [to] the state are payable at the rate applicable to judgments from the date the
             9044      claim arose through the date of decision or judgment, whichever is later.
             9045          (2) This section does not apply to public assistance benefits programs.";
             9046          (46) the changes to Section 63G-6a-1605 (renumbered from Section 63G-6-907) in S.B.
             9047      153 do not go into effect;
             9048          (47) by renumbering and amending Section 63G-6-907 to Section 63G-6a-1908, to
             9049      read:
             9050          " [63G-6-907.] 63G-6a-1908. Resolution of local public procurement controversies.
             9051          The provisions of this chapter relating to protests and appeals apply to a local public
             9052      procurement unit.";



Text Box

- 297 -
             9053
         (48) by changing the references in Section 63G-10-403 from "Subsection
             9054      63G-6-801(9)" to "Subsection 63G-6a-1602(5)"; and
             9055          (49) by granting the Office of Legislative Research and General Counsel the authority
             9056      to technically renumber sections for proper placement in the chapter and to technically
             9057      renumber corresponding cross references."
             9058          Section 245. Coordinating S.B. 153 with S.B. 165 -- Substantive and technical
             9059      amendments.
             9060          If this S.B. 153 and S.B. 165, Redevelopment Agency Amendments, both pass and
             9061      become law, the Legislature intends that the Office of Legislative Research and General
             9062      Counsel shall prepare the Utah Code database for publication on May 1, 2013, by amending
             9063      Subsection 63G-6a-104(4) to read:
             9064          "(4) "Local public procurement unit" means:
             9065          (a) a local district, as defined in Section 17B-1-102;
             9066          (b) a special service district, as defined in Section 17D-1-102;
             9067          (c) a local building authority, as defined in Section 17D-2-102;
             9068          (d) a conservation district, as described in Title 17D, Chapter 3, Conservation District
             9069      Act;
             9070          (e) a public corporation, other than the Utah Housing Corporation;
             9071          (f) a school district;
             9072          (g) a public school, including a local school board or a charter school;
             9073          (h) Utah Schools for the Deaf and Blind;
             9074          (i) the Utah Education Network;
             9075          (j) an institution of higher education of the state;
             9076          (k) a county or municipality, and each office or agency of the county or municipality,
             9077      unless the county or municipality adopts its own procurement code by ordinance;
             9078          (l) a county or municipality, and each office or agency of the county or municipality,
             9079      that has adopted this entire chapter by ordinance;
             9080          (m) a county or municipality, and each office or agency of the county or municipality,
             9081      that has adopted a portion of this chapter by ordinance, to the extent that the term is used in the
             9082      adopted portion of this chapter; or
             9083          (n) two or more of the entities described in this Subsection (4), acting under legislation



Text Box

- 298 -
             9084
     that authorizes intergovernmental cooperation."


[Bill Documents][Bills Directory]