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S.B. 153

             1     

PROCUREMENT AMENDMENTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Wayne L. Niederhauser

             5     
House Sponsor: ____________

             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;
             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 January 1, 2013.
             44      Utah Code Sections Affected:
             45      AMENDS:
             46          7-1-323, as last amended by Laws of Utah 2008, Chapter 382
             47          7-2-21, as last amended by Laws of Utah 2008, Chapter 382
             48          9-4-704, as last amended by Laws of Utah 2011, Chapter 342
             49          9-4-906, as last amended by Laws of Utah 2008, Chapter 382
             50          9-4-1602, as enacted by Laws of Utah 2011, Chapter 217
             51          10-3-1304, as last amended by Laws of Utah 2008, Chapter 382
             52          10-3-1305, as last amended by Laws of Utah 2008, Chapter 382
             53          10-7-86, as last amended by Laws of Utah 2008, Chapter 382
             54          11-17-20, as last amended by Laws of Utah 2008, Chapter 382
             55          11-39-101, as last amended by Laws of Utah 2008, Chapters 360 and 382
             56          11-39-107, as last amended by Laws of Utah 2011, Chapter 387
             57          11-44-202, as enacted by Laws of Utah 2010, Chapter 244
             58          11-44-301, as enacted by Laws of Utah 2010, Chapter 244


             59          13-2-9, as last amended by Laws of Utah 2008, Chapter 382
             60          14-1-18, as last amended by Laws of Utah 2008, Chapter 382
             61          17-16a-4, as last amended by Laws of Utah 2008, Chapter 382
             62          17-43-202, as last amended by Laws of Utah 2008, Chapter 382
             63          17-43-302, as last amended by Laws of Utah 2008, Chapter 382
             64          17-53-225, as last amended by Laws of Utah 2008, Chapter 382
             65          17-53-313, as last amended by Laws of Utah 2008, Chapter 382
             66          17B-1-108, as last amended by Laws of Utah 2008, Chapter 382
             67          17B-2a-818, as last amended by Laws of Utah 2010, Chapter 281
             68          17B-2a-818.5, as last amended by Laws of Utah 2011, Chapters 297 and 400
             69          17D-1-106, as last amended by Laws of Utah 2011, Chapters 40, 106, 205, and 209
             70          17D-2-108, as enacted by Laws of Utah 2008, Chapter 360
             71          19-1-206, as last amended by Laws of Utah 2011, Chapters 297 and 400
             72          20A-11-701, as last amended by Laws of Utah 2011, Chapter 396
             73          26-8a-405.3, as last amended by Laws of Utah 2011, Chapter 297
             74          26-8a-405.5, as last amended by Laws of Utah 2011, Chapter 297
             75          26-10-8, as enacted by Laws of Utah 2010, Chapter 413
             76          26-10b-102, as last amended by Laws of Utah 2011, Chapter 297
             77          26-18-2.6, as enacted by Laws of Utah 2011, Chapter 344
             78          26-40-110, as last amended by Laws of Utah 2011, Chapter 297
             79          30-3-11.3, as last amended by Laws of Utah 2011, Chapter 51
             80          30-3-11.4, as last amended by Laws of Utah 2011, Chapter 51
             81          30-3-38, as last amended by Laws of Utah 2008, Chapters 44 and 382
             82          31A-29-110, as last amended by Laws of Utah 2008, Chapter 382
             83          31A-29-111, as last amended by Laws of Utah 2008, Chapters 382 and 385
             84          31A-33-104, as last amended by Laws of Utah 2008, Chapter 382
             85          31A-33-107, as last amended by Laws of Utah 2008, Chapter 382
             86          34A-2-203, as last amended by Laws of Utah 2008, Chapter 382
             87          35A-5-202, as last amended by Laws of Utah 2008, Chapter 382
             88          38-1-30, as last amended by Laws of Utah 2011, Chapter 299
             89          38-1-39, as last amended by Laws of Utah 2008, Chapter 382


             90          41-12a-803, as last amended by Laws of Utah 2011, Chapter 342
             91          53-2-404, as last amended by Laws of Utah 2011, Chapter 342
             92          53A-1-706, as last amended by Laws of Utah 2008, Chapter 382
             93          53A-1a-511, as last amended by Laws of Utah 2008, Chapter 382
             94          53A-20-101, as last amended by Laws of Utah 2008, Chapter 382
             95          53A-25b-105, as enacted by Laws of Utah 2009, Chapter 294
             96          53C-1-201 (Effective 07/01/12), as last amended by Laws of Utah 2011, Chapters 247
             97      and 353
             98          54-3-29, as last amended by Laws of Utah 2011, Chapter 340
             99          54-8b-10, as last amended by Laws of Utah 2011, Chapters 329 and 342
             100          62A-1-108.5, as last amended by Laws of Utah 2011, Chapter 366
             101          62A-3-104, as last amended by Laws of Utah 2008, Chapter 382
             102          62A-3-104.1, as last amended by Laws of Utah 2008, Chapter 382
             103          62A-14-109, as last amended by Laws of Utah 2008, Chapter 382
             104          63A-5-205, as last amended by Laws of Utah 2011, Chapter 400
             105          63A-5-208, as last amended by Laws of Utah 2008, Chapter 382
             106          63A-5-302, as last amended by Laws of Utah 2010, Chapter 324
             107          63B-2-102, as last amended by Laws of Utah 2008, Chapter 382
             108          63B-3-102, as last amended by Laws of Utah 2008, Chapter 382
             109          63B-4-102, as last amended by Laws of Utah 2008, Chapter 382
             110          63B-5-102, as last amended by Laws of Utah 2008, Chapter 382
             111          63B-6-102, as last amended by Laws of Utah 2008, Chapter 382
             112          63B-6-402, as last amended by Laws of Utah 2008, Chapter 382
             113          63B-7-102, as last amended by Laws of Utah 2008, Chapter 382
             114          63B-7-402, as last amended by Laws of Utah 2008, Chapter 382
             115          63B-8-102, as last amended by Laws of Utah 2008, Chapter 382
             116          63B-8-402, as last amended by Laws of Utah 2008, Chapter 382
             117          63B-9-103, as last amended by Laws of Utah 2008, Chapter 382
             118          63B-11-202, as last amended by Laws of Utah 2008, Chapter 382
             119          63C-7-210, as last amended by Laws of Utah 2008, Chapter 382
             120          63C-9-301, as last amended by Laws of Utah 2008, Chapters 10 and 382


             121          63C-9-403, as last amended by Laws of Utah 2011, Chapter 400
             122          63E-2-109, as last amended by Laws of Utah 2008, Chapter 382
             123          63F-1-205, as last amended by Laws of Utah 2011, Chapter 376
             124          63G-7-804, as renumbered and amended by Laws of Utah 2008, Chapter 382
             125          63G-10-403, as enacted by Laws of Utah 2011, Chapter 361
             126          63H-2-504, as enacted by Laws of Utah 2009, Chapter 378
             127          63H-3-109, as renumbered and amended by Laws of Utah 2011, Chapter 370
             128          63H-4-108, as renumbered and amended by Laws of Utah 2011, Chapter 370
             129          63H-5-108, as renumbered and amended by Laws of Utah 2011, Chapter 370
             130          63H-6-103, as renumbered and amended by Laws of Utah 2011, Chapter 370
             131          63I-1-263, as last amended by Laws of Utah 2011, Chapters 199, 370, 408, and 411
             132          63M-1-2602, as enacted by Laws of Utah 2008, Chapter 352
             133          63M-1-2603, as enacted by Laws of Utah 2008, Chapter 352
             134          63M-1-2605, as enacted by Laws of Utah 2008, Chapter 352
             135          63M-1-2606, as enacted by Laws of Utah 2008, Chapter 352
             136          63M-1-2607, as enacted by Laws of Utah 2008, Chapter 352
             137          63M-1-2608, as enacted by Laws of Utah 2008, Chapter 352
             138          63M-1-2610, as enacted by Laws of Utah 2008, Chapter 352
             139          64-13a-13, as last amended by Laws of Utah 2008, Chapter 382
             140          67-16-4, as last amended by Laws of Utah 2008, Chapter 382
             141          67-16-5, as last amended by Laws of Utah 2008, Chapter 382
             142          67-16-5.3, as last amended by Laws of Utah 2008, Chapter 382
             143          67-16-6, as last amended by Laws of Utah 2008, Chapter 382
             144          72-6-107, as last amended by Laws of Utah 2010, Chapter 90
             145          72-6-107.5, as last amended by Laws of Utah 2011, Chapter 400
             146          72-6-108, as last amended by Laws of Utah 2009, Chapter 388
             147          72-6-205, as last amended by Laws of Utah 2009, Chapter 183
             148          72-7-504, as last amended by Laws of Utah 2008, Chapter 382
             149          73-10-27, as last amended by Laws of Utah 2008, Chapters 267 and 382
             150          73-23-3, as last amended by Laws of Utah 2008, Chapter 382
             151          76-10-1602, as last amended by Laws of Utah 2011, Chapter 320


             152          78A-2-112, as renumbered and amended by Laws of Utah 2008, Chapter 3
             153          79-2-404, as last amended by Laws of Utah 2011, Chapter 400
             154          79-4-203, as renumbered and amended by Laws of Utah 2009, Chapter 344
             155      ENACTS:
             156          63G-6a-104, Utah Code Annotated 1953
             157          63G-6a-110, Utah Code Annotated 1953
             158          63G-6a-201, Utah Code Annotated 1953
             159          63G-6a-301, Utah Code Annotated 1953
             160          63G-6a-401, Utah Code Annotated 1953
             161          63G-6a-402, Utah Code Annotated 1953
             162          63G-6a-403, Utah Code Annotated 1953
             163          63G-6a-404, Utah Code Annotated 1953
             164          63G-6a-405, Utah Code Annotated 1953
             165          63G-6a-406, Utah Code Annotated 1953
             166          63G-6a-408, Utah Code Annotated 1953
             167          63G-6a-501, Utah Code Annotated 1953
             168          63G-6a-502, Utah Code Annotated 1953
             169          63G-6a-503, Utah Code Annotated 1953
             170          63G-6a-504, Utah Code Annotated 1953
             171          63G-6a-601, Utah Code Annotated 1953
             172          63G-6a-602, Utah Code Annotated 1953
             173          63G-6a-603, Utah Code Annotated 1953
             174          63G-6a-604, Utah Code Annotated 1953
             175          63G-6a-605, Utah Code Annotated 1953
             176          63G-6a-606, Utah Code Annotated 1953
             177          63G-6a-607, Utah Code Annotated 1953
             178          63G-6a-608, Utah Code Annotated 1953
             179          63G-6a-609, Utah Code Annotated 1953
             180          63G-6a-610, Utah Code Annotated 1953
             181          63G-6a-611, Utah Code Annotated 1953
             182          63G-6a-612, Utah Code Annotated 1953


             183          63G-6a-701, Utah Code Annotated 1953
             184          63G-6a-702, Utah Code Annotated 1953
             185          63G-6a-703, Utah Code Annotated 1953
             186          63G-6a-704, Utah Code Annotated 1953
             187          63G-6a-705, Utah Code Annotated 1953
             188          63G-6a-706, Utah Code Annotated 1953
             189          63G-6a-707, Utah Code Annotated 1953
             190          63G-6a-708, Utah Code Annotated 1953
             191          63G-6a-709, Utah Code Annotated 1953
             192          63G-6a-710, Utah Code Annotated 1953
             193          63G-6a-801, Utah Code Annotated 1953
             194          63G-6a-803, Utah Code Annotated 1953
             195          63G-6a-901, Utah Code Annotated 1953
             196          63G-6a-1001, Utah Code Annotated 1953
             197          63G-6a-1101, Utah Code Annotated 1953
             198          63G-6a-1201, Utah Code Annotated 1953
             199          63G-6a-1204, Utah Code Annotated 1953
             200          63G-6a-1301, Utah Code Annotated 1953
             201          63G-6a-1401, Utah Code Annotated 1953
             202          63G-6a-1501, Utah Code Annotated 1953
             203          63G-6a-1601, Utah Code Annotated 1953
             204          63G-6a-1701, Utah Code Annotated 1953
             205          63G-6a-1801, Utah Code Annotated 1953
             206          63G-6a-1901, Utah Code Annotated 1953
             207          63G-6a-2001, Utah Code Annotated 1953
             208          63G-6a-2101, Utah Code Annotated 1953
             209          63G-6a-2201, Utah Code Annotated 1953
             210          63G-6a-2202, Utah Code Annotated 1953
             211          63G-6a-2301, Utah Code Annotated 1953
             212          63G-6a-2303, Utah Code Annotated 1953
             213          63G-6a-2304, Utah Code Annotated 1953


             214          63G-6a-2305, Utah Code Annotated 1953
             215          63G-6a-2306, Utah Code Annotated 1953
             216          63G-6a-2307, Utah Code Annotated 1953
             217      RENUMBERS AND AMENDS:
             218          63G-6a-101, (Renumbered from 63G-6-101, as enacted by Laws of Utah 2008, Chapter
             219      382)
             220          63G-6a-102, (Renumbered from 63G-6-102, as renumbered and amended by Laws of
             221      Utah 2008, Chapter 382)
             222          63G-6a-103, (Renumbered from 63G-6-103, as last amended by Laws of Utah 2011,
             223      Chapter 376)
             224          63G-6a-105, (Renumbered from 63G-6-104, as renumbered and amended by Laws of
             225      Utah 2008, Chapter 382)
             226          63G-6a-106, (Renumbered from 63G-6-207, as last amended by Laws of Utah 2008,
             227      Chapter 3 and renumbered and amended by Laws of Utah 2008, Chapter 382)
             228          63G-6a-109, (Renumbered from 63G-6-105, as renumbered and amended by Laws of
             229      Utah 2008, Chapter 382)
             230          63G-6a-202, (Renumbered from 63G-6-201, as last amended by Laws of Utah 2011,
             231      Chapter 376)
             232          63G-6a-203, (Renumbered from 63G-6-202, as last amended by Laws of Utah 2011,
             233      Chapter 376)
             234          63G-6a-204, (Renumbered from 63G-6-208, as last amended by Laws of Utah 2009,
             235      Chapter 132)
             236          63G-6a-205, (Renumbered from 63G-6-209, as renumbered and amended by Laws of
             237      Utah 2008, Chapter 382)
             238          63G-6a-302, (Renumbered from 63G-6-203, as renumbered and amended by Laws of
             239      Utah 2008, Chapter 382)
             240          63G-6a-303, (Renumbered from 63G-6-204, as last amended by Laws of Utah 2008,
             241      Chapter 352 and renumbered and amended by Laws of Utah 2008, Chapter 382)
             242          63G-6a-304, (Renumbered from 63G-6-205, as last amended by Laws of Utah 2008,
             243      Chapter 352 and renumbered and amended by Laws of Utah 2008, Chapter 382)
             244          63G-6a-305, (Renumbered from 63G-6-302, as last amended by Laws of Utah 2011,


             245      Chapter 376)
             246          63G-6a-407, (Renumbered from 63G-6-303, as renumbered and amended by Laws of
             247      Utah 2008, Chapter 382)
             248          63G-6a-711, (Renumbered from 63G-6-408.5, as enacted by Laws of Utah 2008,
             249      Chapter 352)
             250          63G-6a-802, (Renumbered from 63G-6-410, as renumbered and amended by Laws of
             251      Utah 2008, Chapter 382)
             252          63G-6a-804, (Renumbered from 63G-6-423, as renumbered and amended by Laws of
             253      Utah 2008, Chapter 382)
             254          63G-6a-805, (Renumbered from 63G-6-425, as renumbered and amended by Laws of
             255      Utah 2008, Chapter 382)
             256          63G-6a-902, (Renumbered from 63G-6-412, as renumbered and amended by Laws of
             257      Utah 2008, Chapter 382)
             258          63G-6a-903, (Renumbered from 63G-6-413, as renumbered and amended by Laws of
             259      Utah 2008, Chapter 382)
             260          63G-6a-904, (Renumbered from 63G-6-804, as renumbered and amended by Laws of
             261      Utah 2008, Chapter 382)
             262          63G-6a-1002, (Renumbered from 63G-6-404, as renumbered and amended by Laws of
             263      Utah 2008, Chapter 382)
             264          63G-6a-1003, (Renumbered from 63G-6-405, as renumbered and amended by Laws of
             265      Utah 2008, Chapter 382)
             266          63G-6a-1102, (Renumbered from 63G-6-504, as renumbered and amended by Laws of
             267      Utah 2008, Chapter 382)
             268          63G-6a-1103, (Renumbered from 63G-6-505, as renumbered and amended by Laws of
             269      Utah 2008, Chapter 382)
             270          63G-6a-1104, (Renumbered from 63G-6-506, as last amended by Laws of Utah 2011,
             271      Chapter 299)
             272          63G-6a-1105, (Renumbered from 63G-6-507, as renumbered and amended by Laws of
             273      Utah 2008, Chapter 382)
             274          63G-6a-1202, (Renumbered from 63G-6-601, as renumbered and amended by Laws of
             275      Utah 2008, Chapter 382)


             276          63G-6a-1203, (Renumbered from 63G-6-603, as enacted by Laws of Utah 2009,
             277      Chapter 217)
             278          63G-6a-1205, (Renumbered from 63G-6-416, as renumbered and amended by Laws of
             279      Utah 2008, Chapter 382)
             280          63G-6a-1206, (Renumbered from 63G-6-415, as renumbered and amended by Laws of
             281      Utah 2008, Chapter 382)
             282          63G-6a-1207, (Renumbered from 63G-6-602, as renumbered and amended by Laws of
             283      Utah 2008, Chapter 382)
             284          63G-6a-1302, (Renumbered from 63G-6-501, as renumbered and amended by Laws of
             285      Utah 2008, Chapter 382)
             286          63G-6a-1303, (Renumbered from 63G-6-604, as enacted by Laws of Utah 2010,
             287      Chapter 18)
             288          63G-6a-1402, (Renumbered from 63G-6-502, as last amended by Laws of Utah 2010,
             289      Chapter 358)
             290          63G-6a-1403, (Renumbered from 63G-6-503, as renumbered and amended by Laws of
             291      Utah 2008, Chapter 382)
             292          63G-6a-1502, (Renumbered from 63G-6-701, as renumbered and amended by Laws of
             293      Utah 2008, Chapter 382)
             294          63G-6a-1503, (Renumbered from 63G-6-702, as renumbered and amended by Laws of
             295      Utah 2008, Chapter 382)
             296          63G-6a-1504, (Renumbered from 63G-6-703, as renumbered and amended by Laws of
             297      Utah 2008, Chapter 382)
             298          63G-6a-1505, (Renumbered from 63G-6-704, as renumbered and amended by Laws of
             299      Utah 2008, Chapter 382)
             300          63G-6a-1506, (Renumbered from 63G-6-705, as renumbered and amended by Laws of
             301      Utah 2008, Chapter 382)
             302          63G-6a-1602, (Renumbered from 63G-6-805, as renumbered and amended by Laws of
             303      Utah 2008, Chapter 382)
             304          63G-6a-1603, (Renumbered from 63G-6-801, as last amended by Laws of Utah 2011,
             305      Chapter 361)
             306          63G-6a-1604, (Renumbered from 63G-6-806, as renumbered and amended by Laws of


             307      Utah 2008, Chapter 382)
             308          63G-6a-1605, (Renumbered from 63G-6-907, as renumbered and amended by Laws of
             309      Utah 2008, Chapter 382)
             310          63G-6a-1606, (Renumbered from 63G-6-802, as renumbered and amended by Laws of
             311      Utah 2008, Chapter 382)
             312          63G-6a-1607, (Renumbered from 63G-6-803, as renumbered and amended by Laws of
             313      Utah 2008, Chapter 382)
             314          63G-6a-1702, (Renumbered from 63G-6-807, as last amended by Laws of Utah 2010,
             315      Chapter 286)
             316          63G-6a-1703, (Renumbered from 63G-6-810, as renumbered and amended by Laws of
             317      Utah 2008, Chapter 382)
             318          63G-6a-1704, (Renumbered from 63G-6-808, as renumbered and amended by Laws of
             319      Utah 2008, Chapter 382)
             320          63G-6a-1705, (Renumbered from 63G-6-809, as renumbered and amended by Laws of
             321      Utah 2008, Chapter 382)
             322          63G-6a-1706, (Renumbered from 63G-6-811, as renumbered and amended by Laws of
             323      Utah 2008, Chapter 382)
             324          63G-6a-1707, (Renumbered from 63G-6-812, as renumbered and amended by Laws of
             325      Utah 2008, Chapter 382)
             326          63G-6a-1708, (Renumbered from 63G-6-813, as renumbered and amended by Laws of
             327      Utah 2008, Chapter 382)
             328          63G-6a-1802, (Renumbered from 63G-6-814, as renumbered and amended by Laws of
             329      Utah 2008, Chapter 382)
             330          63G-6a-1803, (Renumbered from 63G-6-815, as renumbered and amended by Laws of
             331      Utah 2008, Chapter 382)
             332          63G-6a-1804, (Renumbered from 63G-6-817, as renumbered and amended by Laws of
             333      Utah 2008, Chapter 382)
             334          63G-6a-1805, (Renumbered from 63G-6-816, as renumbered and amended by Laws of
             335      Utah 2008, Chapter 382)
             336          63G-6a-1902, (Renumbered from 63G-6-419, as renumbered and amended by Laws of
             337      Utah 2008, Chapter 382)


             338          63G-6a-1903, (Renumbered from 63G-6-818, as renumbered and amended by Laws of
             339      Utah 2008, Chapter 382)
             340          63G-6a-1904, (Renumbered from 63G-6-819, as renumbered and amended by Laws of
             341      Utah 2008, Chapter 382)
             342          63G-6a-1905, (Renumbered from 63G-6-820, as renumbered and amended by Laws of
             343      Utah 2008, Chapter 382)
             344          63G-6a-2002, (Renumbered from 63G-6-106, as renumbered and amended by Laws of
             345      Utah 2008, Chapter 382)
             346          63G-6a-2003, (Renumbered from 63G-6-421, as renumbered and amended by Laws of
             347      Utah 2008, Chapter 382)
             348          63G-6a-2004, (Renumbered from 63G-6-905, as renumbered and amended by Laws of
             349      Utah 2008, Chapter 382)
             350          63G-6a-2102, (Renumbered from 63G-6-901, as renumbered and amended by Laws of
             351      Utah 2008, Chapter 382)
             352          63G-6a-2103, (Renumbered from 63G-6-902, as renumbered and amended by Laws of
             353      Utah 2008, Chapter 382)
             354          63G-6a-2104, (Renumbered from 63G-6-904, as renumbered and amended by Laws of
             355      Utah 2008, Chapter 382)
             356          63G-6a-2105, (Renumbered from 63G-6-424, as renumbered and amended by Laws of
             357      Utah 2008, Chapter 382)
             358          63G-6a-2302, (Renumbered from 63G-6-420, as renumbered and amended by Laws of
             359      Utah 2008, Chapter 382)
             360      REPEALS:
             361          10-7-87, as last amended by Laws of Utah 2008, Chapter 382
             362          11-37-101, as last amended by Laws of Utah 2008, Chapter 382
             363          17-15-24, as last amended by Laws of Utah 2008, Chapter 382
             364          17B-1-109, as renumbered and amended by Laws of Utah 2007, Chapter 329
             365          26A-1-108.7, as last amended by Laws of Utah 2008, Chapter 382
             366          63G-6-206, as renumbered and amended by Laws of Utah 2008, Chapter 382
             367          63G-6-301, as last amended by Laws of Utah 2011, Chapter 376
             368          63G-6-401, as last amended by Laws of Utah 2009, Chapter 388


             369          63G-6-402, as renumbered and amended by Laws of Utah 2008, Chapter 382
             370          63G-6-403, as renumbered and amended by Laws of Utah 2008, Chapter 382
             371          63G-6-406, as renumbered and amended by Laws of Utah 2008, Chapter 382
             372          63G-6-407, as renumbered and amended by Laws of Utah 2008, Chapter 382
             373          63G-6-408, as renumbered and amended by Laws of Utah 2008, Chapter 382
             374          63G-6-409, as renumbered and amended by Laws of Utah 2008, Chapter 382
             375          63G-6-411, as renumbered and amended by Laws of Utah 2008, Chapter 382
             376          63G-6-414, as renumbered and amended by Laws of Utah 2008, Chapter 382
             377          63G-6-417, as renumbered and amended by Laws of Utah 2008, Chapter 382
             378          63G-6-418, as renumbered and amended by Laws of Utah 2008, Chapter 382
             379          63G-6-422, as renumbered and amended by Laws of Utah 2008, Chapter 382
             380          63G-6-426, as renumbered and amended by Laws of Utah 2008, Chapter 382
             381          63G-6-903, as renumbered and amended by Laws of Utah 2008, Chapter 382
             382          63G-6-906, as renumbered and amended by Laws of Utah 2008, Chapter 382
             383          63G-6-1001, as renumbered and amended by Laws of Utah 2008, Chapter 382
             384          63G-6-1002, as renumbered and amended by Laws of Utah 2008, Chapter 382
             385     
             386      Be it enacted by the Legislature of the state of Utah:
             387          Section 1. Section 7-1-323 is amended to read:
             388           7-1-323. Regulation of interstate operations -- Coordination of efforts.
             389          (1) The commissioner may:
             390          (a) examine, supervise, and regulate a branch operated in this state by a depository
             391      institution chartered by another state and take any action or issue any order with regard to that
             392      branch;
             393          (b) examine, supervise, and regulate a branch operated in another state by a depository
             394      institution chartered by this state and take any action or issue any order with regard to that
             395      branch; and
             396          (c) coordinate these activities with any other state or federal agency that shares
             397      jurisdiction over the institution.
             398          (2) The commissioner may coordinate the examination, supervision, and regulation of
             399      any depository institution chartered by this state with the examination, supervision, and


             400      regulation of an affiliated depository institution operating in another state.
             401          (3) The commissioner may take any reasonable and lawful action in furtherance of
             402      coordinating the regulation of interstate operations, including:
             403          (a) negotiating and entering into cooperative agreements with an agency of another
             404      state or of the federal government;
             405          (b) sharing information and reports in accordance with Section 7-1-802 with an agency
             406      that shares jurisdiction over the institution;
             407          (c) accepting as sufficient, if appropriate, examination reports and other information
             408      compiled or generated by or for an agency that shares jurisdiction over the institution;
             409          (d) contracting with an agency that shares jurisdiction over the institution to engage the
             410      services of its examiners at a reasonable rate of compensation;
             411          (e) offering the services of the department's examiners at a reasonable rate of
             412      compensation to an agency that shares jurisdiction over the institution;
             413          (f) collecting fees on behalf of, or receiving payment of fees through, an agency that
             414      shares jurisdiction over the institution; and
             415          (g) cooperating in any other way with other supervisory agencies and professional
             416      associations to promote the efficient, safe, and sound operation and regulation of interstate
             417      depository institution activities, including the formulation of interstate examination policies
             418      and procedures and the drafting of model laws, rules, and agreements.
             419          (4) A contract between the department and an agency that shares jurisdiction over a
             420      depository institution to provide examiners to aid in interstate examination and regulation is
             421      considered a sole source contract under Section [ 63G-6-410 ] 63G-6a-802 .
             422          Section 2. Section 7-2-21 is amended to read:
             423           7-2-21. Applicability of Utah Procurement Code.
             424          No action of the commissioner taken under this chapter or Chapter 19, Acquisition of
             425      Failing Depository Institutions or Holding Companies, is subject to the provisions of Title 63G,
             426      Chapter [6] 6a, Utah Procurement Code.
             427          Section 3. Section 9-4-704 is amended to read:
             428           9-4-704. Distribution of fund money.
             429          (1) The executive director shall:
             430          (a) make grants and loans from the fund for any of the activities authorized by Section


             431      9-4-705 , as directed by the board;
             432          (b) establish the criteria with the approval of the board by which loans and grants will
             433      be made; and
             434          (c) determine with the approval of the board the order in which projects will be funded.
             435          (2) The executive director shall distribute, as directed by the board, any federal money
             436      contained in the fund according to the procedures, conditions, and restrictions placed upon the
             437      use of the money by the federal government.
             438          (3) (a) The executive director shall distribute, as directed by the board, any funds
             439      received pursuant to Section 17C-1-412 to pay the costs of providing income targeted housing
             440      within the community that created the community development and renewal agency under Title
             441      17C, Limited Purpose Local Government Entities - Community Development and Renewal
             442      Agencies Act.
             443          (b) As used in Subsection (3)(a):
             444          (i) "Community" has the meaning as defined in Section 17C-1-102 .
             445          (ii) "Income targeted housing" has the meaning as defined in Section 17C-1-102 .
             446          (4) Except federal money and money received under Section 17C-1-412 , the executive
             447      director shall distribute, as directed by the board, all other money from the fund according to
             448      the following requirements:
             449          (a) Not less than 30% of all fund money shall be distributed to rural areas of the state.
             450          (b) At least 50% of the money in the fund shall be distributed as loans to be repaid to
             451      the fund by the entity receiving them.
             452          (i) (A) Of the fund money distributed as loans, at least 50% shall be distributed to
             453      benefit persons whose annual income is at or below 50% of the median family income for the
             454      state.
             455          (B) The remaining loan money shall be distributed to benefit persons whose annual
             456      income is at or below 80% of the median family income for the state.
             457          (ii) The executive director or the executive director's designee shall lend money in
             458      accordance with this Subsection (4) at a rate based upon the borrower's ability to pay.
             459          (c) Any fund money not distributed as loans shall be distributed as grants.
             460          (i) At least 90% of the fund money distributed as grants shall be distributed to benefit
             461      persons whose annual income is at or below 50% of the median family income for the state.


             462          (ii) The remaining fund money distributed as grants may be used by the executive
             463      director to obtain federal matching funds or for other uses consistent with the intent of this part,
             464      including the payment of reasonable loan servicing costs, but no more than 3% of the revenues
             465      of the fund may be used to offset other department or board administrative expenses.
             466          (5) The executive director may with the approval of the board:
             467          (a) enact rules to establish procedures for the grant and loan process by following the
             468      procedures and requirements of Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             469      and
             470          (b) service or contract, pursuant to Title 63G, Chapter [6] 6a, Utah Procurement Code,
             471      for the servicing of loans made by the fund.
             472          Section 4. Section 9-4-906 is amended to read:
             473           9-4-906. Relation to certain acts.
             474          (1) The corporation is exempt from:
             475          (a) Title 51, Chapter 5, Funds Consolidation Act;
             476          (b) Title 51, Chapter 7, State Money Management Act;
             477          (c) Title 63A, Utah Administrative Services Code; [and]
             478          (d) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             479          (e) Title 63J, Chapter 1, Budgetary Procedures Act;
             480          (f) Title 63J, Chapter 2, Revenue Procedures and Control Act; and
             481          (g) Title 67, Chapter 19, Utah State Personnel Management Act.
             482          (2) The corporation shall comply with:
             483          (a) Title 52, Chapter 4, Open and Public Meetings Act; and
             484          (b) Title 63G, Chapter 2, Government Records Access and Management Act.
             485          Section 5. Section 9-4-1602 is amended to read:
             486           9-4-1602. Distribution of fund money.
             487          (1) (a) The director shall make loans and loan guarantees from the fund for the Small
             488      Business Credit Initiative created under the federal government's Small Business Jobs Act of
             489      2010, to use federal money for programs that leverage private lending to help finance small
             490      businesses and manufacturers that are creditworthy but not receiving the loans needed to
             491      expand and create jobs.
             492          (b) In making loans and loan guarantees under this part, the director shall give due


             493      consideration to small businesses in underserved communities throughout the state that have
             494      been deeply impacted by recession and not seen a comparable resurgence in their economies.
             495          (2) The director shall distribute any federal money in the fund according to the
             496      procedures, conditions, and restrictions placed upon the use of the money by the federal
             497      government.
             498          (3) The director may, with the approval of the executive director of the department:
             499          (a) enact rules to establish procedures for the loan and loan guarantee process by
             500      following the procedures and requirements of Title 63G, Chapter 3, Utah Administrative
             501      Rulemaking Act; and
             502          (b) service or contract, under Title 63G, Chapter [6] 6a, Utah Procurement Code, for
             503      the servicing of loans made by the fund.
             504          Section 6. Section 10-3-1304 is amended to read:
             505           10-3-1304. Use of office for personal benefit prohibited.
             506          (1) As used in this section, "economic benefit tantamount to a gift" includes:
             507          (a) a loan at an interest rate that is substantially lower than the commercial rate then
             508      currently prevalent for similar loans; and
             509          (b) compensation received for private services rendered at a rate substantially
             510      exceeding the fair market value of the services.
             511          (2) It is an offense for an elected or appointed officer or municipal employee, under
             512      circumstances not amounting to a violation of Section [ 63G-6-1001 ] 63G-6a-2304 or 76-8-105 ,
             513      to:
             514          (a) disclose or improperly use private, controlled, or protected information acquired by
             515      reason of the officer's or employee's official position or in the course of official duties in order
             516      to further substantially the officer's or employee's personal economic interest or to secure
             517      special privileges or exemptions for the officer or employee or for others;
             518          (b) use or attempt to use the officer's or employee's official position to:
             519          (i) further substantially the officer's or employee's personal economic interest; or
             520          (ii) secure special privileges for the officer or employee or for others; or
             521          (c) knowingly receive, accept, take, seek, or solicit, directly or indirectly, for the officer
             522      or employee or for another, a gift of substantial value or a substantial economic benefit
             523      tantamount to a gift that:


             524          (i) would tend improperly to influence a reasonable person in the person's position to
             525      depart from the faithful and impartial discharge of the person's public duties; or
             526          (ii) the person knows or that a reasonable person in that position should know under
             527      the circumstances is primarily for the purpose of rewarding the person for official action taken.
             528          (3) Subsection (2)(c) does not apply to:
             529          (a) an occasional nonpecuniary gift having a value of less than $50;
             530          (b) an award publicly presented in recognition of public services;
             531          (c) any bona fide loan made in the ordinary course of business; or
             532          (d) a political campaign contribution.
             533          Section 7. Section 10-3-1305 is amended to read:
             534           10-3-1305. Compensation for assistance in transaction involving municipality --
             535      Public disclosure and filing required.
             536          (1) As used in this section, "municipal body" means any public board, commission,
             537      committee, or other public group organized to make public policy decisions or to advise
             538      persons who make public policy decisions.
             539          (2) It is an offense for an elected officer, or appointed officer, who is a member of a
             540      public body, under circumstances not amounting to a violation of Section [ 63G-6-1001 ]
             541      63G-6a-2304 or 76-8-105 , to receive or agree to receive compensation for assisting any person
             542      or business entity in any transaction involving the municipality in which the member is an
             543      officer unless the member:
             544          (a) files with the mayor a sworn statement giving the information required by this
             545      section; and
             546          (b) discloses the information required by Subsection (5) in an open meeting to the
             547      members of the body of which the officer is a member immediately before the discussion.
             548          (3) It is an offense for an appointed officer who is not a member of a public body or a
             549      municipal employee to receive or agree to receive compensation for assisting any person or
             550      business entity in any transaction involving the municipality by which the person is employed
             551      unless the officer or employee:
             552          (a) files with the mayor a sworn statement giving the information required by this
             553      section; and
             554          (b) discloses the information required by Subsection (5) to:


             555          (i) the officer or employee's immediate supervisor; and
             556          (ii) any other municipal officer or employee who may rely upon the employee's
             557      representations in evaluating or approving the transaction.
             558          (4) (a) The officer or employee shall file the statement required to be filed by this
             559      section 10 days before the date of any agreement between the elected or appointed officer or
             560      municipal employee and the person or business entity being assisted or 10 days before the
             561      receipt of compensation by the officer or employee, whichever is earlier.
             562          (b) The statement is public information and shall be available for examination by the
             563      public.
             564          (5) The statement and disclosure shall contain:
             565          (a) the name and address of the officer or municipal employee;
             566          (b) the name and address of the person or business entity being or to be assisted or in
             567      which the appointed or elected official or municipal employee has a substantial interest; and
             568          (c) a brief description of the transaction as to which service is rendered or is to be
             569      rendered and of the nature of the service performed or to be performed.
             570          Section 8. Section 10-7-86 is amended to read:
             571           10-7-86. Municipality may adopt Utah Procurement Code -- Hiring of
             572      professional architect, engineer, or surveyor.
             573          (1) The governing body of any municipality may adopt any or all of the provisions of
             574      Title 63G, Chapter [6] 6a, Utah Procurement Code, or the rules promulgated pursuant to that
             575      code.
             576          (2) Notwithstanding Subsection (1), the governing body of each municipality that
             577      engages the services of a professional architect, engineer, or surveyor and considers more than
             578      one such professional for the engagement:
             579          (a) shall consider, as a minimum, in the selection process:
             580          (i) the qualifications, experience, and background of each firm submitting a proposal;
             581          (ii) the specific individuals assigned to the project and the time commitments of each
             582      to the project; and
             583          (iii) the project schedule and the approach to the project that the firm will take; and
             584          (b) may engage the services of a professional architect, engineer, or surveyor based on
             585      the criteria under Subsection (2)(a) rather than solely on lowest cost.


             586          Section 9. Section 11-17-20 is amended to read:
             587           11-17-20. Power of the State Charter School Finance Authority.
             588          (1) The State Charter School Finance Authority may exercise the powers granted to
             589      municipalities and counties by this chapter, subject to the same limitations as that imposed on a
             590      municipality or county under the chapter, except as provided by Title 53A, Chapter 20b, State
             591      Charter School Finance Authority Act.
             592          (2) As used in this chapter, "governing body" when applied to the State Charter School
             593      Finance Authority means the authority's governing board as described in Section 53A-20b-103 .
             594          (3) Notwithstanding Section 11-17-15 , a charter school that receives financing under
             595      this chapter is subject to Title 63G, Chapter [6] 6a, Utah Procurement Code.
             596          Section 10. Section 11-39-101 is amended to read:
             597           11-39-101. Definitions.
             598          As used in this chapter:
             599          (1) "Bid limit" means:
             600          (a) for a building improvement:
             601          (i) for the year 2003, $40,000; and
             602          (ii) for each year after 2003, the amount of the bid limit for the previous year, plus an
             603      amount calculated by multiplying the amount of the bid limit for the previous year by the lesser
             604      of 3% or the actual percent change in the Consumer Price Index during the previous calendar
             605      year; and
             606          (b) for a public works project:
             607          (i) for the year 2003, $125,000; and
             608          (ii) for each year after 2003, the amount of the bid limit for the previous year, plus an
             609      amount calculated by multiplying the amount of the bid limit for the previous year by the lesser
             610      of 3% or the actual percent change in the Consumer Price Index during the previous calendar
             611      year.
             612          (2) "Building improvement":
             613          (a) means the construction or repair of a public building or structure; and
             614          (b) does not include construction or repair at an international airport.
             615          (3) "Consumer Price Index" means the Consumer Price Index for All Urban
             616      Consumers as published by the Bureau of Labor Statistics of the United States Department of


             617      Labor.
             618          (4) "Design-build project":
             619          (a) means a building improvement or public works project costing over $250,000 with
             620      respect to which both the design and construction are provided for in a single contract with a
             621      contractor or combination of contractors capable of providing design-build services; and
             622          (b) does not include a building improvement or public works project:
             623          (i) that is undertaken by a local entity under contract with a construction manager that
             624      guarantees the contract price and is at risk for any amount over the contract price; and
             625          (ii) each component of which is competitively bid.
             626          (5) "Design-build services" means the engineering, architectural, and other services
             627      necessary to formulate and implement a design-build project, including its actual construction.
             628          (6) "Emergency repairs" means a building improvement or public works project
             629      undertaken on an expedited basis to:
             630          (a) eliminate an imminent risk of damage to or loss of public or private property;
             631          (b) remedy a condition that poses an immediate physical danger; or
             632          (c) reduce a substantial, imminent risk of interruption of an essential public service.
             633          (7) "Governing body" means:
             634          (a) for a county, city, or town, the legislative body of the county, city, or town;
             635          (b) for a local district, the board of trustees of the local district; and
             636          (c) for a special service district:
             637          (i) the legislative body of the county, city, or town that established the special service
             638      district, if no administrative control board has been appointed under Section 17D-1-301 ; or
             639          (ii) the administrative control board of the special service district, if an administrative
             640      control board has been appointed under Section 17D-1-301 .
             641          (8) "Local district" has the same meaning as defined in Section 17B-1-102 .
             642          (9) "Local entity" means a county, city, town, local district, or special service district.
             643          (10) "Lowest responsive responsible bidder" means a prime contractor who:
             644          (a) has submitted a bid in compliance with the invitation to bid and within the
             645      requirements of the plans and specifications for the building improvement or public works
             646      project;
             647          (b) is the lowest bidder that satisfies the local entity's criteria relating to financial


             648      strength, past performance, integrity, reliability, and other factors that the local entity uses to
             649      assess the ability of a bidder to perform fully and in good faith the contract requirements;
             650          (c) has furnished a bid bond or equivalent in money as a condition to the award of a
             651      prime contract; and
             652          (d) furnishes a payment and performance bond as required by law.
             653          (11) "Procurement code" means the provisions of Title 63G, Chapter [6] 6a, Utah
             654      Procurement Code.
             655          (12) "Public works project":
             656          (a) means the construction of:
             657          (i) a park or recreational facility; or
             658          (ii) a pipeline, culvert, dam, canal, or other system for water, sewage, storm water, or
             659      flood control; and
             660          (b) does not include:
             661          (i) the replacement or repair of existing infrastructure on private property;
             662          (ii) construction commenced before June 1, 2003; and
             663          (iii) construction or repair at an international airport.
             664          (13) "Special service district" has the same meaning as defined in Section 17D-1-102 .
             665          Section 11. Section 11-39-107 is amended to read:
             666           11-39-107. Procurement code.
             667          (1) This chapter may not be construed to:
             668          (a) prohibit a county or municipal legislative body from adopting the procedures of the
             669      procurement code; or
             670          (b) limit the application of the procurement code to a local district or special service
             671      district.
             672          (2) A local entity may adopt procedures for the following construction contracting
             673      methods:
             674          (a) construction manager/general contractor, as defined in Section [ 63G-6-103 ]
             675      63G-6a-103 ; or
             676          (b) a method that requires that the local entity draft a plan, specifications, and an
             677      estimate for the building improvement or public works project.
             678          (3) For a public works project only and that costs $10,000,000 or more, the following


             679      may enter into a contract for design-build, as defined in Section [ 63G-6-103 ] 63G-6a-103 , and
             680      adopt the procedures and follow the provisions of the procurement code for the procurement of
             681      and as the procedures and provisions relate to a design-build:
             682          (a) a city of the first class;
             683          (b) a local district; or
             684          (c) a special service district.
             685          (4) (a) In seeking bids and awarding a contract for a building improvement or public
             686      works project, a county or a municipal legislative body may elect to follow the provisions of
             687      the procurement code, as the county or municipal legislative body considers appropriate under
             688      the circumstances, for specification preparation, source selection, or contract formation.
             689          (b) A county or municipal legislative body's election to adopt the procedures of the
             690      procurement code may not excuse the county or municipality, respectively, from complying
             691      with the requirements to award a contract for work in excess of the bid limit and to publish
             692      notice of the intent to award.
             693          (c) An election under Subsection (4)(a) may be made on a case-by-case basis, unless
             694      the county or municipality has previously adopted [the procurement code as permitted by
             695      Subsection 63G-6-104 (3)(e)] the provisions of Title 63G, Chapter 6a, Utah Procurement Code.
             696          (d) The county or municipal legislative body shall:
             697          (i) make each election under Subsection (4)(a) in an open meeting; and
             698          (ii) specify in its action the portions of the procurement code to be followed.
             699          (5) If the estimated cost of the building improvement or public works project proposed
             700      by a local district or special service district exceeds the bid limit, the governing body of the
             701      local district or special service district may, if it determines to proceed with the building
             702      improvement or public works project, use the competitive procurement procedures of the
             703      procurement code in place of the comparable provisions of this chapter.
             704          Section 12. Section 11-44-202 is amended to read:
             705           11-44-202. Types of agreements.
             706          Notwithstanding Section [ 63G-6-416 ] 63G-6a-1205 , a political subdivision shall
             707      structure an energy service agreement as a guaranteed energy savings performance contract,
             708      which shall include:
             709          (1) the design and installation of an energy efficiency measure, if applicable;


             710          (2) operation and maintenance of any energy efficiency measure implemented; and
             711          (3) guaranteed annual cost savings that meet or exceed the total annual contract
             712      payments by the political subdivision under the contract, including financing charges incurred
             713      by the political subdivision over the life of the contract.
             714          Section 13. Section 11-44-301 is amended to read:
             715           11-44-301. Selection.
             716          (1) A political subdivision shall follow the procedures outlined in Title 63G, Chapter
             717      [6] 6a, Utah Procurement Code, when selecting a qualified energy service provider.
             718          (2) The Division of Purchasing shall maintain a list of qualified energy service
             719      providers.
             720          (3) The qualified energy service provider selected from the bid process shall prepare an
             721      investment grade energy audit, which shall become part of the final contract between the
             722      political subdivision and the qualified energy service provider.
             723          (4) The audit shall include:
             724          (a) a detailed description of the energy efficiency measure;
             725          (b) an estimated cost; and
             726          (c) a projected cost savings.
             727          Section 14. Section 13-2-9 is amended to read:
             728           13-2-9. Internet -- Consumer education.
             729          (1) The Division of Consumer Protection shall, subject to appropriation, contract with
             730      a person to make public service announcements advising consumers about the dangers of using
             731      the Internet, especially:
             732          (a) material harmful to minors;
             733          (b) steps a consumer may take to learn more about the dangers of using the Internet;
             734          (c) information about how a service provider can help a consumer learn more about the
             735      dangers of using the Internet, including the service provider's duties created by this bill; and
             736          (d) how a consumer can monitor the Internet usage of family members.
             737          (2) Money appropriated under Subsection (1) shall be paid by the Division of
             738      Consumer Protection to a person only if:
             739          (a) the person is a nonprofit organization; and
             740          (b) the person agrees to spend private money amounting to two times the amount of


             741      money provided by the Division of Consumer Protection during each fiscal year in accordance
             742      with Subsection (1).
             743          (3) In administering any money appropriated for use under this section, the Division of
             744      Consumer Protection shall comply with Title 63G, Chapter [6] 6a, Utah Procurement Code.
             745          Section 15. Section 14-1-18 is amended to read:
             746           14-1-18. Definitions -- Application of Procurement Code to payment and
             747      performance bonds.
             748          (1) (a) For purposes of this chapter, "political subdivision" means any county, city,
             749      town, school district, local district, special service district, community development and
             750      renewal agency, public corporation, institution of higher education of the state, public agency
             751      of any political subdivision, and, to the extent provided by law, any other entity which expends
             752      public funds for construction.
             753          (b) For purposes of applying Section [ 63G-6-505 ] 63G-6a-1103 to a political
             754      subdivision, "state" includes "political subdivision."
             755          (2) [Section 63G-6-505 ] Notwithstanding any provision of Title 63G, Chapter 6a, Utah
             756      Procurement Code, to the contrary, Section 63G-6a-1103 applies to all contracts for the
             757      construction, alteration, or repair of any public building or public work of the state or a
             758      political subdivision of the state.
             759          Section 16. Section 17-16a-4 is amended to read:
             760           17-16a-4. Prohibited use of official position -- Exception.
             761          (1) Except as provided in Subsection (3), it is an offense for an elected or appointed
             762      officer, under circumstances not amounting to a violation of Section [ 63G-6-1001 ]
             763      63G-6a-2304 or 76-8-105 , to:
             764          (a) disclose confidential information acquired by reason of the officer's official position
             765      or use that information to secure special privileges or exemptions for himself or others;
             766          (b) use or attempt to use the officer's official position to secure special privileges for
             767      the officer or for others; or
             768          (c) knowingly receive, accept, take, seek or solicit, directly or indirectly, any gift or
             769      loan for the officer or for another, if the gift or loan tends to influence the officer in the
             770      discharge of the officer's official duties.
             771          (2) This section is inapplicable to:


             772          (a) an occasional nonpecuniary gift having a value of less than $50;
             773          (b) an award publicly presented;
             774          (c) any bona fide loan made in the ordinary course of business; or
             775          (d) political campaign contributions actually used in a political campaign.
             776          (3) A member of a county legislative body who is also a member of the governing
             777      board of a provider of mental health or substance abuse services under contract with the county
             778      does not commit an offense under Subsection (1)(a) or (b) by discharging, in good faith, the
             779      duties and responsibilities of each position, if the county legislative body member does not
             780      participate in the process of selecting the mental health or substance abuse service provider.
             781          Section 17. Section 17-43-202 is amended to read:
             782           17-43-202. Local substance abuse authorities -- Requirements prior to
             783      distributing public funds.
             784          (1) Each local substance abuse authority shall award all public funds in compliance
             785      with:
             786          (a) the requirements of Title 63G, Chapter [6] 6a, Utah Procurement Code; or
             787          (b) a county procurement ordinance that requires similar procurement practices.
             788          (2) If all initial bids on the project are rejected, the authority shall publish a new
             789      invitation to bid. If no satisfactory bid is received by the authority when the bids received from
             790      the second invitation are opened, the authority may execute a contract without requiring
             791      competitive bidding.
             792          (3) A local substance abuse authority need not comply with the procurement provisions
             793      of this section when it disburses public funds to another political subdivision of the state or an
             794      institution of higher education of the state.
             795          (4) Each contract awarded by a local substance abuse authority shall be for a fixed
             796      amount and limited period. A contract may be modified due to changes in available funding
             797      for the same contract purpose without competition.
             798          Section 18. Section 17-43-302 is amended to read:
             799           17-43-302. Local mental health authorities -- Requirements prior to distributing
             800      public funds.
             801          (1) Each local mental health authority shall award all public funds by complying with
             802      the requirements of Title 63G, Chapter [6] 6a, Utah Procurement Code, or by complying with a


             803      county procurement ordinance which requires similar procurement practices.
             804          (2) If all initial bids on the project are rejected, the authority shall publish a new
             805      invitation to bid in the manner specified in this section. If no satisfactory bid is received by the
             806      authority when the bids received from the second invitation are opened, the authority may
             807      execute a contract without requiring competitive bidding.
             808          (3) The local mental health authority need not comply with the procurement provisions
             809      of this section when it disburses public funds to another political subdivision of the state or an
             810      institution of higher education of the state.
             811          (4) Each contract awarded by a local mental health authority shall be for a fixed
             812      amount and limited period. A contract may be modified due to changes in available funding
             813      for the same contract purpose without competition.
             814          Section 19. Section 17-53-225 is amended to read:
             815           17-53-225. County legislative body may adopt Utah Procurement Code --
             816      Retention of records.
             817          (1) A county legislative body may adopt any or all of the provisions of Title 63G,
             818      Chapter [6] 6a, Utah Procurement Code, or the rules promulgated pursuant to that code.
             819          (2) Whenever any county is required by law to receive bids for purchases, construction,
             820      repairs, or any other purpose requiring the expenditure of funds, that county shall keep on file
             821      all bids received, together with proof of advertisement by publication or otherwise, for:
             822          (a) at least three years following the letting of any contract pursuant to those bids; or
             823          (b) three years following the first advertisement for the bids, if all bids pursuant to that
             824      advertisement are rejected.
             825          Section 20. Section 17-53-313 is amended to read:
             826           17-53-313. Hiring of professional architect, engineer, or surveyor.
             827          Notwithstanding the adoption of some or all of the provisions of Title 63G, Chapter [6]
             828      6a, Utah Procurement Code, under Section 17-53-225 , each county executive that engages the
             829      services of a professional architect, engineer, or surveyor and considers more than one such
             830      professional for the engagement:
             831          (1) shall consider, as a minimum, in the selection process:
             832          (a) the qualifications, experience, and background of each firm submitting a proposal;
             833          (b) the specific individuals assigned to the project and the time commitments of each to


             834      the project; and
             835          (c) the project schedule and the approach to the project that the firm will take; and
             836          (2) may engage the services of a professional architect, engineer, or surveyor based on
             837      the criteria under Subsection (1) rather than solely on lowest cost.
             838          Section 21. Section 17B-1-108 is amended to read:
             839           17B-1-108. Restrictions on local district procurement of architect-engineer
             840      services.
             841          (1) As used in this section:
             842          (a) "Architect-engineer services" means those professional services within the scope of
             843      the practice of architecture as defined in Section 58-3a-102 .
             844          (b) "Engineer services" means those professional services within the scope of the
             845      practice of professional engineering as defined in Section 58-22-102 .
             846          (2) When a local district elects to obtain architect services or engineering services by
             847      using a competitive procurement process and has provided public notice of its competitive
             848      procurement process:
             849          (a) a higher education entity, or any part of one, may not submit a proposal in response
             850      to the local district's competitive procurement process; and
             851          (b) the local district may not award a contract to perform the architect services or
             852      engineering services solicited in the competitive procurement process to a higher education
             853      entity or any part of one.
             854          (3) Notwithstanding Subsection [ 63G-6-104 (3)(d)] 63G-6a-105 (3), each local district
             855      board that engages the services of a professional architect, engineer, or surveyor and considers
             856      more than one such professional for the engagement:
             857          (a) shall consider, as a minimum, in the selection process:
             858          (i) the qualifications, experience, and background of each firm submitting a proposal;
             859          (ii) the specific individuals assigned to the project and the time commitments of each
             860      to the project; and
             861          (iii) the project schedule and the approach to the project that the firm will take; and
             862          (b) may engage the services of a professional architect, engineer, or surveyor based on
             863      the criteria under Subsection (3)(a) rather than solely on lowest cost.
             864          Section 22. Section 17B-2a-818 is amended to read:


             865           17B-2a-818. Requirements applicable to public transit district contracts.
             866          (1) A public transit district shall comply with the applicable provisions of Title 63G,
             867      Chapter [6] 6a, Utah Procurement Code.
             868          (2) If construction of a district facility or work exceeds $750,000, the construction shall
             869      be let as provided in:
             870          (a) Title 63G, Chapter [6] 6a, Utah Procurement Code; and
             871          (b) Section 17B-2a-818.5 .
             872          Section 23. Section 17B-2a-818.5 is amended to read:
             873           17B-2a-818.5. Contracting powers of public transit districts -- Health insurance
             874      coverage.
             875          (1) For purposes of this section:
             876          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
             877      34A-2-104 who:
             878          (i) works at least 30 hours per calendar week; and
             879          (ii) meets employer eligibility waiting requirements for health care insurance which
             880      may not exceed the first day of the calendar month following 90 days from the date of hire.
             881          (b) "Health benefit plan" has the same meaning as provided in Section 31A-1-301 .
             882          (c) "Qualified health insurance coverage" is as defined in Section 26-40-115 .
             883          (d) "Subcontractor" has the same meaning provided for in Section 63A-5-208 .
             884          (2) (a) Except as provided in Subsection (3), this section applies to a design or
             885      construction contract entered into by the public transit district on or after July 1, 2009, and to a
             886      prime contractor or to a subcontractor in accordance with Subsection (2)(b).
             887          (b) (i) A prime contractor is subject to this section if the prime contract is in the
             888      amount of $1,500,000 or greater.
             889          (ii) A subcontractor is subject to this section if a subcontract is in the amount of
             890      $750,000 or greater.
             891          (3) This section does not apply if:
             892          (a) the application of this section jeopardizes the receipt of federal funds;
             893          (b) the contract is a sole source contract; or
             894          (c) the contract is an emergency procurement.
             895          (4) (a) This section does not apply to a change order as defined in Section [ 63G-6-103 ]


             896      63G-6a-103 , or a modification to a contract, when the contract does not meet the initial
             897      threshold required by Subsection (2).
             898          (b) A person who intentionally uses change orders or contract modifications to
             899      circumvent the requirements of Subsection (2) is guilty of an infraction.
             900          (5) (a) A contractor subject to Subsection (2) shall demonstrate to the public transit
             901      district that the contractor has and will maintain an offer of qualified health insurance coverage
             902      for the contractor's employees and the employee's dependents during the duration of the
             903      contract.
             904          (b) If a subcontractor of the contractor is subject to Subsection (2)(b), the contractor
             905      shall demonstrate to the public transit district that the subcontractor has and will maintain an
             906      offer of qualified health insurance coverage for the subcontractor's employees and the
             907      employee's dependents during the duration of the contract.
             908          (c) (i) (A) A contractor who fails to meet the requirements of Subsection (5)(a) during
             909      the duration of the contract is subject to penalties in accordance with an ordinance adopted by
             910      the public transit district under Subsection (6).
             911          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
             912      requirements of Subsection (5)(b).
             913          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
             914      the duration of the contract is subject to penalties in accordance with an ordinance adopted by
             915      the public transit district under Subsection (6).
             916          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
             917      requirements of Subsection (5)(a).
             918          (6) The public transit district shall adopt ordinances:
             919          (a) in coordination with:
             920          (i) the Department of Environmental Quality in accordance with Section 19-1-206 ;
             921          (ii) the Department of Natural Resources in accordance with Section 79-2-404 ;
             922          (iii) the State Building Board in accordance with Section 63A-5-205 ;
             923          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403 ; and
             924          (v) the Department of Transportation in accordance with Section 72-6-107.5 ; and
             925          (b) which establish:
             926          (i) the requirements and procedures a contractor shall follow to demonstrate to the


             927      public transit district compliance with this section which shall include:
             928          (A) that a contractor will not have to demonstrate compliance with Subsection (5)(a) or
             929      (b) more than twice in any 12-month period; and
             930          (B) that the actuarially equivalent determination required for the qualified health
             931      insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
             932      department or division with a written statement of actuarial equivalency from either:
             933          (I) the Utah Insurance Department;
             934          (II) an actuary selected by the contractor or the contractor's insurer; or
             935          (III) an underwriter who is responsible for developing the employer group's premium
             936      rates;
             937          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
             938      violates the provisions of this section, which may include:
             939          (A) a three-month suspension of the contractor or subcontractor from entering into
             940      future contracts with the public transit district upon the first violation;
             941          (B) a six-month suspension of the contractor or subcontractor from entering into future
             942      contracts with the public transit district upon the second violation;
             943          (C) an action for debarment of the contractor or subcontractor in accordance with
             944      Section [ 63G-6-804 ] 63G-6a-904 upon the third or subsequent violation; and
             945          (D) monetary penalties which may not exceed 50% of the amount necessary to
             946      purchase qualified health insurance coverage for employees and dependents of employees of
             947      the contractor or subcontractor who were not offered qualified health insurance coverage
             948      during the duration of the contract; and
             949          (iii) a website on which the district shall post the benchmark for the qualified health
             950      insurance coverage identified in Subsection (1)(c).
             951          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(b)(ii), a contractor
             952      or subcontractor who intentionally violates the provisions of this section shall be liable to the
             953      employee for health care costs that would have been covered by qualified health insurance
             954      coverage.
             955          (ii) An employer has an affirmative defense to a cause of action under Subsection
             956      (7)(a)(i) if:
             957          (A) the employer relied in good faith on a written statement of actuarial equivalency


             958      provided by an:
             959          (I) actuary; or
             960          (II) underwriter who is responsible for developing the employer group's premium rates;
             961      or
             962          (B) a department or division determines that compliance with this section is not
             963      required under the provisions of Subsection (3) or (4).
             964          (b) An employee has a private right of action only against the employee's employer to
             965      enforce the provisions of this Subsection (7).
             966          (8) Any penalties imposed and collected under this section shall be deposited into the
             967      Medicaid Restricted Account created in Section 26-18-402 .
             968          (9) The failure of a contractor or subcontractor to provide qualified health insurance
             969      coverage as required by this section:
             970          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
             971      or contractor under Section [ 63G-6-801 ] 63G-6a-1603 or any other provision in Title 63G,
             972      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code; and
             973          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
             974      contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
             975      or construction.
             976          Section 24. Section 17D-1-106 is amended to read:
             977           17D-1-106. Special service districts subject to other provisions.
             978          (1) A special service district is, to the same extent as if it were a local district, subject
             979      to and governed by:
             980          (a) Sections 17B-1-105 , 17B-1-107 , 17B-1-108 , [ 17B-1-109 ,] 17B-1-110 , 17B-1-111 ,
             981      17B-1-112 , 17B-1-113 , 17B-1-116 , 17B-1-118 , 17B-1-119 , 17B-1-120 , and 17B-1-121 ;
             982          (b) Subsections 17B-1-301 (3) and (4), Sections 17B-1-304 , 17B-1-305 , 17B-1-306 ,
             983      17B-1-307 , 17B-1-310 , 17B-1-312 , 17B-1-313 , and 17B-1-314 ;
             984          (c) Section 20A-1-512 ;
             985          (d) Title 17B, Chapter 1, Part 6, Fiscal Procedures for Local Districts;
             986          (e) Title 17B, Chapter 1, Part 7, Local District Budgets and Audit Reports;
             987          (f) Title 17B, Chapter 1, Part 8, Local District Personnel Management; and
             988          (g) Title 17B, Chapter 1, Part 9, Collection of Service Fees and Charges.


             989          (2) For purposes of applying the provisions listed in Subsection (1) to a special service
             990      district, each reference in those provisions to the local district board of trustees means the
             991      governing body.
             992          Section 25. Section 17D-2-108 is amended to read:
             993           17D-2-108. Other statutory provisions.
             994          (1) This chapter is supplemental to existing laws relating to a local entity's acquisition,
             995      use, maintenance, management, or operation of a project.
             996          (2) Except as provided in this chapter, a local entity or local building authority that
             997      complies with the provisions of this chapter need not comply with any other statutory provision
             998      concerning the acquisition, construction, use, or maintenance of a project, including:
             999          (a) a statute relating to public bidding; and
             1000          (b) Title 63G, Chapter [6] 6a, Utah Procurement Code.
             1001          (3) A local building authority is, to the same extent as if it were a local district, subject
             1002      to and governed by:
             1003          (a) Title 17B, Chapter 1, Part 6, Fiscal Procedures for Local Districts;
             1004          (b) Title 17B, Chapter 1, Part 8, Local District Personnel Management; and
             1005          (c) Section 17B-1-108 .
             1006          Section 26. Section 19-1-206 is amended to read:
             1007           19-1-206. Contracting powers of department -- Health insurance coverage.
             1008          (1) For purposes of this section:
             1009          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
             1010      34A-2-104 who:
             1011          (i) works at least 30 hours per calendar week; and
             1012          (ii) meets employer eligibility waiting requirements for health care insurance which
             1013      may not exceed the first day of the calendar month following 90 days from the date of hire.
             1014          (b) "Health benefit plan" has the same meaning as provided in Section 31A-1-301 .
             1015          (c) "Qualified health insurance coverage" is as defined in Section 26-40-115 .
             1016          (d) "Subcontractor" has the same meaning provided for in Section 63A-5-208 .
             1017          (2) (a) Except as provided in Subsection (3), this section applies to a design or
             1018      construction contract entered into by or delegated to the department or a division or board of
             1019      the department on or after July 1, 2009, and to a prime contractor or subcontractor in


             1020      accordance with Subsection (2)(b).
             1021          (b) (i) A prime contractor is subject to this section if the prime contract is in the
             1022      amount of $1,500,000 or greater.
             1023          (ii) A subcontractor is subject to this section if a subcontract is in the amount of
             1024      $750,000 or greater.
             1025          (3) This section does not apply to contracts entered into by the department or a division
             1026      or board of the department if:
             1027          (a) the application of this section jeopardizes the receipt of federal funds;
             1028          (b) the contract or agreement is between:
             1029          (i) the department or a division or board of the department; and
             1030          (ii) (A) another agency of the state;
             1031          (B) the federal government;
             1032          (C) another state;
             1033          (D) an interstate agency;
             1034          (E) a political subdivision of this state; or
             1035          (F) a political subdivision of another state;
             1036          (c) the executive director determines that applying the requirements of this section to a
             1037      particular contract interferes with the effective response to an immediate health and safety
             1038      threat from the environment; or
             1039          (d) the contract is:
             1040          (i) a sole source contract; or
             1041          (ii) an emergency procurement.
             1042          (4) (a) This section does not apply to a change order as defined in Section [ 63G-6-103 ]
             1043      63G-6a-103 , or a modification to a contract, when the contract does not meet the initial
             1044      threshold required by Subsection (2).
             1045          (b) A person who intentionally uses change orders or contract modifications to
             1046      circumvent the requirements of Subsection (2) is guilty of an infraction.
             1047          (5) (a) A contractor subject to Subsection (2) shall demonstrate to the executive
             1048      director that the contractor has and will maintain an offer of qualified health insurance
             1049      coverage for the contractor's employees and the employees' dependents during the duration of
             1050      the contract.


             1051          (b) If a subcontractor of the contractor is subject to Subsection (2), the contractor shall
             1052      demonstrate to the executive director that the subcontractor has and will maintain an offer of
             1053      qualified health insurance coverage for the subcontractor's employees and the employees'
             1054      dependents during the duration of the contract.
             1055          (c) (i) (A) A contractor who fails to comply with Subsection (5)(a) during the duration
             1056      of the contract is subject to penalties in accordance with administrative rules adopted by the
             1057      department under Subsection (6).
             1058          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
             1059      requirements of Subsection (5)(b).
             1060          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
             1061      the duration of the contract is subject to penalties in accordance with administrative rules
             1062      adopted by the department under Subsection (6).
             1063          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
             1064      requirements of Subsection (5)(a).
             1065          (6) The department shall adopt administrative rules:
             1066          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             1067          (b) in coordination with:
             1068          (i) a public transit district in accordance with Section 17B-2a-818.5 ;
             1069          (ii) the Department of Natural Resources in accordance with Section 79-2-404 ;
             1070          (iii) the State Building Board in accordance with Section 63A-5-205 ;
             1071          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403 ;
             1072          (v) the Department of Transportation in accordance with Section 72-6-107.5 ; and
             1073          (vi) the Legislature's Administrative Rules Review Committee; and
             1074          (c) which establish:
             1075          (i) the requirements and procedures a contractor shall follow to demonstrate to the
             1076      public transit district compliance with this section that shall include:
             1077          (A) that a contractor will not have to demonstrate compliance with Subsection (5)(a) or
             1078      (b) more than twice in any 12-month period; and
             1079          (B) that the actuarially equivalent determination required for the qualified health
             1080      insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
             1081      department or division with a written statement of actuarial equivalency from either:


             1082          (I) the Utah Insurance Department;
             1083          (II) an actuary selected by the contractor or the contractor's insurer; or
             1084          (III) an underwriter who is responsible for developing the employer group's premium
             1085      rates;
             1086          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
             1087      violates the provisions of this section, which may include:
             1088          (A) a three-month suspension of the contractor or subcontractor from entering into
             1089      future contracts with the state upon the first violation;
             1090          (B) a six-month suspension of the contractor or subcontractor from entering into future
             1091      contracts with the state upon the second violation;
             1092          (C) an action for debarment of the contractor or subcontractor in accordance with
             1093      Section [ 63G-6-804 ] 63G-6a-904 upon the third or subsequent violation; and
             1094          (D) notwithstanding Section 19-1-303 , monetary penalties which may not exceed 50%
             1095      of the amount necessary to purchase qualified health insurance coverage for an employee and
             1096      the dependents of an employee of the contractor or subcontractor who was not offered qualified
             1097      health insurance coverage during the duration of the contract; and
             1098          (iii) a website on which the department shall post the benchmark for the qualified
             1099      health insurance coverage identified in Subsection (1)(c).
             1100          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c), a contractor or
             1101      subcontractor who intentionally violates the provisions of this section shall be liable to the
             1102      employee for health care costs that would have been covered by qualified health insurance
             1103      coverage.
             1104          (ii) An employer has an affirmative defense to a cause of action under Subsection
             1105      (7)(a)(i) if:
             1106          (A) the employer relied in good faith on a written statement of actuarial equivalency
             1107      provided by:
             1108          (I) an actuary; or
             1109          (II) an underwriter who is responsible for developing the employer group's premium
             1110      rates; or
             1111          (B) the department determines that compliance with this section is not required under
             1112      the provisions of Subsection (3) or (4).


             1113          (b) An employee has a private right of action only against the employee's employer to
             1114      enforce the provisions of this Subsection (7).
             1115          (8) Any penalties imposed and collected under this section shall be deposited into the
             1116      Medicaid Restricted Account created in Section 26-18-402 .
             1117          (9) The failure of a contractor or subcontractor to provide qualified health insurance
             1118      coverage as required by this section:
             1119          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
             1120      or contractor under Section [ 63G-6-801 ] 63G-6a-1603 or any other provision in Title 63G,
             1121      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code; and
             1122          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
             1123      contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
             1124      or construction.
             1125          Section 27. Section 20A-11-701 is amended to read:
             1126           20A-11-701. Campaign financial reporting by corporations -- Filing requirements
             1127      -- Statement contents.
             1128          (1) (a) Each corporation that has made expenditures for political purposes that total at
             1129      least $750 during a calendar year shall file a verified financial statement with the lieutenant
             1130      governor's office:
             1131          (i) on January 10, reporting expenditures as of December 31 of the previous year;
             1132          (ii) seven days before the regular primary election date;
             1133          (iii) on August 31; and
             1134          (iv) seven days before the regular general election date.
             1135          (b) The corporation shall report:
             1136          (i) a detailed listing of all expenditures made since the last statement;
             1137          (ii) for financial statements filed under Subsections (1)(a)(ii) through (iv), all
             1138      expenditures as of five days before the required filing date of the financial statement; and
             1139          (iii) whether the corporation, including an officer of the corporation, director of the
             1140      corporation, or person with at least 10% ownership in the corporation:
             1141          (A) has bid since the last financial statement on a contract, as defined in Section
             1142      [ 63G-6-103 ] 63G-6a-103 , in excess of $100,000;
             1143          (B) is currently bidding on a contract, as defined in Section [ 63G-6-103 ] 63G-6a-103 ,


             1144      in excess of $100,000; or
             1145          (C) is a party to a contract, as defined in Section [ 63G-6-103 ] 63G-6a-103 , in excess of
             1146      $100,000.
             1147          (c) The corporation need not file a financial statement under this section if the
             1148      corporation made no expenditures during the reporting period.
             1149          (2) The financial statement shall include:
             1150          (a) the name and address of each reporting entity that received an expenditure from the
             1151      corporation, and the amount of each expenditure;
             1152          (b) the total amount of expenditures disbursed by the corporation; and
             1153          (c) a statement by the corporation's treasurer or chief financial officer certifying the
             1154      accuracy of the financial statement.
             1155          Section 28. Section 26-8a-405.3 is amended to read:
             1156           26-8a-405.3. Use of competitive sealed proposals -- Procedure -- Appeal rights.
             1157          (1) (a) Competitive sealed proposals for paramedic or 911 ambulance services under
             1158      Section 26-8a-405.2 , or for non-911 services under Section 26-8a-405.4 , shall be solicited
             1159      through a request for proposal and the provisions of this section.
             1160          (b) The governing body of the political subdivision shall approve the request for
             1161      proposal prior to the notice of the request for proposals under Subsection (1)(c).
             1162          (c) (i) Notice of the request for proposals shall be published:
             1163          (A) at least once a week for three consecutive weeks in a newspaper of general
             1164      circulation published in the county; or
             1165          (B) if there is no such newspaper, then notice shall be posted for at least 20 days in at
             1166      least five public places in the county; and
             1167          (ii) in accordance with Section 45-1-101 for at least 20 days.
             1168          (2) (a) Proposals shall be opened so as to avoid disclosure of contents to competing
             1169      offerors during the process of negotiations.
             1170          (b) (i) Subsequent to the published notice, and prior to selecting an applicant, the
             1171      political subdivision shall hold a presubmission conference with interested applicants for the
             1172      purpose of assuring full understanding of, and responsiveness to, solicitation requirements.
             1173          (ii) A political subdivision shall allow at least 90 days from the presubmission
             1174      conference for the proposers to submit proposals.


             1175          (c) Subsequent to the presubmission conference, the political subdivision may issue
             1176      addenda to the request for proposals. An addenda to a request for proposal shall be finalized
             1177      and posted by the political subdivision at least 45 days before the day on which the proposal
             1178      must be submitted.
             1179          (d) Offerors to the request for proposals shall be accorded fair and equal treatment with
             1180      respect to any opportunity for discussion and revisions of proposals, and revisions may be
             1181      permitted after submission and before a contract is awarded for the purpose of obtaining best
             1182      and final offers.
             1183          (e) In conducting discussions, there shall be no disclosures of any information derived
             1184      from proposals submitted by competing offerors.
             1185          (3) (a) (i) A political subdivision may select an applicant approved by the department
             1186      under Section 26-8a-404 to provide 911 ambulance or paramedic services by contract to the
             1187      most responsible offeror as defined in [Subsection 63G-6-103 (24)] Section 63G-6a-103 .
             1188          (ii) An award under Subsection (3)(a)(i) shall be made to the responsible offeror whose
             1189      proposal is determined in writing to be the most advantageous to the political subdivision,
             1190      taking into consideration price and the evaluation factors set forth in the request for proposal.
             1191          (b) The applicants who are approved under Section 26-8a-405 and who are selected
             1192      under this section may be the political subdivision issuing the request for competitive sealed
             1193      proposals, or any other public entity or entities, any private person or entity, or any
             1194      combination thereof.
             1195          (c) A political subdivision may reject all of the competitive proposals.
             1196          (4) In seeking competitive sealed proposals and awarding contracts under this section,
             1197      a political subdivision:
             1198          (a) shall apply the public convenience and necessity factors listed in Subsections
             1199      26-8a-408 (2) through (6);
             1200          (b) shall require the applicant responding to the proposal to disclose how the applicant
             1201      will meet performance standards in the request for proposal;
             1202          (c) may not require or restrict an applicant to a certain method of meeting the
             1203      performance standards, including:
             1204          (i) requiring ambulance medical personnel to also be a firefighter; or
             1205          (ii) mandating that offerors use fire stations or dispatch services of the political


             1206      subdivision;
             1207          (d) shall require an applicant to submit the proposal:
             1208          (i) based on full cost accounting in accordance with generally accepted accounting
             1209      principals; and
             1210          (ii) if the applicant is a governmental entity, in addition to the requirements of
             1211      Subsection (4)(e)(i), in accordance with generally accepted government auditing standards and
             1212      in compliance with the State of Utah Legal Compliance Audit Guide; and
             1213          (e) shall set forth in the request for proposal:
             1214          (i) the method for determining full cost accounting in accordance with generally
             1215      accepted accounting principles, and require an applicant to submit the proposal based on such
             1216      full cost accounting principles;
             1217          (ii) guidelines established to further competition and provider accountability; and
             1218          (iii) a list of the factors that will be considered by the political subdivision in the award
             1219      of the contract, including by percentage, the relative weight of the factors established under this
             1220      Subsection (4)(e), which may include such things as:
             1221          (A) response times;
             1222          (B) staging locations;
             1223          (C) experience;
             1224          (D) quality of care; and
             1225          (E) cost, consistent with the cost accounting method in Subsection (4)(e)(i).
             1226          (5) (a) Notwithstanding [the provisions of Subsection 63G-6-104 (3), the] any provision
             1227      of Title 63G, Chapter 6a, Utah Procurement Code, to the contrary, the provisions of Title 63G,
             1228      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code, apply to the
             1229      procurement process required by this section, except as provided in Subsection (5)(c).
             1230          (b) [The Procurement Appeals Board created in Section 63G-6-807 ] An appeals board,
             1231      as defined in Section 63G-6a-103 , shall have jurisdiction to review and determine an appeal of
             1232      an offeror under this section in the same manner as provided in Section [ 63G-6-810 ]
             1233      63G-6a-1703 .
             1234          (c) (i) An offeror may appeal the solicitation or award as provided by the political
             1235      subdivision's procedures. After all political subdivision appeal rights are exhausted, the offeror
             1236      may appeal under the provisions of Subsections (5)(a) and (b).


             1237          (ii) The factual determination required by Subsection [ 63G-6-813 ] 63G-6a-1708 (1)
             1238      shall be based on whether the solicitation or award was made in accordance with the
             1239      procedures set forth in this section and Section 26-8a-405.2 .
             1240          (d) The determination of an issue of fact by the appeals board shall be final and
             1241      conclusive unless arbitrary and capricious or clearly erroneous as provided in Section
             1242      [ 63G-6-813 ] 63G-6a-1708 .
             1243          Section 29. Section 26-8a-405.5 is amended to read:
             1244           26-8a-405.5. Use of competitive sealed proposals -- Procedure -- Appeal rights.
             1245          (1) (a) The department shall issue a request for proposal for non-911 services in a
             1246      geographic service area if the department receives a request from a political subdivision under
             1247      Subsection 26-8a-405.4 (3)(a)(ii)(B) to issue a request for proposal for non-911 services.
             1248          (b) Competitive sealed proposals for non-911 services under Subsection (1)(a) shall be
             1249      solicited through a request for proposal and the provisions of this section.
             1250          (c) (i) Notice of the request for proposals shall be published:
             1251          (A) at least once a week for three consecutive weeks in a newspaper of general
             1252      circulation published in the county; or
             1253          (B) if there is no such newspaper, then notice shall be posted for at least 20 days in at
             1254      least five public places in the county; and
             1255          (ii) in accordance with Section 45-1-101 for at least 20 days.
             1256          (2) (a) Proposals shall be opened so as to avoid disclosure of contents to competing
             1257      offerors during the process of negotiations.
             1258          (b) (i) Subsequent to the published notice, and prior to selecting an applicant, the
             1259      department shall hold a presubmission conference with interested applicants for the purpose of
             1260      assuring full understanding of, and responsiveness to, solicitation requirements.
             1261          (ii) The department shall allow at least 90 days from the presubmission conference for
             1262      the proposers to submit proposals.
             1263          (c) Subsequent to the presubmission conference, the department may issue addenda to
             1264      the request for proposals. An addenda to a request for proposal shall be finalized and posted by
             1265      the department at least 45 days before the day on which the proposal must be submitted.
             1266          (d) Offerors to the request for proposals shall be accorded fair and equal treatment with
             1267      respect to any opportunity for discussion and revisions of proposals, and revisions may be


             1268      permitted after submission and before a contract is awarded for the purpose of obtaining best
             1269      and final offers.
             1270          (e) In conducting discussions, there shall be no disclosures of any information derived
             1271      from proposals submitted by competing offerors.
             1272          (3) (a) (i) The department may select an applicant approved by the department under
             1273      Section 26-8a-404 to provide non-911 services by contract to the most responsible offeror as
             1274      defined in [Subsection 63G-6-103 (24)] Section 63G-6a-103 .
             1275          (ii) An award under Subsection (3)(a)(i) shall be made to the responsible offeror whose
             1276      proposal is determined in writing to be the most advantageous to the public, taking into
             1277      consideration price and the evaluation factors set forth in the request for proposal.
             1278          (b) The applicants who are approved under Section 26-8a-405 and who are selected
             1279      under this section may be the political subdivision responding to the request for competitive
             1280      sealed proposals, or any other public entity or entities, any private person or entity, or any
             1281      combination thereof.
             1282          (c) The department may reject all of the competitive proposals.
             1283          (4) In seeking competitive sealed proposals and awarding contracts under this section,
             1284      the department:
             1285          (a) shall consider the public convenience and necessity factors listed in Subsections
             1286      26-8a-408 (2) through (6);
             1287          (b) shall require the applicant responding to the proposal to disclose how the applicant
             1288      will meet performance standards in the request for proposal;
             1289          (c) may not require or restrict an applicant to a certain method of meeting the
             1290      performance standards, including:
             1291          (i) requiring ambulance medical personnel to also be a firefighter; or
             1292          (ii) mandating that offerors use fire stations or dispatch services of the political
             1293      subdivision;
             1294          (d) shall require an applicant to submit the proposal:
             1295          (i) based on full cost accounting in accordance with generally accepted accounting
             1296      principals; and
             1297          (ii) if the applicant is a governmental entity, in addition to the requirements of
             1298      Subsection (4)(e)(i), in accordance with generally accepted government auditing standards and


             1299      in compliance with the State of Utah Legal Compliance Audit Guide; and
             1300          (e) shall set forth in the request for proposal:
             1301          (i) the method for determining full cost accounting in accordance with generally
             1302      accepted accounting principles, and require an applicant to submit the proposal based on such
             1303      full cost accounting principles;
             1304          (ii) guidelines established to further competition and provider accountability; and
             1305          (iii) a list of the factors that will be considered by the department in the award of the
             1306      contract, including by percentage, the relative weight of the factors established under this
             1307      Subsection (4)(e), which may include such things as:
             1308          (A) response times;
             1309          (B) staging locations;
             1310          (C) experience;
             1311          (D) quality of care; and
             1312          (E) cost, consistent with the cost accounting method in Subsection (4)(e)(i).
             1313          (5) A license issued under this section:
             1314          (a) is for the exclusive geographic service area approved by the department;
             1315          (b) is valid for four years;
             1316          (c) is not subject to a request for license from another applicant under the provisions of
             1317      Sections 26-8a-406 through 26-8a-409 during the four-year term, unless the applicant's license
             1318      is revoked under Section 26-8a-504 ;
             1319          (d) is subject to supervision by the department under Sections 26-8a-503 and
             1320      26-8a-504 ; and
             1321          (e) except as provided in Subsection (4)(a), is not subject to the provisions of Sections
             1322      26-8a-406 through 26-8a-409 .
             1323          Section 30. Section 26-10-8 is amended to read:
             1324           26-10-8. Request for proposal required for non-state supplied services.
             1325          (1) Funds provided to the department through Sections 51-9-201 and 59-14-204 to be
             1326      used to provide services, shall be awarded to non-governmental entities based on a competitive
             1327      process consistent with Title 63G, Chapter [6] 6a, Utah Procurement Code.
             1328          (2) Beginning July 1, 2010, and not more than every five years thereafter, the
             1329      department shall issue requests for proposals for new or renewing contracts to award funding


             1330      for programs under Subsection (1).
             1331          Section 31. Section 26-10b-102 is amended to read:
             1332           26-10b-102. Department to award grants and contracts -- Applications.
             1333          (1) (a) Within appropriations specified by the Legislature for this purpose, the
             1334      department may make grants to public and nonprofit entities for the cost of operation of
             1335      providing primary health care services to medically underserved populations.
             1336          (b) The department may, as funding permits, contract with community based
             1337      organizations for the purpose of developing culturally and linguistically appropriate programs
             1338      and services for low income and medically underserved populations through a pilot program to
             1339      accomplish one or more of the following:
             1340          (i) to educate individuals:
             1341          (A) to use private and public health care coverage programs, products, services, and
             1342      resources in a timely, effective, and responsible manner;
             1343          (B) to make prudent use of private and public health care resources;
             1344          (C) to pursue preventive health care, health screenings, and disease management; and
             1345          (D) to locate health care programs and services;
             1346          (ii) to assist individuals to develop:
             1347          (A) personal health management;
             1348          (B) self-sufficiency in daily care; and
             1349          (C) life and disease management skills;
             1350          (iii) to support translation of health materials and information;
             1351          (iv) to facilitate an individual's access to primary care services and providers, including
             1352      mental health services; and
             1353          (v) to measure and report empirical results of the pilot project.
             1354          (2) (a) Grants by the department shall be awarded based on:
             1355          (i) applications submitted to the department in the manner and form prescribed by the
             1356      department; and
             1357          (ii) the criteria established in Section 26-10b-103 .
             1358          (b) The application for a grant under Subsection (2)(a) shall contain:
             1359          (i) a requested award amount;
             1360          (ii) a budget; and


             1361          (iii) a narrative plan of the manner in which the applicant intends to provide the
             1362      primary health care services described in Subsection 26-10b-101 (7).
             1363          (c) A contract bid for a service under Subsection (1)(b):
             1364          (i) shall be awarded in accordance with Title 63G, Chapter [6] 6a, Utah Procurement
             1365      Code;
             1366          (ii) shall include the information described in Section 26-10b-103 ; and
             1367          (iii) is subject to Subsection (3) [of this section].
             1368          (3) (a) An applicant under this chapter shall demonstrate to the department that the
             1369      applicant will not deny services to a person because of the person's inability to pay for the
             1370      services.
             1371          (b) Subsection (3)(a) does not preclude an applicant from seeking payment from the
             1372      person receiving services, a third party, or a government agency if:
             1373          (i) the applicant is authorized to charge for the services; and
             1374          (ii) the person, third party, or government agency is under legal obligation to pay the
             1375      charges.
             1376          (4) The department shall maximize the use of federal matching funds received for
             1377      services under Subsection (1)(b) to fund additional contracts under Subsection (1)(b).
             1378          Section 32. Section 26-18-2.6 is amended to read:
             1379           26-18-2.6. Dental benefits.
             1380          (1) (a) The division shall establish a competitive bid process to bid out Medicaid dental
             1381      benefits under this chapter.
             1382          (b) The division may bid out the Medicaid dental benefits separately from other
             1383      program benefits.
             1384          (2) The division shall use the following criteria to evaluate dental bids:
             1385          (a) ability to manage dental expenses;
             1386          (b) proven ability to handle dental insurance;
             1387          (c) efficiency of claim paying procedures;
             1388          (d) provider contracting, discounts, and adequacy of network; and
             1389          (e) other criteria established by the department.
             1390          (3) The division shall request bids for the program's benefits:
             1391          (a) in 2011; and


             1392          (b) at least once every five years thereafter.
             1393          (4) The division's contract with dental plans for the program's benefits shall include
             1394      risk sharing provisions in which the dental plan must accept 100% of the risk for any difference
             1395      between the division's premium payments per client and actual dental expenditures.
             1396          (5) The division may not award contracts to:
             1397          (a) more than three responsive bidders under this section; or
             1398          (b) an insurer that does not have a current license in the state.
             1399          (6) (a) The division may cancel the request for proposals if:
             1400          (i) there are no responsive bidders; or
             1401          (ii) the division determines that accepting the bids would increase the program's costs.
             1402          (b) If the division cancels the request for proposals under Subsection (6)(a), the
             1403      division shall report to the Health and Human Services Committee regarding the reasons for
             1404      the decision.
             1405          (7) Title 63G, Chapter [6] 6a, Utah Procurement Code, shall apply to this section.
             1406          Section 33. Section 26-40-110 is amended to read:
             1407           26-40-110. Managed care -- Contracting for services.
             1408          (1) Program benefits provided to enrollees under the program, as described in Section
             1409      26-40-106 , shall be delivered in a managed care system if the department determines that
             1410      adequate services are available where the enrollee lives or resides.
             1411          (2) (a) The department shall use the following criteria to evaluate bids from health
             1412      plans:
             1413          (i) ability to manage medical expenses, including mental health costs;
             1414          (ii) proven ability to handle accident and health insurance;
             1415          (iii) efficiency of claim paying procedures;
             1416          (iv) proven ability for managed care and quality assurance;
             1417          (v) provider contracting and discounts;
             1418          (vi) pharmacy benefit management;
             1419          (vii) an estimate of total charges for administering the pool;
             1420          (viii) ability to administer the pool in a cost-efficient manner;
             1421          (ix) the ability to provide adequate providers and services in the state; and
             1422          (x) other criteria established by the department.


             1423          (b) The dental benefits required by Section 26-40-106 may be bid out separately from
             1424      other program benefits.
             1425          (c) Except for dental benefits, the department shall request bids for the program's
             1426      benefits in 2008. The department shall request bids for the program's dental benefits in 2009.
             1427      The department shall request bids for the program's benefits at least once every five years
             1428      thereafter.
             1429          (d) The department's contract with health plans for the program's benefits shall include
             1430      risk sharing provisions in which the health plan shall accept at least 75% of the risk for any
             1431      difference between the department's premium payments per client and actual medical
             1432      expenditures.
             1433          (3) The executive director shall report to and seek recommendations from the Health
             1434      Advisory Council created in Section 26-1-7.5 :
             1435          (a) if the division receives less than two bids or proposals under this section that are
             1436      acceptable to the division or responsive to the bid; and
             1437          (b) before awarding a contract to a managed care system.
             1438          (4) (a) The department shall award contracts to responsive bidders if the department
             1439      determines that a bid is acceptable and meets the criteria of Subsections (2)(a) and (d).
             1440          (b) The department may contract with the Group Insurance Division within the Utah
             1441      State Retirement Office to provide services under Subsection (1) if:
             1442          (i) the executive director seeks the recommendation of the Health Advisory Council
             1443      under Subsection (3); and
             1444          (ii) the executive director determines that the bids were not acceptable to the
             1445      department.
             1446          (c) In accordance with Section 49-20-201 , a contract awarded under Subsection (4)(b)
             1447      is not subject to the risk sharing required by Subsection (2)(d).
             1448          (5) Title 63G, Chapter [6] 6a, Utah Procurement Code, shall apply to this section.
             1449          Section 34. Section 30-3-11.3 is amended to read:
             1450           30-3-11.3. Mandatory educational course for divorcing parents -- Purpose --
             1451      Curriculum -- Exceptions.
             1452          (1) The Judicial Council shall approve and implement a mandatory course for
             1453      divorcing parents in all judicial districts. The mandatory course is designed to educate and


             1454      sensitize divorcing parties to their children's needs both during and after the divorce process.
             1455          (2) The Judicial Council shall adopt rules to implement and administer this program.
             1456          (3) As a prerequisite to receiving a divorce decree, both parties are required to attend a
             1457      mandatory course on their children's needs after filing a complaint for divorce and receiving a
             1458      docket number, unless waived under Section 30-3-4 . If that requirement is waived, the court
             1459      may permit the divorce action to proceed.
             1460          (4) The court may require unmarried parents to attend this educational course when
             1461      those parents are involved in a visitation or custody proceeding before the court.
             1462          (5) The mandatory course shall instruct both parties:
             1463          (a) about divorce and its impacts on:
             1464          (i) their child or children;
             1465          (ii) their family relationship; and
             1466          (iii) their financial responsibilities for their child or children; and
             1467          (b) that domestic violence has a harmful effect on children and family relationships.
             1468          (6) The Administrative Office of the Courts shall administer the course pursuant to
             1469      Title 63G, Chapter [6] 6a, Utah Procurement Code, through private or public contracts and
             1470      organize the program in each of Utah's judicial districts. The contracts shall provide for the
             1471      recoupment of administrative expenses through the costs charged to individual parties,
             1472      pursuant to Subsection (8).
             1473          (7) A certificate of completion constitutes evidence to the court of course completion
             1474      by the parties.
             1475          (8) (a) Each party shall pay the costs of the course to the independent contractor
             1476      providing the course at the time and place of the course. A fee of $8 shall be collected, as part
             1477      of the course fee paid by each participant, and deposited in the Children's Legal Defense
             1478      Account, described in Section 51-9-408 .
             1479          (b) Each party who is unable to pay the costs of the course may attend the course
             1480      without payment upon a prima facie showing of impecuniosity as evidenced by an affidavit of
             1481      impecuniosity filed in the district court. In those situations, the independent contractor shall be
             1482      reimbursed for its costs from the appropriation to the Administrative Office of the Courts for
             1483      "Mandatory Educational Course for Divorcing Parents Program." Before a decree of divorce
             1484      may be entered, the court shall make a final review and determination of impecuniosity and


             1485      may order the payment of the costs if so determined.
             1486          (9) Appropriations from the General Fund to the Administrative Office of the Courts
             1487      for the "Mandatory Educational Course for Divorcing Parents Program" shall be used to pay
             1488      the costs of an indigent parent who makes a showing as provided in Subsection (8)(b).
             1489          (10) The Administrative Office of the Courts shall adopt a program to evaluate the
             1490      effectiveness of the mandatory educational course. Progress reports shall be provided if
             1491      requested by the Judiciary Interim Committee.
             1492          Section 35. Section 30-3-11.4 is amended to read:
             1493           30-3-11.4. Mandatory orientation course for divorcing parties -- Purpose --
             1494      Curriculum -- Exceptions.
             1495          (1) There is established a mandatory divorce orientation course for all parties with
             1496      minor children who file a petition for temporary separation or for a divorce. A couple with no
             1497      minor children are not required, but may choose to attend the course. The purpose of the
             1498      course shall be to educate parties about the divorce process and reasonable alternatives.
             1499          (2) A petitioner shall attend a divorce orientation course no more than 60 days after
             1500      filing a petition for divorce.
             1501          (3) The respondent shall attend the divorce orientation course no more than 30 days
             1502      after being served with a petition for divorce.
             1503          (4) The clerk of the court shall provide notice to a petitioner of the requirement for the
             1504      course, and information regarding the course shall be included with the petition or motion,
             1505      when served on the respondent.
             1506          (5) The divorce orientation course shall be neutral, unbiased, at least one hour in
             1507      duration, and include:
             1508          (a) options available as alternatives to divorce;
             1509          (b) resources available from courts and administrative agencies for resolving custody
             1510      and support issues without filing for divorce;
             1511          (c) resources available to improve or strengthen the marriage;
             1512          (d) a discussion of the positive and negative consequences of divorce;
             1513          (e) a discussion of the process of divorce;
             1514          (f) options available for proceeding with a divorce, including:
             1515          (i) mediation;


             1516          (ii) collaborative law; and
             1517          (iii) litigation; and
             1518          (g) a discussion of post-divorce resources.
             1519          (6) The course may be provided in conjunction with the mandatory course for
             1520      divorcing parents required by Section 30-3-11.3 .
             1521          (7) The Administrative Office of the Courts shall administer the course pursuant to
             1522      Title 63G, Chapter [6] 6a, Utah Procurement Code, through private or public contracts.
             1523          (8) Each participant shall pay the costs of the course, which may not exceed $20, to the
             1524      independent contractor providing the course at the time and place of the course.
             1525          (a) A fee of $5 shall be collected, as part of the course fee paid by each participant, and
             1526      deposited in the Children's Legal Defense Account described in Section 51-9-408 .
             1527          (b) A participant who is unable to pay the costs of the course may attend without
             1528      payment and request an Affidavit of Impecuniosity from the provider to be filed with the
             1529      petition or motion. The provider shall be reimbursed for its costs by the Administrative Office
             1530      of the Courts. A petitioner who is later determined not to meet the qualifications for
             1531      impecuniosity may be ordered to pay the costs of the course.
             1532          (9) Appropriations from the General Fund to the Administrative Office of the Courts
             1533      for the divorce orientation course shall be used to pay the costs of an indigent petitioner who is
             1534      determined to be impecunious as provided in Subsection (8)(b).
             1535          (10) The Online Court Assistance Program shall include instructions with the forms for
             1536      divorce which inform the petitioner of the requirement of this section.
             1537          (11) Both parties shall attend a divorce orientation course before a divorce decree may
             1538      be entered, unless waived by the court. A certificate of completion constitutes evidence to the
             1539      court of course completion by the parties.
             1540          (12) It shall be an affirmative defense in all divorce actions that the divorce orientation
             1541      requirement was not complied with, and the action may not continue until a party has
             1542      complied.
             1543          (13) The Administrative Office of the Courts shall adopt a program to evaluate the
             1544      effectiveness of the mandatory educational course. Progress reports shall be provided if
             1545      requested by the Judiciary Interim Committee.
             1546          Section 36. Section 30-3-38 is amended to read:


             1547           30-3-38. Expedited Parent-time Enforcement Program.
             1548          (1) There is established an Expedited Parent-time Enforcement Program in the third
             1549      judicial district to be administered by the Administrative Office of the Courts.
             1550          (2) As used in this section:
             1551          (a) "Mediator" means a person who:
             1552          (i) is qualified to mediate parent-time disputes under criteria established by the
             1553      Administrative Office of the Courts; and
             1554          (ii) agrees to follow billing guidelines established by the Administrative Office of the
             1555      Courts and this section.
             1556          (b) "Services to facilitate parent-time" or "services" means services designed to assist
             1557      families in resolving parent-time problems through:
             1558          (i) counseling;
             1559          (ii) supervised parent-time;
             1560          (iii) neutral drop-off and pick-up;
             1561          (iv) educational classes; and
             1562          (v) other related activities.
             1563          (3) (a) If a parent files a motion in the third district court alleging that court-ordered
             1564      parent-time rights are being violated, the clerk of the court, after assigning the case to a judge,
             1565      shall refer the case to the administrator of this program for assignment to a mediator, unless a
             1566      parent is incarcerated or otherwise unavailable. Unless the court rules otherwise, a parent
             1567      residing outside of the state is not unavailable. The director of the program for the courts, the
             1568      court, or the mediator may excuse either party from the requirement to mediate for good cause.
             1569          (b) Upon receipt of a case, the mediator shall:
             1570          (i) meet with the parents to address parent-time issues within 15 days of the motion
             1571      being filed;
             1572          (ii) assess the situation;
             1573          (iii) facilitate an agreement on parent-time between the parents; and
             1574          (iv) determine whether a referral to a service provider under Subsection (3)(c) is
             1575      warranted.
             1576          (c) While a case is in mediation, a mediator may refer the parents to a service provider
             1577      designated by the Department of Human Services for services to facilitate parent-time if:


             1578          (i) the services may be of significant benefit to the parents; or
             1579          (ii) (A) a mediated agreement between the parents is unlikely; and
             1580          (B) the services may facilitate an agreement.
             1581          (d) At any time during mediation, a mediator shall terminate mediation and transfer the
             1582      case to the administrator of the program for referral to the judge or court commissioner to
             1583      whom the case was assigned under Subsection (3)(a) if:
             1584          (i) a written agreement between the parents is reached; or
             1585          (ii) the parents are unable to reach an agreement through mediation and:
             1586          (A) the parents have received services to facilitate parent-time;
             1587          (B) both parents object to receiving services to facilitate parent-time; or
             1588          (C) the parents are unlikely to benefit from receiving services to facilitate parent-time.
             1589          (e) Upon receiving a case from the administrator of the program, a judge or court
             1590      commissioner may:
             1591          (i) review the agreement of the parents and, if acceptable, sign it as an order;
             1592          (ii) order the parents to receive services to facilitate parent-time;
             1593          (iii) proceed with the case; or
             1594          (iv) take other appropriate action.
             1595          (4) (a) If a parent makes a particularized allegation of physical or sexual abuse of a
             1596      child who is the subject of a parent-time order against the other parent or a member of the other
             1597      parent's household to a mediator or service provider, the mediator or service provider shall
             1598      immediately report that information to:
             1599          (i) the judge assigned to the case who may immediately issue orders and take other
             1600      appropriate action to resolve the allegation and protect the child; and
             1601          (ii) the Division of Child and Family Services within the Department of Human
             1602      Services in the manner required by Title 62A, Chapter 4a, Part 4, Child Abuse or Neglect
             1603      Reporting Requirements.
             1604          (b) If an allegation under Subsection (4)(a) is made against a parent with parent-time
             1605      rights or a member of that parent's household, parent-time by that parent shall, pursuant to an
             1606      order of the court, be supervised until:
             1607          (i) the allegation has been resolved; or
             1608          (ii) a court orders otherwise.


             1609          (c) Notwithstanding an allegation under Subsection (4)(a), a mediator may continue to
             1610      mediate parent-time problems and a service provider may continue to provide services to
             1611      facilitate parent-time unless otherwise ordered by a court.
             1612          (5) (a) The Department of Human Services may contract with one or more entities in
             1613      accordance with Title 63G, Chapter [6] 6a, Utah Procurement Code, to provide:
             1614          (i) services to facilitate parent-time;
             1615          (ii) case management services; and
             1616          (iii) administrative services.
             1617          (b) An entity who contracts with the Department of Human Services under Subsection
             1618      (5)(a) shall:
             1619          (i) be qualified to provide one or more of the services listed in Subsection (5)(a); and
             1620          (ii) agree to follow billing guidelines established by the Department of Human Services
             1621      and this section.
             1622          (6) (a) Except as provided in Subsection (6)(b), the cost of mediation shall be:
             1623          (i) reduced to a sum certain;
             1624          (ii) divided equally between the parents; and
             1625          (iii) charged against each parent taking into account the ability of that parent to pay
             1626      under billing guidelines adopted in accordance with this section.
             1627          (b) A judge may order a parent to pay an amount in excess of that provided for in
             1628      Subsection (6)(a) if the parent:
             1629          (i) failed to participate in good faith in mediation or services to facilitate parent-time;
             1630      or
             1631          (ii) made an unfounded assertion or claim of physical or sexual abuse of a child.
             1632          (c) (i) The cost of mediation and services to facilitate parent-time may be charged to
             1633      parents at periodic intervals.
             1634          (ii) Mediation and services to facilitate parent-time may only be terminated on the
             1635      ground of nonpayment if both parents are delinquent.
             1636          (7) (a) The Judicial Council may make rules to implement and administer the
             1637      provisions of this program related to mediation.
             1638          (b) The Department of Human Services may make rules to implement and administer
             1639      the provisions of this program related to services to facilitate parent-time.


             1640          (8) (a) The Administrative Office of the Courts shall adopt outcome measures to
             1641      evaluate the effectiveness of the mediation component of this program. Progress reports shall
             1642      be provided to the Judiciary Interim Committee as requested by the committee.
             1643          (b) The Department of Human Services shall adopt outcome measures to evaluate the
             1644      effectiveness of the services component of this program. Progress reports shall be provided to
             1645      the Judiciary Interim Committee as requested by the committee.
             1646          (c) The Administrative Office of the Courts and the Department of Human Services
             1647      may adopt joint outcome measures and file joint reports to satisfy the requirements of
             1648      Subsections (7)(a) and (b).
             1649          (9) The Department of Human Services shall, by following the procedures and
             1650      requirements of Title 63J, Chapter 5, Federal Funds Procedures, apply for federal funds as
             1651      available.
             1652          Section 37. Section 31A-29-110 is amended to read:
             1653           31A-29-110. Pool administrator -- Selection -- Powers.
             1654          (1) The board shall select a pool administrator in accordance with Title 63G, Chapter
             1655      [6] 6a, Utah Procurement Code. The board shall evaluate bids based on criteria established by
             1656      the board, which shall include:
             1657          (a) ability to manage medical expenses;
             1658          (b) proven ability to handle accident and health insurance;
             1659          (c) efficiency of claim paying procedures;
             1660          (d) marketing and underwriting;
             1661          (e) proven ability for managed care and quality assurance;
             1662          (f) provider contracting and discounts;
             1663          (g) pharmacy benefit management;
             1664          (h) an estimate of total charges for administering the pool; and
             1665          (i) ability to administer the pool in a cost-efficient manner.
             1666          (2) A pool administrator may be:
             1667          (a) a health insurer;
             1668          (b) a health maintenance organization;
             1669          (c) a third-party administrator; or
             1670          (d) any person or entity which has demonstrated ability to meet the criteria in


             1671      Subsection (1).
             1672          (3) (a) The pool administrator shall serve for a period of three years, with two one-year
             1673      extension options, subject to the terms, conditions, and limitations of the contract between the
             1674      board and the administrator.
             1675          (b) At least one year prior to the expiration of the contract between the board and the
             1676      pool administrator, the board shall invite all interested parties, including the current pool
             1677      administrator, to submit bids to serve as the pool administrator.
             1678          (c) Selection of the pool administrator for a succeeding period shall be made at least
             1679      six months prior to the expiration of the period of service under Subsection (3)(a).
             1680          (4) The pool administrator is responsible for all operational functions of the pool and
             1681      shall:
             1682          (a) have access to all nonpatient specific experience data, statistics, treatment criteria,
             1683      and guidelines compiled or adopted by the Medicaid program, the Public Employees Health
             1684      Plan, the Department of Health, or the Insurance Department, and which are not otherwise
             1685      declared by statute to be confidential;
             1686          (b) perform all marketing, eligibility, enrollment, member agreements, and
             1687      administrative claim payment functions relating to the pool;
             1688          (c) establish, administer, and operate a monthly premium billing procedure for
             1689      collection of premiums from enrollees;
             1690          (d) perform all necessary functions to assure timely payment of benefits to enrollees,
             1691      including:
             1692          (i) making information available relating to the proper manner of submitting a claim
             1693      for benefits to the pool administrator and distributing forms upon which submission shall be
             1694      made; and
             1695          (ii) evaluating the eligibility of each claim for payment by the pool;
             1696          (e) submit regular reports to the board regarding the operation of the pool, the
             1697      frequency, content, and form of which reports shall be determined by the board;
             1698          (f) following the close of each calendar year, determine net written and earned
             1699      premiums, the expense of administration, and the paid and incurred losses for the year and
             1700      submit a report of this information to the board, the commissioner, and the Division of Finance
             1701      on a form prescribed by the commissioner; and


             1702          (g) be paid as provided in the plan of operation for expenses incurred in the
             1703      performance of the pool administrator's services.
             1704          Section 38. Section 31A-29-111 is amended to read:
             1705           31A-29-111. Eligibility -- Limitations.
             1706          (1) (a) Except as provided in Subsection (1)(b), an individual who is not HIPAA
             1707      eligible is eligible for pool coverage if the individual:
             1708          (i) pays the established premium;
             1709          (ii) is a resident of this state; and
             1710          (iii) meets the health underwriting criteria under Subsection (5)(a).
             1711          (b) Notwithstanding Subsection (1)(a), an individual who is not HIPAA eligible is not
             1712      eligible for pool coverage if one or more of the following conditions apply:
             1713          (i) the individual is eligible for health care benefits under Medicaid or Medicare,
             1714      except as provided in Section 31A-29-112 ;
             1715          (ii) the individual has terminated coverage in the pool, unless:
             1716          (A) 12 months have elapsed since the termination date; or
             1717          (B) the individual demonstrates that creditable coverage has been involuntarily
             1718      terminated for any reason other than nonpayment of premium;
             1719          (iii) the pool has paid the maximum lifetime benefit to or on behalf of the individual;
             1720          (iv) the individual is an inmate of a public institution;
             1721          (v) the individual is eligible for a public health plan, as defined in federal regulations
             1722      adopted pursuant to 42 U.S.C. 300gg;
             1723          (vi) the individual's health condition does not meet the criteria established under
             1724      Subsection (5);
             1725          (vii) the individual is eligible for coverage under an employer group that offers a health
             1726      benefit plan or a self-insurance arrangement to its eligible employees, dependents, or members
             1727      as:
             1728          (A) an eligible employee;
             1729          (B) a dependent of an eligible employee; or
             1730          (C) a member;
             1731          (viii) the individual is covered under any other health benefit plan;
             1732          (ix) at the time of application, the individual has not resided in Utah for at least 12


             1733      consecutive months preceding the date of application; or
             1734          (x) the individual's employer pays any part of the individual's health benefit plan
             1735      premium, either as an insured or a dependent, for pool coverage.
             1736          (2) (a) Except as provided in Subsection (2)(b), an individual who is HIPAA eligible is
             1737      eligible for pool coverage if the individual:
             1738          (i) pays the established premium; and
             1739          (ii) is a resident of this state.
             1740          (b) Notwithstanding Subsection (2)(a), a HIPAA eligible individual is not eligible for
             1741      pool coverage if one or more of the following conditions apply:
             1742          (i) the individual is eligible for health care benefits under Medicaid or Medicare,
             1743      except as provided in Section 31A-29-112 ;
             1744          (ii) the individual is eligible for a public health plan, as defined in federal regulations
             1745      adopted pursuant to 42 U.S.C. 300gg;
             1746          (iii) the individual is covered under any other health benefit plan;
             1747          (iv) the individual is eligible for coverage under an employer group that offers a health
             1748      benefit plan or self-insurance arrangements to its eligible employees, dependents, or members
             1749      as:
             1750          (A) an eligible employee;
             1751          (B) a dependent of an eligible employee; or
             1752          (C) a member;
             1753          (v) the pool has paid the maximum lifetime benefit to or on behalf of the individual;
             1754          (vi) the individual is an inmate of a public institution; or
             1755          (vii) the individual's employer pays any part of the individual's health benefit plan
             1756      premium, either as an insured or a dependent, for pool coverage.
             1757          (3) (a) Notwithstanding Subsection (1)(b)(ix), if otherwise eligible under Subsection
             1758      (1)(a), an individual whose health care insurance coverage from a state high risk pool with
             1759      similar coverage is terminated because of nonresidency in another state is eligible for coverage
             1760      under the pool subject to the conditions of Subsections (1)(b)(i) through (viii).
             1761          (b) Coverage sought under Subsection (3)(a) shall be applied for within 63 days after
             1762      the termination date of the previous high risk pool coverage.
             1763          (c) The effective date of this state's pool coverage shall be the date of termination of


             1764      the previous high risk pool coverage.
             1765          (d) The waiting period of an individual with a preexisting condition applying for
             1766      coverage under this chapter shall be waived:
             1767          (i) to the extent to which the waiting period was satisfied under a similar plan from
             1768      another state; and
             1769          (ii) if the other state's benefit limitation was not reached.
             1770          (4) (a) If an eligible individual applies for pool coverage within 30 days of being
             1771      denied coverage by an individual carrier, the effective date for pool coverage shall be no later
             1772      than the first day of the month following the date of submission of the completed insurance
             1773      application to the carrier.
             1774          (b) Notwithstanding Subsection (4)(a), for individuals eligible for coverage under
             1775      Subsection (3), the effective date shall be the date of termination of the previous high risk pool
             1776      coverage.
             1777          (5) (a) The board shall establish and adjust, as necessary, health underwriting criteria
             1778      based on:
             1779          (i) health condition; and
             1780          (ii) expected claims so that the expected claims are anticipated to remain within
             1781      available funding.
             1782          (b) The board, with approval of the commissioner, may contract with one or more
             1783      providers under Title 63G, Chapter [6] 6a, Utah Procurement Code, to develop underwriting
             1784      criteria under Subsection (5)(a).
             1785          (c) If an individual is denied coverage by the pool under the criteria established in
             1786      Subsection (5)(a), the pool shall issue a certificate of insurability to the individual for coverage
             1787      under Subsection 31A-30-108 (3).
             1788          Section 39. Section 31A-33-104 is amended to read:
             1789           31A-33-104. Workers' Compensation Fund exempted.
             1790          (1) The Workers' Compensation Fund is exempt from the provisions of:
             1791          (a) Title 52, Chapter 4, Open and Public Meetings Act;
             1792          (b) Title 63G, Chapter 2, Government Records Access and Management Act; and
             1793          (c) Title 63A, Utah Administrative Services Code.
             1794          (2) The board may specifically exempt the Workers' Compensation Fund from any


             1795      provisions of:
             1796          (a) Title 67, Chapter 19, Utah State Personnel Management Act; and
             1797          (b) Title 63G, Chapter [6] 6a, Utah Procurement Code.
             1798          (3) The provisions of Title 63G, Chapter 4, Administrative Procedures Act, do not
             1799      govern the initial determination of any person's eligibility for benefits under Title 34A, Chapter
             1800      2, Workers' Compensation Act, and Title 34A, Chapter 3, Utah Occupational Disease Act.
             1801          Section 40. Section 31A-33-107 is amended to read:
             1802           31A-33-107. Duties of board -- Creation of subsidiaries -- Entering into joint
             1803      enterprises.
             1804          (1) The board shall:
             1805          (a) appoint a chief executive officer to administer the Workers' Compensation Fund;
             1806          (b) receive and act upon financial, management, and actuarial reports covering the
             1807      operations of the Workers' Compensation Fund;
             1808          (c) ensure that the Workers' Compensation Fund is administered according to law;
             1809          (d) examine and approve an annual operating budget for the Workers' Compensation
             1810      Fund;
             1811          (e) serve as investment trustees and fiduciaries of the Injury Fund;
             1812          (f) receive and act upon recommendations of the chief executive officer;
             1813          (g) develop broad policy for the long-term operation of the Workers' Compensation
             1814      Fund, consistent with its mission and fiduciary responsibility;
             1815          (h) subject to Chapter 19a, Part 4, Workers' Compensation Rates, approve any rating
             1816      plans that would modify a policyholder's premium;
             1817          (i) subject to Chapter 19a, Part 4, Workers' Compensation Rates, approve the amount
             1818      of deviation, if any, from standard insurance rates;
             1819          (j) approve the amount of the dividends, if any, to be returned to policyholders;
             1820          (k) adopt a procurement policy consistent with the provisions of Title 63G, Chapter [6]
             1821      6a, Utah Procurement Code;
             1822          (l) develop and publish an annual report to policyholders, the governor, the Legislature,
             1823      and interested parties that describes the financial condition of the Injury Fund, including a
             1824      statement of expenses and income and what measures were taken or will be necessary to keep
             1825      the Injury Fund actuarially sound;


             1826          (m) establish a fiscal year;
             1827          (n) determine and establish an actuarially sound price for insurance offered by the
             1828      fund;
             1829          (o) establish conflict of interest requirements that govern the board, officers, and
             1830      employees;
             1831          (p) establish compensation and reasonable expenses to be paid to directors on the board
             1832      subject to the requirements of Section 31A-33-106 , so that the board may not approve
             1833      compensation that exceeds the amount described in Subsection 31A-33-106 (18)(a)(i)(B); and
             1834          (q) perform all other acts necessary for the policymaking and oversight of the Workers'
             1835      Compensation Fund.
             1836          (2) Subject to board review and its responsibilities under Subsection (1)(e), the board
             1837      may delegate authority to make daily investment decisions.
             1838          (3) The fund may form or acquire a subsidiary or enter into a joint enterprise:
             1839          (a) only if that action is approved by the board; and
             1840          (b) subject to the limitations in Section 31A-33-103.5 .
             1841          Section 41. Section 34A-2-203 is amended to read:
             1842           34A-2-203. Payment of premiums for workers' compensation.
             1843          (1) Until June 30, 2007, a department, commission, board, or other agency of the state
             1844      shall pay the insurance premium on its employees direct to the Workers' Compensation Fund.
             1845          (2) Beginning July 1, 2007, the state shall secure the payment of workers'
             1846      compensation benefits for its employees:
             1847          (a) by:
             1848          (i) insuring, and keeping insured, the payment of this compensation with the Workers'
             1849      Compensation Fund;
             1850          (ii) insuring, and keeping insured, the payment of this compensation with any stock
             1851      corporation or mutual association authorized to transact the business of workers' compensation
             1852      insurance in this state; or
             1853          (iii) paying direct compensation as a self-insured employer in the amount, in the
             1854      manner, and when due as provided for in this chapter or Chapter 3, Utah Occupational Disease
             1855      Act;
             1856          (b) in accordance with Title 63A, Chapter 4, Risk Management; and


             1857          (c) subject to Subsection (3).
             1858          (3) (a) If the state determines to secure the payment of workers' compensation benefits
             1859      for its employees by paying direct compensation as a self-insured employer in the amount, in
             1860      the manner, and due as provided for in this chapter or Chapter 3, Utah Occupational Disease
             1861      Act, the state is:
             1862          (i) exempt from Section 34A-2-202.5 and Subsection 34A-2-704 (14); and
             1863          (ii) required to pay a premium assessment as provided in Section 34A-2-202 .
             1864          (b) If the state chooses to pay workers' compensation benefits for its employees
             1865      through insuring under Subsection (2)(a)(i) or (ii), the state shall obtain that insurance in
             1866      accordance with Title 63G, Chapter [6] 6a, Utah Procurement Code.
             1867          Section 42. Section 35A-5-202 is amended to read:
             1868           35A-5-202. Contracts with providers.
             1869          (1) In compliance with Title 63G, Chapter [6] 6a, Utah Procurement Code, the
             1870      department shall enter into a contract with one or more qualified providers to implement the
             1871      workforce improvement plan created under Section 35A-5-201 .
             1872          (2) A contract entered into under this section shall be:
             1873          (a) performance based; and
             1874          (b) structured so that the provider receives reimbursement based on:
             1875          (i) job development;
             1876          (ii) participant placement in jobs;
             1877          (iii) wages and benefits provided; and
             1878          (iv) participant retention in jobs over at least a 12-month period.
             1879          (3) If the department determines through the procurement process that there are no
             1880      qualified providers to implement the workforce improvement plan, the department may
             1881      implement the plan.
             1882          Section 43. Section 38-1-30 is amended to read:
             1883           38-1-30. Third party contract -- Designated agent.
             1884          (1) The division shall contract in accordance with Title 63G, Chapter [6] 6a, Utah
             1885      Procurement Code, with a third party to establish and maintain the database for the purposes
             1886      established under this section, Section 38-1-27 , and Sections 38-1-31 through 38-1-36 .
             1887          (2) (a) The third party under contract under this section is the division's designated


             1888      agent, and shall develop and maintain a database from the information provided by:
             1889          (i) local government entities issuing building permits;
             1890          (ii) original contractors;
             1891          (iii) subcontractors; and
             1892          (iv) other interested persons.
             1893          (b) The database shall accommodate filings by third parties on behalf of clients.
             1894          (c) The division and the designated agent shall design, develop, and test the database
             1895      for full implementation on May 1, 2005.
             1896          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1897      division shall make rules and develop procedures for:
             1898          (a) the division to oversee and enforce this section, Section 38-1-27 , and Sections
             1899      38-1-31 through 38-1-36 ;
             1900          (b) the designated agent to administer this section, Section 38-1-27 , and Sections
             1901      38-1-31 through 38-1-36 ; and
             1902          (c) the form of submission of an alternate filing, which may include procedures for
             1903      rejecting an illegible or incomplete filing.
             1904          (4) (a) The designated agent shall archive computer data files at least semiannually for
             1905      auditing purposes.
             1906          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1907      division shall make rules to allow the designated agent to periodically archive projects from the
             1908      database.
             1909          (c) A project shall be archived no earlier than:
             1910          (i) one year after the day on which a notice of completion is filed for a project;
             1911          (ii) if no notice of completion is filed, two years after the last filing activity for a
             1912      project; or
             1913          (iii) one year after the day on which a filing is cancelled under Subsection
             1914      38-1-32 (6)(c) or 38-1-33 (2)(c).
             1915          (d) The division may audit the designated agent's administration of the database as
             1916      often as the division considers necessary.
             1917          (5) The designated agent shall carry errors and omissions insurance in the amounts
             1918      established by rule made by the division in accordance with Title 63G, Chapter 3, Utah


             1919      Administrative Rulemaking Act.
             1920          (6) (a) The designated agent shall make reasonable efforts to assure the accurate entry
             1921      into the database of information provided in alternate filings.
             1922          (b) The designated agent shall meet or exceed standards established by the division for
             1923      the accuracy of data entry for alternate filings.
             1924          (7) The designated agent is not liable for the correctness of the information contained
             1925      in an alternate filing it enters into the database.
             1926          Section 44. Section 38-1-39 is amended to read:
             1927           38-1-39. Waiver or impairment of a lien right -- Forms -- Scope.
             1928          (1) As used in this section:
             1929          (a) "Check" means a payment instrument on a depository institution including:
             1930          (i) a check;
             1931          (ii) a draft;
             1932          (iii) an order; or
             1933          (iv) other instrument.
             1934          (b) "Depository institution" is as defined in Section 7-1-103 .
             1935          (c) "Lien claimant" means a person that claims a lien under this chapter.
             1936          (d) "Receives payment" means, in the case of a restrictive endorsement, a payee has
             1937      endorsed a check and the check is presented to and paid by the depository institution on which
             1938      it is drawn.
             1939          (2) Notwithstanding Section 38-1-29 , a written consent given by a lien claimant that
             1940      waives or limits the lien claimant's lien rights is enforceable only if the lien claimant:
             1941          (a) (i) executes a waiver and release that is signed by the lien claimant or the lien
             1942      claimant's authorized agent; or
             1943          (ii) for a restrictive endorsement on a check, includes a restrictive endorsement on a
             1944      check that is:
             1945          (A) signed by the lien claimant or the lien claimant's authorized agent; and
             1946          (B) in substantially the same form set forth in Subsection (4)(d); and
             1947          (b) receives payment of the amount identified in the waiver and release or check that
             1948      includes the restrictive endorsement:
             1949          (i) including payment by a joint payee check; and


             1950          (ii) for a progress payment, only to the extent of the payment.
             1951          (3) (a) Notwithstanding the language of a waiver and release described in Subsection
             1952      (2), Subsection (3)(b) applies if:
             1953          (i) the payment given in exchange for any waiver and release of lien is made by check;
             1954      and
             1955          (ii) the check fails to clear the depository institution on which it is drawn for any
             1956      reason.
             1957          (b) If the conditions of Subsection (3)(a) are met:
             1958          (i) the waiver and release described in Subsection (3)(a) is null, void, and of no legal
             1959      effect; and
             1960          (ii) the following will not be affected by the lien claimant's execution of the waiver and
             1961      release:
             1962          (A) any lien;
             1963          (B) any lien right;
             1964          (C) any bond right;
             1965          (D) any contract right; or
             1966          (E) any other right to recover payment afforded to the lien claimant in law or equity.
             1967          (4) (a) A waiver and release given by a lien claimant meets the requirements of this
             1968      section if it is in substantially the form provided in this Subsection (4) for the circumstance
             1969      provided in this Subsection (4).
             1970          (b) A waiver and release may be in substantially the following form if the lien claimant
             1971      is required to execute a waiver and release in exchange for or to induce the payment of a
             1972      progress billing:
             1973     
"UTAH CONDITIONAL WAIVER AND RELEASE UPON PROGRESS PAYMENT

             1974      Property Name: _____________________________________________________________
             1975      Property Location: ___________________________________________________________
             1976      Undersigned's Customer: _____________________________________________________
             1977      Invoice/Payment Application Number: __________________________________________
             1978      Payment Amount: ___________________________________________________________
             1979      Payment Period: ____________________________________________________________
             1980          To the extent provided below, this document becomes effective to release and the


             1981      undersigned is considered to waive any notice of lien or right under Utah Code Ann., Title 38,
             1982      Chapter 1, Mechanics' Liens, or any bond right under Utah Code Ann., Title 14, Contractors'
             1983      Bonds, or Section [ 63G-6-505 ] 63G-6a-1103 related to payment rights the undersigned has on
             1984      the above described Property once:
             1985          (1) the undersigned endorses a check in the above referenced Payment Amount payable
             1986      to the undersigned; and
             1987          (2) the check is paid by the depository institution on which it is drawn.
             1988          This waiver and release applies to a progress payment for the work, materials,
             1989      equipment, or a combination of work, materials, and equipment furnished by the undersigned
             1990      to the Property or to the Undersigned's Customer which are the subject of the Invoice or
             1991      Payment Application, but only to the extent of the Payment Amount. This waiver and release
             1992      does not apply to any retention withheld; any items, modifications, or changes pending
             1993      approval; disputed items and claims; or items furnished or invoiced after the Payment Period.
             1994          The undersigned warrants that the undersigned either has already paid or will use the
             1995      money the undersigned receives from this progress payment promptly to pay in full all the
             1996      undersigned's laborers, subcontractors, materialmen, and suppliers for all work, materials,
             1997      equipment, or combination of work, materials, and equipment that are the subject of this
             1998      waiver and release.
             1999      Dated: ________________________
             2000      ___________________________________________________________(Company Name)
             2001      _____________________________________________________By:__________________
             2002      _____________________________________________________Its:__________________"
             2003          (c) A waiver and release may be in substantially the following form if the lien claimant
             2004      is required to execute a waiver and release in exchange for or to induce the payment of a final
             2005      billing:
             2006     
"UTAH WAIVER AND RELEASE UPON FINAL PAYMENT

             2007      Property Name: ____________________________________________________________
             2008      Property Location: __________________________________________________________
             2009      Undersigned's Customer: _____________________________________________________
             2010      Invoice/Payment Application Number: __________________________________________
             2011      Payment Amount: ___________________________________________________________


             2012          To the extent provided below, this document becomes effective to release and the
             2013      undersigned is considered to waive any notice of lien or right under Utah Code Ann., Title 38,
             2014      Chapter 1, Mechanics' Liens, or any bond right under Utah Code Ann., Title 14, Contractors'
             2015      Bonds, or Section [ 63G-6-505 ] 63G-6a-1103 related to payment rights the undersigned has on
             2016      the above described Property once:
             2017          (1) the undersigned endorses a check in the above referenced Payment Amount payable
             2018      to the undersigned; and
             2019          (2) the check is paid by the depository institution on which it is drawn.
             2020          This waiver and release applies to the final payment for the work, materials, equipment,
             2021      or combination of work, materials, and equipment furnished by the undersigned to the Property
             2022      or to the Undersigned's Customer.
             2023          The undersigned warrants that the undersigned either has already paid or will use the
             2024      money the undersigned receives from the final payment promptly to pay in full all the
             2025      undersigned's laborers, subcontractors, materialmen, and suppliers for all work, materials,
             2026      equipment, or combination of work, materials, and equipment that are the subject of this
             2027      waiver and release.
             2028      Dated: ________________________
             2029      ___________________________________________________________(Company Name)
             2030      _____________________________________________________By:__________________
             2031      _____________________________________________________Its:__________________"
             2032          (d) A restrictive endorsement placed on a check to effectuate a waiver and release
             2033      described in this Subsection (4) meets the requirements of this section if it is in substantially
             2034      the following form:
             2035          "This check is a progress/ final payment for property described on this check sufficient
             2036      for identification. Endorsement of this check is an acknowledgment by the endorser that the
             2037      waiver and release to which the payment applies is effective to the extent provided in Utah
             2038      Code Ann. Subsection 38-1-39 (4)(b) or (c) respectively."
             2039          (e) (i) If using a restrictive endorsement under Subsection (4)(d), the person preparing
             2040      the check shall indicate whether the check is for a progress payment or a final payment by
             2041      circling the word "progress" if the check is for a progress payment, or the word "final" if the
             2042      check is for a final payment.


             2043          (ii) If a restrictive endorsement does not indicate whether the check is for a progress
             2044      payment or a final payment, it is considered to be for a progress payment.
             2045          (5) (a) If the conditions of Subsection (5)(b) are met, this section does not affect the
             2046      enforcement of:
             2047          (i) an accord and satisfaction regarding a bona fide dispute; or
             2048          (ii) an agreement made in settlement of an action pending in any court or arbitration.
             2049          (b) Pursuant to Subsection (5)(a), this section does not affect enforcement of an accord
             2050      and satisfaction or settlement described in Subsection (5)(a) if the accord and satisfaction or
             2051      settlement:
             2052          (i) is in a writing signed by the lien claimant; and
             2053          (ii) specifically references the lien rights waived or impaired.
             2054          Section 45. Section 41-12a-803 is amended to read:
             2055           41-12a-803. Program creation -- Administration -- Selection of designated agent
             2056      -- Duties -- Rulemaking -- Audits.
             2057          (1) There is created the Uninsured Motorist Identification Database Program to:
             2058          (a) establish an Uninsured Motorist Identification Database to verify compliance with
             2059      motor vehicle owner's or operator's security requirements under Section 41-12a-301 and other
             2060      provisions under this part;
             2061          (b) assist in reducing the number of uninsured motor vehicles on the highways of the
             2062      state;
             2063          (c) assist in increasing compliance with motor vehicle registration and sales and use tax
             2064      laws;
             2065          (d) assist in protecting a financial institution's bona fide security interest in a motor
             2066      vehicle; and
             2067          (e) assist in the identification and prevention of identity theft and other crimes.
             2068          (2) The program shall be administered by the department with the assistance of the
             2069      designated agent and the Motor Vehicle Division.
             2070          (3) (a) The department shall contract in accordance with Title 63G, Chapter [6] 6a,
             2071      Utah Procurement Code, with a third party to establish and maintain an Uninsured Motorist
             2072      Identification Database for the purposes established under this part.
             2073          (b) The contract may not obligate the department to pay the third party more money


             2074      than is available in the account.
             2075          (4) (a) The third party under contract under this section is the department's designated
             2076      agent, and shall develop and maintain a computer database from the information provided by:
             2077          (i) insurers under Section 31A-22-315 ;
             2078          (ii) the division under Subsection (6); and
             2079          (iii) the Motor Vehicle Division under Section 41-1a-120 .
             2080          (b) (i) The database shall be developed and maintained in accordance with guidelines
             2081      established by the department so that state and local law enforcement agencies and financial
             2082      institutions as defined in Section 7-1-103 can efficiently access the records of the database,
             2083      including reports useful for the implementation of the provisions of this part.
             2084          (ii) (A) The reports shall be in a form and contain information approved by the
             2085      department.
             2086          (B) The reports may be made available through the Internet or through other electronic
             2087      medium, if the department determines that sufficient security is provided to ensure compliance
             2088      with Section 41-12a-805 regarding limitations on disclosure of information in the database.
             2089          (5) With information provided by the department and the Motor Vehicle Division, the
             2090      designated agent shall, at least monthly for submissions under Subsection 31A-22-315 (2)(b) or
             2091      at least twice a month for submissions under Subsection 31A-22-315 (2)(a):
             2092          (a) update the database with the motor vehicle insurance information provided by the
             2093      insurers in accordance with Section 31A-22-315 ; and
             2094          (b) compare all current motor vehicle registrations against the database.
             2095          (6) The division shall provide the designated agent with the name, date of birth,
             2096      address, and driver license number of all persons on the driver license database.
             2097          (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2098      department shall make rules and develop procedures in cooperation with the Motor Vehicle
             2099      Division to use the database for the purpose of administering and enforcing this part.
             2100          (8) (a) The designated agent shall archive computer data files at least semi-annually for
             2101      auditing purposes.
             2102          (b) The internal audit unit of the tax commission provided under Section 59-1-206
             2103      shall audit the program at least every three years.
             2104          (c) The audit under Subsection (8)(b) shall include verification of:


             2105          (i) billings made by the designated agent; and
             2106          (ii) the accuracy of the designated agent's matching of vehicle registration with
             2107      insurance data.
             2108          Section 46. Section 53-2-404 is amended to read:
             2109           53-2-404. State costs for emergency disaster services.
             2110          (1) Subject to this section and Section 53-2-403 , the division shall expend or commit to
             2111      expend money described in Subsection 53-2-403 (1)(d)(i) to fund costs to the state of
             2112      emergency disaster services.
             2113          (2) Money paid by the division under this section to government entities and private
             2114      persons providing emergency disaster services are subject to Title 63G, Chapter [6] 6a, Utah
             2115      Procurement Code.
             2116          Section 47. Section 53A-1-706 is amended to read:
             2117           53A-1-706. Purchases of educational technology.
             2118          (1) (a) A school district or college of education shall comply with Title 63G, Chapter
             2119      [6] 6a, Utah Procurement Code, in purchasing technology, except as otherwise provided in
             2120      Subsection (1)(b).
             2121          (b) A school district may purchase computers from, and contract for the repair or
             2122      refurbishing of computers with, the Utah Correctional Industries without going through the
             2123      bidding or competition procedures outlined in Title 63G, Chapter [6, Part 4, Source Selections
             2124      and Contract Formation] 6a, Utah Procurement Code.
             2125          (2) A school district or college of education may purchase technology through
             2126      cooperative purchasing contracts administered by the state Division of Purchasing or through
             2127      its own established purchasing program.
             2128          Section 48. Section 53A-1a-511 is amended to read:
             2129           53A-1a-511. Waivers from state board rules -- Application of statutes and rules
             2130      to charter schools.
             2131          (1) A charter school shall operate in accordance with its charter and is subject to Title
             2132      53A, State System of Public Education, and other state laws applicable to public schools,
             2133      except as otherwise provided in this part.
             2134          (2) (a) A charter school or any other public school or school district may apply to the
             2135      State Board of Education for a waiver of any state board rule that inhibits or hinders the school


             2136      or the school district from accomplishing its mission or educational goals set out in its strategic
             2137      plan or charter.
             2138          (b) The state board may grant the waiver, unless:
             2139          (i) the waiver would cause the school district or the school to be in violation of state or
             2140      federal law; or
             2141          (ii) the waiver would threaten the health, safety, or welfare of students in the district or
             2142      at the school.
             2143          (c) If the State Board of Education denies the waiver, the reason for the denial shall be
             2144      provided in writing to the waiver applicant.
             2145          (3) (a) Except as provided in Subsection (3)(b), State Board of Education rules
             2146      governing the following do not apply to a charter school:
             2147          (i) school libraries;
             2148          (ii) required school administrative and supervisory services; and
             2149          (iii) required expenditures for instructional supplies.
             2150          (b) A charter school shall comply with rules implementing statutes that prescribe how
             2151      state appropriations may be spent.
             2152          (4) The following provisions of Title 53A, State System of Public Education, and rules
             2153      adopted under those provisions, do not apply to a charter school:
             2154          (a) Sections 53A-1a-108 and 53A-1a-108.5 , requiring the establishment of a school
             2155      community council and school improvement plan;
             2156          (b) Sections 53A-3-413 and 53A-3-414 , pertaining to the use of school buildings as
             2157      civic centers;
             2158          (c) Section 53A-3-420 , requiring the use of activity disclosure statements;
             2159          (d) Section 53A-12-207 , requiring notification of intent to dispose of textbooks;
             2160          (e) Section 53A-13-107 , requiring annual presentations on adoption;
             2161          (f) Chapter 19, Part 1, Fiscal Procedures, pertaining to fiscal procedures of school
             2162      districts and local school boards; and
             2163          (g) Section 53A-14-107 , requiring an independent evaluation of instructional materials.
             2164          (5) For the purposes of Title 63G, Chapter [6] 6a, Utah Procurement Code, a charter
             2165      school shall be considered a local public procurement unit.
             2166          (6) Each charter school shall be subject to:


             2167          (a) Title 52, Chapter 4, Open and Public Meetings Act; and
             2168          (b) Title 63G, Chapter 2, Government Records Access and Management Act.
             2169          (7) (a) The State Charter School Board shall, in concert with the charter schools, study
             2170      existing state law and administrative rules for the purpose of determining from which laws and
             2171      rules charter schools should be exempt.
             2172          (b) (i) The State Charter School Board shall present recommendations for exemption to
             2173      the State Board of Education for consideration.
             2174          (ii) The State Board of Education shall consider the recommendations of the State
             2175      Charter School Board and respond within 60 days.
             2176          Section 49. Section 53A-20-101 is amended to read:
             2177           53A-20-101. Construction and alteration of schools and plants -- Advertising for
             2178      bids -- Payment and performance bonds -- Contracts -- Bidding limitations on local
             2179      school boards -- Interest of local school board members.
             2180          (1) As used in this section, the word "sealed" does not preclude acceptance of
             2181      electronically sealed and submitted bids or proposals in addition to bids or proposals manually
             2182      sealed and submitted.
             2183          (2) (a) Prior to the construction of any school or the alteration of any existing school
             2184      plant, if the total estimated accumulative building project cost exceeds $80,000, a local school
             2185      board shall advertise for bids on the project at least 10 days before the bid due date.
             2186          (b) The board shall have the advertisement published in a newspaper having general
             2187      circulation throughout the state and in appropriate construction trade publications that offer
             2188      free listings.
             2189          (c) A similar advertisement is required in a newspaper published or having general
             2190      circulation in any city or county that would be affected by the proposed project.
             2191          (d) The advertisement shall:
             2192          (i) require sealed proposals for the building project in accordance with plans and
             2193      specifications furnished by the local school board;
             2194          (ii) state where and when the proposals will be opened and shall reserve the right of the
             2195      board to reject any and all proposals; and
             2196          (iii) require a certified check or bid bond of not less than 5% of the bid to accompany
             2197      the bid.


             2198          (3) (a) The board shall meet at the time and place specified in the advertisement and
             2199      publicly open and read all received proposals.
             2200          (b) If satisfactory bids are received, the board shall award the contract to the lowest
             2201      responsible bidder.
             2202          (c) If none of the proposals are satisfactory, all shall be rejected.
             2203          (d) The board shall again advertise in the manner provided in this section.
             2204          (e) If, after advertising a second time no satisfactory bid is received, the board may
             2205      proceed under its own direction with the required project.
             2206          (4) (a) The check or bond required under Subsection (2)(d) shall be drawn in favor of
             2207      the local school board.
             2208          (b) If the successful bidder fails or refuses to enter into the contract and furnish the
             2209      additional bonds required under this section, then the bidder's check or bond is forfeited to the
             2210      district.
             2211          (5) A local school board shall require payment and performance bonds of the
             2212      successful bidder as required in Section [ 63G-6-505 ] 63G-6a-1103 .
             2213          (6) (a) A local school board may require in the proposed contract that at least 10% of
             2214      the contract price be withheld until the project is completed and accepted by the board.
             2215          (b) If money is withheld, the board shall place it in an interest bearing account, and the
             2216      interest accrues for the benefit of the contractor and subcontractors.
             2217          (c) This money shall be paid upon completion of the project and acceptance by the
             2218      board.
             2219          (7) (a) A local school board may not bid on projects within the district if the total
             2220      accumulative estimated cost exceeds $80,000.
             2221          (b) The board may use its resources if no satisfactory bids are received under this
             2222      section.
             2223          (8) If the local school board determines in accordance with Section [ 63G-6-501 ]
             2224      63G-6a-1302 to use a construction manager/general contractor as its method of construction
             2225      contracting management on projects where the total estimated accumulative cost exceeds
             2226      $80,000, it shall select the construction manager/general contractor [using one of the source
             2227      selection methods provided for in Sections 63G-6-401 through 63G-6-501 ] in accordance with
             2228      the requirements of Title 63G, Chapter 6a, Utah Procurement Code.


             2229          (9) A local school board member may not have a direct or indirect financial interest in
             2230      the construction project contract.
             2231          Section 50. Section 53A-25b-105 is amended to read:
             2232           53A-25b-105. Applicability of statutes to the Utah Schools for the Deaf and the
             2233      Blind.
             2234          (1) The Utah Schools for the Deaf and the Blind is subject to Title 53A, State System
             2235      of Public Education, and other state laws applicable to public schools, except as otherwise
             2236      provided by this chapter.
             2237          (2) The following provisions of Title 53A, State System of Public Education, do not
             2238      apply to the Utah Schools for the Deaf and the Blind:
             2239          (a) provisions governing the budgets, funding, or finances of school districts or charter
             2240      schools; and
             2241          (b) provisions governing school construction.
             2242          (3) Except as provided in this chapter, the Utah Schools for the Deaf and the Blind is
             2243      subject to state laws governing state agencies, including:
             2244          (a) Title 51, Chapter 5, Funds Consolidation Act;
             2245          (b) Title 51, Chapter 7, State Money Management Act;
             2246          (c) Title 52, Chapter 4, Open and Public Meetings Act;
             2247          (d) Title 63A, Utah Administrative Services Code;
             2248          (e) Title 63G, Chapter 2, Government Records Access and Management Act;
             2249          (f) Title 63G, Chapter 4, Administrative Procedures Act;
             2250          (g) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             2251          (h) Title 63J, Chapter 1, Budgetary Procedures Act;
             2252          (i) Title 63J, Chapter 2, Revenue Procedures and Control Act; and
             2253          (j) Title 67, Chapter 19, Utah State Personnel Management Act.
             2254          Section 51. Section 53C-1-201 (Effective 07/01/12) is amended to read:
             2255           53C-1-201 (Effective 07/01/12). Creation of administration -- Purpose -- Director.
             2256          (1) (a) There is established within state government the School and Institutional Trust
             2257      Lands Administration.
             2258          (b) The administration shall manage all school and institutional trust lands and assets
             2259      within the state, except as otherwise provided in Title 53C, Chapter 3, Deposit and Allocation


             2260      of Revenue from Trust Lands, and Sections 51-7a-201 and 51-7a-202 .
             2261          (2) The administration is an independent state agency and not a division of any other
             2262      department.
             2263          (3) (a) It is subject to the usual legislative and executive department controls except as
             2264      provided in this Subsection (3).
             2265          (b) (i) The director may make rules as approved by the board that allow the
             2266      administration to classify a business proposal submitted to the administration as protected
             2267      under Section 63G-2-305 , for as long as is necessary to evaluate the proposal.
             2268          (ii) The administration shall return the proposal to the party who submitted the
             2269      proposal, and incur no further duties under Title 63G, Chapter 2, Government Records Access
             2270      and Management Act, if the administration determines not to proceed with the proposal.
             2271          (iii) The administration shall classify the proposal pursuant to law if it decides to
             2272      proceed with the proposal.
             2273          (iv) Section 63G-2-403 does not apply during the review period.
             2274          (c) The director shall make rules in compliance with Title 63G, Chapter 3, Utah
             2275      Administrative Rulemaking Act, except that the administration is not subject to Subsections
             2276      63G-3-301 (6) and (7) and Section 63G-3-601 , and the director, with the board's approval, may
             2277      establish a procedure for the expedited approval of rules, based on written findings by the
             2278      director showing:
             2279          (i) the changes in business opportunities affecting the assets of the trust;
             2280          (ii) the specific business opportunity arising out of those changes which may be lost
             2281      without the rule or changes to the rule;
             2282          (iii) the reasons the normal procedures under Section 63G-3-301 cannot be met without
             2283      causing the loss of the specific opportunity;
             2284          (iv) approval by at least five board members; and
             2285          (v) that the director has filed a copy of the rule and a rule analysis, stating the specific
             2286      reasons and justifications for its findings, with the Division of Administrative Rules and
             2287      notified interested parties as provided in Subsection 63G-3-301 (10).
             2288          (d) (i) The administration shall comply with Title 67, Chapter 19, Utah State Personnel
             2289      Management Act, except as provided in this Subsection (3)(d).
             2290          (ii) The board may approve, upon recommendation of the director, that exemption for


             2291      specific positions under Subsections 67-19-12 (2) and 67-19-15 (1) is required in order to enable
             2292      the administration to efficiently fulfill its responsibilities under the law. The director shall
             2293      consult with the executive director of the Department of Human Resource Management prior
             2294      to making such a recommendation.
             2295          (iii) The positions of director, deputy director, associate director, assistant director,
             2296      legal counsel appointed under Section 53C-1-305 , administrative assistant, and public affairs
             2297      officer are exempt under Subsections 67-19-12 (2) and 67-19-15 (1).
             2298          (iv) Salaries for exempted positions, except for the director, shall be set by the director,
             2299      after consultation with the executive director of the Department of Human Resource
             2300      Management, within ranges approved by the board. The board and director shall consider
             2301      salaries for similar positions in private enterprise and other public employment when setting
             2302      salary ranges.
             2303          (v) The board may create an annual incentive and bonus plan for the director and other
             2304      administration employees designated by the board, based upon the attainment of financial
             2305      performance goals and other measurable criteria defined and budgeted in advance by the board.
             2306          (e) The administration shall comply with Title 63G, Chapter [6] 6a, Utah Procurement
             2307      Code, except where the board approves, upon recommendation of the director, exemption from
             2308      the Utah Procurement Code, and simultaneous adoption of rules under Title 63G, Chapter 3,
             2309      Utah Administrative Rulemaking Act, for procurement, which enable the administration to
             2310      efficiently fulfill its responsibilities under the law.
             2311          (f) (i) Except as provided in Subsection (3)(f)(ii), the administration is not subject to
             2312      the fee agency requirements of Section 63J-1-504 .
             2313          (ii) The following fees of the administration are subject to the requirements of Section
             2314      63J-1-504 : application, assignment, amendment, affidavit for lost documents, name change,
             2315      reinstatement, grazing nonuse, extension of time, partial conveyance, patent reissue, collateral
             2316      assignment, electronic payment, and processing.
             2317          (4) The administration is managed by a director of school and institutional trust lands
             2318      appointed by a majority vote of the board of trustees with the consent of the governor.
             2319          (5) (a) The board of trustees shall provide policies for the management of the
             2320      administration and for the management of trust lands and assets.
             2321          (b) The board shall provide policies for the ownership and control of Native American


             2322      remains that are discovered or excavated on school and institutional trust lands in consultation
             2323      with the Division of Indian Affairs and giving due consideration to Title 9, Chapter 9, Part 4,
             2324      Native American Grave Protection and Repatriation Act. The director may make rules in
             2325      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement
             2326      policies provided by the board regarding Native American remains.
             2327          (6) In connection with joint ventures and other transactions involving trust lands and
             2328      minerals approved under Sections 53C-1-303 and 53C-2-401 , the administration, with board
             2329      approval, may become a member of a limited liability company under Title 48, Chapter 3, Utah
             2330      Revised Uniform Limited Liability Company Act, and is considered a person under Section
             2331      48-3-102 .
             2332          Section 52. Section 54-3-29 is amended to read:
             2333           54-3-29. Removal, relocation, or alteration of utility facility in public highway
             2334      construction or reconstruction -- Notice -- Cooperation.
             2335          (1) As used in this section:
             2336          (a) "Design-build" means a design-build transportation project for which a design-build
             2337      transportation project contract is issued, within the meaning of Section [ 63G-6-502 ]
             2338      63G-6a-1402 .
             2339          (b) "Municipality" is as defined in Section 10-1-104 .
             2340          (c) "Political subdivision" means a:
             2341          (i) county; or
             2342          (ii) municipality.
             2343          (d) "Public agency" means an entity of state government or a political subdivision.
             2344          (e) "Public highway" means a highway, street, road, or alley constructed for public use
             2345      in the state.
             2346          (f) "Utility company" means a privately, cooperatively, or publicly owned utility,
             2347      including a utility owned by a political subdivision, that provides service using a utility facility.
             2348          (g) "Utility facility" means:
             2349          (i) a telecommunications, gas, electricity, cable television, water, sewer, or data
             2350      facility;
             2351          (ii) a video transmission line;
             2352          (iii) a drainage and irrigation system; or


             2353          (iv) a facility similar to those listed in Subsections (1)(g)(i) through (iii) located in, on,
             2354      along, across, over, through, or under any public highway.
             2355          (2) If a public agency engages in or proposes to engage in a construction or
             2356      reconstruction project on a public highway that may require the removal, relocation, or
             2357      alteration of a utility facility, the public agency shall:
             2358          (a) contact an association, established under Title 54, Chapter 8a, Damage to
             2359      Underground Utility Facilities, to identify each utility company that may have a utility facility
             2360      in the area of the construction or reconstruction project;
             2361          (b) identify a utility company that has an above-ground utility facility in the area of the
             2362      proposed construction or reconstruction project; and
             2363          (c) electronically notify each utility company identified in accordance with Subsections
             2364      (2)(a) and (b).
             2365          (3) The notice required by Subsection (2)(c) shall:
             2366          (a) be made as early as practicable and at least 30 days:
             2367          (i) before the preliminary design or project development meeting;
             2368          (ii) before issuance of a request for proposal for a design-build project; or
             2369          (iii) after a change in scope of a design-build project;
             2370          (b) include:
             2371          (i) information concerning the proposed project design;
             2372          (ii) the proposed date of a required removal, relocation, or alteration of a utility facility;
             2373          (iii) the federal identifying project number, if applicable; and
             2374          (c) advise the utility company if the proposed project may qualify for aid for the utility
             2375      company's expense in removing, relocating, or altering a utility facility.
             2376          (4) A public agency shall permit a utility company notified under Subsection (2) to
             2377      participate in the preliminary design or project development meeting, or similar meeting at
             2378      which the project design is addressed.
             2379          (5) (a) A public agency shall, not less than 30 days after providing notice under
             2380      Subsection (2) to each utility company, provide the utility company an opportunity to meet
             2381      with the public agency to allow the utility company to:
             2382          (i) review project plans;
             2383          (ii) understand the objectives and funding sources for the proposed project;


             2384          (iii) provide and discuss recommendations to the public agency that may reasonably
             2385      eliminate or minimize utility removal, relocation, or alteration costs, limit the disruption of
             2386      utility company services, or eliminate or reduce the need for present or future utility facility
             2387      removal, relocation, or alteration; and
             2388          (iv) provide reasonable schedules to enable coordination of the construction project
             2389      and removal, relocation, or alteration of a utility facility.
             2390          (b) If a public agency provides a utility company with reasonable opportunities to meet
             2391      in accordance with Subsection (5)(a), the utility company's failure to meet does not affect the
             2392      public agency's ability to proceed with the project.
             2393          (6) While recognizing the essential goals and objectives of the public highway agency
             2394      in proceeding with and completing a project, the parties shall use their best efforts to find ways
             2395      to:
             2396          (a) eliminate the cost to the utility of relocation of the utility facilities; or
             2397          (b) if elimination of the costs is not feasible, minimize the relocation costs to the extent
             2398      reasonably possible.
             2399          (7) A utility company notified under Subsection (2) shall coordinate with the public
             2400      agency concerning the utility facility removal, relocation, or alteration, including the
             2401      scheduling of the utility facility removal, relocation, or alteration.
             2402          (8) A public agency and a utility company may address the removal, relocation, or
             2403      alteration of a utility facility in relation to a construction or reconstruction project on a public
             2404      highway in a franchise agreement in lieu of this section, if the public agency is otherwise
             2405      permitted to enter into the franchise agreement.
             2406          (9) This chapter does not affect a public agency's authority over a public right-of-way,
             2407      including any rule, ordinance, order to relocate a utility as provided in Section 72-6-116 , or
             2408      other valid provision governing the use of the public right-of-way.
             2409          Section 53. Section 54-8b-10 is amended to read:
             2410           54-8b-10. Imposing a surcharge to provide hearing and speech impaired persons
             2411      with telecommunication devices -- Definitions -- Procedures for establishing program --
             2412      Surcharge -- Administration and disposition of surcharge money.
             2413          (1) As used in this section:
             2414          (a) "Certified deaf or severely hearing or speech impaired person" means any state


             2415      resident who:
             2416          (i) is so certified by:
             2417          (A) a licensed physician;
             2418          (B) an otolaryngologist;
             2419          (C) a speech language pathologist;
             2420          (D) an audiologist; or
             2421          (E) a qualified state agency; and
             2422          (ii) qualifies for assistance under any low income public assistance program
             2423      administered by a state agency.
             2424          (b) "Certified interpreter" means a person who is a certified interpreter under Title
             2425      53A, Chapter 26a, Interpreter Services for the Hearing Impaired Act.
             2426          (c) (i) "Telecommunication device" means any mechanical adaptation device that
             2427      enables a deaf or severely hearing or speech impaired person to use the telephone.
             2428          (ii) "Telecommunication device" includes:
             2429          (A) telecommunication devices for the deaf (TDD);
             2430          (B) telephone amplifiers;
             2431          (C) telephone signal devices;
             2432          (D) artificial larynxes; and
             2433          (E) adaptive equipment for TDD keyboard access.
             2434          (2) The commission shall hold hearings to establish a program whereby a certified deaf
             2435      or severely hearing or speech impaired customer of a telecommunications corporation that
             2436      provides service through a local exchange or of a wireless telecommunications provider may
             2437      obtain a telecommunication device capable of serving the customer at no charge to the
             2438      customer beyond the rate for basic service.
             2439          (3) (a) The program described in Subsection (2) shall provide a dual party relay system
             2440      using third party intervention to connect a certified deaf or severely hearing or speech impaired
             2441      person with a normal hearing person by way of telecommunication devices designed for that
             2442      purpose.
             2443          (b) The commission may, by rule, establish the type of telecommunications device to
             2444      be provided to ensure functional equivalence.
             2445          (4) (a) The commission shall impose a surcharge on each residential and business


             2446      access line of each customer of local-exchange telephone service in this state, and each
             2447      residential and business telephone number of each customer of mobile telephone service in this
             2448      state, not including a telephone number used exclusively to transfer data to and from a mobile
             2449      device, which shall be collected by the telecommunications corporation providing public
             2450      telecommunications service to the customer, to cover the costs of:
             2451          (i) the program described in Subsection (2); and
             2452          (ii) payments made under Subsection (5).
             2453          (b) The commission shall establish by rule the amount to be charged under this section,
             2454      provided that:
             2455          (i) the surcharge does not exceed 20 cents per month for each residential and business
             2456      access line for local-exchange telephone service, and for each residential and business
             2457      telephone number for mobile telephone service, not including a telephone number used
             2458      exclusively to transfer data to and from a mobile device; and
             2459          (ii) if the surcharge is related to a mobile telecommunications service, the surcharge
             2460      may be imposed, billed, and collected only to the extent permitted by the Mobile
             2461      Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.
             2462          (c) The telecommunications corporation shall collect the surcharge from its customers
             2463      and transfer the money collected to the commission under rules adopted by the commission.
             2464          (d) The surcharge shall be separately identified on each bill to a customer.
             2465          (5) (a) Money collected from the surcharge imposed under Subsection (4) shall be
             2466      deposited in the state treasury as dedicated credits to be administered as determined by the
             2467      commission.
             2468          (b) These dedicated credits may be used only:
             2469          (i) for the purchase, maintenance, repair, and distribution of telecommunication
             2470      devices;
             2471          (ii) for the acquisition, operation, maintenance, and repair of a dual party relay system;
             2472          (iii) to reimburse telephone corporations for the expenses incurred in collecting and
             2473      transferring to the commission the surcharge imposed by the commission;
             2474          (iv) for the general administration of the program;
             2475          (v) to train persons in the use of telecommunications devices; and
             2476          (vi) by the commission to contract, in compliance with Title 63G, Chapter [6] 6a, Utah


             2477      Procurement Code, with:
             2478          (A) an institution within the state system of higher education listed in Section
             2479      53B-1-102 for a program approved by the Board of Regents that trains persons to qualify as
             2480      certified interpreters; or
             2481          (B) the Division of Services to the Deaf and Hard of Hearing for a program that trains
             2482      persons to qualify as certified interpreters.
             2483          (c) (i) The commission shall make rules under Title 63G, Chapter 3, Utah
             2484      Administrative Rulemaking Act, for the administration of money under Subsection (5)(b)(vi).
             2485          (ii) In the initial rulemaking to determine the administration of money under
             2486      Subsection (5)(b)(vi), the commission shall give notice and hold a public hearing.
             2487          (d) Money received by the commission under Subsection (4) is nonlapsing.
             2488          (6) (a) The telephone surcharge need not be collected by a telecommunications
             2489      corporation if the amount collected would be less than the actual administrative costs of the
             2490      collection.
             2491          (b) If Subsection (6)(a) applies, the telecommunications corporation shall submit to the
             2492      commission, in lieu of the revenue from the surcharge collection, a breakdown of the
             2493      anticipated costs and the expected revenue from the collection, showing that the costs exceed
             2494      the revenue.
             2495          (7) The commission shall solicit the advice, counsel, and physical assistance of
             2496      severely hearing or speech impaired persons and the organizations serving them in the design
             2497      and implementation of the program.
             2498          Section 54. Section 62A-1-108.5 is amended to read:
             2499           62A-1-108.5. Mental illness and intellectual disability examinations --
             2500      Responsibilities of the department.
             2501          (1) In accomplishing its duties to conduct mental illness and intellectual disability
             2502      examinations under Title 77, Utah Code of Criminal Procedure, the department shall proceed
             2503      as outlined in this section and within appropriations authorized by the Legislature. The
             2504      executive director may delegate the executive director's responsibilities under this section to
             2505      one or more divisions within the department.
             2506          (2) When the department is ordered by the court to conduct a mental illness or
             2507      intellectual disability examination, the executive director shall:


             2508          (a) direct that the examination be performed at the Utah State Hospital; or
             2509          (b) designate at least one examiner, selected under Subsection (3), to examine the
             2510      defendant in the defendant's current custody or status.
             2511          (3) The department shall establish criteria, in consultation with the Commission on
             2512      Criminal and Juvenile Justice, and shall contract with persons or organizations to conduct
             2513      mental illness and intellectual disability examinations under Subsection (2)(b). In making this
             2514      selection, the department shall follow the provisions of Title 63G, Chapter [6] 6a, Utah
             2515      Procurement Code.
             2516          (4) Nothing in this section prohibits the executive director, at the request of defense
             2517      counsel or a prosecuting attorney in a criminal proceeding under Title 77, Utah Code of
             2518      Criminal Procedure, and for good cause shown, from proposing a person who has not been
             2519      previously selected under Subsection (3) to contract with the department to conduct the
             2520      examination. In selecting that person, the criteria of the department established under
             2521      Subsection (3) and the provisions of Title 63G, Chapter [6] 6a, Utah Procurement Code, shall
             2522      be met.
             2523          Section 55. Section 62A-3-104 is amended to read:
             2524           62A-3-104. Authority of division.
             2525          (1) The division is the sole state agency, as defined by the Older Americans Act of
             2526      1965, 42 U.S.C. 3001 et seq., to:
             2527          (a) serve as an effective and visible advocate for the aging and adult population of this
             2528      state;
             2529          (b) develop and administer a state plan under the policy direction of the board; and
             2530          (c) take primary responsibility for state activities relating to provisions of the Older
             2531      Americans Act of 1965, as amended.
             2532          (2) (a) The division has authority to designate:
             2533          (i) planning and service areas for the state; and
             2534          (ii) an area agency on aging within each planning and service area to design and
             2535      implement a comprehensive and coordinated system of services and programs for the aged
             2536      within appropriations from the Legislature.
             2537          (b) Designation as an area agency on aging may be withdrawn:
             2538          (i) upon request of the area agency on aging; or


             2539          (ii) upon noncompliance with the provisions of the:
             2540          (A) Older Americans Act of 1965, 42 U.S.C. 3001 et seq.;
             2541          (B) federal regulations enacted under the Older Americans Act of 1965, 42 U.S.C.
             2542      3001 et seq.;
             2543          (C) provisions of this chapter; or
             2544          (D) rules, policies, or procedures established by the division.
             2545          (3) (a) The division has the authority to designate:
             2546          (i) planning and service areas for the state; and
             2547          (ii) subject to Subsection (3)(b), an area agency on high risk adults within each
             2548      planning and service area to design and implement a comprehensive and coordinated system of
             2549      case management and programs for high risk adults within appropriations from the Legislature.
             2550          (b) For purposes of Subsection (3)(a)(ii), before October 1, 1998, the division shall
             2551      designate as the area agency on high risk adults in a planning and service area:
             2552          (i) the area agency on aging that operates within the same geographic area if that
             2553      agency requests, before July 1, 1998, to expand that agency's current contract with the division
             2554      to include the responsibility of:
             2555          (A) being the area agency on high risk adults; or
             2556          (B) operating the area agency on high risk adults:
             2557          (I) through joint cooperation with one or more existing area agencies on aging; and
             2558          (II) without reducing geographical coverage in any service area; or
             2559          (ii) a public or private nonprofit agency or office if the area agency on aging that
             2560      operates within the same geographic area has not made a request in accordance with Subsection
             2561      (3)(b)(i).
             2562          (c) (i) Area agencies on high risk adults shall be in operation before July 1, 1999.
             2563          (ii) The division's efforts to establish area agencies on high risk adults shall start with
             2564      counties with a population of more than 150,000 people.
             2565          (d) Designation as an area agency on high risk adults may be withdrawn:
             2566          (i) upon request by the area agency; or
             2567          (ii) upon noncompliance with:
             2568          (A) state law;
             2569          (B) federal law; or


             2570          (C) rules, policies, or procedures established by the division.
             2571          (4) (a) The division may, by following the procedures and requirements of Title 63J,
             2572      Chapter 5, Federal Funds Procedures:
             2573          (i) seek federal grants, loans, or participation in federal programs; and
             2574          (ii) receive and distribute state and federal funds for the division's programs and
             2575      services to the aging and adult populations of the state.
             2576          (b) The division may not disburse public funds to a personal care attendant as payment
             2577      for personal services rendered to an aged person or high risk adult, except as provided in
             2578      Section 62A-3-104.3 .
             2579          (5) The division has authority to establish, either directly or by contract, programs of
             2580      advocacy, monitoring, evaluation, technical assistance, and public education to enhance the
             2581      quality of life for aging and adult citizens of the state.
             2582          (6) In accordance with the rules of the division and Title 63G, Chapter [6] 6a, Utah
             2583      Procurement Code, the division may contract with:
             2584          (a) the governing body of an area agency to provide a comprehensive program of
             2585      services; or
             2586          (b) public and private entities for special services.
             2587          (7) The division has authority to provide for collection, compilation, and dissemination
             2588      of information, statistics, and reports relating to issues facing aging and adult citizens.
             2589          (8) The division has authority to prepare and submit reports regarding the operation
             2590      and administration of the division to the department, the Legislature, and the governor, as
             2591      requested.
             2592          (9) The division shall:
             2593          (a) implement and enforce policies established by the board governing all aspects of
             2594      the division's programs for aging and adult persons in the state;
             2595          (b) in order to ensure compliance with all applicable state and federal statutes, policies,
             2596      and procedures, monitor and evaluate programs provided by or under contract with:
             2597          (i) the division;
             2598          (ii) area agencies; and
             2599          (iii) an entity that receives funds from an area agency;
             2600          (c) examine expenditures of public funds;


             2601          (d) withhold funds from programs based on contract noncompliance;
             2602          (e) review and approve plans of area agencies in order to ensure:
             2603          (i) compliance with division policies; and
             2604          (ii) a statewide comprehensive program;
             2605          (f) in order to further programs for aging and adult persons and prevent duplication of
             2606      services, promote and establish cooperative relationships with:
             2607          (i) state and federal agencies;
             2608          (ii) social and health agencies;
             2609          (iii) education and research organizations; and
             2610          (iv) other related groups;
             2611          (g) advocate for the aging and adult populations;
             2612          (h) promote and conduct research on the problems and needs of aging and adult
             2613      persons;
             2614          (i) submit recommendations for changes in policies, programs, and funding to the:
             2615          (i) governor; and
             2616          (ii) Legislature; and
             2617          (j) (i) accept contributions to and administer the funds contained in the "Out and
             2618      About" Homebound Transportation Assistance Fund created in Section 62A-3-110 ; and
             2619          (ii) make rules in accordance with Title 63G, Chapter 3, Utah Administrative
             2620      Rulemaking Act, to facilitate the administration of the "Out and About" Homebound
             2621      Transportation Assistance Fund in accordance with Section 62A-3-110 .
             2622          Section 56. Section 62A-3-104.1 is amended to read:
             2623           62A-3-104.1. Powers and duties of area agencies.
             2624          (1) An area agency that provides services to an aged person, or a high risk adult shall
             2625      within the area agency's respective jurisdiction:
             2626          (a) advocate by monitoring, evaluating, and providing input on all policies, programs,
             2627      hearings, and levies that affect a person described in this Subsection (1);
             2628          (b) design and implement a comprehensive and coordinated system of services within a
             2629      designated planning and service area;
             2630          (c) conduct periodic reviews and evaluations of needs and services;
             2631          (d) prepare and submit to the division plans for funding and service delivery for


             2632      services within the designated planning and service area;
             2633          (e) establish, either directly or by contract, programs licensed under Chapter 2,
             2634      Licensure of Programs and Facilities;
             2635          (f) (i) appoint an area director;
             2636          (ii) prescribe the area director's duties; and
             2637          (iii) provide adequate and qualified staff to carry out the area plan described in
             2638      Subsection (1)(d);
             2639          (g) establish rules not contrary to policies of the board and rules of the division,
             2640      regulating local services and facilities;
             2641          (h) operate other services and programs funded by sources other than those
             2642      administered by the division;
             2643          (i) establish mechanisms to provide direct citizen input, including an area agency
             2644      advisory council with a majority of members who are eligible for services from the area
             2645      agency;
             2646          (j) establish fee schedules; and
             2647          (k) comply with the requirements and procedures of:
             2648          (i) Title 11, Chapter 13, Interlocal Cooperation Act; and
             2649          (ii) Title 51, Chapter 2a, Accounting Reports from Political Subdivisions, Interlocal
             2650      Organizations, and Other Local Entities Act.
             2651          (2) Before disbursing any public funds, an area agency shall require that all entities
             2652      receiving any public funds agree in writing that:
             2653          (a) the division may examine the entity's program and financial records; and
             2654          (b) the auditor of the local area agency may examine and audit the entity's program and
             2655      financial records, if requested by the local area agency.
             2656          (3) An area agency on aging may not disburse public funds to a personal care attendant
             2657      as payment for personal services rendered to an aged person or high risk adult, except as
             2658      provided in Section 62A-3-104.3 .
             2659          (4) (a) For the purpose of providing services pursuant to this part, a local area agency
             2660      may receive:
             2661          (i) property;
             2662          (ii) grants;


             2663          (iii) gifts;
             2664          (iv) supplies;
             2665          (v) materials;
             2666          (vi) any benefit derived from the items described in Subsections (4)(a)(i) through (v);
             2667      and
             2668          (vii) contributions.
             2669          (b) If a gift is conditioned upon the gift's use for a specified service or program, the gift
             2670      shall be used for the specific service or program.
             2671          (5) (a) Area agencies shall award all public funds in compliance with:
             2672          (i) the requirements of Title 63G, Chapter [6] 6a, Utah Procurement Code; or
             2673          (ii) a county procurement ordinance that requires procurement procedures similar to
             2674      those described in Subsection (5)(a)(i).
             2675          (b) (i) If all initial bids on a project are rejected, the area agency shall publish a new
             2676      invitation to bid.
             2677          (ii) If no satisfactory bid is received by the area agency described in Subsection
             2678      (5)(b)(i), when the bids received from the second invitation are opened the area agency may
             2679      execute a contract without requiring competitive bidding.
             2680          (c) (i) An area agency need not comply with the procurement provisions of this section
             2681      when it disburses public funds to another governmental entity.
             2682          (ii) For purposes of this Subsection (5)(c), "governmental entity" means any political
             2683      subdivision or institution of higher education of the state.
             2684          (d) (i) Contracts awarded by an area agency shall be for a:
             2685          (A) fixed amount; and
             2686          (B) limited period.
             2687          (ii) The contracts described in Subsection (5)(d)(i) may be modified due to changes in
             2688      available funding for the same contract purpose without competition.
             2689          (6) Local area agencies shall comply with:
             2690          (a) applicable state and federal:
             2691          (i) statutes;
             2692          (ii) policies; and
             2693          (iii) audit requirements; and


             2694          (b) directives resulting from an audit described in Subsection (6)(a)(iii).
             2695          Section 57. Section 62A-14-109 is amended to read:
             2696           62A-14-109. Contract for services.
             2697          (1) In accordance with Title 63G, Chapter [6] 6a, Utah Procurement Code, the office
             2698      may contract with one or more providers to perform guardian and conservator duties.
             2699          (2) The office shall review and monitor the services provided by a contract provider to
             2700      a ward for whom the office has been appointed guardian or conservator.
             2701          Section 58. Section 63A-5-205 is amended to read:
             2702           63A-5-205. Contracting powers of director -- Retainage -- Health insurance
             2703      coverage.
             2704          (1) As used in this section:
             2705          (a) "Capital developments" has the same meaning as provided in Section 63A-5-104 .
             2706          (b) "Capital improvements" has the same meaning as provided in Section 63A-5-104 .
             2707          (c) "Employee" means an "employee," "worker," or "operative" as defined in Section
             2708      34A-2-104 who:
             2709          (i) works at least 30 hours per calendar week; and
             2710          (ii) meets employer eligibility waiting requirements for health care insurance which
             2711      may not exceed the first day of the calendar month following 90 days from the date of hire.
             2712          (d) "Health benefit plan" has the same meaning as provided in Section 31A-1-301 .
             2713          (e) "Qualified health insurance coverage" is as defined in Section 26-40-115 .
             2714          (f) "Subcontractor" has the same meaning provided for in Section 63A-5-208 .
             2715          (2) In accordance with Title 63G, Chapter [6] 6a, Utah Procurement Code, the director
             2716      may:
             2717          (a) subject to Subsection (3), enter into contracts for any work or professional services
             2718      which the division or the State Building Board may do or have done; and
             2719          (b) as a condition of any contract for architectural or engineering services, prohibit the
             2720      architect or engineer from retaining a sales or agent engineer for the necessary design work.
             2721          (3) (a) Except as provided in Subsection (3)(b), this Subsection (3) applies to all design
             2722      or construction contracts entered into by the division or the State Building Board on or after
             2723      July 1, 2009, and:
             2724          (i) applies to a prime contractor if the prime contract is in the amount of $1,500,000 or


             2725      greater; and
             2726          (ii) applies to a subcontractor if the subcontract is in the amount of $750,000 or greater.
             2727          (b) This Subsection (3) does not apply:
             2728          (i) if the application of this Subsection (3) jeopardizes the receipt of federal funds;
             2729          (ii) if the contract is a sole source contract;
             2730          (iii) if the contract is an emergency procurement; or
             2731          (iv) to a change order as defined in Section [ 63G-6-103 ] 63G-6a-103 , or a modification
             2732      to a contract, when the contract does not meet the threshold required by Subsection (3)(a).
             2733          (c) A person who intentionally uses change orders or contract modifications to
             2734      circumvent the requirements of Subsection (3)(a) is guilty of an infraction.
             2735          (d) (i) A contractor subject to Subsection (3)(a) shall demonstrate to the director that
             2736      the contractor has and will maintain an offer of qualified health insurance coverage for the
             2737      contractor's employees and the employees' dependents.
             2738          (ii) If a subcontractor of the contractor is subject to Subsection (3)(a), the contractor
             2739      shall demonstrate to the director that the subcontractor has and will maintain an offer of
             2740      qualified health insurance coverage for the subcontractor's employees and the employees'
             2741      dependents.
             2742          (e) (i) (A) A contractor who fails to meet the requirements of Subsection (3)(d)(i)
             2743      during the duration of the contract is subject to penalties in accordance with administrative
             2744      rules adopted by the division under Subsection (3)(f).
             2745          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
             2746      requirements of Subsection (3)(d)(ii).
             2747          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (3)(d)(ii)
             2748      during the duration of the contract is subject to penalties in accordance with administrative
             2749      rules adopted by the division under Subsection (3)(f).
             2750          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
             2751      requirements of Subsection (3)(d)(i).
             2752          (f) The division shall adopt administrative rules:
             2753          (i) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             2754          (ii) in coordination with:
             2755          (A) the Department of Environmental Quality in accordance with Section 19-1-206 ;


             2756          (B) the Department of Natural Resources in accordance with Section 79-2-404 ;
             2757          (C) a public transit district in accordance with Section 17B-2a-818.5 ;
             2758          (D) the State Capitol Preservation Board in accordance with Section 63C-9-403 ;
             2759          (E) the Department of Transportation in accordance with Section 72-6-107.5 ; and
             2760          (F) the Legislature's Administrative Rules Review Committee; and
             2761          (iii) which establish:
             2762          (A) the requirements and procedures a contractor must follow to demonstrate to the
             2763      director compliance with this Subsection (3) which shall include:
             2764          (I) that a contractor will not have to demonstrate compliance with Subsection (3)(d)(i)
             2765      or (ii) more than twice in any 12-month period; and
             2766          (II) that the actuarially equivalent determination required for the qualified health
             2767      insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
             2768      department or division with a written statement of actuarial equivalency from either:
             2769          (Aa) the Utah Insurance Department;
             2770          (Bb) an actuary selected by the contractor or the contractor's insurer; or
             2771          (Cc) an underwriter who is responsible for developing the employer group's premium
             2772      rates;
             2773          (B) the penalties that may be imposed if a contractor or subcontractor intentionally
             2774      violates the provisions of this Subsection (3), which may include:
             2775          (I) a three-month suspension of the contractor or subcontractor from entering into
             2776      future contracts with the state upon the first violation;
             2777          (II) a six-month suspension of the contractor or subcontractor from entering into future
             2778      contracts with the state upon the second violation;
             2779          (III) an action for debarment of the contractor or subcontractor in accordance with
             2780      Section [ 63G-6-804 ] 63G-6a-904 upon the third or subsequent violation; and
             2781          (IV) monetary penalties which may not exceed 50% of the amount necessary to
             2782      purchase qualified health insurance coverage for an employee and the dependents of an
             2783      employee of the contractor or subcontractor who was not offered qualified health insurance
             2784      coverage during the duration of the contract; and
             2785          (C) a website on which the department shall post the benchmark for the qualified
             2786      health insurance coverage identified in Subsection (1)(e).


             2787          (g) (i) In addition to the penalties imposed under Subsection (3)(f)(iii), a contractor or
             2788      subcontractor who intentionally violates the provisions of this section shall be liable to the
             2789      employee for health care costs that would have been covered by qualified health insurance
             2790      coverage.
             2791          (ii) An employer has an affirmative defense to a cause of action under Subsection
             2792      (3)(g)(i) if:
             2793          (A) the employer relied in good faith on a written statement of actuarial equivalency
             2794      provided by:
             2795          (I) an actuary; or
             2796          (II) an underwriter who is responsible for developing the employer group's premium
             2797      rates; or
             2798          (B) the department determines that compliance with this section is not required under
             2799      the provisions of Subsection (3)(b).
             2800          (iii) An employee has a private right of action only against the employee's employer to
             2801      enforce the provisions of this Subsection (3)(g).
             2802          (h) Any penalties imposed and collected under this section shall be deposited into the
             2803      Medicaid Restricted Account created by Section 26-18-402 .
             2804          (i) The failure of a contractor or subcontractor to provide qualified health insurance
             2805      coverage as required by this section:
             2806          (i) may not be the basis for a protest or other action from a prospective bidder, offeror,
             2807      or contractor under Section [ 63G-6-801 ] 63G-6a-1603 or any other provision in Title 63G,
             2808      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code; and
             2809          (ii) may not be used by the procurement entity or a prospective bidder, offeror, or
             2810      contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
             2811      or construction.
             2812          (4) The judgment of the director as to the responsibility and qualifications of a bidder
             2813      is conclusive, except in case of fraud or bad faith.
             2814          (5) The division shall make all payments to the contractor for completed work in
             2815      accordance with the contract and pay the interest specified in the contract on any payments that
             2816      are late.
             2817          (6) If any payment on a contract with a private contractor to do work for the division or


             2818      the State Building Board is retained or withheld, it shall be retained or withheld and released as
             2819      provided in Section 13-8-5 .
             2820          Section 59. Section 63A-5-208 is amended to read:
             2821           63A-5-208. Definitions -- Certain public construction bids to list subcontractors --
             2822      Changing subcontractors -- Bidders as subcontractors -- Dispute resolution process --
             2823      Penalties.
             2824          (1) As used in this section:
             2825          (a) "First-tier subcontractor" means a subcontractor who contracts directly with the
             2826      prime contractor.
             2827          (b) "Subcontractor" means any person or entity under contract with a contractor or
             2828      another subcontractor to provide services or labor for the construction, installation, or repair of
             2829      an improvement to real property.
             2830          (c) "Subcontractor" includes a trade contractor or specialty contractor.
             2831          (d) "Subcontractor" does not include suppliers who provide only materials, equipment,
             2832      or supplies to a contractor or subcontractor.
             2833          (2) The director shall apply the provisions of this section to achieve fair and
             2834      competitive bidding and to discourage bid-shopping by contractors.
             2835          (3) (a) (i) (A) On each public construction project, the director shall require the
             2836      apparent lowest three bidders to submit a list of their first-tier subcontractors indicating each
             2837      subcontractor's name, bid amount, and other information required by rule.
             2838          (B) Other bidders who are not one of the apparent lowest three bidders may also
             2839      submit a list of their first-tier subcontractors containing the information required by this
             2840      Subsection (3).
             2841          (C) The director may not consider any bid submitted by a bidder if the bidder fails to
             2842      submit a subcontractor list meeting the requirements of this section.
             2843          (ii) On projects where the contractor's total bid is less than $500,000, subcontractors
             2844      whose bid is less than $20,000 need not be listed.
             2845          (iii) On projects where the contractor's total bid is $500,000 or more, subcontractors
             2846      whose bid is less than $35,000 need not be listed.
             2847          (b) (i) The bidders shall submit this list within 24 hours after the bid opening time, not
             2848      including Saturdays, Sundays, and state holidays.


             2849          (ii) This list does not limit the director's right to authorize a change in the listing of any
             2850      subcontractor.
             2851          (c) The bidders shall verify that all subcontractors listed as part of their bids are
             2852      licensed as required by state law.
             2853          (d) Twenty-four hours after the bid opening, the contractor may change the contractor's
             2854      subcontractors only after:
             2855          (i) receiving permission from the director; and
             2856          (ii) establishing that:
             2857          (A) the change is in the best interest of the state; and
             2858          (B) the contractor establishes reasons for the change that meet the standards established
             2859      by the State Building Board.
             2860          (e) If the director approves any changes in subcontractors that result in a net lower
             2861      contract price for subcontracted work, the total of the prime contract may be reduced to reflect
             2862      the changes.
             2863          (4) (a) A bidder may list himself as a subcontractor when the bidder is currently
             2864      licensed to perform the portion of the work for which the bidder lists himself as a subcontractor
             2865      and:
             2866          (i) the bidder intends to perform the work of a subcontractor himself; or
             2867          (ii) the bidder intends to obtain a subcontractor to perform the work at a later date
             2868      because the bidder was unable to:
             2869          (A) obtain a bid from a qualified subcontractor; or
             2870          (B) obtain a bid from a qualified subcontractor at a cost that the bidder considers to be
             2871      reasonable.
             2872          (b) (i) When the bidder intends to perform the work of a subcontractor himself, the
             2873      director may, by written request, require that the bidder provide the director with information
             2874      indicating the bidder's:
             2875          (A) previous experience in the type of work to be performed; and
             2876          (B) qualifications for performing the work.
             2877          (ii) The bidder must respond in writing within five business days of receiving the
             2878      director's written request.
             2879          (iii) If the bidder's submitted information causes the director to reasonably believe that


             2880      self-performance of the portion of the work by the bidder is likely to yield a substandard
             2881      finished product, the director shall:
             2882          (A) require the bidder to use a subcontractor for the portion of the work in question and
             2883      obtain the subcontractor bid under the supervision of the director; or
             2884          (B) reject the bidder's bid.
             2885          (c) (i) When the bidder intends to obtain a subcontractor to perform the work at a later
             2886      date, the bidder shall provide documentation with the subcontractor list describing:
             2887          (A) the bidder's efforts to obtain a bid of a qualified subcontractor at a reasonable cost;
             2888      and
             2889          (B) why the bidder was unable to obtain a qualified subcontractor bid.
             2890          (ii) If the bidder who intends to obtain a subcontractor to perform the work at a later
             2891      date is awarded a contract, the director shall supervise the bidder's efforts to obtain a qualified
             2892      subcontractor bid.
             2893          (iii) The director may not adjust the amount of the contract awarded in order to reflect
             2894      the actual amount of the subcontractor's bid.
             2895          (5) The division may not disclose any subcontractor bid amounts obtained under this
             2896      section until the division has awarded the project to a contractor.
             2897          (6) (a) The director shall, in consultation with the State Building Board, prepare draft
             2898      rules establishing a process for resolving disputes involved with contracts under the division's
             2899      procurement authority.
             2900          (b) The draft rules shall be presented to the Government Operations Interim Committee
             2901      for review, comment, and recommendations before August 31, 2004.
             2902          (c) The director shall consider, and the rules may include:
             2903          (i) requirements regarding preliminary resolution efforts between the parties directly
             2904      involved with the dispute;
             2905          (ii) requirements for the filing of claims, including notification, timeframes, and
             2906      documentation;
             2907          (iii) identification of the types of costs eligible for allocation and a method for
             2908      allocating costs among the parties to the dispute;
             2909          (iv) required time periods, not to exceed 60 days, for the resolution of the claim;
             2910          (v) provision for an independent hearing officer, panel, or arbitrator to extend the time


             2911      period for resolution of the claim by not to exceed 60 additional days for good cause;
             2912          (vi) provision for the extension of required time periods if the claimant agrees;
             2913          (vii) requirements that decisions be issued in writing;
             2914          (viii) provisions for administrative appeals of the decision;
             2915          (ix) provisions for the timely payment of claims after resolution of the dispute,
             2916      including any appeals;
             2917          (x) a requirement that the final determination resulting from the dispute resolution
             2918      process provided for in the rules is a final agency action subject to judicial review as provided
             2919      in Sections 63G-4-401 and 63G-4-402 ;
             2920          (xi) a requirement that a claim or dispute that does not include a monetary claim
             2921      against the division or its agents is not limited to the dispute resolution process provided for in
             2922      this Subsection (6);
             2923          (xii) requirements for claims and disputes to be eligible for this dispute resolution
             2924      process;
             2925          (xiii) the use of an independent hearing officer, panel, arbitration, or mediation; and
             2926          (xiv) the circumstances under which a subcontractor may file a claim directly with the
             2927      division.
             2928          (d) Persons pursuing claims under the process required by this Subsection (6):
             2929          (i) are bound by the decision reached under this process unless the decision is properly
             2930      appealed; and
             2931          (ii) may not pursue claims or disputes under the dispute resolution process established
             2932      in Sections [ 63G-6-805 through 63G-6-814 ] 63G-6a-1602 through 63G-6a-1802 .
             2933          (7) In addition to all other reasons allowed by law or rule, the director may reject all
             2934      bids if none of the bidders whose bid is within the budget of the project submit a subcontractor
             2935      list that meets the requirements of this section.
             2936          (8) Any violation of this section, or any fraudulent misrepresentation by a contractor,
             2937      subcontractor, or supplier, may be grounds for:
             2938          (a) the contractor, subcontractor, or supplier to be suspended or debarred by the
             2939      director; or
             2940          (b) the contractor or subcontractor to be disciplined by the Division of Professional and
             2941      Occupational Licensing.


             2942          Section 60. Section 63A-5-302 is amended to read:
             2943           63A-5-302. Leasing responsibilities of the director.
             2944          (1) The director shall:
             2945          (a) lease, in the name of the division, all real property space to be occupied by an
             2946      agency;
             2947          (b) in leasing space, comply with:
             2948          (i) Title 63G, Chapter [6] 6a, Utah Procurement Code; and
             2949          (ii) any legislative mandates contained in the appropriations act or other specific
             2950      legislation;
             2951          (c) apply the criteria contained in Subsection (1)(e) to prepare a report evaluating each
             2952      high-cost lease at least 12 months before it expires;
             2953          (d) evaluate each lease under the division's control and apply the criteria contained in
             2954      Subsection (1)(e), when appropriate, to evaluate those leases;
             2955          (e) in evaluating leases:
             2956          (i) determine whether or not the lease is cost-effective when the needs of the agency to
             2957      be housed in the leased facilities are considered;
             2958          (ii) determine whether or not another option such as construction, use of other
             2959      state-owned space, or a lease-purchase agreement is more cost-effective than leasing;
             2960          (iii) determine whether or not the significant lease terms are cost-effective and provide
             2961      the state with sufficient flexibility and protection from liability;
             2962          (iv) compare the proposed lease payments to the current market rates, and evaluate
             2963      whether or not the proposed lease payments are reasonable under current market conditions;
             2964          (v) compare proposed significant lease terms to the current market, and recommend
             2965      whether or not these proposed terms are reasonable under current market conditions; and
             2966          (vi) if applicable, recommend that the lease or modification to a lease be approved or
             2967      disapproved;
             2968          (f) based upon the evaluation, include in the report recommendations that identify
             2969      viable alternatives to:
             2970          (i) make the lease cost-effective; or
             2971          (ii) meet the agency's needs when the lease expires; and
             2972          (g) upon request, provide the information included in the report to:


             2973          (i) the agency benefitted by the lease; and
             2974          (ii) the Office of Legislative Fiscal Analyst.
             2975          (2) The director may:
             2976          (a) subject to legislative appropriation, enter into facility leases with terms of up to 10
             2977      years when the length of the lease's term is economically advantageous to the state; and
             2978          (b) with the approval of the State Building Board and subject to legislative
             2979      appropriation, enter into facility leases with terms of more than 10 years when the length of the
             2980      lease's term is economically advantageous to the state.
             2981          Section 61. Section 63B-2-102 is amended to read:
             2982           63B-2-102. Maximum amount -- Projects authorized.
             2983          (1) The total amount of bonds issued under this part may not exceed $80,000,000.
             2984          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             2985      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             2986      Subsection (2).
             2987          (b) These costs may include the cost of acquiring land, interests in land, easements and
             2988      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             2989      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             2990      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             2991      covered by construction of the projects plus a period of six months after the end of the
             2992      construction period and all related engineering, architectural, and legal fees.
             2993          (c) For the division, proceeds shall be provided for the following:
             2994      CAPITAL IMPROVEMENTS
             2995      1 Alterations, Repairs, and Improvements $8,413,900
             2996      TOTAL IMPROVEMENTS $8,413,900
             2997      CAPITAL FACILITIES CONSTRUCTION
             2998     


PROJECT
PRIORITY



    PROJECT
    DESCRIPTION



AMOUNT
FUNDED
ESTIMATED
OPERATIONS
AND
MAINTENANCE
COSTS
             2999      1 Corrections - Northern Utah
Community Corrections Center Phase II
$2,729,700 $158,000
             3000      2 University of Utah
Marriot Library Phase II
$10,200,000 $881,600
             3001      3 Ogden Courts Building Phase II $12,096,000 $340,000
             3002      4 Utah National Guard -
Southeast Utah Armory Phase II
$397,800 $70,500
             3003      5 Southern Utah University
Library Phase II
$7,004,400 $427,000
             3004      6 Utah Valley Special Events
Center Phase II
$11,845,300 $536,900
             3005      7 Salt Lake Community College - Land $1,300,000 $0
             3006      8 Tax Commission Building $14,224,000 $812,000
             3007      9 Dixie College Business Building $2,823,300 $187,800
             3008      10 Salt Lake Community College
South City 3rd Floor and Boiler
$4,009,500 $257,600
             3009      11 Public Education -
Deaf and Blind Classrooms
$3,456,100 $124,800
             3010      TOTAL CONSTRUCTION $70,086,100
             3011      TOTAL IMPROVEMENTS AND     
    CONSTRUCTION
$78,500,000
             3012          (d) For purposes of this section, operations and maintenance costs:
             3013          (i) are estimates only;
             3014          (ii) may include any operations and maintenance costs already funded in existing


             3015      agency budgets; and
             3016          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3017      operations and maintenance costs.
             3018          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3019      constitute a limitation on the amount that may be expended for any project.
             3020          (b) The board may revise these estimates and redistribute the amount estimated for a
             3021      project among the projects authorized.
             3022          (c) The commission, by resolution and in consultation with the board, may delete one
             3023      or more projects from this list if the inclusion of that project or those projects in the list could
             3024      be construed to violate state law or federal law or regulation.
             3025          (4) (a) The division may enter into agreements related to these projects before the
             3026      receipt of proceeds of bonds issued under this chapter.
             3027          (b) The division shall make those expenditures from unexpended and unencumbered
             3028      building funds already appropriated to the Capital Projects Fund.
             3029          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3030      of bonds issued under this chapter.
             3031          (d) The commission may, by resolution, make any statement of intent relating to that
             3032      reimbursement that is necessary or desirable to comply with federal tax law.
             3033          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3034      it is the intent of the Legislature that the balance necessary to complete the projects be
             3035      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3036      of bonds.
             3037          (b) For those phased projects, the division may enter into contracts for amounts not to
             3038      exceed the anticipated full project funding but may not allow work to be performed on those
             3039      contracts in excess of the funding already authorized by the Legislature.
             3040          (c) Those contracts shall contain a provision for termination of the contract for the
             3041      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3042          (d) It is also the intent of the Legislature that this authorization to the division does not
             3043      bind future Legislatures to fund projects initiated from this authorization.
             3044          Section 62. Section 63B-3-102 is amended to read:
             3045           63B-3-102. Maximum amount -- Projects authorized.


             3046          (1) The total amount of bonds issued under this part may not exceed $64,600,000.
             3047          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3048      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3049      Subsection (2).
             3050          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3051      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3052      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3053      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3054      covered by construction of the projects plus a period of six months after the end of the
             3055      construction period and all related engineering, architectural, and legal fees.
             3056          (c) For the division, proceeds shall be provided for the following:
             3057      CAPITAL IMPROVEMENTS
             3058      1 Alterations, Repairs, and Improvements
$5,000,000        
             3059      TOTAL IMPROVEMENTS
$5,000,000
             3060      CAPITAL AND ECONOMIC DEVELOPMENT
             3061     


PRIORITY
PROJECT



PROJECT
DESCRIPTION



AMOUNT
FUNDED
ESTIMATED
OPERATIONS
AND
MAINTENANCE
COSTS
             3062      1 University of Utah
Marriott Library Phase III (Final)
$13,811,500 $881,600
             3063      2 Bridgerland Applied Technology Center
Utah State University Space
$2,400,000
$0
             3064      3 Weber State University -
Heat Plant
$2,332,100 $9,600
             3065      4 Department of Human Services -
Division of Youth Corrections renamed
in 2003 to the Division of Juvenile
Justice Services
$4,180,000 $400,000
             3066      5 Snow College - Administrative
Services/Student Center
$3,885,100 $224,500
             3067      6 Ogden Weber Applied Technology
Center - Metal Trades Building Design
and Equipment Purchase
$750,000 $0
             3068      7 Department of Corrections B-Block
Remodel
$1,237,100 $72,000
             3069      8 Utah State University - Old Main Phase
III Design
$550,000 $0
             3070      9 Department of Corrections - 144 bed
Uintah Expansion
$6,700,000 $168,800
             3071      10 Southern Utah University
Administrative Services/Student Center
$5,630,400 $314,200
             3072      11 Anasazi Museum $760,200 $8,500
             3073      12 Hill Air Force Base - Easements
Purchase
$9,500,000 $0
             3074      13 Signetics Building Remodel $2,000,000 $0
             3075      14 Antelope Island Visitors Center $750,000 $30,000
             3076      15 State Fair Park - Master Study $150,000 $0
             3077      16 Utah National Guard - Draper Land $380,800 $0
             3078      17 Davis Applied Technology Center -
Design
$325,000 $0
             3079      18 Palisade State Park - Land and Park
Development
$800,000 $0
             3080      19 Department of Human Services - Cedar
City Land
$80,000 $0
             3081      20 Department of Human Services -
Clearfield Land
$163,400 $0
             3082      21 Electronic technology, equipment, and
hardware
$2,500,000 $0
             3083      TOTAL CAPITAL AND ECONOMIC DEVELOPMENT        $58,885,600
             3084      TOTAL IMPROVEMENTS AND CAPITAL
AND ECONOMIC DEVELOPMENT                $63,885,600
             3085          (d) For purposes of this section, operations and maintenance costs:
             3086          (i) are estimates only;
             3087          (ii) may include any operations and maintenance costs already funded in existing
             3088      agency budgets; and
             3089          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3090      operations and maintenance costs.
             3091          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3092      constitute a limitation on the amount that may be expended for any project.
             3093          (b) The board may revise these estimates and redistribute the amount estimated for a
             3094      project among the projects authorized.
             3095          (c) The commission, by resolution and in consultation with the board, may delete one
             3096      or more projects from this list if the inclusion of that project or those projects in the list could
             3097      be construed to violate state law or federal law or regulation.
             3098          (4) (a) The division may enter into agreements related to these projects before the
             3099      receipt of proceeds of bonds issued under this chapter.
             3100          (b) The division shall make those expenditures from unexpended and unencumbered
             3101      building funds already appropriated to the Capital Projects Fund.
             3102          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3103      of bonds issued under this chapter.
             3104          (d) The commission may, by resolution, make any statement of intent relating to that
             3105      reimbursement that is necessary or desirable to comply with federal tax law.


             3106          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3107      it is the intent of the Legislature that the balance necessary to complete the projects be
             3108      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3109      of bonds.
             3110          (b) For those phased projects, the division may enter into contracts for amounts not to
             3111      exceed the anticipated full project funding but may not allow work to be performed on those
             3112      contracts in excess of the funding already authorized by the Legislature.
             3113          (c) Those contracts shall contain a provision for termination of the contract for the
             3114      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3115          (d) It is also the intent of the Legislature that this authorization to the division does not
             3116      bind future Legislatures to fund projects initiated from this authorization.
             3117          Section 63. Section 63B-4-102 is amended to read:
             3118           63B-4-102. Maximum amount -- Projects authorized.
             3119          (1) The total amount of bonds issued under this part may not exceed $45,300,000.
             3120          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3121      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3122      Subsection (2).
             3123          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3124      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3125      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3126      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3127      covered by construction of the projects plus a period of six months after the end of the
             3128      construction period, and all related engineering, architectural, and legal fees.
             3129          (c) For the division, proceeds shall be provided for the following:
             3130      CAPITAL IMPROVEMENTS
             3131      Alterations, Repairs, and Improvements $7,200,000
             3132          TOTAL IMPROVEMENTS $7,200,000
             3133      CAPITAL AND ECONOMIC DEVELOPMENT
             3134     


    PROJECT
    DESCRIPTION



AMOUNT
FUNDED
ESTIMATED
OPERATIONS
AND
MAINTENANCE
COSTS
             3135      Corrections - Uinta IVA $11,300,000 $212,800
             3136      Utah County Youth Correctional Facility $6,650,000 $245,000
             3137      Ogden Weber Applied Technology Center -
Metal Trades
$5,161,000 $176,000
             3138      Project Reserve Fund     $3,500,000 None
             3139      Weber State University - Browning Center
Remodel
$3,300,000 None
             3140      Heber Wells Building Remodel $2,000,000 None
             3141      Higher Education Davis County - Land Purchase $1,600,000 None
             3142      National Guard -- Provo Armory $1,500,000 $128,000
             3143      Department of Natural Resources - Pioneer
Trails Visitor Center
$900,000 $65,000
             3144      Higher Education Design Projects $800,000 Varies depending
upon projects
selected
             3145      Salt Lake Community College - South Valley
Planning
$300,000 None
             3146      Division of Youth Corrections renamed in 2003
to the Division of Juvenile Justice Services -
Logan Land Purchase
$120,000 None
             3147      TOTAL CAPITAL AND ECONOMIC DEVELOPMENT $37,131,000
             3148      TOTAL IMPROVEMENTS AND CAPITAL AND ECONOMIC
DEVELOPMENT
$44,331,000
             3149          (d) For purposes of this section, operations and maintenance costs:
             3150          (i) are estimates only;


             3151          (ii) may include any operations and maintenance costs already funded in existing
             3152      agency budgets; and
             3153          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3154      operations and maintenance costs.
             3155          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3156      constitute a limitation on the amount that may be expended for any project.
             3157          (b) The board may revise these estimates and redistribute the amount estimated for a
             3158      project among the projects authorized.
             3159          (c) The commission, by resolution and in consultation with the board, may delete one
             3160      or more projects from this list if the inclusion of that project or those projects in the list could
             3161      be construed to violate state law or federal law or regulation.
             3162          (4) (a) The division may enter into agreements related to these projects before the
             3163      receipt of proceeds of bonds issued under this chapter.
             3164          (b) The division shall make those expenditures from unexpended and unencumbered
             3165      building funds already appropriated to the Capital Projects Fund.
             3166          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3167      of bonds issued under this chapter.
             3168          (d) The commission may, by resolution, make any statement of intent relating to that
             3169      reimbursement that is necessary or desirable to comply with federal tax law.
             3170          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3171      it is the intent of the Legislature that the balance necessary to complete the projects be
             3172      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3173      of bonds.
             3174          (b) For those phased projects, the division may enter into contracts for amounts not to
             3175      exceed the anticipated full project funding but may not allow work to be performed on those
             3176      contracts in excess of the funding already authorized by the Legislature.
             3177          (c) Those contracts shall contain a provision for termination of the contract for the
             3178      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3179          (d) It is also the intent of the Legislature that this authorization to the division does not
             3180      bind future Legislatures to fund projects initiated from this authorization.
             3181          Section 64. Section 63B-5-102 is amended to read:


             3182           63B-5-102. Maximum amount -- Projects authorized.
             3183          (1) The total amount of bonds issued under this part may not exceed $32,000,000.
             3184          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3185      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3186      Subsection (2).
             3187          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3188      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3189      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3190      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3191      covered by construction of the projects plus a period of six months after the end of the
             3192      construction period, and all related engineering, architectural, and legal fees.
             3193          (c) For the division, proceeds shall be provided for the following:
             3194      CAPITAL IMPROVEMENTS
             3195      Alterations, Repairs, and Improvements $7,600,000
             3196          TOTAL IMPROVEMENTS $7,600,000
             3197      CAPITAL AND ECONOMIC DEVELOPMENT
             3198     



PROJECT DESCRIPTION



AMOUNT
FUNDED
ESTIMATED
OPERATIONS
AND
MAINTENANCE
COSTS
             3199      Corrections - Gunnison (192 Beds) $13,970,000 $210,000
             3200      University of Utah -- Gardner Hall $7,361,000 $203,900
             3201      Weber State University Davis Campus -- Land
Purchase
$771,000 None
             3202      Department of Workforce Services Cedar City
-- Land Purchase
$148,000 None
             3203      College of Eastern Utah Durrant School --
Land Purchase
$400,000 None
             3204      State Hospital - Forensic Design (200 beds) $750,000 $575,000
             3205      TOTAL CAPITAL AND ECONOMIC
DEVELOPMENT
$23,400,000
             3206      TOTAL IMPROVEMENTS AND CAPITAL AND
ECONOMIC DEVELOPMENT
$31,000,000
             3207          (d) For purposes of this section, operations and maintenance costs:
             3208          (i) are estimates only;
             3209          (ii) may include any operations and maintenance costs already funded in existing
             3210      agency budgets; and
             3211          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3212      operations and maintenance costs.
             3213          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3214      constitute a limitation on the amount that may be expended for any project.
             3215          (b) The board may revise these estimates and redistribute the amount estimated for a
             3216      project among the projects authorized.
             3217          (c) The commission, by resolution and in consultation with the board, may delete one
             3218      or more projects from this list if the inclusion of that project or those projects in the list could
             3219      be construed to violate state law or federal law or regulation.
             3220          (4) (a) The division may enter into agreements related to these projects before the
             3221      receipt of proceeds of bonds issued under this chapter.
             3222          (b) The division shall make those expenditures from unexpended and unencumbered
             3223      building funds already appropriated to the Capital Projects Fund.
             3224          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3225      of bonds issued under this chapter.
             3226          (d) The commission may, by resolution, make any statement of intent relating to that
             3227      reimbursement that is necessary or desirable to comply with federal tax law.
             3228          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3229      it is the intent of the Legislature that the balance necessary to complete the projects be
             3230      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3231      of bonds.
             3232          (b) For those phased projects, the division may enter into contracts for amounts not to
             3233      exceed the anticipated full project funding but may not allow work to be performed on those


             3234      contracts in excess of the funding already authorized by the Legislature.
             3235          (c) Those contracts shall contain a provision for termination of the contract for the
             3236      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3237          (d) It is also the intent of the Legislature that this authorization to the division does not
             3238      bind future Legislatures to fund projects initiated from this authorization.
             3239          Section 65. Section 63B-6-102 is amended to read:
             3240           63B-6-102. Maximum amount -- Projects authorized.
             3241          (1) The total amount of bonds issued under this part may not exceed $57,000,000.
             3242          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3243      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3244      Subsection (2).
             3245          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3246      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3247      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3248      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3249      covered by construction of the projects plus a period of six months after the end of the
             3250      construction period, and all related engineering, architectural, and legal fees.
             3251          (c) For the division, proceeds shall be provided for the following:
             3252      CAPITAL AND ECONOMIC DEVELOPMENT
             3253     


PROJECT DESCRIPTION


AMOUNT
FUNDED
ESTIMATED
OPERATIONS
AND
MAINTENANCE
             3254      Youth Corrections - Carbon / Emery (18 beds) $2,298,100 $70,000
             3255      State Hospital - 100 bed Forensic Facility $13,800,700 $320,600
             3256      Utah State University - Widtsoe Hall $23,986,700 $750,200
             3257      Davis Applied Technology Center - Medical/Health
Tech Addition
$6,344,900 $144,000
             3258      Southern Utah University -- Physical Education
Building (Design)
$1,100,000 $456,100
             3259      Salt Lake Community College -- High Technology
Building, 90th So. Campus (Design)
$1,165,000 $718,500
             3260      Department of Natural Resources - Antelope Island
Road
$3,600,000 None
             3261      Youth Corrections - Region 1 72 Secured Bed
Facility
$1,500,000 None
             3262      Department of Natural Resources - Dead Horse
Point Visitors Center
$1,350,000 $5,700
             3263      TOTAL CAPITAL AND ECONOMIC
DEVELOPMENT
$55,145,400
             3264          (d) For purposes of this section, operations and maintenance costs:
             3265          (i) are estimates only;
             3266          (ii) may include any operations and maintenance costs already funded in existing
             3267      agency budgets; and
             3268          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3269      operations and maintenance costs.
             3270          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3271      constitute a limitation on the amount that may be expended for any project.
             3272          (b) The board may revise these estimates and redistribute the amount estimated for a
             3273      project among the projects authorized.
             3274          (c) The commission, by resolution and in consultation with the board, may delete one
             3275      or more projects from this list if the inclusion of that project or those projects in the list could
             3276      be construed to violate state law or federal law or regulation.
             3277          (4) (a) The division may enter into agreements related to these projects before the
             3278      receipt of proceeds of bonds issued under this chapter.
             3279          (b) The division shall make those expenditures from unexpended and unencumbered
             3280      building funds already appropriated to the Capital Projects Fund.
             3281          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3282      of bonds issued under this chapter.
             3283          (d) The commission may, by resolution, make any statement of intent relating to that


             3284      reimbursement that is necessary or desirable to comply with federal tax law.
             3285          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3286      it is the intent of the Legislature that the balance necessary to complete the projects be
             3287      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3288      of bonds.
             3289          (b) For those phased projects, the division may enter into contracts for amounts not to
             3290      exceed the anticipated full project funding but may not allow work to be performed on those
             3291      contracts in excess of the funding already authorized by the Legislature.
             3292          (c) Those contracts shall contain a provision for termination of the contract for the
             3293      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3294          (d) It is also the intent of the Legislature that this authorization to the division does not
             3295      bind future Legislatures to fund projects initiated from this authorization.
             3296          Section 66. Section 63B-6-402 is amended to read:
             3297           63B-6-402. Maximum amount -- Projects authorized.
             3298          (1) The total amount of bonds issued under this part may not exceed $9,000,000.
             3299          (2) (a) Proceeds from the issuance of bonds shall be provided to the State Tax
             3300      Commission to provide funds to pay all or part of the cost of the project described in this
             3301      Subsection (2).
             3302          (b) These costs may include:
             3303          (i) the cost of acquisition, development, and conversion of computer hardware and
             3304      software for motor vehicle fee systems and tax collection and accounting systems of the state;
             3305          (ii) interest estimated to accrue on these bonds during the period to be covered by that
             3306      development and conversion, plus a period of six months following the completion of the
             3307      development and conversion; and
             3308          (iii) all related engineering, consulting, and legal fees.
             3309          (c) For the State Tax Commission, proceeds shall be provided for the following:
             3310      PROJECT
DESCRIPTION
AMOUNT
FUNDED
             3311      UTAX SYSTEMS ACQUISITION AND
DEVELOPMENT
$8,500,000
             3312          (3) The commission, by resolution may decline to issue bonds if the project could be


             3313      construed to violate state law or federal law or regulation.
             3314          (4) (a) For this project, for which only partial funding is provided in Subsection (2), it
             3315      is the intent of the Legislature that the balance necessary to complete the project be addressed
             3316      by future Legislatures, either through appropriations or through the issuance or sale of bonds.
             3317          (b) The State Tax Commission may enter into contracts for amounts not to exceed the
             3318      anticipated full project funding but may not allow work to be performed on those contracts in
             3319      excess of the funding already authorized by the Legislature.
             3320          (c) Those contracts shall contain a provision for termination of the contract for the
             3321      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3322          (d) It is also the intent of the Legislature that this authorization to the State Tax
             3323      Commission does not bind future Legislatures to fund projects initiated from this authorization.
             3324          Section 67. Section 63B-7-102 is amended to read:
             3325           63B-7-102. Maximum amount -- Projects authorized.
             3326          (1) The total amount of bonds issued under this part may not exceed $33,600,000.
             3327          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3328      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3329      Subsection (2).
             3330          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3331      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3332      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3333      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3334      covered by construction of the projects plus a period of six months after the end of the
             3335      construction period, and all related engineering, architectural, and legal fees.
             3336          (c) For the division, proceeds shall be provided for the following:
             3337     

PROJECT
DESCRIPTION


AMOUNT
FUNDED
ESTIMATED
OPERATIONS
AND
MAINTENANCE
             3338      Southern Utah University Land Purchase $4,600,000 $0
             3339      Salt Lake Community College High Tech Center
- Jordan Campus
$3,980,700 $507,900
             3340      Children's Special Health Care Needs Clinic $755,400 $247,600
             3341      Youth Corrections - 2 @ 32 beds
(Vernal / Logan)
$419,500 $276,000
             3342      Corrections - Gunnison 288 bed and Lagoon
Expansion
$8,425,600 $0
             3343      University of Utah - Cowles Building $445,500 $101,700
             3344      Utah Valley State College - Technical Building $1,166,300 $391,000
             3345      Sevier Valley Applied Technology Center - Shop
Expansion
$3,014,300 $443,300
             3346      Division of Parks and Recreation Statewide
Restrooms
$1,000,000 $22,700
             3347      Murray Highway Patrol Office $2,300,000 $81,000
             3348      Department of Workforce Services - Davis
County Employment Center
$2,780,000 $128,100
             3349      State Hospital - Rampton II $1,600,000 $462,000
             3350      Courts - 4th District Land - Provo $1,368,000 $0
             3351      Dixie College - Land $1,000,000 $0
             3352      TOTAL CAPITAL AND ECONOMIC
DEVELOPMENT
$32,855,300
             3353          (d) For purposes of this section, operations and maintenance costs:
             3354          (i) are estimates only;
             3355          (ii) may include any operations and maintenance costs already funded in existing
             3356      agency budgets; and
             3357          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3358      operations and maintenance costs.
             3359          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3360      constitute a limitation on the amount that may be expended for any project.
             3361          (b) The board may revise these estimates and redistribute the amount estimated for a
             3362      project among the projects authorized.
             3363          (c) The commission, by resolution and in consultation with the board, may delete one


             3364      or more projects from this list if the inclusion of that project or those projects in the list could
             3365      be construed to violate state law or federal law or regulation.
             3366          (4) (a) The division may enter into agreements related to these projects before the
             3367      receipt of proceeds of bonds issued under this chapter.
             3368          (b) The division shall make those expenditures from unexpended and unencumbered
             3369      building funds already appropriated to the Capital Projects Fund.
             3370          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3371      of bonds issued under this chapter.
             3372          (d) The commission may, by resolution, make any statement of intent relating to that
             3373      reimbursement that is necessary or desirable to comply with federal tax law.
             3374          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3375      it is the intent of the Legislature that the balance necessary to complete the projects be
             3376      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3377      of bonds.
             3378          (b) For those phased projects, the division may enter into contracts for amounts not to
             3379      exceed the anticipated full project funding but may not allow work to be performed on those
             3380      contracts in excess of the funding already authorized by the Legislature.
             3381          (c) Those contracts shall contain a provision for termination of the contract for the
             3382      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3383          (d) It is also the intent of the Legislature that this authorization to the division does not
             3384      bind future Legislatures to fund projects initiated from this authorization.
             3385          Section 68. Section 63B-7-402 is amended to read:
             3386           63B-7-402. Maximum amount -- Projects authorized.
             3387          (1) The total amount of bonds issued under this part may not exceed $16,500,000.
             3388          (2) (a) Proceeds from the issuance of bonds shall be provided to the State Tax
             3389      Commission to provide funds to pay all or part of the cost of the project described in this
             3390      Subsection (2).
             3391          (b) These costs may include:
             3392          (i) the cost of acquisition, development, and conversion of computer hardware and
             3393      software for motor vehicle fee systems and tax collection and accounting systems of the state;
             3394          (ii) interest estimated to accrue on these bonds during the period to be covered by that


             3395      development and conversion, plus a period of six months following the completion of the
             3396      development and conversion; and
             3397          (iii) all related engineering, consulting, and legal fees.
             3398          (c) For the State Tax Commission, proceeds shall be provided for the following:
             3399      PROJECT
DESCRIPTION
AMOUNT
FUNDED
             3400      UTAX SYSTEMS ACQUISITION AND
DEVELOPMENT
$15,650,000
             3401          (3) The commission, by resolution may decline to issue bonds if the project could be
             3402      construed to violate state law or federal law or regulation.
             3403          (4) (a) For this project, for which only partial funding is provided in Subsection (2), it
             3404      is the intent of the Legislature that the balance necessary to complete the project be addressed
             3405      by future Legislatures, either through appropriations or through the issuance or sale of bonds.
             3406          (b) The State Tax Commission may enter into contracts for amounts not to exceed the
             3407      anticipated full project funding but may not allow work to be performed on those contracts in
             3408      excess of the funding already authorized by the Legislature.
             3409          (c) Those contracts shall contain a provision for termination of the contract for the
             3410      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3411          (d) It is also the intent of the Legislature that this authorization to the State Tax
             3412      Commission does not bind future Legislatures to fund projects initiated from this authorization.
             3413          Section 69. Section 63B-8-102 is amended to read:
             3414           63B-8-102. Maximum amount -- Projects authorized.
             3415          (1) The total amount of bonds issued under this part may not exceed $48,500,000.
             3416          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3417      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3418      Subsection (2).
             3419          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3420      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3421      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3422      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3423      covered by construction of the projects plus a period of six months after the end of the


             3424      construction period, and all related engineering, architectural, and legal fees.
             3425          (c) For the division, proceeds shall be provided for the following:
             3426     

PROJECT
DESCRIPTION


AMOUNT
FUNDED
ESTIMATED
OPERATIONS
AND
MAINTENANCE
             3427      Southern Utah University - Physical Education
Building
$2,493,200 $447,744
             3428      Utah Valley State College - Information Sciences
Building
$29,000,000 $721,875
             3429      University of Utah - Cowles Building Renovation $7,268,500 $140,217
             3430      Vernal District Court $4,539,500 $149,989
             3431      Salt Lake Community College - Applied Education
Center
$4,200,000 $281,784
             3432      TOTAL CAPITAL AND ECONOMIC
DEVELOPMENT
$47,501,200
             3433          (d) For purposes of this section, operations and maintenance costs:
             3434          (i) are estimates only;
             3435          (ii) may include any operations and maintenance costs already funded in existing
             3436      agency budgets; and
             3437          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3438      operations and maintenance costs.
             3439          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3440      constitute a limitation on the amount that may be expended for any project.
             3441          (b) The board may revise these estimates and redistribute the amount estimated for a
             3442      project among the projects authorized.
             3443          (c) The commission, by resolution and in consultation with the board, may delete one
             3444      or more projects from this list if the inclusion of that project or those projects in the list could
             3445      be construed to violate state law or federal law or regulation.
             3446          (4) (a) The division may enter into agreements related to these projects before the


             3447      receipt of proceeds of bonds issued under this chapter.
             3448          (b) The division shall make those expenditures from unexpended and unencumbered
             3449      building funds already appropriated to the Capital Projects Fund.
             3450          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3451      of bonds issued under this chapter.
             3452          (d) The commission may, by resolution, make any statement of intent relating to that
             3453      reimbursement that is necessary or desirable to comply with federal tax law.
             3454          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3455      it is the intent of the Legislature that the balance necessary to complete the projects be
             3456      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3457      of bonds.
             3458          (b) For those phased projects, the division may enter into contracts for amounts not to
             3459      exceed the anticipated full project funding but may not allow work to be performed on those
             3460      contracts in excess of the funding already authorized by the Legislature.
             3461          (c) Those contracts shall contain a provision for termination of the contract for the
             3462      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3463          (d) It is also the intent of the Legislature that this authorization to the division does not
             3464      bind future Legislatures to fund projects initiated from this authorization.
             3465          Section 70. Section 63B-8-402 is amended to read:
             3466           63B-8-402. Maximum amount -- Projects authorized.
             3467          (1) The total amount of bonds issued under this part may not exceed $7,400,000.
             3468          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3469      funds to pay all or part of the cost of acquiring and constructing the project listed in this
             3470      Subsection (2).
             3471          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3472      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3473      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3474      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3475      covered by construction of the projects plus a period of six months after the end of the
             3476      construction period, and all related engineering, architectural, and legal fees.
             3477          (c) For the division, proceeds shall be provided for the following:


             3478     

PROJECT
DESCRIPTION


AMOUNT
FUNDED
ESTIMATED
OPERATIONS
AND
MAINTENANCE
             3479      State Hospital - Rampton II     $7,000,000 $462,000
             3480          (d) For purposes of this section, operations and maintenance costs:
             3481          (i) are estimates only;
             3482          (ii) may include any operations and maintenance costs already funded in existing
             3483      agency budgets; and
             3484          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3485      operations and maintenance costs.
             3486          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3487      constitute a limitation on the amount that may be expended for any project.
             3488          (b) The board may revise these estimates and redistribute the amount estimated for a
             3489      project among the projects authorized.
             3490          (c) The commission, by resolution and in consultation with the board, may delete one
             3491      or more projects from this list if the inclusion of that project or those projects in the list could
             3492      be construed to violate state law or federal law or regulation.
             3493          (4) (a) The division may enter into agreements related to these projects before the
             3494      receipt of proceeds of bonds issued under this chapter.
             3495          (b) The division shall make those expenditures from unexpended and unencumbered
             3496      building funds already appropriated to the Capital Projects Fund.
             3497          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3498      of bonds issued under this chapter.
             3499          (d) The commission may, by resolution, make any statement of intent relating to that
             3500      reimbursement that is necessary or desirable to comply with federal tax law.
             3501          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3502      it is the intent of the Legislature that the balance necessary to complete the projects be
             3503      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3504      of bonds.
             3505          (b) For those phased projects, the division may enter into contracts for amounts not to


             3506      exceed the anticipated full project funding but may not allow work to be performed on those
             3507      contracts in excess of the funding already authorized by the Legislature.
             3508          (c) Those contracts shall contain a provision for termination of the contract for the
             3509      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3510          (d) It is also the intent of the Legislature that this authorization to the division does not
             3511      bind future Legislatures to fund projects initiated from this authorization.
             3512          Section 71. Section 63B-9-103 is amended to read:
             3513           63B-9-103. Other capital facility authorizations and intent language.
             3514          (1) It is the intent of the Legislature that:
             3515          (a) Utah State University use institutional funds to plan, design, and construct a
             3516      renovation and expansion of the Edith Bowen School under the direction of the director of the
             3517      Division of Facilities Construction and Management unless supervisory authority has been
             3518      delegated;
             3519          (b) no state funds be used for any portion of this project; and
             3520          (c) the university may request state funds for operations and maintenance to the extent
             3521      that the university is able to demonstrate to the Board of Regents that the facility meets
             3522      approved academic and training purposes under Board of Regents policy R710.
             3523          (2) It is the intent of the Legislature that:
             3524          (a) the University of Utah use institutional funds to plan, design, and construct a
             3525      College of Science Math Center under the direction of the director of the Division of Facilities
             3526      Construction and Management unless supervisory authority has been delegated;
             3527          (b) no state funds be used for any portion of this project; and
             3528          (c) the university may request state funds for operations and maintenance to the extent
             3529      that the university is able to demonstrate to the Board of Regents that the facility meets
             3530      approved academic and training purposes under Board of Regents policy R710.
             3531          (3) It is the intent of the Legislature that:
             3532          (a) the University of Utah use institutional funds to plan, design, and construct a
             3533      Burbidge Athletics and Academics Building under the direction of the director of the Division
             3534      of Facilities Construction and Management unless supervisory authority has been delegated;
             3535          (b) no state funds be used for any portion of this project; and
             3536          (c) the university may not request state funds for operations and maintenance.


             3537          (4) It is the intent of the Legislature that:
             3538          (a) the University of Utah use institutional funds to plan, design, and construct an
             3539      expansion to the bookstore under the direction of the director of the Division of Facilities
             3540      Construction and Management unless supervisory authority has been delegated;
             3541          (b) no state funds be used for any portion of this project; and
             3542          (c) the university may not request state funds for operations and maintenance.
             3543          (5) It is the intent of the Legislature that:
             3544          (a) the University of Utah use institutional funds to plan, design, and construct a Health
             3545      Sciences/Basic Sciences Building under the direction of the director of the Division of
             3546      Facilities Construction and Management unless supervisory authority has been delegated;
             3547          (b) no state funds be used for any portion of this project; and
             3548          (c) the university may request state funds for operations and maintenance to the extent
             3549      that the university is able to demonstrate to the Board of Regents that the facility meets
             3550      approved academic and training purposes under Board of Regents policy R710.
             3551          (6) It is the intent of the Legislature that:
             3552          (a) Weber State University use institutional funds to plan, design, and construct an
             3553      expansion to the stadium under the direction of the director of the Division of Facilities
             3554      Construction and Management unless supervisory authority has been delegated;
             3555          (b) no state funds be used for any portion of this project; and
             3556          (c) the university may not request state funds for operations and maintenance.
             3557          (7) It is the intent of the Legislature that:
             3558          (a) Utah Valley State College use institutional funds to plan, design, and construct a
             3559      baseball stadium under the direction of the director of the Division of Facilities Construction
             3560      and Management unless supervisory authority has been delegated;
             3561          (b) no state funds be used for any portion of this project; and
             3562          (c) the college may not request state funds for operations and maintenance.
             3563          (8) It is the intent of the Legislature that:
             3564          (a) Southern Utah University use institutional funds to plan, design, and construct a
             3565      weight training room under the direction of the director of the Division of Facilities
             3566      Construction and Management unless supervisory authority has been delegated;
             3567          (b) no state funds be used for any portion of this project; and


             3568          (c) the university may not request state funds for operations and maintenance.
             3569          (9) It is the intent of the Legislature that:
             3570          (a) Snow College may lease land at the Snow College Richfield campus to a private
             3571      developer for the construction and operation of student housing;
             3572          (b) the oversight and inspection of the construction comply with Section 63A-5-206 ;
             3573          (c) no state funds be used for any portion of this project; and
             3574          (d) the college may not request state funds for operations and maintenance.
             3575          (10) It is the intent of the Legislature that:
             3576          (a) Salt Lake Community College may lease land at the Jordan campus to Jordan
             3577      School District for the construction and operation of an Applied Technology Education Center;
             3578          (b) the oversight and inspection of the construction comply with Section 63A-5-206 ;
             3579          (c) no state funds be used for any portion of this project; and
             3580          (d) the college may not request state funds for operations and maintenance.
             3581          (11) It is the intent of the Legislature that:
             3582          (a) the Department of Transportation exchange its maintenance station at Kimball
             3583      Junction for property located near Highway 40 in Summit County; and
             3584          (b) the Department of Transportation use federal funds, rent paid by the Salt Lake
             3585      Organizing Committee for the use of the maintenance station, and any net proceeds resulting
             3586      from the exchange of property to construct a replacement facility under the direction of the
             3587      director of the Division of Facilities Construction and Management unless supervisory
             3588      authority has been delegated.
             3589          (12) It is the intent of the Legislature that:
             3590          (a) the Department of Transportation sell surplus property in Utah County;
             3591          (b) the Department of Transportation use funds from that sale to remodel existing
             3592      space and add an addition to the Region 3 Complex; and
             3593          (c) the project cost not exceed the funds received through sale of property.
             3594          (13) It is the intent of the Legislature that the Department of Workforce Services use
             3595      proceeds from property sales to purchase additional property adjacent to its state-owned facility
             3596      in Logan.
             3597          (14) (a) It is the intent of the Legislature that, because only partial funding is provided
             3598      for the Heat Plant/Infrastructure Project at Utah State University, the balance necessary to


             3599      complete this project be addressed by future Legislatures, either through appropriations or
             3600      through the issuance of bonds.
             3601          (b) (i) In compliance with Section 63A-5-207 , the division may enter into contracts for
             3602      amounts not to exceed the anticipated full project funding but may not allow work to be
             3603      performed on those contracts in excess of the funding already authorized by the Legislature.
             3604          (ii) Those contracts shall contain a provision for termination of the contract for the
             3605      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3606          (c) It is also the intent of the Legislature that this authorization to the division does not
             3607      bind future Legislatures to fund the Heat Plant/Infrastructure Project at Utah State University.
             3608          Section 72. Section 63B-11-202 is amended to read:
             3609           63B-11-202. Maximum amount -- Projects authorized.
             3610          (1) (a) The total amount of bonds issued under this part may not exceed $21,250,000.
             3611          (b) When Utah State University certifies to the commission that the university has
             3612      obtained reliable commitments, convertible to cash, of $5,000,000 or more in nonstate funds to
             3613      construct an addition to the new engineering building and demolish the existing engineering
             3614      classroom building, the commission may issue and sell general obligation bonds in a total
             3615      amount not to exceed $6,100,000.
             3616          (c) When the University of Utah certifies to the commission that the university has
             3617      obtained reliable commitments, convertible to cash, of $13,000,000 or more in nonstate funds
             3618      to construct a new engineering building, the commission may issue and sell general obligation
             3619      bonds in a total amount not to exceed $15,150,000.
             3620          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3621      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3622      Subsection (2).
             3623          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3624      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3625      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3626      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3627      covered by construction of the projects plus a period of six months after the end of the
             3628      construction period, and all related engineering, architectural, and legal fees.
             3629          (c) For the division, proceeds shall be provided for the following:


             3630     


PROJECT
DESCRIPTION



AMOUNT
FUNDED
ESTIMATED
OPERATING
AND
MAINTENANCE
COSTS
             3631      1. Utah State University Engineering Building
Renovation
$5,943,500 $425,000
             3632      2. University of Utah New Engineering Building $15,000,000 $489,000
             3633      COSTS OF ISSUANCE $306,500
             3634      TOTAL CAPITAL AND ECONOMIC DEVELOPMENT $21,250,000
             3635          (d) For purposes of this section, operations and maintenance costs:
             3636          (i) are estimates only;
             3637          (ii) may include any operations and maintenance costs already funded in existing
             3638      agency budgets; and
             3639          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3640      operations and maintenance costs.
             3641          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3642      constitute a limitation on the amount that may be expended for any project.
             3643          (b) The board may revise these estimates and redistribute the amount estimated for a
             3644      project among the projects authorized.
             3645          (c) The commission, by resolution and in consultation with the board, may delete one
             3646      or more projects from this list if the inclusion of that project or those projects in the list could
             3647      be construed to violate state law or federal law or regulation.
             3648          (4) (a) The division may enter into agreements related to these projects before the
             3649      receipt of proceeds of bonds issued under this chapter.
             3650          (b) The division shall make those expenditures from unexpended and unencumbered
             3651      building funds already appropriated to the Capital Projects Fund.
             3652          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3653      of bonds issued under this chapter.
             3654          (d) The commission may, by resolution, make any statement of intent relating to that


             3655      reimbursement that is necessary or desirable to comply with federal tax law.
             3656          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3657      it is the intent of the Legislature that the balance necessary to complete the projects be
             3658      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3659      of bonds.
             3660          (b) For those phased projects, the division may enter into contracts for amounts not to
             3661      exceed the anticipated full project funding but may not allow work to be performed on those
             3662      contracts in excess of the funding already authorized by the Legislature.
             3663          (c) Those contracts shall contain a provision for termination of the contract for the
             3664      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3665          (d) It is also the intent of the Legislature that this authorization to the division does not
             3666      bind future Legislatures to fund projects initiated from this authorization.
             3667          Section 73. Section 63C-7-210 is amended to read:
             3668           63C-7-210. Exemption from certain acts.
             3669          (1) The Utah Communications Agency Network is exempt from:
             3670          (a) Title 63J, Chapter 1, Budgetary Procedures Act;
             3671          (b) Title 63A, Utah Administrative Services Code, except as provided in Section
             3672      63A-4-205.5 ;
             3673          (c) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             3674          (d) Title 63G, Chapter 4, Administrative Procedures Act; and
             3675          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
             3676          (2) The board shall adopt budgetary procedures, accounting, procurement, and
             3677      personnel policies substantially similar to those from which they have been exempted in
             3678      Subsection (1).
             3679          Section 74. Section 63C-9-301 is amended to read:
             3680           63C-9-301. Board powers -- Subcommittees.
             3681          (1) The board shall:
             3682          (a) except as provided in Subsection (2), exercise complete jurisdiction and
             3683      stewardship over capitol hill facilities, capitol hill grounds, and the capitol hill complex;
             3684          (b) preserve, maintain, and restore the capitol hill complex, capitol hill facilities,
             3685      capitol hill grounds, and their contents;


             3686          (c) before October 1 of each year, review and approve the executive director's annual
             3687      budget request for submittal to the governor and Legislature;
             3688          (d) by October 1 of each year, prepare and submit a recommended budget request for
             3689      the upcoming fiscal year for the capitol hill complex to:
             3690          (i) the governor, through the Governor's Office of Planning and Budget; and
             3691          (ii) the Legislature's appropriations subcommittee responsible for capitol hill facilities,
             3692      through the Office of Legislative Fiscal Analyst;
             3693          (e) review and approve the executive director's:
             3694          (i) annual work plan;
             3695          (ii) long-range master plan for the capitol hill complex, capitol hill facilities, and
             3696      capitol hill grounds; and
             3697          (iii) furnishings plan for placement and care of objects under the care of the board;
             3698          (f) approve all changes to the buildings and their grounds, including:
             3699          (i) restoration, remodeling, and rehabilitation projects;
             3700          (ii) usual maintenance program; and
             3701          (iii) any transfers or loans of objects under the board's care;
             3702          (g) define and identify all significant aspects of the capitol hill complex, capitol hill
             3703      facilities, and capitol hill grounds, after consultation with the:
             3704          (i) Division of Facilities Construction and Management;
             3705          (ii) State Library Division;
             3706          (iii) Division of Archives and Records Service;
             3707          (iv) Division of State History;
             3708          (v) Office of Museum Services; and
             3709          (vi) Arts Council;
             3710          (h) inventory, define, and identify all significant contents of the buildings and all
             3711      state-owned items of historical significance that were at one time in the buildings, after
             3712      consultation with the:
             3713          (i) Division of Facilities Construction and Management;
             3714          (ii) State Library Division;
             3715          (iii) Division of Archives and Records Service;
             3716          (iv) Division of State History;


             3717          (v) Office of Museum Services; and
             3718          (vi) Arts Council;
             3719          (i) maintain archives relating to the construction and development of the buildings, the
             3720      contents of the buildings and their grounds, including documents such as plans, specifications,
             3721      photographs, purchase orders, and other related documents, the original copies of which shall
             3722      be maintained by the Division of Archives and Records Service;
             3723          (j) comply with federal and state laws related to program and facility accessibility; and
             3724          (k) establish procedures for receiving, hearing, and deciding complaints or other issues
             3725      raised about the capitol hill complex, capitol hill facilities, and capitol hill grounds, or their
             3726      use.
             3727          (2) (a) Notwithstanding Subsection (1)(a), the supervision and control of the legislative
             3728      area, as defined in Section 36-5-1 , is reserved to the Legislature; and
             3729          (b) the supervision and control of the governor's area, as defined in Section 67-1-16 , is
             3730      reserved to the governor.
             3731          (3) (a) The board shall make rules to govern, administer, and regulate the capitol hill
             3732      complex, capitol hill facilities, and capitol hill grounds by following the procedures and
             3733      requirements of Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             3734          (b) A person who violates a rule adopted by the board under the authority of this
             3735      Subsection (3) is subject to a civil penalty not to exceed $2,500 for each violation, plus the
             3736      amount of any actual damages, expenses, and costs related to the violation of the rule that are
             3737      incurred by the state.
             3738          (c) The board may take any other legal action allowed by law.
             3739          (d) If any violation of a rule adopted by the board is also an offense under Title 76,
             3740      Utah Criminal Code, the violation is subject to the civil penalty, damages, expenses, and costs
             3741      allowed under this Subsection (3) in addition to any criminal prosecution.
             3742          (e) The board may not apply this section or rules adopted under the authority of this
             3743      section in a manner that violates a person's rights under the Utah Constitution or the First
             3744      Amendment to the United States Constitution, including the right of persons to peaceably
             3745      assemble.
             3746          (f) The board shall send proposed rules under this section to the legislative general
             3747      counsel and the governor's general counsel for review and comment before the board adopts the


             3748      rules.
             3749          (4) The board is exempt from the requirements of Title 63G, Chapter [6] 6a, Utah
             3750      Procurement Code, but shall adopt procurement rules substantially similar to the requirements
             3751      of that chapter.
             3752          (5) (a) The board may:
             3753          (i) establish subcommittees made up of board members and members of the public to
             3754      assist and support the executive director in accomplishing the executive director's duties;
             3755          (ii) establish fees for the use of capitol hill facilities and capitol hill grounds;
             3756          (iii) assign and allocate specific duties and responsibilities to any other state agency, if
             3757      the other agency agrees to perform the duty or accept the responsibility;
             3758          (iv) contract with another state agency to provide services;
             3759          (v) delegate by specific motion of the board any authority granted to it by this section
             3760      to the executive director;
             3761          (vi) in conjunction with Salt Lake City, expend money to improve or maintain public
             3762      property contiguous to East Capitol Boulevard and capitol hill;
             3763          (vii) provide wireless Internet service to the public without a fee in any capitol hill
             3764      facility; and
             3765          (viii) when necessary, consult with the:
             3766          (A) Division of Facilities Construction and Management;
             3767          (B) State Library Division;
             3768          (C) Division of Archives and Records Service;
             3769          (D) Division of State History;
             3770          (E) Office of Museum Services; and
             3771          (F) Arts Council.
             3772          (b) The board's provision of wireless Internet service under Subsection (5)(a)(vii) shall
             3773      be discontinued in the legislative area if the president of the Senate and the speaker of the
             3774      House of Representatives each submit a signed letter to the board indicating that the service is
             3775      disruptive to the legislative process and is to be discontinued.
             3776          (c) If a budget subcommittee is established by the board, the following shall serve as ex
             3777      officio, nonvoting members of the budget subcommittee:
             3778          (i) the legislative fiscal analyst, or the analyst's designee, who shall be from the Office


             3779      of Legislative Fiscal Analyst; and
             3780          (ii) the director of the Governor's Office of Planning and Budget, or the director's
             3781      designee, who shall be from the Governor's Office of Planning and Budget.
             3782          (d) If a preservation and maintenance subcommittee is established by the board, the
             3783      board may, by majority vote, appoint one or each of the following to serve on the
             3784      subcommittee as voting members of the subcommittee:
             3785          (i) an architect, who shall be selected from a list of three architects submitted by the
             3786      American Institute of Architects; or
             3787          (ii) an engineer, who shall be selected from a list of three engineers submitted by the
             3788      American Civil Engineers Council.
             3789          (e) If the board establishes any subcommittees, the board may, by majority vote,
             3790      appoint up to two people who are not members of the board to serve, at the will of the board, as
             3791      nonvoting members of a subcommittee.
             3792          (f) Members of each subcommittee shall, at the first meeting of each calendar year,
             3793      select one individual to act as chair of the subcommittee for a one-year term.
             3794          (6) (a) The board, and the employees of the board, may not move the office of the
             3795      governor, lieutenant governor, president of the Senate, speaker of the House of
             3796      Representatives, or a member of the Legislature from the State Capitol unless the removal is
             3797      approved by:
             3798          (i) the governor, in the case of the governor's office;
             3799          (ii) the lieutenant governor, in the case of the lieutenant governor's office;
             3800          (iii) the president of the Senate, in the case of the president's office or the office of a
             3801      member of the Senate; or
             3802          (iv) the speaker of the House of Representatives, in the case of the speaker's office or
             3803      the office of a member of the House.
             3804          (b) The board and the employees of the board have no control over the furniture,
             3805      furnishings, and decorative objects in the offices of the governor, lieutenant governor, or the
             3806      members of the Legislature except as necessary to inventory or conserve items of historical
             3807      significance owned by the state.
             3808          (c) The board and the employees of the board have no control over records and
             3809      documents produced by or in the custody of a state agency, official, or employee having an


             3810      office in a building on the capitol hill complex.
             3811          (d) Except for items identified by the board as having historical significance, and
             3812      except as provided in Subsection (6)(b), the board and the employees of the board have no
             3813      control over moveable furnishings and equipment in the custody of a state agency, official, or
             3814      employee having an office in a building on the capitol hill complex.
             3815          Section 75. Section 63C-9-403 is amended to read:
             3816           63C-9-403. Contracting power of executive director -- Health insurance coverage.
             3817          (1) For purposes of this section:
             3818          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
             3819      34A-2-104 who:
             3820          (i) works at least 30 hours per calendar week; and
             3821          (ii) meets employer eligibility waiting requirements for health care insurance which
             3822      may not exceed the first of the calendar month following 90 days from the date of hire.
             3823          (b) "Health benefit plan" has the same meaning as provided in Section 31A-1-301 .
             3824          (c) "Qualified health insurance coverage" is as defined in Section 26-40-115 .
             3825          (d) "Subcontractor" has the same meaning provided for in Section 63A-5-208 .
             3826          (2) (a) Except as provided in Subsection (3), this section applies to a design or
             3827      construction contract entered into by the board or on behalf of the board on or after July 1,
             3828      2009, and to a prime contractor or a subcontractor in accordance with Subsection (2)(b).
             3829          (b) (i) A prime contractor is subject to this section if the prime contract is in the
             3830      amount of $1,500,000 or greater.
             3831          (ii) A subcontractor is subject to this section if a subcontract is in the amount of
             3832      $750,000 or greater.
             3833          (3) This section does not apply if:
             3834          (a) the application of this section jeopardizes the receipt of federal funds;
             3835          (b) the contract is a sole source contract; or
             3836          (c) the contract is an emergency procurement.
             3837          (4) (a) This section does not apply to a change order as defined in Section [ 63G-6-103 ]
             3838      63G-6a-103 , or a modification to a contract, when the contract does not meet the initial
             3839      threshold required by Subsection (2).
             3840          (b) A person who intentionally uses change orders or contract modifications to


             3841      circumvent the requirements of Subsection (2) is guilty of an infraction.
             3842          (5) (a) A contractor subject to Subsection (2) shall demonstrate to the executive
             3843      director that the contractor has and will maintain an offer of qualified health insurance
             3844      coverage for the contractor's employees and the employees' dependents during the duration of
             3845      the contract.
             3846          (b) If a subcontractor of the contractor is subject to Subsection (2)(b), the contractor
             3847      shall demonstrate to the executive director that the subcontractor has and will maintain an offer
             3848      of qualified health insurance coverage for the subcontractor's employees and the employees'
             3849      dependents during the duration of the contract.
             3850          (c) (i) (A) A contractor who fails to meet the requirements of Subsection (5)(a) during
             3851      the duration of the contract is subject to penalties in accordance with administrative rules
             3852      adopted by the division under Subsection (6).
             3853          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
             3854      requirements of Subsection (5)(b).
             3855          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
             3856      the duration of the contract is subject to penalties in accordance with administrative rules
             3857      adopted by the department under Subsection (6).
             3858          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
             3859      requirements of Subsection (5)(a).
             3860          (6) The department shall adopt administrative rules:
             3861          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             3862          (b) in coordination with:
             3863          (i) the Department of Environmental Quality in accordance with Section 19-1-206 ;
             3864          (ii) the Department of Natural Resources in accordance with Section 79-2-404 ;
             3865          (iii) the State Building Board in accordance with Section 63A-5-205 ;
             3866          (iv) a public transit district in accordance with Section 17B-2a-818.5 ;
             3867          (v) the Department of Transportation in accordance with Section 72-6-107.5 ; and
             3868          (vi) the Legislature's Administrative Rules Review Committee; and
             3869          (c) which establish:
             3870          (i) the requirements and procedures a contractor must follow to demonstrate to the
             3871      executive director compliance with this section which shall include:


             3872          (A) that a contractor will not have to demonstrate compliance with Subsection (5)(a) or
             3873      (b) more than twice in any 12-month period; and
             3874          (B) that the actuarially equivalent determination required for the qualified health
             3875      insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
             3876      department or division with a written statement of actuarial equivalency from either:
             3877          (I) the Utah Insurance Department;
             3878          (II) an actuary selected by the contractor or the contractor's insurer; or
             3879          (III) an underwriter who is responsible for developing the employer group's premium
             3880      rates;
             3881          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
             3882      violates the provisions of this section, which may include:
             3883          (A) a three-month suspension of the contractor or subcontractor from entering into
             3884      future contracts with the state upon the first violation;
             3885          (B) a six-month suspension of the contractor or subcontractor from entering into future
             3886      contracts with the state upon the second violation;
             3887          (C) an action for debarment of the contractor or subcontractor in accordance with
             3888      Section [ 63G-6-804 ] 63G-6a-904 upon the third or subsequent violation; and
             3889          (D) monetary penalties which may not exceed 50% of the amount necessary to
             3890      purchase qualified health insurance coverage for employees and dependents of employees of
             3891      the contractor or subcontractor who were not offered qualified health insurance coverage
             3892      during the duration of the contract; and
             3893          (iii) a website on which the department shall post the benchmark for the qualified
             3894      health insurance coverage identified in Subsection (1)(c).
             3895          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c), a contractor or
             3896      subcontractor who intentionally violates the provisions of this section shall be liable to the
             3897      employee for health care costs that would have been covered by qualified health insurance
             3898      coverage.
             3899          (ii) An employer has an affirmative defense to a cause of action under Subsection
             3900      (7)(a)(i) if:
             3901          (A) the employer relied in good faith on a written statement of actuarial equivalency
             3902      provided by:


             3903          (I) an actuary; or
             3904          (II) an underwriter who is responsible for developing the employer group's premium
             3905      rates; or
             3906          (B) the department determines that compliance with this section is not required under
             3907      the provisions of Subsection (3) or (4).
             3908          (b) An employee has a private right of action only against the employee's employer to
             3909      enforce the provisions of this Subsection (7).
             3910          (8) Any penalties imposed and collected under this section shall be deposited into the
             3911      Medicaid Restricted Account created in Section 26-18-402 .
             3912          (9) The failure of a contractor or subcontractor to provide qualified health insurance
             3913      coverage as required by this section:
             3914          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
             3915      or contractor under Section [ 63G-6-801 ] 63G-6a-1603 or any other provision in Title 63G,
             3916      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code; and
             3917          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
             3918      contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
             3919      or construction.
             3920          Section 76. Section 63E-2-109 is amended to read:
             3921           63E-2-109. State statutes.
             3922          (1) Except as specifically modified in its authorizing statute, each independent
             3923      corporation shall be exempt from the statutes governing state agencies, including:
             3924          (a) Title 51, Chapter 5, Funds Consolidation Act;
             3925          (b) Title 51, Chapter 7, State Money Management Act;
             3926          (c) Title 63A, Utah Administrative Services Code;
             3927          (d) Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             3928          (e) Title 63G, Chapter 4, Administrative Procedures Act;
             3929          (f) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             3930          (g) Title 63J, Chapter 1, Budgetary Procedures Act;
             3931          (h) Title 63J, Chapter 2, Revenue Procedures and Control Act; and
             3932          (i) Title 67, Chapter 19, Utah Personnel Management Act.
             3933          (2) Except as specifically modified in its authorizing statute, each independent


             3934      corporation shall be subject to:
             3935          (a) Title 52, Chapter 4, Open and Public Meetings Act; and
             3936          (b) Title 63G, Chapter 2, Government Records Access and Management Act.
             3937          (3) Each independent corporation board may adopt its own policies and procedures
             3938      governing its:
             3939          (a) funds management;
             3940          (b) audits; and
             3941          (c) personnel.
             3942          Section 77. Section 63F-1-205 is amended to read:
             3943           63F-1-205. Approval of acquisitions of information technology.
             3944          (1) (a) Except as provided in Title 63M, Chapter 1, Part 26, Government Procurement
             3945      Private Proposal Program, in accordance with Subsection (2), the chief information officer
             3946      shall approve the acquisition by an executive branch agency of:
             3947          (i) information technology equipment;
             3948          (ii) telecommunications equipment;
             3949          (iii) software;
             3950          (iv) services related to the items listed in Subsections (1)(a)(i) through (iii); and
             3951          (v) data acquisition.
             3952          (b) The chief information officer may negotiate the purchase, lease, or rental of private
             3953      or public information technology or telecommunication services or facilities in accordance with
             3954      this section.
             3955          (c) Where practical, efficient, and economically beneficial, the chief information
             3956      officer shall use existing private and public information technology or telecommunication
             3957      resources.
             3958          (d) Notwithstanding another provision of this section, an acquisition authorized by this
             3959      section shall comply with rules made by the [State Procurement Policy Board] applicable
             3960      rulemaking authority under Title 63G, Chapter [6] 6a, Utah Procurement Code.
             3961          (2) Before negotiating a purchase, lease, or rental under Subsection (1) for an amount
             3962      that exceeds the value established by the chief information officer by rule in accordance with
             3963      Section 63F-1-206 , the chief information officer shall:
             3964          (a) conduct an analysis of the needs of executive branch agencies and subscribers of


             3965      services and the ability of the proposed information technology or telecommunications services
             3966      or supplies to meet those needs; and
             3967          (b) for purchases, leases, or rentals not covered by an existing statewide contract,
             3968      provide in writing to the chief procurement officer in the Division of Purchasing and General
             3969      Services that:
             3970          (i) the analysis required in Subsection (2)(a) was completed; and
             3971          (ii) based on the analysis, the proposed purchase, lease, rental, or master contract of
             3972      services, products, or supplies is practical, efficient, and economically beneficial to the state
             3973      and the executive branch agency or subscriber of services.
             3974          (3) In approving an acquisition described in Subsections (1) and (2), the chief
             3975      information officer shall:
             3976          (a) establish by administrative rule, in accordance with Section 63F-1-206 , standards
             3977      under which an agency must obtain approval from the chief information officer before
             3978      acquiring the items listed in Subsections (1) and (2);
             3979          (b) for those acquisitions requiring approval, determine whether the acquisition is in
             3980      compliance with:
             3981          (i) the executive branch strategic plan;
             3982          (ii) the applicable agency information technology plan;
             3983          (iii) the budget for the executive branch agency or department as adopted by the
             3984      Legislature; and
             3985          (iv) Title 63G, Chapter [6] 6a, Utah Procurement Code; and
             3986          (c) in accordance with Section 63F-1-207 , require coordination of acquisitions between
             3987      two or more executive branch agencies if it is in the best interests of the state.
             3988          (4) (a) Each executive branch agency shall provide the chief information officer with
             3989      complete access to all information technology records, documents, and reports:
             3990          (i) at the request of the chief information officer; and
             3991          (ii) related to the executive branch agency's acquisition of any item listed in Subsection
             3992      (1).
             3993          (b) Beginning July 1, 2006 and in accordance with administrative rules established by
             3994      the department under Section 63F-1-206 , no new technology projects may be initiated by an
             3995      executive branch agency or the department unless the technology project is described in a


             3996      formal project plan and the business case analysis has been approved by the chief information
             3997      officer and agency head. The project plan and business case analysis required by this
             3998      Subsection (4) shall be in the form required by the chief information officer, and shall include:
             3999          (i) a statement of work to be done and existing work to be modified or displaced;
             4000          (ii) total cost of system development and conversion effort, including system analysis
             4001      and programming costs, establishment of master files, testing, documentation, special
             4002      equipment cost and all other costs, including overhead;
             4003          (iii) savings or added operating costs that will result after conversion;
             4004          (iv) other advantages or reasons that justify the work;
             4005          (v) source of funding of the work, including ongoing costs;
             4006          (vi) consistency with budget submissions and planning components of budgets; and
             4007          (vii) whether the work is within the scope of projects or initiatives envisioned when the
             4008      current fiscal year budget was approved.
             4009          (5) (a) The chief information officer and the Division of Purchasing and General
             4010      Services shall work cooperatively to establish procedures under which the chief information
             4011      officer shall monitor and approve acquisitions as provided in this section.
             4012          (b) The procedures established under this section shall include at least the written
             4013      certification required by Subsection [ 63G-6-204 (8)] 63G-6a-303 (5).
             4014          Section 78. Section 63G-6a-101 , which is renumbered from Section 63G-6-101 is
             4015      renumbered and amended to read:
             4016     
CHAPTER 6a. UTAH PROCUREMENT CODE

             4017     
Part 1. General Procurement Provisions

             4018           [63G-6-101].     63G-6a-101. Title.
             4019          (1) This chapter is known as the "Utah Procurement Code."
             4020          (2) This part is known as "General Procurement Provisions."
             4021          Section 79. Section 63G-6a-102 , which is renumbered from Section 63G-6-102 is
             4022      renumbered and amended to read:
             4023           [63G-6-102].     63G-6a-102. Purpose of chapter.
             4024          The underlying purposes and policies of this chapter are:
             4025          (1) to simplify, clarify, and modernize the law governing procurement by this state;
             4026          (2) to ensure the fair and equitable treatment of all persons who deal with the


             4027      procurement system of this state;
             4028          (3) to provide increased economy in state procurement activities; and
             4029          (4) to foster effective broad-based competition within the free enterprise system.
             4030          Section 80. Section 63G-6a-103 , which is renumbered from Section 63G-6-103 is
             4031      renumbered and amended to read:
             4032           [63G-6-103].     63G-6a-103. Definitions.
             4033          As used in this chapter:
             4034          (1) "Appeals board" means:
             4035          (a) the Procurement Appeals Board created under Subsection 63G-6a-1702 (1); or
             4036          (b) a board created under Subsection 63G-6a-1702 (5).
             4037          (2) "Applicable rulemaking authority" means:
             4038          (a) as it relates to the state legislative branch, the Legislative Management Committee,
             4039      except to the extent that the Legislature passes a rule that supercedes or conflicts with a rule
             4040      made by the Legislative Management Committee;
             4041          (b) as it relates to the state judicial branch, the Judicial Council;
             4042          (c) as it relates to a local public procurement unit, other than a local public
             4043      procurement unit described in Subsections (2)(d) through (f), the board; or
             4044          (d) as it relates to a municipality or county that adopts this chapter, the legislative body
             4045      of the municipality or county, not as a delegation of authority from the Legislature, but under
             4046      the municipality's or county's own legislative authority;
             4047          (e) as it relates to a school district or a public school, the Procurement Policy Board,
             4048      except to the extent that a school district makes its own non-administrative rules, with respect
             4049      to a particular subject, that do not conflict with the provisions of this chapter;
             4050          (f) as it relates to a state institution of higher education, the State Board of Regents;
             4051          (g) as it relates to the following entities, but only to the extent that the rules relate to
             4052      procurement authority expressly granted to the entity by statute:
             4053          (i) the State Building Board, created in Section 63A-5-101 ;
             4054          (ii) the Division of Facilities Construction and Management created in Section
             4055      63A-5-201 ;
             4056          (iii) the attorney general's office; or
             4057          (iv) the Department of Transportation, created in Section 72-1-201 ;


             4058          (h) as it relates to the state executive branch and all public procurement units other than
             4059      those described in Subsections (2)(a) through (f), the board; or
             4060          (i) as it relates to an entity described in Subsection (2)(g), except to the extent that the
             4061      rules relate to procurement authority expressly granted to the entity by statute, the board.
             4062          [(1)] (3) "Architect-engineer services" [are those] means:
             4063          (a) professional services within the scope of the practice of architecture as defined in
             4064      Section 58-3a-102 [,] or
             4065          (b) professional engineering as defined in Section 58-22-102 .
             4066          [(2) "Business" means any corporation, partnership, individual, sole proprietorship,
             4067      joint stock company, joint venture, or any other private legal entity.]
             4068          (4) "Bidder" means a person who responds to an invitation for bids.
             4069          (5) "Board" means the Utah State Procurement Policy Board, created in Section
             4070      63G-6a-202 .
             4071          (6) "Building Board" means the State Building Board created in Section 63A-5-101 .
             4072          [(3)] (7) "Change order" means:
             4073          (a) a written order signed by the procurement officer[, directing] that directs the
             4074      contractor to suspend work or make changes, [which the appropriate clauses of the contract
             4075      authorize the procurement officer to order] as authorized by contract, without the consent of the
             4076      contractor; or [any]
             4077          (b) a written alteration in specifications, delivery point, rate of delivery, period of
             4078      performance, price, quantity, or other provisions of [any contract accomplished by mutual
             4079      action] a contract, upon mutual agreement of the parties to the contract.
             4080          (8) "Chief procurement officer" means the chief procurement officer appointed under
             4081      Subsection 63G-6a-302 (1).
             4082          [(4)] (9) (a) "Construction" means the process of building, [renovation, alteration,
             4083      improvement, or repair of any] renovating, altering, improving, or repairing a public building
             4084      or public work.
             4085          (b) "Construction" does not [mean] include the routine operation, routine repair, or
             4086      routine maintenance of an existing [structures, buildings] structure, building, or real property.
             4087          [(5)] (10) (a) "Construction manager/general contractor" means [any] a contractor who
             4088      enters into a contract for the management of a construction project when [that] the contract


             4089      allows the contractor to subcontract for additional labor and materials that [were] are not
             4090      included in the contractor's cost proposal submitted at the time of the procurement of the
             4091      [Construction Manager/General] contractor's services.
             4092          (b) "Construction manager/general contractor" does not [mean] include a contractor
             4093      whose only subcontract work not included in the contractor's cost proposal submitted as part of
             4094      the procurement of [construction] the contractor's services is to meet subcontracted portions of
             4095      change orders approved within the scope of the project.
             4096          [(6)] (11) "Contract" means [any state] an agreement for the procurement or disposal of
             4097      [supplies, services, or construction] a procurement item.
             4098          (12) "Contractor" means a person who is awarded a contract with a public procurement
             4099      unit.
             4100          [(7)] (13) "Cooperative purchasing" means procurement conducted by, or on behalf of,
             4101      more than one public procurement unit, or by a public procurement unit [with] and an external
             4102      procurement unit.
             4103          [(8)] (14) "Cost-reimbursement contract" means a contract under which a contractor is
             4104      reimbursed for costs which are allowed and allocated in accordance with the contract terms and
             4105      the provisions of this chapter, and a fee, if any.
             4106          (15) "Days" means calendar days, unless expressly provided otherwise.
             4107          [(9) (a)] (16) "Design-build" means the procurement of architect-engineer services and
             4108      construction by the use of a single contract with the design-build provider.
             4109          [(b) This method of design and construction can include the design-build provider
             4110      supplying the site as part of the contract.]
             4111          (17) "Director" means the director of the division.
             4112          (18) "Division" means the Division of Purchasing and General Services.
             4113          [(10)] (19) "Established catalogue price" means the price included in a catalogue, price
             4114      list, schedule, or other form that:
             4115          (a) is regularly maintained by a manufacturer or contractor;
             4116          (b) is either published or otherwise available for inspection by customers; and
             4117          (c) states prices at which sales are currently or were last made to a significant number
             4118      of any category of buyers or buyers constituting the general buying public for the supplies or
             4119      services involved.


             4120          [(11) "External procurement unit" means any buying organization not located in this
             4121      state which, if located in this state, would qualify as a public procurement unit. An agency of
             4122      the United States is an external procurement unit.]
             4123          [(12)] (20) (a) "Grant" means [the] furnishing, by [the state] a public entity or by any
             4124      other public or private source [assistance, whether financial or otherwise, to any], financial or
             4125      other assistance to a person to support a program authorized by law. [It]
             4126          (b) "Grant" does not include:
             4127          (i) an award whose primary purpose is to procure an end product[, whether in the form
             4128      of supplies, services, or construction. A contract resulting from the award is not a grant but a
             4129      procurement contract.] or procurement item; or
             4130          (ii) a contract that is awarded as a result of a procurement or a procurement process.
             4131          [(13) "Invitation for bids" means all documents, whether attached or incorporated by
             4132      reference, utilized for soliciting bids.]
             4133          [(14) "Local public procurement unit" means any political subdivision or institution of
             4134      higher education of the state or public agency of any subdivision, public authority, educational,
             4135      health, or other institution, and to the extent provided by law, any other entity which expends
             4136      public funds for the procurement of supplies, services, and construction, but not counties,
             4137      municipalities, political subdivisions created by counties or municipalities under the Interlocal
             4138      Cooperation Act, the Utah Housing Corporation, or the Legislature and its staff offices. It
             4139      includes two or more local public procurement units acting under legislation which authorizes
             4140      intergovernmental cooperation.]
             4141          [(15) "Person" means any business, individual, union, committee, club, other
             4142      organization, or group of individuals, not including a state agency or a local public
             4143      procurement unit.]
             4144          [(16) "Policy board" means the procurement policy board created by Section
             4145      63G-6-201 .]
             4146          (21) "Head of a public procurement unit" means:
             4147          (a) as it relates to the state legislative branch, any person designated by legislative rule;
             4148          (b) as it relates to the state executive branch:
             4149          (i) the director of a division; or
             4150          (ii) any other person designated by the board, by rule;


             4151          (c) as it relates to the state judicial branch:
             4152          (i) the Judicial Council; or
             4153          (ii) any other person designated by the Judicial Council, by rule;
             4154          (d) as it relates to a local public procurement unit, other than a local public
             4155      procurement unit described in Subsections (21)(e) through (h):
             4156          (i) the appointed or elected head of the local public procurement unit; or
             4157          (ii) any other person designated by the board, by rule;
             4158          (e) as it relates to a local public procurement unit that is a municipality or a county:
             4159          (i) the legislative body of the municipality or county; or
             4160          (ii) any other person designated by the municipality or county;
             4161          (f) as it relates to a school district or any school or entity within a school district, the
             4162      board of the school district, or the board's designee;
             4163          (g) as it relates to a charter school, the individual or body with executive authority over
             4164      the charter school, or the individual's or body's designee; or
             4165          (h) as it relates to an institution of higher education of the state, the president of the
             4166      institution of higher education, or the president's designee.
             4167          (22) "Head of an authorized purchasing entity" means:
             4168          (a) as it relates to the division, the chief procurement officer;
             4169          (b) to the extent that the entities have express statutory authority to engage in a
             4170      procurement without the involvement of the division:
             4171          (i) as it relates to the State Building Board, created in Section 63A-5-101 , the State
             4172      Building Board;
             4173          (ii) as it relates to the Division of Facilities Construction and Management created in
             4174      Section 63A-5-201 , the director of the Division of Facilities Construction and Management;
             4175          (iii) as it relates to the attorney general's office, the attorney general;
             4176          (iv) as it relates to the Department of Transportation, created in Section 72-1-201 , the
             4177      executive director of the Department of Transportation; or
             4178          (v) as it relates to a district court, a person designated by the Judicial Council, by rule;
             4179          (c) as it relates to an institution of higher education of the state, the president of the
             4180      institution of higher education of the state;
             4181          (d) as it relates to a school district, the board of the school district;


             4182          (e) as it relates to a public school, including a local school board, the board of the
             4183      school district;
             4184          (f) as it relates to a charter school, a person designated by the charter school; or
             4185          (g) as it relates to a non-executive state procurement unit, a person designated by the
             4186      applicable rulemaking authority.
             4187          (23) "Invitation for bids" includes all documents, including documents that are attached
             4188      or incorporated by reference, used for soliciting bids to provide a procurement item to a public
             4189      procurement unit.
             4190          (24) "Multiple award contracts" means the award of a contract for an indefinite
             4191      quantity of a procurement item to more than one bidder or offeror.
             4192          (25) "Multiyear contract" means a contract that extends beyond a one-year period,
             4193      including a contract that permits renewal of the contract, without competition, beyond the first
             4194      year of the contract.
             4195          (26) "Municipality" means a city or a town.
             4196          (27) "Offeror" means a person who responds to a request for proposals.
             4197          [(17)] (28) "Preferred bidder" means a bidder that is entitled to receive a reciprocal
             4198      preference under the requirements of this chapter.
             4199          [(18)] (29) (a) "Procure" or "procurement" means buying, purchasing, renting, leasing,
             4200      leasing with an option to purchase, or otherwise acquiring [any supplies, services, or
             4201      construction. It also] a procurement item.
             4202          (b) "Procure" or "procurement" includes all functions that pertain to the obtaining of
             4203      [any supply, service, or construction] a procurement item, including:
             4204          (i) the description of requirements[,];
             4205          (ii) the selection[, and] process;
             4206          (iii) solicitation of sources[,];
             4207          (iv) the preparation[, and] for soliciting a procurement item;
             4208          (v) the award of a contract[,]; and
             4209          (vi) all phases of contract administration.
             4210          [(19) "Procurement officer" means any person or board duly authorized to enter into
             4211      and administer contracts and make written determinations with respect thereto. It also includes
             4212      an authorized representative acting within the limits of authority.]


             4213          [(20) "Public procurement unit" means either a local public procurement unit or a state
             4214      public procurement unit.]
             4215          [(21) "Purchase description" means the words used in a solicitation to describe the
             4216      supplies, services, or construction to be purchased, and includes specifications attached to or
             4217      made a part of the solicitation.]
             4218          [(22) "Purchasing agency" means any state agency other than the Division of
             4219      Purchasing and General Services that is authorized by this chapter or its implementing
             4220      regulations, or by delegation from the chief procurement officer, to enter into contracts.]
             4221          [(23) "Request for proposals" means all documents, whether attached or incorporated
             4222      by reference, used for soliciting proposals.]
             4223          [(24) "Responsible bidder or offeror" means a person who has the capability in all
             4224      respects to perform fully the contract requirements and who has the integrity and reliability
             4225      which will assure good faith performance.]
             4226          [(25) "Responsive bidder" means a person who has submitted a bid which conforms in
             4227      all material respects to the invitation for bids.]
             4228          (30) "Procurement item" means a supply, a service, construction, or technology.
             4229          (31) "Procurement officer" means:
             4230          (a) as it relates to the state legislative branch, the head of a public procurement unit in
             4231      the legislative branch;
             4232          (b) as it relates to the state judicial branch, the head of a public procurement unit in the
             4233      state judicial branch;
             4234          (c) as it relates to the state executive branch, the chief procurement officer;
             4235          (d) as it relates to a local public procurement unit other than a local public procurement
             4236      unit described in Subsection (31)(e) or (f), the chief procurement officer;
             4237          (e) as it relates to a municipality or county that adopts this chapter, the legislative body
             4238      of the municipality or county; or
             4239          (f) as it relates to a state purchasing unit, the head of the state purchasing unit, or a
             4240      designee of the head of the state purchasing unit.
             4241          (32) "Professional service" means a service that requires a high degree of specialized
             4242      knowledge and discretion in the performance of the service, including:
             4243          (a) legal services;


             4244          (b) consultation services;
             4245          (c) architectural services;
             4246          (d) engineering;
             4247          (e) design;
             4248          (f) underwriting;
             4249          (g) bond counsel;
             4250          (h) financial advice; or
             4251          (i) construction management.
             4252          (33) "Request for information" means a nonbinding process where a public
             4253      procurement unit requests information relating to a procurement item.
             4254          (34) "Request for proposals" includes all documents, including documents that are
             4255      attached or incorporated by reference, used for soliciting proposals to provide a procurement
             4256      item to a public procurement unit.
             4257          (35) "Responsible" means that a bidder or offeror:
             4258          (i) is capable, in all respects, to fully perform the contract requirements solicited in an
             4259      invitation for bids or a request for proposals; and
             4260          (ii) has the integrity and reliability to ensure good faith performance.
             4261          (36) "Responsive" means that a bidder or offeror submits a response to an invitation for
             4262      bids or a request for proposals that conforms in all material respects to the invitation for bids or
             4263      request for proposals.
             4264          [(26)] (37) "Sealed" [does not preclude acceptance of] means manually or
             4265      electronically sealed and submitted bids or proposals [in addition to bids or proposals manually
             4266      sealed and submitted].
             4267          [(27)] (38) (a) "Services" means the furnishing of labor, time, or effort by a contractor,
             4268      not involving the delivery of a specific end product other than [reports which are merely] a
             4269      report that is incidental to the required performance. [It]
             4270          (b) "Services" does not include an employment [agreements] agreement or a collective
             4271      bargaining [agreements] agreement.
             4272          [(28)] (39) "Specification" means any description of the physical or functional
             4273      characteristics, or [of the] nature of a [supply, service, technology, or construction item. It may
             4274      include] procurement item included in an invitation for bids or a request for proposals, or


             4275      otherwise specified or agreed to by a public procurement unit, including a description of [any]:
             4276          (a) a requirement for inspecting[, testing,] or testing a procurement item; or
             4277          (b) preparing a [supply, service, technology, or construction] procurement item for
             4278      delivery.
             4279          [(29) "State agency" or "the state" means any department, division, commission,
             4280      council, board, bureau, committee, institution, government corporation, or other establishment,
             4281      official, or employee of this state.]
             4282          [(30) "State public procurement unit" means the Division of Purchasing and General
             4283      Services and any other purchasing agency of this state.]
             4284          (40) "Standard procurement process" means one of the following methods of obtaining
             4285      a procurement item:
             4286          (a) bidding, as described in Part 6, Bidding;
             4287          (b) request for proposals, as described in Part 7, Request for Proposals; or
             4288          (c) small purchases, in accordance with the requirements established under Section
             4289      63G-6a-408 .
             4290          (41) (a) "Subcontractor" means a person under contract with a contractor or another
             4291      subcontractor to provide services or labor for design or construction.
             4292          (b) "Subcontractor" includes a trade contractor or specialty contractor.
             4293          (c) "Subcontractor" does not include a supplier who provides only materials,
             4294      equipment, or supplies to a contractor or subcontractor.
             4295          [(31)] (42) "Supplies" means all property, including equipment, materials, and printing.
             4296          [(32) "Using agency" means any state agency which utilizes any supplies, services, or
             4297      construction procured under this chapter.]
             4298          (43) "Tie bid" means that the lowest responsive and responsible bids are identical in
             4299      price.
             4300          Section 81. Section 63G-6a-104 is enacted to read:
             4301          63G-6a-104. Definitions of government entities.
             4302          As used in this chapter:
             4303          (1) "Authorized purchasing entity" means:
             4304          (a) a non-executive state procurement unit; or
             4305          (b) a state purchasing unit.


             4306          (2) "External procurement unit" means:
             4307          (a) a buying organization not located in this state which, if located in this state, would
             4308      qualify as a public procurement unit; or
             4309          (b) an agency of the United States.
             4310          (3) "Local government unit" means:
             4311          (a) a county;
             4312          (b) a municipality;
             4313          (c) a political subdivision created by counties or municipalities under Title 11, Chapter
             4314      13, Interlocal Cooperation Act; or
             4315          (d) the Utah Housing Corporation.
             4316          (4) "Local public procurement unit" means:
             4317          (a) a local district, as defined in Section 17B-1-102 ;
             4318          (b) a special service district, as defined in Section 17D-1-102 ;
             4319          (c) a local building authority, as defined in Section 17D-2-102 ;
             4320          (d) a conservation district, as described in Title 17D, Chapter 3, Conservation District
             4321      Act;
             4322          (e) a public corporation, other than the Utah Housing Corporation;
             4323          (f) a community development and renewal agency;
             4324          (g) a school district;
             4325          (h) a public school, including a local school board or a charter school;
             4326          (i) Utah Schools for the Deaf and Blind;
             4327          (j) the Utah Education Network;
             4328          (k) an institution of higher education of the state;
             4329          (l) a county or municipality, and each office or agency of the county or municipality,
             4330      unless the county or municipality adopts its own procurement code by ordinance;
             4331          (m) a county or municipality, and each office or agency of the county or municipality,
             4332      that has adopted this entire chapter by ordinance;
             4333          (n) a county or municipality, and each office or agency of the county or municipality,
             4334      that has adopted a portion of this chapter by ordinance, to the extent that the term is used in the
             4335      adopted portion of this chapter; or
             4336          (o) two or more of the entities described in this Subsection (4), acting under legislation


             4337      that authorizes intergovernmental cooperation.
             4338          (5) "Non-executive state procurement unit" means:
             4339          (a) the state legislative branch;
             4340          (b) a public procurement unit in the state legislative branch;
             4341          (c) the state judicial branch; or
             4342          (d) a public procurement unit in the state judicial branch.
             4343          (6) "Public entity" means any state or local government entity, located in Utah,
             4344      including:
             4345          (a) the state legislative branch, including the Legislature and each house, staff office,
             4346      committee, subcommittee, or other part of the state legislative branch;
             4347          (b) the state executive branch, including the governor's office and each department,
             4348      division, agency, office, and bureau in the state executive branch;
             4349          (c) the state judicial branch, including the Utah Supreme Court, the Utah Court of
             4350      Appeals, the Judicial Council, and each court, office, and other part of the state judicial branch;
             4351          (d) a municipality or county, regardless of whether the municipality or county has
             4352      adopted this chapter or any part of this chapter;
             4353          (e) a public procurement unit; and
             4354          (f) any other entity that expends public funds.
             4355          (7) "Public procurement unit" means:
             4356          (a) the Senate;
             4357          (b) the House of Representatives;
             4358          (c) a staff office of the state legislative branch;
             4359          (d) a state executive branch department, division, office, bureau, or agency;
             4360          (e) the Utah State Supreme Court;
             4361          (f) the Judicial Council;
             4362          (g) a state judicial district; or
             4363          (h) a local public procurement unit.
             4364          (8) "State purchasing unit" means:
             4365          (a) the division;
             4366          (b) the following entities, to the extent that the entities have express statutory authority
             4367      to engage in a procurement without the involvement of the division:


             4368          (i) the State Building Board, created in Section 63A-5-101 ;
             4369          (ii) the Division of Facilities Construction and Management, created in Section
             4370      63A-5-201 ;
             4371          (iii) the attorney general's office;
             4372          (iv) the Department of Transportation, created in Section 72-1-201 ; or
             4373          (v) a district court;
             4374          (c) an institution of higher education of the state;
             4375          (d) a school district; or
             4376          (e) a public school, including a local school board or a charter school.
             4377          Section 82. Section 63G-6a-105 , which is renumbered from Section 63G-6-104 is
             4378      renumbered and amended to read:
             4379           [63G-6-104].     63G-6a-105. Application of chapter.
             4380          [(1) This chapter applies only to contracts solicited or entered into after the effective
             4381      date of this chapter unless the parties agree to its application to a contract solicited or entered
             4382      into prior to the effective date.]
             4383          (1) The provisions of this chapter that are enacted on July 1, 2012, apply only to a
             4384      procurement advertised, or begun on or after July 1, 2012, unless the parties agree to have the
             4385      provisions apply with respect to a procurement that was advertised or begun before July 1,
             4386      2012, but is not completed before July 1, 2012.
             4387          (2) Except as provided in Section [ 63G-6-105 ] 63G-6a-109 , this chapter shall apply to
             4388      every expenditure of public funds irrespective of [their source] the source of the funds,
             4389      including federal assistance, by any [state agency] public procurement unit, under any contract.
             4390          [(3) (a) Only the following sections shall apply to local public procurement units:
             4391      Sections 63G-6-103 , 63G-6-105 , 63G-6-301 , 63G-6-303 through 63G-6-420 , 63G-6-422 ,
             4392      63G-6-501 through 63G-6-602 , 63G-6-801 through 63G-6-806 , and 63G-6-815 through
             4393      63G-6-819 ; provided, however, that, except as provided in Sections 63G-6-906 and
             4394      63G-6-907 , the jurisdiction of the procurement appeals board is limited to matters involving
             4395      state agencies.]
             4396          [(b) Subsections 63G-6-208 (1)(b), 63G-6-504 (4), and 63G-6-505 (2) also apply to local
             4397      public procurement units.]
             4398          [(c) For the purpose of application of those sections and subsections to a local public


             4399      procurement unit, "state" shall mean "local public procurement unit," "chief procurement
             4400      officer" or "head of a purchasing agency" shall mean any person conducting procurement for a
             4401      local public procurement unit, and "rules and regulations" shall mean ordinances and rules and
             4402      regulations promulgated by a local public procurement unit to implement or supplement those
             4403      sections.]
             4404          [(d) In addition to the sections and subsections listed above and except]
             4405          (3) Except as provided in Subsection 17B-1-108 (3) relating to local districts, each local
             4406      public procurement unit shall adopt ordinances relating to the procurement of
             4407      architect-engineer services not inconsistent with the provisions of Part [7] 15,
             4408      Architect-Engineer Services.
             4409          [(e)] (4) Any [other] section of this chapter, or its implementing regulations, may be
             4410      adopted by any local [public procurement] government unit.
             4411          [(f) Any other implementing regulations adopted by local public procurement units
             4412      may not be inconsistent with the provisions of this chapter.]
             4413          (5) Rules adopted under this chapter shall be consistent with the provisions of this
             4414      chapter.
             4415          (6) A state purchasing unit or a public procurement unit may not adopt rules, policies,
             4416      or regulations that are inconsistent with this chapter.
             4417          [(4)] (7) Unless otherwise provided by statute, this chapter does not apply to
             4418      procurement of real property.
             4419          Section 83. Section 63G-6a-106 , which is renumbered from Section 63G-6-207 is
             4420      renumbered and amended to read:
             4421           [63G-6-207].     63G-6a-106. Specific statutory authority -- Limitations on
             4422      authority of chief procurement officer and division.
             4423          (1) The [authority to procure certain supplies, services, and construction given the
             4424      public procurement units governed by] procurement authority given to a public entity under the
             4425      following provisions shall be retained, and shall be applied only to the extent described in those
             4426      provisions:
             4427          (a) Title 53B, State System of Higher Education;
             4428          (b) Title 63A, Chapter 5, State Building Board - Division of Facilities Construction
             4429      and Management;


             4430          (c) Title 67, Chapter 5, Attorney General;
             4431          (d) Title 72, Transportation Code; and
             4432          (e) Title 78A, Chapter 5, District Courts.
             4433          (2) [This authority extends only to supplies, services, and construction to the extent
             4434      provided in the cited chapters.] Except as otherwise provided in Sections [63G-6-104 and
             4435      63G-6-105 , the respective purchasing agencies shall procure supplies, services, and
             4436      construction] 63G-6a-105 and 63G-6a-109 , a public procurement unit shall conduct a
             4437      procurement in accordance with this chapter.
             4438          (3) (a) The Department of Transportation may make rules governing the procurement
             4439      of highway construction or improvement.
             4440          (b) This Subsection (3) supersedes Subsections (1) and (2).
             4441          [(4) The Legislature may procure supplies and services for its own needs.]
             4442          (4) Except to the extent otherwise agreed to in a memorandum of understanding
             4443      between the division and the following entities, the authority of the chief procurement officer
             4444      and of the division does not extend to:
             4445          (a) a non-executive state procurement unit;
             4446          (b) a local government unit; or
             4447          (c) a state purchasing unit, other than the division.
             4448          (5) An entity described in Subsection (4) or a state purchasing unit, other than the
             4449      division, may, without supervision, interference, or involvement by the chief procurement
             4450      officer or the division, but consistent with the requirements of this chapter:
             4451          (a) engage in a procurement process;
             4452          (b) procure an item under an exception, as provided in this chapter, to the requirement
             4453      to use a procurement process; or
             4454          (c) otherwise engage in an act authorized or required by this chapter.
             4455          (6) The attorney general may, in accordance with the provisions of this chapter, but
             4456      without involvement by the division or the chief procurement officer:
             4457          (a) retain outside counsel; or
             4458          (b) procure litigation support services, including retaining an expert witness.
             4459          Section 84. Section 63G-6a-109 , which is renumbered from Section 63G-6-105 is
             4460      renumbered and amended to read:


             4461           [63G-6-105].     63G-6a-109. Exemptions from chapter -- Compliance with
             4462      federal law.
             4463          (1) [This chapter is] Except for Part 23, Unlawful Conduct and Penalties, the
             4464      provisions of this chapter are not applicable to:
             4465          (a) funds administered under the Percent-for-Art Program of the Utah Percent-for-Art
             4466      Act[.];
             4467          [(2) This chapter is not applicable to]
             4468          (b) grants awarded by the state or contracts between the state and a local public
             4469      procurement [units] unit, except as provided in Part [9] 21, Intergovernmental Relations[.]; or
             4470          (c) any action taken by a majority of both houses of the Legislature.
             4471          [(3)] (2) This chapter [shall] does not prevent the state or a local public procurement
             4472      unit from complying with the terms and conditions of any grant, gift, or bequest that is
             4473      otherwise consistent with law.
             4474          [(4)] (3) When a procurement involves the expenditure of federal assistance or contract
             4475      funds, the [chief] procurement officer or head of [a purchasing agency] an authorized
             4476      purchasing entity shall comply with mandatory applicable federal law and regulations not
             4477      reflected in this chapter.
             4478          [(5)] (4) This chapter [may] does not supersede the requirements for retention or
             4479      withholding of construction proceeds and release of construction proceeds as provided in
             4480      Section 13-8-5 .
             4481          Section 85. Section 63G-6a-110 is enacted to read:
             4482          63G-6a-110. Procurements under direction and control of division -- Exception.
             4483          (1) Except as provided in Subsection (2), a public procurement unit may not engage in
             4484      a procurement unless:
             4485          (a) the procurement is made under the direction and control of the division; or
             4486          (b) the division, pursuant to rules made by the board, permits the public procurement
             4487      unit to make the procurement on its own.
             4488          (2) Subsection (1) does not apply to a public procurement unit that is:
             4489          (a) a non-executive state procurement unit;
             4490          (b) a local government unit; or
             4491          (c) a state purchasing unit, other than the division.


             4492          Section 86. Section 63G-6a-201 is enacted to read:
             4493     
Part 2. Procurement Policy Board

             4494          63G-6a-201. Title.
             4495          This part is known as "Procurement Policy Board."
             4496          Section 87. Section 63G-6a-202 , which is renumbered from Section 63G-6-201 is
             4497      renumbered and amended to read:
             4498           [63G-6-201].     63G-6a-202. Creation of procurement policy board.
             4499          (1) [(a)] There is created [a state procurement policy board] the Utah State
             4500      Procurement Policy Board.
             4501          [(b)] (2) The [policy board shall consist of] board consists of up to 10 members as
             4502      follows:
             4503          [(i)] (a) an employee of a state institution of higher education, appointed by the board
             4504      of regents;
             4505          [(ii)] (b) an employee of the Department of Human Services, appointed by the
             4506      executive director of that department;
             4507          [(iii)] (c) an employee of the Department of Transportation, appointed by the executive
             4508      director of that department;
             4509          [(iv)] (d) an employee of a school district appointed by a cooperative purchasing entity
             4510      for school districts;
             4511          [(v)] (e) an employee of the Division of Facilities Construction and Management
             4512      appointed by the director of that division;
             4513          [(vi)] (f) an employee of a county, appointed by the Utah Association of Counties;
             4514          [(vii)] (g) an employee of a city, appointed by the Utah League of Cities and Towns;
             4515          [(viii)] (h) an employee of a local district or special service district, appointed by the
             4516      Utah Association of Special Districts;
             4517          [(ix)] (i) the executive director of the Department of Technology Services or the
             4518      executive director's designee; and
             4519          [(x)] (j) the chief procurement officer or the chief procurement officer's designee.
             4520          [(c)] (3) Members of the [policy] board shall be knowledgeable and experienced in,
             4521      and have supervisory responsibility for, procurement in their official positions.
             4522          [(2)] (4) A board member [shall] may serve as long as the member meets the


             4523      description in Subsection [(1)(b)] (2) unless removed by the person or entity [who appointed]
             4524      with the authority to appoint the board member.
             4525          [(3)] (5) (a) The [policy] board shall:
             4526          (i) adopt rules of procedure for conducting its business; and
             4527          (ii) elect a chair to serve for one year.
             4528          (b) The chair of the board shall be selected by a majority of the members of the board
             4529      and may be elected to succeeding terms.
             4530          (c) The chief procurement officer shall designate an employee of the [Division of
             4531      Purchasing and General Services] division to serve as the nonvoting secretary to the policy
             4532      board.
             4533          [(4)] (6) A member of the board may not receive compensation or benefits for the
             4534      member's service, but may receive per diem and travel expenses in accordance with:
             4535          (a) Section 63A-3-106 ;
             4536          (b) Section 63A-3-107 ; and
             4537          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             4538      63A-3-107 .
             4539          Section 88. Section 63G-6a-203 , which is renumbered from Section 63G-6-202 is
             4540      renumbered and amended to read:
             4541           [63G-6-202].     63G-6a-203. Powers and duties of board.
             4542          [(1) Except as otherwise provided in Section 63G-6-104 and Subsection
             4543      63G-6-208 (1)(b), the policy board shall:]
             4544          [(a) make rules, consistent with this chapter, governing the procurement, management,
             4545      and control of any and all supplies, services, technology, and construction to be procured by the
             4546      state; and]
             4547          [(b)] (1) In addition to making rules in accordance with Section 63G-6a-402 and the
             4548      other provisions of this chapter, the board shall consider and decide matters of policy within
             4549      the provisions of this chapter, including those referred to it by the chief procurement officer.
             4550          (2) (a) The [policy] board may:
             4551          (i) audit and monitor the implementation of its rules and the requirements of this
             4552      chapter;
             4553          (ii) upon the request of a local public procurement unit, review that local public


             4554      procurement unit's proposed rules to ensure that they are not inconsistent with the provisions of
             4555      this chapter or rules made by the board; and
             4556          (iii) approve the use of innovative procurement [methods] processes proposed by local
             4557      public procurement units.
             4558          (b) The [policy] board may not exercise authority over the award or administration of:
             4559          (i) any particular [contact] contract; or
             4560          (ii) [over] any dispute, claim, or litigation pertaining to any particular contract.
             4561          (3) The board does not have authority over a matter involving:
             4562          (a) a non-executive state procurement unit; or
             4563          (b) a local government unit.
             4564          Section 89. Section 63G-6a-204 , which is renumbered from Section 63G-6-208 is
             4565      renumbered and amended to read:
             4566           [63G-6-208].     63G-6a-204. Applicability of rules and regulations of Utah
             4567      State Procurement Policy Board and State Building Board -- Report to interim
             4568      committee.
             4569          [(1) (a) Except as provided in Subsection (2), the policy board shall make rules
             4570      governing state procurement by complying with the procedures and requirements of Title 63G,
             4571      Chapter 3, the Utah Administrative Rulemaking Act.]
             4572          [(b) Except for rules made under Subsection (1)(c), the procurement rules adopted by
             4573      the policy board under this section apply to all local public procurement units unless the local
             4574      public procurement unit's legislative body has adopted separate rules governing procurement.]
             4575          [(c) The rules shall include provisions consistent with federal contract prohibition
             4576      provisions of the Sudan Accountability and Divestment Act of 2007 (Pub. L. No. 110-174) that
             4577      prohibit a state agency from contracting with a person doing business in Sudan.]
             4578          (1) Except as provided in Subsection (2), rules made by the board under this chapter
             4579      shall govern all public procurement units for which the board is the applicable rulemaking
             4580      authority.
             4581          (2) The [State Building Board] building board rules governing procurement of
             4582      construction, architect-engineer services, and leases apply to the procurement of construction,
             4583      architect-engineer services, and leases of real property by the Division of Facilities
             4584      Construction and Management.


             4585          (3) The Legislature may enact its own rules, consistent with this chapter, governing
             4586      procurement by the legislative branch.
             4587          (4) The Judicial Council may enact its own rules, consistent with this chapter,
             4588      governing procurement by the judicial branch.
             4589          [(3)] (5) The board shall make a report [by] on or before July 1 of each year to [an
             4590      appropriate] a legislative interim committee, designated by the Legislative Management
             4591      Committee created under Section 36-12-6 , on the establishment, implementation, and
             4592      enforcement of the rules made under [Subsection (1)(c)] Section 63G-6a-203 .
             4593          Section 90. Section 63G-6a-205 , which is renumbered from Section 63G-6-209 is
             4594      renumbered and amended to read:
             4595           [63G-6-209].     63G-6a-205. Procurement advisory councils.
             4596          [(1) The policy board may establish a Procurement Advisory Council, which shall meet
             4597      at least once a year for the discussion of problems and recommendations for improvement of
             4598      the procurement process. When requested by the policy board, the Procurement Advisory
             4599      Council may conduct studies, research, analyses, and make reports and recommendations with
             4600      respect to subjects or matters within the jurisdiction of the policy board. The Procurement
             4601      Advisory Council shall consist of representatives of state and local government and any other
             4602      persons the policy board considers desirable.]
             4603          [(2)] The chief procurement officer may appoint advisory [groups] councils to provide
             4604      advice regarding any matters within the authority of the chief procurement officer.
             4605          [(3) Members of the Procurement Advisory Council and other advisory groups may be
             4606      reimbursed for expenses incurred in the performance of their duties, as provided by the policy
             4607      board.]
             4608          Section 91. Section 63G-6a-301 is enacted to read:
             4609     
Part 3. Chief Procurement Officer

             4610          63G-6a-301. Title.
             4611          This part is known as "Chief Procurement Officer."
             4612          Section 92. Section 63G-6a-302 , which is renumbered from Section 63G-6-203 is
             4613      renumbered and amended to read:
             4614           [63G-6-203].     63G-6a-302. Chief procurement officer -- Appointment --
             4615      Qualifications -- Authority.


             4616          (1) The executive director of the Department of Administrative Services, with the
             4617      consent of the governor, shall appoint the chief procurement officer after considering
             4618      recommendations from the [policy] board.
             4619          (2) The chief procurement officer shall:
             4620          (a) have a minimum of eight years' experience in the large-scale procurement of
             4621      supplies and services or services and construction, at least five years of which shall have been
             4622      in public or comparable private procurement within 12 years preceding the date of
             4623      appointment; and
             4624          (b) be a person with demonstrated executive and organizational ability.
             4625          (3) The chief procurement officer appointed under Subsection (1) is also the director of
             4626      the Division of Purchasing and General Services.
             4627          (4) Except as otherwise expressly provided in this chapter, the chief procurement
             4628      officer has authority over procurements by a public procurement unit, other than:
             4629          (a) a non-executive procurement unit;
             4630          (b) a local government unit; or
             4631          (c) a state purchasing unit, other than the division.
             4632          Section 93. Section 63G-6a-303 , which is renumbered from Section 63G-6-204 is
             4633      renumbered and amended to read:
             4634           [63G-6-204].     63G-6a-303. Duties of chief procurement officer.
             4635          Except as otherwise specifically provided in this chapter, the chief procurement officer
             4636      serves as the central procurement officer of the state and shall:
             4637          (1) adopt office policies governing the internal functions of the [Division of Purchasing
             4638      and General Services] division;
             4639          (2) procure or supervise [the] each procurement [of all supplies, services, and
             4640      construction needed by the state] over which the chief procurement officer has authority;
             4641          [(3) exercise general supervision and control over all inventories or supplies belonging
             4642      to the state;]
             4643          [(4)] (3) establish and maintain programs for the inspection, testing, and acceptance of
             4644      [supplies, services, and construction] each procurement item over which the chief procurement
             4645      officer has authority;
             4646          [(5)] (4) prepare statistical data concerning [the procurement and usage of all supplies,


             4647      services, and construction] each procurement and procurement usage of a state procurement
             4648      unit;
             4649          [(6) before June 1, 1990, notify all public procurement units of the requirements of
             4650      Section 63G-6-406 regarding purchases of recycled paper and recycled paper products,
             4651      recycling requirements, and provide guidelines on the availability of recycled paper and paper
             4652      products, including the sources of supply and the potential uses of various grades of recycled
             4653      paper;]
             4654          [(7) before July 1, 1992:]
             4655          [(a) establish standards and specifications for determining which supplies are
             4656      considered recycled, based upon the chief procurement officer's review of current definitions
             4657      and standards employed by national procurement, product recycling, and other relevant
             4658      organizations and the federal Environmental Protection Agency;]
             4659          [(b) compile and update as necessary the specifications, a list of recycled supplies
             4660      available on state contract, and sources where the supplies may be obtained;]
             4661          [(c) make the compiled information under Subsection (7)(b) available to:]
             4662          [(i) all local government entities under Section 11-37-101 ;]
             4663          [(ii) all local health departments under Section 26A-1-108.7 ;]
             4664          [(iii) all procurement officers or other persons responsible for purchasing supplies
             4665      within the public school system under Title 53A, State System of Public Education;]
             4666          [(iv) all procurement officers or other persons responsible for purchasing supplies
             4667      within the state system of higher education under Title 53B, State System of Higher Education;
             4668      and]
             4669          [(v) all procurement officers or other persons responsible for purchasing supplies for
             4670      all public procurement units as defined in Section 63G-6-103 ; and]
             4671          [(d) present a written report to the Natural Resources, Agriculture, and Environment
             4672      Interim Committee annually prior to November 30 regarding the purchases of recycled goods
             4673      on state contracts during the prior fiscal year; and]
             4674          [(8)] (5) ensure that:
             4675          (a) before approving a [purchase, lease, or rental] procurement not covered by an
             4676      existing statewide contract for information technology or telecommunications supplies or
             4677      services, the chief information officer and the agency have [provided] stated in writing to the


             4678      division[,] that the needs analysis required in Section 63F-1-205 was completed, unless the
             4679      [purchase, lease, or rental] procurement is approved in accordance with Title 63M, Chapter 1,
             4680      Part 26, Government Procurement Private Proposal Program; and
             4681          (b) the oversight authority required by Subsection [(8)](5)(a) is not delegated outside
             4682      the [Division of Purchasing and General Services.] division; and
             4683          (6) provide training to public procurement units and to persons who do business with
             4684      public procurement units.
             4685          Section 94. Section 63G-6a-304 , which is renumbered from Section 63G-6-205 is
             4686      renumbered and amended to read:
             4687           [63G-6-205].     63G-6a-304. Delegation of authority.
             4688          [Subject to rules and regulations]
             4689          (1) In accordance with rules made by the board, the chief procurement officer may
             4690      delegate authority to designees or to any department, agency, or official.
             4691          (2) For a procurement [process] under Title 63M, Chapter 1, Part 26, Government
             4692      Procurement Private Proposal Program, any delegation by the chief procurement officer under
             4693      this section shall be made to the Governor's Office of Economic Development.
             4694          Section 95. Section 63G-6a-305 , which is renumbered from Section 63G-6-302 is
             4695      renumbered and amended to read:
             4696           [63G-6-302].     63G-6a-305. Duty of chief procurement officer in
             4697      maintaining specifications.
             4698          (1) The chief procurement officer [shall] may prepare, issue, revise, maintain, and
             4699      monitor the use of specifications for [supplies, services, construction, and technology required
             4700      by the state] each procurement over which the chief procurement officer has authority.
             4701          (2) The chief procurement officer shall obtain expert advice and assistance from
             4702      personnel of [using agencies] public procurement units in the development of specifications
             4703      and may delegate in writing to a [using agency] public procurement unit the authority to
             4704      prepare and utilize its own specifications.
             4705          (3) For a procurement [process] under Title 63M, Chapter 1, Part 26, Government
             4706      Procurement Private Proposal Program, any delegation by the chief procurement officer under
             4707      this section shall be made to the Governor's Office of Economic Development.
             4708          Section 96. Section 63G-6a-401 is enacted to read:


             4709     
Part 4. General Procurement Provisions

             4710          63G-6a-401. Title.
             4711          This part is known as "General Procurement Provisions."
             4712          Section 97. Section 63G-6a-402 is enacted to read:
             4713          63G-6a-402. Public procurement unit required to comply with Utah Procurement
             4714      Code and applicable rules -- Rulemaking authority -- Reporting.
             4715          (1) Except as otherwise provided in Section 63G-6a-109 , Section 63G-6a-403 , Part 8,
             4716      Exceptions to Procurement Requirements, or elsewhere in this chapter, a public procurement
             4717      unit may not obtain a procurement item, unless:
             4718          (a) if the public procurement unit is an authorized purchasing entity, the public
             4719      procurement unit:
             4720          (i) uses a procurement process; and
             4721          (ii) complies with:
             4722          (A) the requirements of this chapter; and
             4723          (B) the rules made pursuant to this chapter by the applicable rulemaking authority;
             4724          (b) if the public procurement unit is a local government unit, the public procurement
             4725      unit complies with:
             4726          (i) the requirements of this chapter that are adopted by the local government unit; and
             4727          (ii) all other procurement requirements that the local government unit is required to
             4728      comply with; or
             4729          (c) if the public procurement unit is not a public procurement unit described in
             4730      Subsections (1)(a) or (b), the public procurement unit:
             4731          (i) obtains the procurement item under the direction and approval of the division,
             4732      unless otherwise provided by a rule made by the board;
             4733          (ii) uses a procurement process; and
             4734          (iii) complies with:
             4735          (A) the requirements of this chapter; and
             4736          (B) the rules made pursuant to this chapter by the applicable rulemaking authority.
             4737          (2) Subject to Subsection (3), the applicable rulemaking authority shall make rules
             4738      relating to the management and control of procurements and procurement procedures by a
             4739      public procurement unit.


             4740          (3) (a) Rules made under Subsection (2) shall ensure compliance with the federal
             4741      contract prohibition provisions of the Sudan Accountability and Divestment Act of 2007 (Pub.
             4742      L. No. 110-174) that prohibit contracting with a person doing business in Sudan.
             4743          (b) The State Building Board rules governing procurement of construction,
             4744      architect-engineer services, and leases apply to the procurement of construction,
             4745      architect-engineer services, and leases of real property by the Division of Facilities
             4746      Construction and Management.
             4747          (4) An applicable rulemaking authority that is subject to Title 63G, Chapter 3, Utah
             4748      Administrative Rulemaking Act, shall make the rules described in this chapter in accordance
             4749      with the provisions of Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             4750          (5) The State Building Board shall make a report on or before July 1 of each year to a
             4751      legislative interim committee, designated by the Legislative Management Committee created
             4752      under Section 36-12-6 , on the establishment, implementation, and enforcement of the rules
             4753      made by the State Building Board under this chapter.
             4754          Section 98. Section 63G-6a-403 is enacted to read:
             4755          63G-6a-403. Prequalification of potential bidders or offerers.
             4756          (1) A public procurement unit may, in accordance with this section:
             4757          (a) prequalify potential bidders or offerors to provide any type of procurement item
             4758      specified by the public procurement unit; and
             4759          (b) limit participation in an invitation for bids or a request for proposals to the
             4760      prequalified potential bidders or offerors for the specified type of procurement item.
             4761          (2) To prequalify potential bidders or offerors to provide a specified type of
             4762      procurement item, a public procurement unit shall issue a request for qualifications.
             4763          (3) A public procurement unit that issues a request for qualifications shall:
             4764          (a) publish the request for qualifications in accordance with the requirements of
             4765      Section 63G-6a-402 ;
             4766          (b) state in the request for qualifications:
             4767          (i) the type of procurement item to which the request for qualifications relates;
             4768          (ii) the scope of work to be performed;
             4769          (iii) the instructions and the deadline for providing information in response to the
             4770      request for qualifications;


             4771          (iv) the minimum criteria for prequalification;
             4772          (v) the period of time during which the list of prequalified potential bidders or offerors
             4773      will remain in effect, which may not be longer than 18 months after the list of prequalified
             4774      potential bidders or offerors is made available to the public under Subsection (8)(b); and
             4775          (vi) that a public procurement unit may limit participation in an invitation for bids or a
             4776      request for proposals, during the time period described in Subsection (3)(b)(v), to the potential
             4777      bidders or offerors that are prequalified to provide the specified type of procurement item.
             4778          (4) The minimum criteria described in Subsection (3)(b)(iv):
             4779          (a) shall include the prequalification requirements unique to the procurement;
             4780          (b) may include performance rating criteria; and
             4781          (c) may not be so restrictive that the criteria unreasonably limit competition.
             4782          (5) A public procurement unit may, before making a final list of prequalified bidders or
             4783      offerors, request additional information to clarify responses made to the request for
             4784      prequalifications.
             4785          (6) A potential bidder or offeror shall be included on the list of prequalified potential
             4786      bidders or offerors if the bidder or offeror:
             4787          (a) submits a timely, responsive response to the request for prequalifications; and
             4788          (b) meets the minimum criteria for qualification described in Subsection (3)(b)(iv).
             4789          (7) If a request for qualifications will result in only one potential bidder or offeror
             4790      being placed on the list of prequalified potential bidders or offerors:
             4791          (a) the public procurement unit shall cancel the request for qualifications; and
             4792          (b) the list may not be used by the public procurement unit.
             4793          (8) The public procurement unit shall:
             4794          (a) before making the list of prequalified potential bidders or offerors available to the
             4795      public, provide each potential bidder or offeror who provided information in response to the
             4796      request, but who did not meet the minimum qualifications for placement on the list, a written
             4797      justification statement describing why the potential bidder or offeror did not meet the criteria
             4798      for inclusion on the list; and
             4799          (b) within 30 days after the day of the deadline described in Subsection (3)(b)(iii),
             4800      make the list of prequalified potential bidders or offerors available to the public.
             4801          Section 99. Section 63G-6a-404 is enacted to read:


             4802          63G-6a-404. Approved contractor list.
             4803          (1) An authorized purchasing entity may compile a list of approved contractors from
             4804      which procurement items may be obtained.
             4805          (2) An approved contractor list may only be compiled from:
             4806          (a) timely, responsive bids or responses received in response to:
             4807          (i) an invitation for bids; or
             4808          (ii) a request for proposals; or
             4809          (b) timely, responsive responses to:
             4810          (i) the prequalification process described in Section 63G-6a-403 ; or
             4811          (ii) the process described in Part 15, Architect-Engineer Services.
             4812          (3) In order to ensure equal treatment of all contractors on a contractor list, an
             4813      authorized purchasing entity shall use one of the following methods in an unbiased manner:
             4814          (a) a rotation system, organized alphabetically, numerically, or randomly;
             4815          (b) assigning contractors to a specified geographical area; or
             4816          (c) classifying each contractor based on each contractor's particular expertise or field.
             4817          Section 100. Section 63G-6a-405 is enacted to read:
             4818          63G-6a-405. Multiple award contracts.
             4819          (1) An authorized purchasing entity may enter into multiple award contracts with
             4820      bidders or offerors.
             4821          (2) Multiple award contracts may be in an authorized purchasing entity's best interest if
             4822      award to two or more bidders or offerors for similar procurement items is needed or desired for
             4823      adequate delivery, service, availability, or product compatibility.
             4824          (3) An authorized purchasing entity shall:
             4825          (a) exercise care to protect and promote competition among bidders or offerors when
             4826      seeking to enter into multiple award contracts;
             4827          (b) name all eligible users of the multiple award contracts in the invitation for bids or
             4828      request for proposals; and
             4829          (c) if the authorized purchasing entity anticipates entering into multiple award
             4830      contracts before issuing the invitation for bids or request for proposals, state in the invitation
             4831      for bids or request for proposals that the authorized purchasing entity may enter into multiple
             4832      award contracts at the end of the procurement process.


             4833          (4) An authorized purchasing entity that enters into multiple award contracts shall:
             4834          (a) obtain all of its normal, recurring requirements for the procurement items that are
             4835      the subject of the contracts until the contracts terminate; and
             4836          (b) reserve the right to obtain the procurement items described in Subsection (4)(a)
             4837      separately from the contracts if:
             4838          (i) there is a need to obtain a quantity of the procurement items that exceeds the
             4839      amount specified in the contracts; or
             4840          (ii) the procurement officer makes a written finding that the procurement items
             4841      available under the contract will not effectively or efficiently meet a nonrecurring special need
             4842      of a public procurement unit.
             4843          (5) Notwithstanding Subsection (3)(b), if an authorized purchasing entity enters into a
             4844      multiple award contract under this section, another authorized purchasing entity that is not a
             4845      signatory to the contract may, but is not required to, obtain a procurement item under the
             4846      contract.
             4847          (6) An applicable rulemaking authority may make rules to further regulate a
             4848      procurement under this section.
             4849          Section 101. Section 63G-6a-406 is enacted to read:
             4850          63G-6a-406. Public notice of procurement process.
             4851          (1) An authorized purchasing entity that issues an invitation for bids or a request for
             4852      proposals shall provide public notice that includes:
             4853          (a) the name of the authorized purchasing entity and the public procurement unit
             4854      acquiring the procurement item;
             4855          (b) information on how to contact the authorized purchasing entity in relation to the
             4856      invitation for bids or request for proposals;
             4857          (c) the date of the opening and closing of the invitation for bids or request for
             4858      proposals;
             4859          (d) information on how to obtain a copy of the invitation for bids or request for
             4860      proposals; and
             4861          (e) a general description of the procurement items that will be obtained through the
             4862      procurement process.
             4863          (2) Except as provided in Subsection (3), the authorized purchasing entity shall publish


             4864      the notice described in Subsection (1), using at least one of the following methods:
             4865          (a) at least 10 days before the day of the deadline for submission of a bid or other
             4866      response, publish the notice:
             4867          (i) in a newspaper of general circulation in the state; or
             4868          (ii) in a newspaper of local circulation in the area:
             4869          (A) directly impacted by the procurement; or
             4870          (B) over which the public procurement unit has jurisdiction; or
             4871          (b) at least 10 consecutive days before the day of the deadline for submission of a bid
             4872      or other response, publish the notice:
             4873          (i) on the main website for the authorized purchasing entity or public procurement unit;
             4874      or
             4875          (ii) on a state website that is owned, managed by, or provided under contract with, the
             4876      division for posting a public procurement notice.
             4877          (3) An authorized purchasing entity may reduce the 10-day period described in
             4878      Subsection (2), if the procurement officer or the procurement officer's designee signs a written
             4879      statement that:
             4880          (a) states that a shorter time is needed; and
             4881          (b) determines that competition from multiple sources may be obtained within the
             4882      shorter period of time.
             4883          (4) An authorized purchasing entity shall make a copy of an invitation for bids or a
             4884      request for proposals available for public inspection at the main office of the authorized
             4885      purchasing entity or on the website described in Subsection (2)(b).
             4886          Section 102. Section 63G-6a-407 , which is renumbered from Section 63G-6-303 is
             4887      renumbered and amended to read:
             4888           [63G-6-303].     63G-6a-407. Purpose of specifications.
             4889          (1) All specifications shall seek to promote the overall economy and best use for the
             4890      purposes intended and encourage competition in satisfying the [state's] needs of the public
             4891      procurement unit, and [shall] may not be unduly restrictive.
             4892          (2) The requirements of this part regarding the purposes and nonrestrictiveness of
             4893      specifications shall apply to all specifications, including[, but not limited to,] those prepared by
             4894      architects, engineers, designers, and draftsmen for public contracts.


             4895          Section 103. Section 63G-6a-408 is enacted to read:
             4896          63G-6a-408. Small purchases.
             4897          (1) The applicable rulemaking authority may make rules governing small purchases,
             4898      including:
             4899          (a) establishing the maximum expenditure that may qualify as a small purchase, unless
             4900      otherwise provided by statute;
             4901          (b) establishing expenditure thresholds and procurement requirements related to those
             4902      thresholds; and
             4903          (c) the use of electronic, telephone, or written quotes.
             4904          (2) (a) Except as provided in Subsection (2)(b), a public procurement unit may not
             4905      obtain a procurement item through a small purchase procurement process if the procurement
             4906      item may be obtained through a state contract.
             4907          (b) Subsection (2)(a) does not apply:
             4908          (i) to a non-executive state procurement unit;
             4909          (ii) if the procurement officer or the head of the state purchasing unit authorizes an
             4910      exception to the requirement;
             4911          (iii) to an institution of higher education of the state; or
             4912          (iv) to a school district or a public school.
             4913          (c) An entity that is exempt from the requirements of Subsection (2)(a) is encouraged,
             4914      but not required, to comply with Subsection (2)(a).
             4915          (3) A public procurement unit:
             4916          (a) may not use the small purchase procurement process described in this section for
             4917      ongoing, continuous, or regularly scheduled procurements; and
             4918          (b) shall make its ongoing, continuous, or regularly scheduled procurements through:
             4919          (i) a state contract; or
             4920          (ii) if there is not an existing state contract for the procurement item, through a contract
             4921      awarded through a procurement process described in this chapter or an applicable exception to
             4922      a procurement process.
             4923          (4) It is unlawful for a person to intentionally or knowingly divide a procurement into
             4924      one or more smaller procurements with the intent to make a procurement:
             4925          (a) qualify as a small purchase, if, before dividing the procurement, it would not have


             4926      qualified as a small purchase; or
             4927          (b) meet a threshold established by rule made by the applicable rulemaking authority,
             4928      if, before dividing the procurement, it would not have met the threshold.
             4929          (5) A division of a procurement that is prohibited under Subsection (4) includes doing
             4930      any of the following with the intent or knowledge described in Subsection (4):
             4931          (a) making two or more separate purchases;
             4932          (b) dividing an invoice or purchase order into two or more invoices or purchase orders;
             4933      or
             4934          (c) making smaller purchases over a period of time.
             4935          (6) A person who violates Subsection (4) is subject to the criminal penalties described
             4936      in Section 63G-6a-2305 .
             4937          (7) The Division of Finance within the Department of Administrative Services may
             4938      conduct an audit of a public procurement unit in the state executive branch to verify
             4939      compliance with the requirements of this section.
             4940          (8) A public procurement unit in the state executive branch may not make a small
             4941      purchase after January 1, 2013, unless the chief procurement officer certifies that the person
             4942      responsible for procurements in the public procurement unit has satisfactorily completed
             4943      training on this section and the rules made under this section.
             4944          Section 104. Section 63G-6a-501 is enacted to read:
             4945     
Part 5. Request for Information

             4946          63G-6a-501. Title.
             4947          This part is known as "Request for Information."
             4948          Section 105. Section 63G-6a-502 is enacted to read:
             4949          63G-6a-502. Purpose of request for information.
             4950          (1) The purpose of a request for information is to:
             4951          (a) obtain information, comments, or suggestions from potential bidders or offerors
             4952      before issuing an invitation for bids or request for proposals;
             4953          (b) determine whether to issue an invitation for bids or a request for proposals; and
             4954          (c) generate interest in a potential invitation for bids or a request for proposals.
             4955          (2) A request for information may be useful in order to:
             4956          (a) prepare to issue an invitation for bids or request for proposals for an unfamiliar or


             4957      complex procurement;
             4958          (b) determine the market availability of a procurement item; or
             4959          (c) determine best practices, industry standards, performance standards, product
             4960      specifications, and innovations relating to a procurement item.
             4961          Section 106. Section 63G-6a-503 is enacted to read:
             4962          63G-6a-503. Request for information and response nonbinding.
             4963          (1) A request for information is not a procurement process and may not be used to
             4964      make a purchase or enter into a contract. A public procurement unit is required to use a
             4965      procurement process, or comply with an exception to the requirement to use a procurement
             4966      process, in order to make a purchase or enter into a contract.
             4967          (2) A response to a request for information is not an offer and may not be accepted to
             4968      form a binding contract.
             4969          Section 107. Section 63G-6a-504 is enacted to read:
             4970          63G-6a-504. Contents of request for information -- Public notice.
             4971          A request for information may seek a wide range of information, including:
             4972          (1) availability of a procurement item;
             4973          (2) delivery schedules;
             4974          (3) industry standards and practices;
             4975          (4) product specifications;
             4976          (5) training;
             4977          (6) new technologies;
             4978          (7) capabilities of potential providers of a procurement item; and
             4979          (8) alternate solutions.
             4980          Section 108. Section 63G-6a-601 is enacted to read:
             4981     
Part 6. Bidding

             4982          63G-6a-601. Title.
             4983          This part is known as "Bidding."
             4984          Section 109. Section 63G-6a-602 is enacted to read:
             4985          63G-6a-602. Contracts awarded by bidding.
             4986          (1) Except as otherwise provided in this chapter, an authorized purchasing entity shall
             4987      award a contract for a procurement by bidding, in accordance with the rules of the applicable


             4988      rulemaking authority.
             4989          (2) The bidding procurement process is appropriate to use when cost is the major factor
             4990      in determining the award of a procurement.
             4991          Section 110. Section 63G-6a-603 is enacted to read:
             4992          63G-6a-603. Invitation for bids -- Contents -- Notice.
             4993          (1) The bidding procurement process begins when the authorized purchasing entity
             4994      issues an invitation for bids.
             4995          (2) An invitation for bids shall:
             4996          (a) state the period of time during which bids will be accepted;
             4997          (b) describe the manner in which a bid shall be submitted;
             4998          (c) state the place where a bid shall be submitted; and
             4999          (d) include, or incorporate by reference:
             5000          (i) a description of the procurement items sought;
             5001          (ii) the objective criteria that will be used to evaluate the bids; and
             5002          (iii) the required contractual terms and conditions.
             5003          (3) An authorized purchasing entity shall publish an invitation for bids in accordance
             5004      with the requirements of Section 63G-6a-406 .
             5005          Section 111. Section 63G-6a-604 is enacted to read:
             5006          63G-6a-604. Bid opening and acceptance.
             5007          (1) Bids shall be opened:
             5008          (a) publicly, except as provided in Section 63G-6a-611 ;
             5009          (b) in the presence of one or more witnesses, unless an electronic bid opening process
             5010      is used where bidders may see the opening of the bid electronically; and
             5011          (c) at the time and place indicated in the invitation for bids.
             5012          (2) Bids shall be accepted unconditionally, without alteration or correction, except as
             5013      otherwise authorized by this chapter.
             5014          (3) (a) The procurement officer shall reject a bid that is not responsive or responsible.
             5015          (b) A bid that is not responsive includes a bid that:
             5016          (i) is conditional;
             5017          (ii) attempts to modify the bid requirements;
             5018          (iii) contains additional terms or conditions; or


             5019          (iv) fails to conform with the requirements or specifications of the invitation for bids.
             5020          (c) A bid that is not responsible includes a bid where the procurement officer
             5021      reasonably concludes that the bidder or an employee, agent, or subcontractor of the bidder, at
             5022      any tier, is unable to satisfactorily fulfill the bid requirements.
             5023          (4) An authorized purchasing entity may not accept a bid after the time for submission
             5024      of a bid has expired.
             5025          (5) The procurement officer shall:
             5026          (a) record the name of each bidder and the amount of each bid; and
             5027          (b) after the bid is awarded, make the information described in Subsection (5)(a)
             5028      available for public disclosure.
             5029          Section 112. Section 63G-6a-605 is enacted to read:
             5030          63G-6a-605. Correction or withdrawal of bids -- Cancellation of award.
             5031          (1) Correction or withdrawal of inadvertently erroneous bids, or the cancellation of an
             5032      award or a contract that is based on an unintentionally erroneous bid, may be made in
             5033      accordance with the rules of the applicable rulemaking authority.
             5034          (2) Notwithstanding Subsection (1), the following changes may not be made to a bid
             5035      after the bid opening:
             5036          (a) changes in bid pricing;
             5037          (b) changes in the cost evaluation formula; or
             5038          (c) changes in other provisions that are prejudicial to fair competition or to the interest
             5039      of the public procurement unit.
             5040          (3) A decision to permit the correction or withdrawal of a bid or the cancellation of an
             5041      award or a contract under Subsection (1) shall be supported in a written document, signed by
             5042      the procurement officer or the head of the authorized purchasing entity.
             5043          Section 113. Section 63G-6a-606 is enacted to read:
             5044          63G-6a-606. Evaluation of bids -- Award -- Cancellation -- Disqualification.
             5045          (1) An authorized purchasing entity shall evaluate each bid using the objective criteria
             5046      described in the invitation for bids, which may include:
             5047          (a) experience;
             5048          (b) performance ratings;
             5049          (c) inspection;


             5050          (d) testing;
             5051          (e) quality;
             5052          (f) workmanship;
             5053          (g) time and manner of delivery;
             5054          (h) references;
             5055          (i) financial stability;
             5056          (j) cost;
             5057          (k) suitability for a particular purpose; or
             5058          (l) other objective criteria specified in the invitation for bids.
             5059          (2) Criteria not described in the invitation for bids may not be used to evaluate a bid.
             5060          (3) The authorized purchasing entity shall:
             5061          (a) award the contract as soon as practicable to:
             5062          (i) the lowest responsive and responsible bidder who meets the objective criteria
             5063      described in the invitation for bids; or
             5064          (ii) if, in accordance with Subsection (4), the procurement officer or the head of the
             5065      authorized purchasing entity disqualifies the bidder described in Subsection (3)(a)(i), the next
             5066      lowest responsive and responsible bidder who meets the objective criteria described in the
             5067      invitation for bids; or
             5068          (b) cancel the invitation for bids without awarding a contract.
             5069          (4) In accordance with Subsection (5), the procurement officer or the head of the
             5070      authorized purchasing entity may disqualify a bidder for:
             5071          (a) a violation of this chapter;
             5072          (b) a violation of a requirement of the invitation for bids;
             5073          (c) unlawful or unethical conduct; or
             5074          (d) a change in circumstance that, had the change been known at the time the bid was
             5075      submitted, would have caused the bidder to not be the lowest responsive and responsible bidder
             5076      who meets the objective criteria described in the invitation for bids.
             5077          (5) A procurement officer or head of an authorized purchasing entity who disqualifies a
             5078      bidder under Subsection (4) shall:
             5079          (a) make a written finding, stating the reasons for disqualification; and
             5080          (b) provide a copy of the written finding to the disqualified bidder.


             5081          (6) If an authorized purchasing entity cancels an invitation for bids without awarding a
             5082      contract, the authorized purchasing entity shall make available for public inspection a written
             5083      justification for the cancellation.
             5084          Section 114. Section 63G-6a-607 is enacted to read:
             5085          63G-6a-607. Action when all bids are over budget.
             5086          (1) Except as provided in Subsection (2) or (3), if the fiscal officer for the public
             5087      procurement unit certifies that all accepted bids exceed available funds and that the lowest
             5088      responsive and responsible bidder does not exceed the available funds by more than 5%, the
             5089      procurement officer may negotiate an adjustment of the bid price and bid requirements with the
             5090      lowest responsive and responsible bidder in order to bring the bid within the amount of
             5091      available funds.
             5092          (2) A procurement officer may not adjust the bid requirements under Subsection (1) if
             5093      there is a substantial likelihood that, had the adjustment been included in the invitation for
             5094      bids, a person that did not submit a bid would have submitted a responsive, responsible, and
             5095      competitive bid.
             5096          (3) The Division of Facilities Construction and Management is exempt from the
             5097      requirements of this section if:
             5098          (a) the building board adopts rules governing procedures when all accepted bids exceed
             5099      available funds; and
             5100          (b) the Division of Facilities Construction and Management complies with the rules
             5101      described in Subsection (3)(a).
             5102          Section 115. Section 63G-6a-608 is enacted to read:
             5103          63G-6a-608. Tie bids -- Resolution -- Copies provided to attorney general.
             5104          (1) A procurement officer shall resolve a tie bid in accordance with a method
             5105      established by rule made by the applicable rulemaking authority. The method may include
             5106      awarding the tie bid:
             5107          (a) to the tie bidder who:
             5108          (i) is provider of state products, if no other tie bidder is a responsive provider of state
             5109      products;
             5110          (ii) is closest to the point of delivery;
             5111          (iii) received the previous award; or


             5112          (iv) will provide the earliest delivery date;
             5113          (b) by drawing lots; or
             5114          (c) by any other reasonable method of resolving a tie bid.
             5115          (2) The method chosen by the procurement officer to resolve a tie bid shall be at the
             5116      sole discretion of the procurement officer, subject to the rules established under Subsection (1).
             5117          (3) A public procurement unit in the state executive branch shall provide a copy of the
             5118      procurement to the attorney general if an award of a contract to a tie bidder exceeds $100,000
             5119      in expenditures.
             5120          Section 116. Section 63G-6a-609 is enacted to read:
             5121          63G-6a-609. Multiple stage bidding process.
             5122          (1) An authorized purchasing entity may conduct a bid in multiple stages, to:
             5123          (a) narrow the number of bidders who will progress to a subsequent stage;
             5124          (b) prequalify bidders for subsequent stages, in accordance with Section 63G-6a-403 ;
             5125          (c) enter into a contract for a single procurement; or
             5126          (d) award multiple contracts for a series of upcoming procurements.
             5127          (2) The invitation for bids for a multiple stage bidding process shall:
             5128          (a) describe the requirements for, and purpose of, each stage of the process;
             5129          (b) indicate whether the authorized purchasing entity intends to award:
             5130          (i) a single contract; or
             5131          (ii) multiple contracts for a series of upcoming procurements; and
             5132          (c) state that:
             5133          (i) the first stage is for prequalification only;
             5134          (ii) a bidder may not submit any pricing information in the first stage of the process;
             5135      and
             5136          (iii) bids in the second stage will only be accepted from a person who prequalifies in
             5137      the first stage.
             5138          (3) During the first stage, the authorized purchasing entity:
             5139          (a) shall prequalify bidders to participate in subsequent stages, in accordance with
             5140      Section 63G-6a-403 ;
             5141          (b) shall prohibit the submission of pricing information until the final stage; and
             5142          (c) may, before beginning the second stage, request additional information to clarify


             5143      the qualifications of the bidders who submit timely responses.
             5144          (4) Contracts may only be awarded for a procurement item described in stage one of
             5145      the invitation for bids.
             5146          (5) An authorized purchasing entity may conduct a bid in as many stages as it
             5147      determines to be appropriate.
             5148          (6) Except as otherwise expressly provided in this section, an authorized purchasing
             5149      entity shall conduct a multiple stage process in accordance with this part.
             5150          (7) The applicable rulemaking authority may make rules governing the use of a
             5151      multiple stage process described in this section.
             5152          Section 117. Section 63G-6a-610 is enacted to read:
             5153          63G-6a-610. Contracts awarded by reverse auction.
             5154          (1) Reverse auction bidding may be used if the procurement officer determines, in
             5155      writing, that reverse auction bidding will provide the best value to the public procurement unit.
             5156          (2) Reverse auction bidding is appropriate to use when there are multiple prequalified
             5157      providers of a procurement item.
             5158          Section 118. Section 63G-6a-611 is enacted to read:
             5159          63G-6a-611. Invitation for bids for reverse auction -- Notice contents --
             5160      Agreement to terms and conditions.
             5161          (1) The reverse auction bidding process begins when an authorized purchasing entity
             5162      issues an invitation for bids to prequalify bidders to participate in the reverse auction.
             5163          (2) The invitation for bids shall:
             5164          (a) state the period of time during which bids will be accepted;
             5165          (b) state that the bid will be conducted by reverse auction;
             5166          (c) describe the procurement items sought;
             5167          (d) describe the minimum requirements to become prequalified;
             5168          (e) state the required contractual terms and conditions; and
             5169          (f) describe the procedure that the authorized purchasing entity will follow in
             5170      conducting the reverse auction.
             5171          (3) In order to participate in a reverse auction, a bidder shall agree to:
             5172          (a) the specifications, and contractual terms and conditions, of the procurement; and
             5173          (b) be trained in, and abide by, the procedure that the authorized purchasing entity will


             5174      follow in conducting the reverse auction.
             5175          (4) An authorized purchasing entity shall publish an invitation for bids for a reverse
             5176      auction in accordance with the requirements of Section 63G-6a-406 .
             5177          Section 119. Section 63G-6a-612 is enacted to read:
             5178          63G-6a-612. Conduct of reverse auction.
             5179          (1) When conducting a reverse auction, an authorized purchasing entity:
             5180          (a) may conduct the reverse auction at a physical location or by electronic means;
             5181          (b) shall permit all prequalified bidders to participate in the reverse auction;
             5182          (c) may not permit a bidder to participate in the reverse auction if the bidder did not
             5183      prequalify to participate in the reverse auction;
             5184          (d) may not accept a bid after the time for submission of a bid has expired;
             5185          (e) shall update the bids on a real time basis; and
             5186          (f) shall conduct the reverse auction in a manner that permits each bidder to:
             5187          (i) bid against each other; and
             5188          (ii) lower the bidder's price below the lowest bid before the reverse auction closes.
             5189          (2) At the end of the reverse auction, the authorized purchasing entity shall:
             5190          (a) award the contract as soon as practicable to the lowest responsive and responsible
             5191      bidder who meets the objective criteria described in the invitation for bids; or
             5192          (b) cancel the reverse auction without awarding a contract.
             5193          (3) After the reverse auction is finished, the procurement officer shall make publicly
             5194      available:
             5195          (a) (i) the amount of the final bid submitted by each bidder during the reverse auction;
             5196      and
             5197          (ii) the identity of the bidder that submitted each final bid; and
             5198          (b) if practicable:
             5199          (i) the amount of each bid submitted during the reverse auction; and
             5200          (ii) the identity of the bidder that submitted each bid.
             5201          Section 120. Section 63G-6a-701 is enacted to read:
             5202     
Part 7. Request for Proposals

             5203          63G-6a-701. Title.
             5204          This part is known as "Request for Proposals."


             5205          Section 121. Section 63G-6a-702 is enacted to read:
             5206          63G-6a-702. Contracts awarded by request for proposals.
             5207          (1) A request for proposals procurement process may be used instead of bidding if the
             5208      procurement officer determines, in writing, that the request for proposals procurement process
             5209      will provide the best value to the public procurement unit.
             5210          (2) The request for proposals procurement process is appropriate to use for:
             5211          (a) the procurement of professional services;
             5212          (b) a design-build procurement;
             5213          (c) when cost is not the most important factor to be considered in making the selection
             5214      that is most advantageous to the public procurement unit; or
             5215          (d) when factors, in addition to cost, are highly significant in making the selection that
             5216      is most advantageous to the public procurement unit.
             5217          Section 122. Section 63G-6a-703 is enacted to read:
             5218          63G-6a-703. Request for proposals -- Notice -- Contents.
             5219          (1) The request for proposals procurement process begins when the authorized
             5220      purchasing entity issues a request for proposals.
             5221          (2) A request for proposals shall:
             5222          (a) state the period of time during which a proposal will be accepted;
             5223          (b) describe the manner in which a proposal shall be submitted;
             5224          (c) state the place where a proposal shall be submitted;
             5225          (d) include, or incorporate by reference:
             5226          (i) a description of the procurement items sought;
             5227          (ii) a description of the subjective and objective criteria that will be used to evaluate
             5228      the proposal; and
             5229          (iii) the required contractual terms and conditions;
             5230          (e) state the relative weight that will be given to each score awarded for the criteria
             5231      described in Subsection (2)(d)(ii), including cost;
             5232          (f) state the formula that will be used to determine the score awarded for the cost of
             5233      each proposal;
             5234          (g) if the request for proposals will be conducted in multiple stages, as described in
             5235      Section 63G-6a-710 , include a description of the stages and the criteria and scoring that will be


             5236      used to screen offerors at each stage; and
             5237          (h) state that discussions may be conducted with offerors who submit proposals
             5238      determined to be reasonably susceptible of being selected for award, followed by an
             5239      opportunity to make best and final offers, but that proposals may be accepted without
             5240      discussions.
             5241          (3) An authorized purchasing entity shall publish a request for proposals in accordance
             5242      with the requirements of Section 63G-6a-406 .
             5243          Section 123. Section 63G-6a-704 is enacted to read:
             5244          63G-6a-704. Opening of proposals and acceptance.
             5245          (1) An authorized purchasing entity shall ensure that proposals are opened in a manner
             5246      that avoids disclosing the contents to competing offerors during the evaluation process.
             5247          (2) An authorized purchasing entity may not accept a proposal:
             5248          (a) after the time for submission of a proposal has expired; or
             5249          (b) that is not responsive to the request for proposals.
             5250          Section 124. Section 63G-6a-705 is enacted to read:
             5251          63G-6a-705. Discussions -- Best and final offers.
             5252          (1) After proposals are received and opened, the authorized purchasing entity may
             5253      conduct discussions with the offerors and allow the offerors to make best and final offers after
             5254      the discussions.
             5255          (2) The authorized purchasing entity shall:
             5256          (a) ensure that each offeror receives fair and equal treatment with respect to the other
             5257      offerors;
             5258          (b) establish a schedule and procedures for conducting discussions;
             5259          (c) ensure that information in each proposal and information gathered during
             5260      discussions is not shared with other offerors until the contract is awarded;
             5261          (d) ensure that auction tactics are not used in the discussion process, including
             5262      discussing and comparing the costs and features of other proposals; and
             5263          (e) set a common date and time for the submission of best and final offers.
             5264          (3) If an offeror chooses not to participate in a discussion or does not make a timely
             5265      best and final offer, the offer submitted by the offerors before the conduct of discussions shall
             5266      be treated as the offeror's best and final offer.


             5267          Section 125. Section 63G-6a-706 is enacted to read:
             5268          63G-6a-706. Correction or withdrawal of proposal -- Cancellation of award.
             5269          (1) Correction or withdrawal of an unintentionally erroneous proposal, or the
             5270      cancellation of an award or contract that is based on an unintentionally erroneous proposal,
             5271      may be made in accordance with the rules of the applicable rulemaking authority.
             5272          (2) A decision to permit the correction or withdrawal of a proposal or the cancellation
             5273      of an award or a contract under Subsection (1) shall be supported in a written document, signed
             5274      by the procurement officer.
             5275          Section 126. Section 63G-6a-707 is enacted to read:
             5276          63G-6a-707. Evaluation of proposals -- Evaluation committee.
             5277          (1) Each proposal shall be evaluated using the criteria described in the request for
             5278      proposals, which may include:
             5279          (a) experience;
             5280          (b) performance ratings;
             5281          (c) inspection;
             5282          (d) testing;
             5283          (e) quality;
             5284          (f) workmanship;
             5285          (g) time, manner, or schedule of delivery;
             5286          (h) references;
             5287          (i) financial stability;
             5288          (j) suitability for a particular purpose;
             5289          (k) management plans;
             5290          (l) cost; or
             5291          (m) other subjective or objective criteria specified in the request for proposals.
             5292          (2) Criteria not described in the request for proposals may not be used to evaluate a
             5293      proposal.
             5294          (3) The authorized purchasing entity shall:
             5295          (a) appoint an evaluation committee consisting of at least three individuals; and
             5296          (b) ensure that the evaluation committee and each member of the evaluation
             5297      committee:


             5298          (i) does not have a conflict of interest with any of the offerors;
             5299          (ii) can fairly evaluate each proposal;
             5300          (iii) does not contact or communicate with an offeror for any reason other than
             5301      conducting the procurement process; and
             5302          (iv) conducts the evaluation in a manner that ensures a fair and competitive process
             5303      and avoids the appearance of impropriety.
             5304          (4) The evaluation committee may conduct interviews with, or participate in
             5305      presentations by, the offerors.
             5306          (5) Except as provided in Subsection (6) or (7), each member of the evaluation
             5307      committee is prohibited from knowing, or having access to, any information relating to the
             5308      cost, or the scoring of the cost, of a proposal until after the evaluation committee submits its
             5309      final recommended scores on all other criteria to the authorized purchasing entity.
             5310          (6) When selecting a construction manager/general contractor for a construction
             5311      project, the evaluation committee:
             5312          (a) may, at any time after the opening of the responses to the request for proposals,
             5313      have access to, and consider, the management fee proposed by the offerors; and
             5314          (b) except as provided in Subsection (7), may not know or have access to any other
             5315      information relating to the cost of construction submitted by the offerors, until after the
             5316      evaluation committee submits its final recommended scores on all other criteria to the
             5317      authorized purchasing entity.
             5318          (7) An authorized purchasing entity is not required to comply with Subsection (5) if,
             5319      before opening the responses to the request for proposals, the head of the authorized purchasing
             5320      entity or a person designated by rule made by the applicable rulemaking authority:
             5321          (a) signs a written statement:
             5322          (i) indicating that, due to the nature of the proposal or other circumstances, it is in the
             5323      best interest of the state to waive compliance with Subsection (5); and
             5324          (ii) describing the nature of the proposal and the other circumstances relied upon to
             5325      waive compliance with Subsection (5); and
             5326          (b) makes the written statement available to the public, upon request.
             5327          Section 127. Section 63G-6a-708 is enacted to read:
             5328          63G-6a-708. Publication of award and scores -- Cost-benefit analysis.


             5329          (1) The authorized purchasing entity shall, on the day on which the selection is
             5330      announced, make available to each offeror and to the public a written statement that includes:
             5331          (a) the name of the offeror found by the authorized purchasing entity to provide the
             5332      greatest overall value to the public procurement unit, taking into account the cost and the other
             5333      evaluation criteria described in the request for proposals; and
             5334          (b) the scores awarded to each offeror by the evaluation committee for each evaluation
             5335      criteria category described in the request for proposals.
             5336          (2) If the contract is awarded to an offeror other than the lowest cost offeror, and the
             5337      difference between the cost of the accepted proposal and the lowest proposal exceeds $10,000,
             5338      an authorized purchasing entity shall include, with the statement described in Subsection (1),
             5339      an informal written cost-benefit analysis that:
             5340          (a) explains, in general terms, the advantage to the public procurement unit of
             5341      awarding the contract to the higher cost offeror;
             5342          (b) includes, except as provided in Subsection (2)(c), the estimated added financial
             5343      value to the public procurement unit of each criteria that justifies awarding the contract to the
             5344      higher cost offeror;
             5345          (c) includes, to the extent that assigning a financial value to a particular criteria is not
             5346      practicable, a statement describing:
             5347          (i) why it is not practicable to assign a financial value to the criteria; and
             5348          (ii) in nonfinancial terms, the advantage to the public procurement unit, based on the
             5349      particular criteria, of awarding the contract to the higher cost offeror;
             5350          (d) demonstrates that the value of the advantage to the public procurement unit of
             5351      awarding the contract to the higher cost offeror exceeds the value of the difference between the
             5352      cost of the higher cost offeror and the cost of the lower cost offerors; and
             5353          (e) includes any other information required by rule made by the applicable rulemaking
             5354      authority.
             5355          Section 128. Section 63G-6a-709 is enacted to read:
             5356          63G-6a-709. Award of contract -- Cancellation -- Disqualification.
             5357          (1) After the evaluation and scoring of proposals is completed, the authorized
             5358      purchasing entity shall:
             5359          (a) award the contract as soon as practicable to:


             5360          (i) the responsive and responsible offeror with the highest total score; or
             5361          (ii) if, in accordance with Subsection (2), the procurement officer or the head of the
             5362      authorized purchasing entity disqualifies the offeror described in Subsection (1)(a)(i), the
             5363      responsive and responsible offeror with the next highest total score; or
             5364          (b) cancel the request for proposals without awarding a contract.
             5365          (2) In accordance with Subsection (3), the procurement officer or the head of the
             5366      authorized purchasing entity may disqualify an offeror for:
             5367          (a) a violation of this chapter;
             5368          (b) a violation of a requirement of the request for proposals;
             5369          (c) unlawful or unethical conduct; or
             5370          (d) a change in circumstance that, had the change been known at the time the proposal
             5371      was submitted, would have caused the proposal to not have the highest score.
             5372          (3) A procurement officer or head of an authorized purchasing entity who disqualifies
             5373      an offeror under Subsection (2) shall:
             5374          (a) make a written finding, stating the reasons for disqualification; and
             5375          (b) provide a copy of the written finding to the disqualified offeror.
             5376          (4) If an authorized purchasing entity cancels a request for proposals without awarding
             5377      a contract, the authorized purchasing entity shall make available for public inspection a written
             5378      justification for the cancellation.
             5379          Section 129. Section 63G-6a-710 is enacted to read:
             5380          63G-6a-710. Multiple stage process.
             5381          (1) An authorized purchasing entity may conduct a request for proposals in stages,
             5382      where an earlier stage is used to qualify offerors for subsequent stages or to narrow the number
             5383      of offerors that will move on to subsequent stages.
             5384          (2) Except as otherwise expressly provided in this section, an authorized purchasing
             5385      entity shall conduct a multiple stage process in accordance with this part.
             5386          Section 130. Section 63G-6a-711 , which is renumbered from Section 63G-6-408.5 is
             5387      renumbered and amended to read:
             5388           [63G-6-408.5].     63G-6a-711. Procurement for submitted proposal.
             5389          (1) As used in this section:
             5390          (a) "Committee" is as defined in Section 63M-1-2602 .


             5391          (b) "Initial proposal" is a proposal submitted by a private entity under Section
             5392      63M-1-2605 .
             5393          (2) After receipt by the chief procurement officer of a copy of an initial proposal from
             5394      the committee in accordance with Subsection 63M-1-2606 (5), including any comment,
             5395      suggestion, or modification to the initial proposal, the chief procurement officer shall initiate a
             5396      procurement process in compliance with [Title 63G, Chapter 6, Utah Procurement Code] this
             5397      chapter.
             5398          (3) The chief procurement officer or designee shall:
             5399          (a) review each detailed proposal received in accordance with Title 63M, Chapter 1,
             5400      Part 26, Government Procurement Private Proposal Program; and
             5401          (b) submit all detailed proposals that meet the guidelines established under Subsection
             5402      63M-1-2608 (1) to the committee for review under Section 63M-1-2609 .
             5403          (4) For purposes of this chapter, the Governor's Office of Economic Development is
             5404      considered the state purchasing [agency] unit for a procurement process under Title 63M,
             5405      Chapter 1, Part 26, Government Procurement Private Proposal Program.
             5406          Section 131. Section 63G-6a-801 is enacted to read:
             5407     
Part 8. Exceptions to Procurement Requirements

             5408          63G-6a-801. Title.
             5409          This part is known as "Exceptions to Procurement Requirements."
             5410          Section 132. Section 63G-6a-802 , which is renumbered from Section 63G-6-410 is
             5411      renumbered and amended to read:
             5412           [63G-6-410].     63G-6a-802. Sole source -- Award of contract without
             5413      competition -- Notice.
             5414          (1) A contract may be awarded for a [supply, service, or construction] procurement
             5415      item without competition [when, under rules and regulations, the chief] if the procurement
             5416      officer, the head of [a purchasing agency, or a designee of either officer above the level of
             5417      procurement officer] an authorized purchasing entity, or a designee of either who is senior to
             5418      the procurement officer or the head of the authorized purchasing entity, determines in writing
             5419      that:
             5420          [(1)] (a) there is only one source for the [required supply, service, or construction]
             5421      procurement item; or


             5422          [(2)] (b) the award to a specific supplier, service provider, or contractor is a condition
             5423      of a donation that will fund the full cost of the supply, service, or construction item.
             5424          (2) Circumstances under which there is only one source for a procurement item may
             5425      include:
             5426          (a) where the most important consideration in obtaining a procurement item is the
             5427      compatibility of equipment, technology, software, accessories, replacement parts, or service;
             5428          (b) where a procurement item is needed for trial use or testing;
             5429          (c) where an item is procured for resale; or
             5430          (d) procurement of public utility services.
             5431          (3) The applicable rulemaking authority may make rules regarding the publication of
             5432      notice for a sole source procurement.
             5433          (4) An authorized purchasing entity who awards a sole source contract on behalf of a
             5434      public procurement unit shall negotiate with the contractor to ensure that the terms of the
             5435      contract, including price and delivery, are in the best interest of the state.
             5436          Section 133. Section 63G-6a-803 is enacted to read:
             5437          63G-6a-803. Emergency procurement.
             5438          (1) Notwithstanding any other provision of this chapter, a procurement officer or the
             5439      procurement officer's designee may authorize an emergency procurement without using a
             5440      standard procurement process when an emergency condition exists.
             5441          (2) A procurement officer who authorizes an emergency procurement under Subsection
             5442      (1) shall:
             5443          (a) make the authorization in writing, stating the emergency condition upon which the
             5444      emergency procurement is made; and
             5445          (b) ensure that the procurement is made with as much competition as reasonably
             5446      practicable while avoiding harm, or a risk of harm, to the public health, safety, welfare, or
             5447      property.
             5448          Section 134. Section 63G-6a-804 , which is renumbered from Section 63G-6-423 is
             5449      renumbered and amended to read:
             5450           [63G-6-423].     63G-6a-804. Purchase of prison industry goods.
             5451          (1) [All] (a) A public procurement [units] unit that is not a political subdivision shall
             5452      purchase goods and services produced by the Utah Correctional Industries Division as provided


             5453      [by] in this section[, which is an exemption from this chapter. All political subdivisions].
             5454          (b) A political subdivision of the state may, and is encouraged to, purchase [these]
             5455      goods and services [and are encouraged to do so when feasible] under this section.
             5456          (c) A public procurement unit is not required to use a procurement process to purchase
             5457      goods or services under this section.
             5458          (2) [By] On or before July 1 of each year, the director of the Utah Correctional
             5459      Industries shall:
             5460          (a) publish and distribute to all [state agencies and interested political subdivisions]
             5461      public procurement units and other interested public entities a catalog of goods and services
             5462      provided by the Correctional Industries Division[. The catalog shall include], including a
             5463      description and price of each item offered for sale[. The catalog shall be updated and revised];
             5464      and
             5465          (b) update and revise the catalog described in Subsection (2)(a) during the year as the
             5466      director considers necessary.
             5467          (3) (a) [State departments, agencies, and institutions] A procurement unit that is not a
             5468      political subdivision of the state may not purchase any goods or services provided by the
             5469      Correctional Industries Division from any other source unless it has been determined in writing
             5470      by the director of Correctional Industries and by the [state] procurement officer [or in the case
             5471      of institutions of higher education, the institutional procurement officer,] that purchase from
             5472      the Correctional Industries Division is not feasible due to one of the following circumstances:
             5473          (i) the good or service offered by the division does not meet the reasonable
             5474      requirements of the [purchasing agency] public procurement unit;
             5475          (ii) the good or service cannot be supplied within a reasonable time by the division; or
             5476          (iii) the cost of the good or service, including basic price, transportation costs, and
             5477      other expenses of acquisition, is not competitive with the cost of procuring the item from
             5478      another source.
             5479          (b) In cases of disagreement[,] under Subsection (3)(a):
             5480          (i) the decision may be appealed to a board consisting of:
             5481          (A) the director of the Department of Corrections[,];
             5482          (B) the director of Administrative Services[,]; and
             5483          (C) a neutral third party agreed upon by the other two members [or,] of the board;


             5484          (ii) in the case of [institutions] an institution of higher education of the state, the
             5485      president of the [involved] institution, or the president's designee, shall make the final
             5486      decision[.];
             5487          (iii) in the case of a non-executive state procurement unit, a person designated by the
             5488      applicable rulemaking authority shall make the final decision.
             5489          Section 135. Section 63G-6a-805 , which is renumbered from Section 63G-6-425 is
             5490      renumbered and amended to read:
             5491           [63G-6-425].     63G-6a-805. Purchase from community rehabilitation
             5492      programs.
             5493          (1) As used in this section:
             5494          (a) ["Board"] "Advisory board" means the Purchasing from Persons with Disabilities
             5495      Advisory Board created under this section.
             5496          (b) "Central not-for-profit association" means a group of experts designated by the
             5497      advisory board to do the following, under guidelines established by the advisory board:
             5498          (i) assist the advisory board with its functions; and
             5499          (ii) facilitate the implementation of advisory board policies.
             5500          (c) (i) "Community rehabilitation program" means a program that is operated primarily
             5501      for the purpose of the employment and training of persons with a disability by a government
             5502      agency or qualified nonprofit organization which is an income tax exempt organization under
             5503      26 U.S.C. Sec. 501(c)(3) of the Internal Revenue Code.
             5504          (ii) A community rehabilitation program:
             5505          (A) maintains an employment ratio of at least 75% of the program employees under the
             5506      procurement contract in question have severe disabilities;
             5507          (B) (I) complies with any applicable occupational health and safety standards
             5508      prescribed by the United States Department of Labor; or
             5509          (II) is a supported employment program approved by the Utah State Office of
             5510      Rehabilitation;
             5511          (C) has its principal place of business in Utah;
             5512          (D) produces any good provided under this section in Utah; and
             5513          (E) provides any service that is provided by individuals with a majority of whom
             5514      domiciled in Utah.


             5515          (d) "Person with a disability" means a person with any disability as defined by and
             5516      covered under the Americans with Disabilities Act of 1990, 42 U.S.C. 12102.
             5517          (2) [(a)] There is created within the division the Purchasing from Persons with
             5518      Disabilities Advisory Board [within the Division of Purchasing and General Services of the
             5519      Department of Administrative Services. The board shall be composed of the following three
             5520      members:].
             5521          (3) The advisory board shall consist of three members, as follows:
             5522          [(i)] (a) the director of the [Division of Purchasing and General Services created under
             5523      Section 63A-2-101 or a] division or the director's designee;
             5524          [(ii)] (b) the executive director of the Utah State Office of Rehabilitation, created under
             5525      Section 53A-24-103 , or [a] the executive director's designee; and
             5526          [(iii)] (c) a representative of the private business community who shall be appointed to
             5527      a three-year term by the governor with the advice and consent of the Senate.
             5528          [(b)] (4) The advisory board shall meet, as needed, to facilitate the procurement of
             5529      goods and services from community rehabilitation programs by a public procurement unit
             5530      under this chapter by:
             5531          [(i)] (a) identifying goods and services that are available from community rehabilitation
             5532      programs [according to the requirements under Subsection (4)] in accordance with the
             5533      requirements of Subsection (7);
             5534          [(ii)] (b) approving prices in accordance with Subsection [(4)] (7)(c) for goods and
             5535      services that are identified under Subsection [(2)(b)(i)] (4)(a);
             5536          [(iii)] (c) developing, maintaining, and approving a preferred procurement contract list
             5537      of goods and services identified and priced under Subsections [(2)(b)(i) and (ii)] (4)(a) and (b);
             5538          [(iv)] (d) reviewing bids received by a community rehabilitation program; and
             5539          [(v)] (e) awarding and renewing specified contracts for set contract times, without
             5540      competitive bidding, for the purchase of goods and services under Subsection [(4)] (7).
             5541          [(c)] (5) The provisions of Subsections [(2)(b)] (4) and [(4)] (7)(a) are an exception to
             5542      the procurement provisions under this chapter.
             5543          [(3)] (6) (a) The advisory board may designate a central not-for-profit association,
             5544      appoint its members, and establish guidelines for its duties.
             5545          (b) The designated central not-for-profit association serves at the pleasure of the


             5546      advisory board [and the]. The central not-for-profit association or its individual members may
             5547      be removed by the advisory board at any time by a majority vote of the advisory board.
             5548          (c) Subject to the board guidelines and discretion, a designated central not-for-profit
             5549      association may be assigned to perform the following duties:
             5550          (i) identify qualified community rehabilitation programs and the goods and services
             5551      that they provide or have the potential to provide;
             5552          (ii) help ensure that goods and services are provided at reasonable quality and delivery
             5553      levels;
             5554          (iii) recommend pricing for goods and services;
             5555          (iv) [reviewing] review bids and [recommending] recommend the award of contracts
             5556      under the board's direction;
             5557          (v) [collecting and reporting] collect and report program data to the advisory board and
             5558      to the division; and
             5559          (vi) other duties specified by the advisory board.
             5560          [(4)] (7) Except as provided under Subsection [(6)] (9), notwithstanding any provision
             5561      [in] of this chapter to the contrary, each public procurement unit shall purchase goods and
             5562      services produced by a community rehabilitation program using the preferred procurement
             5563      contract list approved under Subsection [(2)(b)(iii)] (4)(c) if:
             5564          (a) the good or service offered for sale by a community rehabilitation program
             5565      reasonably conforms to the needs and specifications of the public procurement unit;
             5566          (b) the community rehabilitation program can supply the good or service within a
             5567      reasonable time; and
             5568          (c) the price of the good or service is reasonably competitive with the cost of procuring
             5569      the good or service from another source.
             5570          [(5)] (8) Each community rehabilitation program:
             5571          (a) may submit a bid to the advisory board at any time and not necessarily in response
             5572      to [a request] an invitation for bids; and
             5573          (b) shall certify on any bid it submits to the advisory board or to a public procurement
             5574      unit under this section that it is claiming a preference under this section.
             5575          [(6)] (9) During a fiscal year, the requirement for a public procurement unit to purchase
             5576      goods and services produced by a community rehabilitation program under the preferred


             5577      procurement list under Subsection [(4)] (7) does not apply if the [Division of Purchasing and
             5578      General Services] division determines that the total amount of procurement contracts with
             5579      community rehabilitation programs has reached $5 million for that fiscal year.
             5580          [(7)] (10) In the case of conflict between a purchase under this section and a purchase
             5581      under Section [ 63G-6-423 ] 63G-6a-804 , this section prevails.
             5582          Section 136. Section 63G-6a-901 is enacted to read:
             5583     
Part 9. Cancellations, Rejections, and Debarment

             5584          63G-6a-901. Title.
             5585          This part is known as "Cancellations, Rejections, and Debarment."
             5586          Section 137. Section 63G-6a-902 , which is renumbered from Section 63G-6-412 is
             5587      renumbered and amended to read:
             5588           [63G-6-412].     63G-6a-902. Cancellation and rejection of bids and
             5589      proposals.
             5590          [An] (1) An authorized purchasing entity may cancel an invitation for bids, a request
             5591      for proposals, or other solicitation [may be cancelled, or any or all bids or proposals may be
             5592      rejected] or reject any or all bids or proposal responses, in whole or in part, as may be specified
             5593      in the solicitation, when it is in the best interests of the [state] public procurement unit in
             5594      accordance with [rules and regulations] the rules of the applicable rulemaking authority.
             5595          (2) The reasons for a cancellation or rejection described in Subsection (1) shall be
             5596      made part of the contract file.
             5597          Section 138. Section 63G-6a-903 , which is renumbered from Section 63G-6-413 is
             5598      renumbered and amended to read:
             5599           [63G-6-413].     63G-6a-903. Determination of nonresponsibility of bidder or
             5600      offeror.
             5601          (1) A [written] determination of nonresponsibility of a bidder or offeror made by an
             5602      authorized purchasing entity shall be made in writing, in accordance with [rules and
             5603      regulations] the rules of the applicable rulemaking authority.
             5604          (2) The unreasonable failure of a bidder or offeror to promptly supply information in
             5605      connection with an inquiry with respect to responsibility may be grounds for a determination of
             5606      nonresponsibility with respect to the bidder or offeror. [Information]
             5607          (3) Subject to Title 63G, Chapter 2, Government Records Access and Management


             5608      Act, information furnished by a bidder or offeror pursuant to this section [shall] may not be
             5609      disclosed outside of the [purchasing division or the purchasing agency] public procurement
             5610      unit or authorized purchasing entity without prior written consent by the bidder or offeror.
             5611          Section 139. Section 63G-6a-904 , which is renumbered from Section 63G-6-804 is
             5612      renumbered and amended to read:
             5613           [63G-6-804].     63G-6a-904. Debarment from consideration for award of
             5614      contracts -- Causes for debarment.
             5615          (1) After reasonable notice to the person involved and reasonable opportunity for that
             5616      person to be heard, [the chief procurement officer or the head of a purchasing agency,] a
             5617      procurement officer or the head of an authorized purchasing entity may, after consultation with
             5618      the [using agency and] public procurement unit and, if the public procurement unit is in the
             5619      state executive branch, the attorney general[, shall have authority to]:
             5620          (a) debar a person for cause from consideration for award of contracts[. The debarment
             5621      shall not be for a period exceeding three years. The same officer, after consultation with the
             5622      using agency and the attorney general, shall have authority to] for a period not to exceed three
             5623      years; or
             5624          (b) suspend a person from consideration for award of contracts if there is probable
             5625      cause to believe that the person has engaged in any activity [which] that might lead to
             5626      debarment. [The suspension shall]
             5627          (2) A suspension described in Subsection (1)(b) may not be for a period exceeding
             5628      three months, unless an indictment has been issued for an offense which would be a cause for
             5629      debarment under Subsection [(2)] (3), in which case the suspension shall, at the request of the
             5630      attorney general, remain in effect until after the trial of the suspended person.
             5631          [(2)] (3) The causes for debarment include the following:
             5632          (a) conviction of a criminal offense as an incident to obtaining or attempting to obtain a
             5633      public or private contract or subcontract or in the performance of [such] a public or private
             5634      contract or subcontract;
             5635          (b) conviction under state or federal statutes of embezzlement, theft, forgery, bribery,
             5636      falsification or destruction of records, receiving stolen property, or any other offense indicating
             5637      a lack of business integrity or business honesty which currently, seriously, and directly affects
             5638      responsibility as a state contractor;


             5639          (c) conviction under state or federal antitrust statutes;
             5640          (d) failure without good cause to perform in accordance with the terms of the contract;
             5641      [or]
             5642          (e) a violation of this chapter, including Part 22, Ethical Requirements; or
             5643          [(e)] (f) any other cause the [chief] procurement officer, or the head of [a purchasing
             5644      agency] an authorized purchasing entity determines to be so serious and compelling as to affect
             5645      responsibility as a state contractor, including debarment by another governmental entity [for
             5646      any cause listed in rules and regulations].
             5647          Section 140. Section 63G-6a-1001 is enacted to read:
             5648     
Part 10. Preferences

             5649          63G-6a-1001. Title.
             5650          This part is known as "Preferences."
             5651          Section 141. Section 63G-6a-1002 , which is renumbered from Section 63G-6-404 is
             5652      renumbered and amended to read:
             5653           [63G-6-404].     63G-6a-1002. Reciprocal preference for providers of state
             5654      products.
             5655          (1) (a) [All public procurement units shall, in all purchases of goods, supplies,
             5656      equipment, materials, and printing] An authorized purchasing entity shall, for all procurements,
             5657      give a reciprocal preference to those bidders offering [goods, supplies, equipment, materials, or
             5658      printing] procurement items that are produced, manufactured, mined, grown, or performed in
             5659      Utah [as against] over those bidders offering [goods, supplies, equipment, materials, or
             5660      printing] procurement items that are produced, manufactured, mined, grown, or performed in
             5661      any state that gives or requires a preference to [goods, supplies, equipment, materials, or
             5662      printing] procurement items that are produced, manufactured, mined, grown, or performed in
             5663      that state.
             5664          (b) The amount of reciprocal preference shall be equal to the amount of the preference
             5665      applied by the other state for that particular [good, supply, equipment, material, or printing]
             5666      procurement item.
             5667          (c) [(i) The] In order to receive a reciprocal preference under this section, the bidder
             5668      shall certify on the bid that the [goods, supplies, equipment, materials, or printing] procurement
             5669      items offered are produced, manufactured, mined, grown, or performed in Utah.


             5670          [(ii)] (d) The reciprocal preference is waived if [that] the certification described in
             5671      Subsection (1)(c) does not appear on the bid.
             5672          (2) (a) If the bidder submitting the lowest responsive and responsible bid offers [goods,
             5673      supplies, equipment, materials, or printing] procurement items that are produced,
             5674      manufactured, mined, grown, or performed in a state that gives or requires a preference, and if
             5675      another bidder has submitted a responsive and responsible bid offering [goods, supplies,
             5676      equipment, materials, or printing] procurement items that are produced, manufactured, mined,
             5677      grown, or performed in Utah, and with the benefit of the reciprocal preference, [his] the bid of
             5678      the other bidder is equal to or less than the original lowest bid, the [procurement officer]
             5679      authorized purchasing entity shall:
             5680          (i) give notice to the bidder offering [goods, supplies, equipment, materials, or
             5681      printing] procurement items that are produced, manufactured, mined, grown, or performed in
             5682      Utah that the bidder qualifies as a preferred bidder; and
             5683          (ii) make the purchase from the preferred bidder if[,] the bidder agrees, in writing, to
             5684      meet the low bid within 72 hours after notification that the bidder is a preferred bidder.
             5685          (b) The [procurement officer] authorized purchasing entity shall include the exact price
             5686      submitted by the lowest bidder in the notice the [procurement officer] authorized purchasing
             5687      entity submits to the preferred bidder.
             5688          (c) The [procurement officer] authorized purchasing entity may not enter into a
             5689      contract with any other bidder for the purchase until 72 hours have elapsed after notification to
             5690      the preferred bidder.
             5691          (3) (a) If there is more than one preferred bidder, the [procurement officer] authorized
             5692      purchasing entity shall award the contract to the willing preferred bidder who was the lowest
             5693      preferred bidder originally.
             5694          (b) If there were two or more equally low preferred bidders, the [procurement officer]
             5695      authorized purchasing entity shall comply with the rules [adopted by the Procurement Policy
             5696      Board] of the applicable rulemaking authority to determine which bidder should be awarded
             5697      the contract.
             5698          (4) The provisions of this section do not apply if application of this section might
             5699      jeopardize the receipt of federal funds.
             5700          Section 142. Section 63G-6a-1003 , which is renumbered from Section 63G-6-405 is


             5701      renumbered and amended to read:
             5702           [63G-6-405].     63G-6a-1003. Preference for resident contractors.
             5703          (1) As used in this section, "resident contractor" means a person, partnership,
             5704      corporation, or other business entity that:
             5705          (a) either has its principal place of business in Utah or that employs workers who are
             5706      residents of this state when available; and
             5707          (b) was transacting business on the date when bids for the public contract were first
             5708      solicited.
             5709          (2) (a) When awarding contracts for construction, [a public procurement unit] an
             5710      authorized purchasing entity shall grant a resident contractor a reciprocal preference [as
             5711      against] over a nonresident contractor from any state that gives or requires a preference to
             5712      contractors from that state.
             5713          (b) The amount of the reciprocal preference shall be equal to the amount of the
             5714      preference applied by the state of the nonresident contractor.
             5715          (3) (a) [The] In order to receive the reciprocal preference under this section, the bidder
             5716      shall certify on the bid that the bidder qualifies as a resident contractor.
             5717          (b) The reciprocal preference is waived if [that] the certification described in
             5718      Subsection (2)(a) does not appear on the bid.
             5719          (4) (a) If the contractor submitting the lowest responsive and responsible bid is not a
             5720      resident contractor [and has his] whose principal place of business [in any] is in a state that
             5721      gives or requires a preference to contractors from that state, and if a resident contractor has also
             5722      submitted a responsive and responsible bid, and, with the benefit of the reciprocal preference,
             5723      the resident contractor's bid is equal to or less than the original lowest bid, the [procurement
             5724      officer] authorized purchasing entity shall:
             5725          (i) give notice to the resident contractor that the resident contractor qualifies as a
             5726      preferred resident contractor; and
             5727          (ii) issue the contract to the resident contractor if the resident contractor agrees, in
             5728      writing, to meet the low bid within 72 hours after notification that the resident contractor is a
             5729      preferred resident contractor.
             5730          (b) The [procurement officer] authorized purchasing entity shall include the exact price
             5731      submitted by the lowest bidder in the notice [the procurement officer] that the authorized


             5732      purchasing entity submits to the preferred resident contractor.
             5733          (c) The [procurement officer] authorized purchasing entity may not enter into a
             5734      contract with any other bidder for the construction until 72 hours have elapsed after notification
             5735      to the preferred resident contractor.
             5736          (5) (a) If there is more than one preferred resident contractor, the [procurement officer]
             5737      authorized purchasing entity shall award the contract to the willing preferred resident
             5738      contractor who was the lowest preferred resident contractor originally.
             5739          (b) If there were two or more equally low preferred resident contractors, the
             5740      [procurement officer] authorized purchasing entity shall comply with the rules [adopted by the
             5741      Procurement Policy Board] of the applicable rulemaking authority to determine which bidder
             5742      should be awarded the contract.
             5743          (6) The provisions of this section do not apply if application of this section might
             5744      jeopardize the receipt of federal funds.
             5745          Section 143. Section 63G-6a-1101 is enacted to read:
             5746     
Part 11. Bonds

             5747          63G-6a-1101. Title.
             5748          This part is known as "Bonds."
             5749          Section 144. Section 63G-6a-1102 , which is renumbered from Section 63G-6-504 is
             5750      renumbered and amended to read:
             5751           [63G-6-504].     63G-6a-1102. Bid security requirements -- Directed
             5752      suretyship prohibited -- Penalty.
             5753          (1) Bid security in an amount equal to at least 5% of the amount of the bid shall be
             5754      required for all competitive [sealed] bidding for construction contracts. Bid security shall be a
             5755      bond provided by a surety company authorized to do business in this state, the equivalent in
             5756      cash, or any other form satisfactory to the state.
             5757          (2) When a bidder fails to comply with the requirement for bid security [set forth]
             5758      described in the invitation for bids, the bid shall be rejected unless, pursuant to rules[, it is
             5759      determined] of the applicable rulemaking authority, the authorized purchasing entity
             5760      determines that the failure to comply with the security requirements is nonsubstantial.
             5761          (3) After the bids are opened, they shall be irrevocable for the period specified in the
             5762      invitation for bids, except as provided in [Subsection 63G-6-401 (6)] Section 63G-6a-605 . If a


             5763      bidder is permitted to withdraw a bid before award, no action shall be taken against the bidder
             5764      or the bid security.
             5765          (4) (a) When issuing an invitation for a bid under this chapter, the [chief] procurement
             5766      officer or the head of [the purchasing agency] an authorized purchasing entity responsible for
             5767      carrying out a construction project may not require a person or entity who is bidding for a
             5768      contract to obtain a bond of the type [referred to] described in Subsection (1) from a specific
             5769      insurance or surety company, producer, agent, or broker.
             5770          (b) A person who violates Subsection (4)(a) is guilty of an infraction.
             5771          Section 145. Section 63G-6a-1103 , which is renumbered from Section 63G-6-505 is
             5772      renumbered and amended to read:
             5773           [63G-6-505].     63G-6a-1103. Bonds necessary when contract is awarded --
             5774      Waiver -- Action -- Attorney fees.
             5775          (1) When a construction contract is awarded under this chapter, the contractor to whom
             5776      the contract is awarded shall deliver the following bonds or security to the state, which shall
             5777      become binding on the parties upon the execution of the contract:
             5778          (a) a performance bond satisfactory to the state that is in an amount equal to 100% of
             5779      the price specified in the contract and is executed by a surety company authorized to do
             5780      business in this state or any other form satisfactory to the state; and
             5781          (b) a payment bond satisfactory to the state that is in an amount equal to 100% of the
             5782      price specified in the contract and is executed by a surety company authorized to do business in
             5783      this state or any other form satisfactory to the state, which is for the protection of each person
             5784      supplying labor, service, equipment, or material for the performance of the work provided for
             5785      in the contract.
             5786          (2) (a) When a construction contract is awarded under this chapter, the [chief]
             5787      procurement officer or the head of the [purchasing agency] authorized purchasing entity
             5788      responsible for carrying out [a] the construction project may not require a contractor to whom a
             5789      contract is awarded to obtain a bond of the types referred to in Subsection (1) from a specific
             5790      insurance or surety company, producer, agent, or broker.
             5791          (b) A person who violates Subsection (2)(a) is guilty of an infraction.
             5792          (3) Rules of the applicable rulemaking authority may provide for waiver of the
             5793      requirement of a bid, performance, or payment bond for circumstances in which the [state]


             5794      procurement officer considers any or all of the bonds to be unnecessary to protect the [state]
             5795      public procurement unit.
             5796          (4) A person shall have a right of action on a payment bond under this section for any
             5797      unpaid amount due [him] to the person if:
             5798          (a) the person has furnished labor, service, equipment, or material for the work
             5799      provided for in the contract for which the payment bond is furnished under this section; and
             5800          (b) the person has not been paid in full within 90 days after the last [date] day on which
             5801      the person performed the labor or service or supplied the equipment or material for which the
             5802      claim is made.
             5803          (5) An action upon a payment bond [shall] may only be brought in a court of
             5804      competent jurisdiction in [any] a county where the construction contract was to be performed
             5805      [and not elsewhere]. The action is barred if not commenced within one year after the last day
             5806      on which the claimant performed the labor or service or supplied the equipment or material on
             5807      which the claim is based. The obligee named in the bond need not be joined as a party to the
             5808      action.
             5809          (6) In any suit upon a payment bond, the court shall award reasonable attorney fees to
             5810      the prevailing party, which fees shall be taxed as costs in the action.
             5811          Section 146. Section 63G-6a-1104 , which is renumbered from Section 63G-6-506 is
             5812      renumbered and amended to read:
             5813           [63G-6-506].     63G-6a-1104. Preliminary notice requirement.
             5814          (1) Any person furnishing labor, service, equipment, or material for which a payment
             5815      bond claim may be made under this chapter shall provide preliminary notice to the designated
             5816      agent as prescribed by Section 38-1-32.5 , except that this section does not apply:
             5817          (a) to a person performing labor for wages; or
             5818          (b) if a notice of commencement is not filed as prescribed in Section 38-1-31.5 for the
             5819      project or improvement for which labor, service, equipment, or material is furnished.
             5820          (2) Any person who fails to provide the preliminary notice required by Subsection (1)
             5821      may not make a payment bond claim under this chapter.
             5822          (3) The preliminary notice required by Subsection (1) must be provided before
             5823      commencement of any action on the payment bond.
             5824          Section 147. Section 63G-6a-1105 , which is renumbered from Section 63G-6-507 is


             5825      renumbered and amended to read:
             5826           [63G-6-507].     63G-6a-1105. Form of bonds -- Effect of certified copy.
             5827          The form of the bonds required by this part shall be established by [rules and
             5828      regulations] rule made by the applicable rulemaking authority. Any person may obtain from
             5829      the state a certified copy of a bond upon payment of the cost of reproduction of the bond and
             5830      postage, if any. A certified copy of a bond shall be prima facie evidence of the contents,
             5831      execution, and delivery of the original.
             5832          Section 148. Section 63G-6a-1201 is enacted to read:
             5833     
Part 12. Contracts and Change Orders

             5834          63G-6a-1201. Title.
             5835          This part is known as "Contracts and Change Orders."
             5836          Section 149. Section 63G-6a-1202 , which is renumbered from Section 63G-6-601 is
             5837      renumbered and amended to read:
             5838           [63G-6-601].     63G-6a-1202. Required contract clauses -- Computation of
             5839      price adjustments -- Use of rules and regulations.
             5840          (1) [Rules and regulations] The rules of the applicable rulemaking authority shall
             5841      require for state construction contracts, and may permit or require for [state] contracts for
             5842      supplies and services, the inclusion of clauses providing for adjustments in prices, time of
             5843      performance, or other appropriate contract provisions, and covering the following subjects:
             5844          (a) the unilateral right of the [state] procurement officer to order in writing changes in
             5845      the work within the scope of the contract and changes in the time of performance of the
             5846      contract that do not alter the scope of the contract work;
             5847          (b) variations occurring between estimated quantities of work in a contract and actual
             5848      quantities;
             5849          (c) suspension of work ordered by the [state] procurement officer; and
             5850          (d) site conditions differing from those indicated in the construction contract, or
             5851      ordinarily encountered, except that differing site conditions clauses required by the rules [and
             5852      regulations] need not be included in a construction contract when:
             5853          (i) the contract is negotiated[, when];
             5854          (ii) the contractor provides the site or design[, or when]; or
             5855          (iii) the parties have otherwise agreed with respect to the risk of differing site


             5856      conditions.
             5857          (2) Adjustments in price pursuant to clauses [promulgated under] described in
             5858      Subsection (1) shall be computed in one or more of the following ways:
             5859          (a) by agreement on a fixed price adjustment before commencement of the pertinent
             5860      performance or as soon thereafter as practicable;
             5861          (b) by unit prices specified in the contract or subsequently agreed upon;
             5862          (c) by the costs attributable to the events or situations under the clauses with
             5863      adjustment of profit or fee, all as specified in the contract or subsequently agreed upon;
             5864          (d) in any other manner as the contracting parties may mutually agree; or
             5865          (e) in the absence of agreement by the parties, by a unilateral determination by the
             5866      [state] procurement officer of the costs attributable to the events or situations under the clauses
             5867      with adjustment of profit or fee, all as computed by the [state] procurement officer in
             5868      accordance with applicable [sections of the] rules and [regulations issued under Subsection
             5869      63G-6-415 (1) and] subject to the provisions of Part [8, Legal and Contractual Remedies] 17,
             5870      Procurement Appeals Board, and Part 18, Appeals to Court and Court Proceedings.
             5871          (3) A contractor shall be required to submit cost or pricing data if any adjustment in
             5872      contract price is subject to the provisions of Section [ 63G-6-415 ] 63G-6a-1206 .
             5873          (4) [Rules and regulations] The rules of the applicable rulemaking authority shall
             5874      require for [state] construction contracts, and may permit or require for [state] contracts for
             5875      supplies and services, the inclusion of clauses providing for appropriate remedies and covering
             5876      at least the following subjects:
             5877          (a) liquidated damages as appropriate;
             5878          (b) specified excuses for delay or nonperformance;
             5879          (c) termination of the contract for default; and
             5880          (d) termination of the contract in whole or in part for the convenience of the [state]
             5881      public procurement unit.
             5882          (5) The contract clauses [promulgated under] described in this section shall be [set
             5883      forth in rules and regulations] established by rule. However, the [chief] procurement officer or
             5884      the head of [a purchasing agency] an authorized purchasing entity may modify the clauses for
             5885      inclusion in any particular contract. [Any] The applicable rulemaking authority may, by rule,
             5886      require that:


             5887          (a) variations [shall] be supported by a written determination that describes the
             5888      circumstances justifying the variations[,]; and
             5889          (b) notice of any material variation shall be included in the invitation for bids or
             5890      request for proposals.
             5891          Section 150. Section 63G-6a-1203 , which is renumbered from Section 63G-6-603 is
             5892      renumbered and amended to read:
             5893           [63G-6-603].     63G-6a-1203. Contracts -- Certain indemnification
             5894      provisions forbidden.
             5895          (1) As used in this section, "design professional" means:
             5896          (a) an architect, licensed under Title 58, Chapter 3a, Architects Licensing Act;
             5897          (b) a landscape architect, licensed under Title 58, Chapter 53, Landscape Architects
             5898      Licensing Act; and
             5899          (c) a professional engineer or professional land surveyor, licensed under Title 58,
             5900      Chapter 22, Professional Engineers and Professional Land Surveyors Licensing Act.
             5901          (2) (a) [Beginning May 12, 2009, a] A contract, including an amendment to an existing
             5902      contract, entered into under [authority of] this chapter may not require that a design
             5903      professional indemnify another from liability claims that arise out of the design professional's
             5904      services, unless the liability claim arises from the design professional's negligent act, wrongful
             5905      act, error or omission, or other liability imposed by law.
             5906          (b) Subsection (2)(a) may not be waived by contract.
             5907          (c) Notwithstanding Subsections (2)(a) and (b), a design professional may be required
             5908      to indemnify a person for whom the design professional has direct or indirect control or
             5909      responsibility.
             5910          Section 151. Section 63G-6a-1204 is enacted to read:
             5911          63G-6a-1204. Multiyear contracts.
             5912          (1) Except as provided in Subsection (7), a public procurement unit may enter into a
             5913      multiyear contract resulting from an invitation for bids or a request for proposals, if:
             5914          (a) the procurement officer determines, in the discretion of the procurement officer,
             5915      that entering into a multiyear contract is in the best interest of the public procurement unit; and
             5916          (b) the invitation for bids or request for proposals:
             5917          (i) states the term of the contract, including all possible renewals of the contract;


             5918          (ii) states the conditions for renewal of the contract; and
             5919          (iii) includes the provisions of Subsections (3) through (5) that are applicable to the
             5920      contract.
             5921          (2) In making the determination described in Subsection (1)(a), the procurement officer
             5922      shall consider whether entering into a multiyear contract will:
             5923          (a) result in significant savings to the public procurement unit, including:
             5924          (i) reduction of the administrative burden in procuring, negotiating, or administering
             5925      contracts;
             5926          (ii) continuity in operations of the public procurement unit; or
             5927          (iii) the ability to obtain a volume or term discount;
             5928          (b) encourage participation by a person who might not otherwise be willing or able to
             5929      compete for a shorter term contract; or
             5930          (c) provide an incentive for a bidder or offeror to improve productivity through capital
             5931      investment or better technology.
             5932          (3) (a) The determination described in Subsection (1)(a) is discretionary and is not
             5933      required to be in writing or otherwise recorded.
             5934          (b) Except as provided in Subsections (4) and (5), notwithstanding any provision of an
             5935      invitation for bids, a request for proposals, or a contract to the contrary, a multiyear contract,
             5936      including a contract that was awarded outside of an invitation for bids or request for proposals
             5937      process, may not continue or be renewed for any year after the first year of the multiyear
             5938      contract if adequate funds are not appropriated to continue or renew the contract.
             5939          (4) A multiyear contract that is funded solely by federal funds may be continued or
             5940      renewed for any year after the first year of the multiyear contract if:
             5941          (a) adequate funds to continue or renew the contract have not been, but are expected to
             5942      be appropriated by, and received from, the federal government;
             5943          (b) continuation or renewal of the contract before the money is appropriated or
             5944      received is permitted by the federal government; and
             5945          (c) the contract states that it may be cancelled, without penalty, if the anticipated
             5946      federal funds are not appropriated or received.
             5947          (5) A multiyear contract that is funded in part by federal funds may be continued or
             5948      renewed for any year after the first year of the multiyear contract if:


             5949          (a) the portion of the contract that is to be funded by funds of a public entity are
             5950      appropriated;
             5951          (b) adequate federal funds to continue or renew the contract have not been, but are
             5952      expected to be, appropriated by, and received from, the federal government;
             5953          (c) continuation or renewal of the contract before the federal money is appropriated or
             5954      received is permitted by the federal government; and
             5955          (d) the contract states that it may be cancelled, without penalty, if the anticipated
             5956      federal funds are not appropriated or received.
             5957          (6) A public procurement unit may not continue or renew a multiyear contract after the
             5958      end of the multiyear contract term or the renewal periods described in the contract, unless the
             5959      public procurement unit engages in a new procurement process or complies with an exception,
             5960      described in this chapter, to using a standard procurement process.
             5961          (7) A multiyear contract, including any renewal periods, may not exceed a period of
             5962      five years, unless:
             5963          (a) the procurement officer determines, in writing, that:
             5964          (i) a longer period is necessary in order to obtain the procurement item;
             5965          (ii) a longer period is customary for industry standards; or
             5966          (iii) a longer period is in the best interest of the public procurement unit; and
             5967          (b) the written determination described in subsection (7)(a) is included in the file
             5968      relating to the procurement.
             5969          (8) This section does not apply to a contract for the design or construction of a facility
             5970      or a road.
             5971          Section 152. Section 63G-6a-1205 , which is renumbered from Section 63G-6-416 is
             5972      renumbered and amended to read:
             5973           [63G-6-416].     63G-6a-1205. Cost-plus-a-percentage-of-cost contract
             5974      prohibited.
             5975          (1) [Subject to the limitations of] Except as otherwise provided in this section, a public
             5976      procurement unit may use any type of contract [which] that will promote the best interests of
             5977      the state [may be used; provided that the use of].
             5978          (2) A public procurement unit may not use a cost-plus-a-percentage-of-cost contract [is
             5979      prohibited. A].


             5980          (3) A public procurement unit may not use a cost-reimbursement contract [may be used
             5981      only when a determination is made in writing that such] unless the procurement officer makes a
             5982      written determination that:
             5983          (a) the contract is likely to be less costly to the [state] public procurement unit than any
             5984      other type of contract; or [that]
             5985          (b) it is impracticable to obtain the [supplies, services, or construction required except
             5986      under such a] procurement item under another type of contract.
             5987          [(2) Except with respect to firm fixed-price contracts, no contract type shall be used
             5988      unless it has been determined in writing by the chief procurement officer, the head of a
             5989      purchasing agency, or a designee of either officer that:]
             5990          (4) A procurement officer, the head of an authorized procurement entity, or a designee
             5991      of either, may not use a type of contract, other than a firm fixed-price contract, unless the
             5992      procurement officer makes a written determination that:
             5993          (a) the proposed contractor's accounting system will permit timely development of all
             5994      necessary cost data in the form required by the specific contract type contemplated; and
             5995          (b) the proposed contractor's accounting system is adequate to allocate costs in
             5996      accordance with generally accepted accounting principles.
             5997          Section 153. Section 63G-6a-1206 , which is renumbered from Section 63G-6-415 is
             5998      renumbered and amended to read:
             5999           [63G-6-415].     63G-6a-1206. Rules and regulations to determine allowable
             6000      incurred costs -- Required information -- Auditing of books.
             6001          [(1) Rules and regulations may be promulgated to set forth cost principles to be used to
             6002      determine the allowability of incurred costs for the purpose of reimbursing costs under contract
             6003      provisions which provide for the reimbursement of costs; provided that if a written
             6004      determination is approved at a level above the procurement officer, the cost principles may be
             6005      modified by contract.]
             6006          [(2) A person shall, except as provided in Subsection (4), submit cost or pricing data
             6007      and shall certify that, to the best of the person's knowledge and belief, the cost or pricing data
             6008      submitted were accurate, complete, and current as of a mutually determined specified date prior
             6009      to the date of:]
             6010          (1) (a) The applicable rulemaking authority may, by rule, establish the cost principles


             6011      to be included in a cost-reimbursement contract to determine incurred costs for the purpose of
             6012      calculating a reimbursement.
             6013          (b) The cost principles established by rule under Subsection (1)(a) may be modified, by
             6014      contract, if the procurement officer or head of the authorized procurement entity approves the
             6015      modification.
             6016          (2) Except as provided in Subsection (5), a person who seeks to be, or is, a party in a
             6017      cost-based contract with a public procurement unit shall:
             6018          (a) submit cost or pricing data relating to determining the cost or pricing amount; and
             6019          (b) certify that, to the best of the contractor's knowledge and belief, the cost or pricing
             6020      data submitted is accurate and complete as of the date specified by the public procurement unit.
             6021          (3) The procurement officer shall ensure that the date specified under Subsection (2)(b)
             6022      is before:
             6023          (a) the pricing of any contract awarded by [competitive sealed proposals] a
             6024      procurement process or pursuant to [the] a sole source procurement [authority, where], if the
             6025      total contract price is expected to exceed an amount established by [rules and regulations] rule
             6026      made by the applicable rulemaking authority; or
             6027          (b) the pricing of any change order [which] that is expected to exceed an amount
             6028      established by [rules and regulations] rule made by the applicable rulemaking authority.
             6029          [(3) Any] (4) A contract or change order [under which a certificate is required shall
             6030      contain] that requires a certification described in Subsection (2) shall include a provision that
             6031      the price to the [state] public procurement unit, including profit or fee, shall be adjusted to
             6032      exclude any significant sums by which the [state] public procurement unit finds that the price
             6033      was increased because the [contractor-furnished] contractor provided cost or pricing data
             6034      [were] that was inaccurate, incomplete, or not current as of the date [agreed upon between the
             6035      parties] specified by the procurement officer.
             6036          [(4) The requirements of Subsections (2) and (3) need not be applied to contracts:]
             6037          (5) A public procurement unit is not required to comply with Subsection (2) if:
             6038          (a) [where] the contract price is based on adequate price competition;
             6039          (b) [where] the contract price is based on established catalogue prices or market prices;
             6040          (c) [where contract prices are] the contract price is set by law or [regulation] rule; or
             6041          (d) [where it is determined] the procurement states, in writing:


             6042          (i) that, in accordance with rules [and regulations that] made by the applicable
             6043      rulemaking authority, the requirements of [this section] Subsection (2) may be waived[,]; and
             6044          (ii) the reasons for [such] the waiver [are stated in writing].
             6045          [(5)] (6) The [state] procurement officer may, at reasonable times and places, only to
             6046      the extent that the books and records relate to the applicable cost or pricing data, audit the
             6047      books and records of [any]:
             6048          (a) a person who has submitted cost or pricing data pursuant to this section; or [any]
             6049          (b) a contractor or subcontractor under [any negotiated] a contract or subcontract other
             6050      than a firm fixed-price contract [to the extent that the books and records relate to the cost or
             6051      pricing data, contract, or subcontract. The].
             6052          (7) Unless a shorter time is provided for by contract:
             6053          (a) a person described in Subsection (6)(a) shall maintain the books and records [shall
             6054      be maintained by the contractor] described in Subsection (6) for three years [following the end
             6055      of] after the day on which the fiscal year in which final payment is made under the [prime
             6056      contract and by the subcontractor for three years following the end of the] contract ends;
             6057          (b) a contractor shall maintain the books and records described in Subsection (6) for
             6058      three years after the day on which the fiscal year in which final payment under the prime
             6059      contract ends; and
             6060          (c) a subcontractor shall maintain the books and records described in Subsection (6) for
             6061      three years after the day on which the fiscal year in which final payment is made under the
             6062      subcontract[, unless a shorter period is otherwise authorized in writing] ends.
             6063          Section 154. Section 63G-6a-1207 , which is renumbered from Section 63G-6-602 is
             6064      renumbered and amended to read:
             6065           [63G-6-602].     63G-6a-1207. Certification of change order.
             6066          (1) Under a construction contract, [any] a change order [which] that increases the
             6067      contract amount [shall be subject to] may not be made without prior written certification that
             6068      the change order is within the determined project or contract budget[. The certification shall be
             6069      made] by:
             6070          (a) the fiscal officer of the entity responsible for funding the project or [the] contract;
             6071      or [other]
             6072          (b) the official responsible for monitoring and reporting upon the status of the costs of


             6073      the total project or contract budget. [If the certification discloses a resulting]
             6074          (2) If a change order will result in an increase in the total project or contract budget,
             6075      [the procurement officer shall not execute or make] the change order may not be made, unless:
             6076          (a) sufficient funds are [available] added to the project contract or budget; or
             6077          (b) the scope of the project or contract is adjusted to permit the degree of completion
             6078      feasible within the total project or contract budget as it existed [prior to] before the change
             6079      order under consideration. [However, with respect to the validity, as to the contractor, of any
             6080      executed change order upon which the contractor has reasonably relied, it shall be presumed
             6081      that there has been compliance with the provisions of this section.]
             6082          (3) Notwithstanding any other provision of this section, it shall be presumed that this
             6083      section has been complied with if the contractor reasonably relies on an executed change order.
             6084          Section 155. Section 63G-6a-1301 is enacted to read:
             6085     
Part 13. General Construction Provisions

             6086          63G-6a-1301. Title.
             6087          This part is known as "General Construction Provisions."
             6088          Section 156. Section 63G-6a-1302 , which is renumbered from Section 63G-6-501 is
             6089      renumbered and amended to read:
             6090           [63G-6-501].     63G-6a-1302. Alternative methods of construction
             6091      contracting management.
             6092          (1) [(a) Rules shall] The applicable rulemaking authority shall, by rule provide as many
             6093      alternative methods of construction contracting management as determined to be feasible.
             6094          [(b) These rules shall:]
             6095          (2) The rules described in Subsection (1) shall:
             6096          [(i)] (a) grant to the [chief] procurement officer or the head of the state purchasing
             6097      [agency] unit responsible for carrying out the construction project the discretion to select the
             6098      appropriate method of construction contracting management for a particular project; and
             6099          [(ii)] (b) require the procurement officer to execute and include in the contract file a
             6100      written statement [setting forth] describing the facts [which] that led to the selection of a
             6101      particular method of construction contracting management for each project.
             6102          [(c)] (3) Before choosing a construction contracting management method, the [chief]
             6103      procurement officer or the head of the state purchasing [agency] unit responsible for carrying


             6104      out the construction project shall consider the following factors:
             6105          [(i)] (a) when the project must be ready to be occupied;
             6106          [(ii)] (b) the type of project;
             6107          [(iii)] (c) the extent to which the requirements of the [procuring agencies] public
             6108      procurement unit, and the [ways in which] way they are to be met are known;
             6109          [(iv)] (d) the location of the project;
             6110          [(v)] (e) the size, scope, complexity, and economics of the project;
             6111          [(vi)] (f) the source of funding and any resulting constraints necessitated by the funding
             6112      source;
             6113          [(vii)] (g) the availability, qualification, and experience of [state] public personnel to
             6114      be assigned to the project and [how much time the state] the amount of time that the public
             6115      personnel can devote to the project; and
             6116          [(viii)] (h) the availability, qualifications, and experience of outside consultants and
             6117      contractors to complete the project under the various methods being considered.
             6118          [(2) (a) Rules adopted by state public procurement units and local public procurement
             6119      units to implement this section may authorize the use of a Construction Manager/General
             6120      Contractor as one method of construction contracting management.]
             6121          [(b) Those rules shall require that:]
             6122          [(i) the Construction Manager/General Contractor shall be selected using one of the
             6123      source selection methods provided for in Part 4, Source Selections and Contract Formation,
             6124      and Section 63G-6-502 ; and]
             6125          [(ii) when entering into any subcontract that was not specifically included in the
             6126      Construction Manager/General Contractor's cost proposal submitted under the requirements of
             6127      Subsection (2)(b)(i), the Construction Manager/General Contractor shall procure that
             6128      subcontractor by using one of the source selection methods provided for in Part 4, Source
             6129      Selections and Contract Formation, in the same manner as if the subcontract work was
             6130      procured directly by the state.]
             6131          (4) An applicable rulemaking authority may make rules that authorize the use of a
             6132      construction manager/general contractor as one method of construction contracting
             6133      management.
             6134          (5) The rules described in Subsection (2) shall require that:


             6135          (a) the construction manager/general contractor be selected using:
             6136          (i) a procurement process; or
             6137          (ii) an exception to the requirement to use a procurement process; and
             6138          (b) when entering into a subcontract that was not specifically included in the
             6139      construction manager/general contractor's cost proposal, the construction manager/general
             6140      contractor shall procure the subcontractor by using a procurement process, or an exception to
             6141      the requirement to use a procurement process, in the same manner as if the subcontract work
             6142      was procured directly by the public procurement unit.
             6143          [(3)] (6) Procurement rules adopted by the State Building Board under [Subsection (1)]
             6144      Subsections (1) through (3) for state building construction projects may authorize the use of a
             6145      design-build provider as one method of construction contracting management.
             6146          (7) A design-build contract may include a provision for obtaining the site for the
             6147      construction project.
             6148          (8) A design-build contract or a construction manager/general contractor contract may
             6149      include provision by the contractor of operations, maintenance, or financing.
             6150          Section 157. Section 63G-6a-1303 , which is renumbered from Section 63G-6-604 is
             6151      renumbered and amended to read:
             6152           [63G-6-604].     63G-6a-1303. Drug and alcohol testing required for state
             6153      construction contracts.
             6154          (1) As used in this section:
             6155          (a) "Contractor" means a person who is or may be awarded a state construction
             6156      contract.
             6157          (b) "Covered individual" means an individual who:
             6158          (i) on behalf of a contractor or subcontractor provides services directly related to
             6159      design or construction under a state construction contract; and
             6160          (ii) is in a safety sensitive position, including a design position that has responsibilities
             6161      that directly affect the safety of an improvement to real property that is the subject of a state
             6162      construction contract.
             6163          (c) "Drug and alcohol testing policy" means a policy under which a contractor or
             6164      subcontractor tests a covered individual to establish, maintain, or enforce the prohibition of:
             6165          (i) the manufacture, distribution, dispensing, possession, or use of drugs or alcohol,


             6166      except the medically prescribed possession and use of a drug; or
             6167          (ii) the impairment of judgment or physical abilities due to the use of drugs or alcohol.
             6168          (d) "Random testing" means that a covered individual is subject to periodic testing for
             6169      drugs and alcohol:
             6170          (i) in accordance with a drug and alcohol testing policy; and
             6171          (ii) on the basis of a random selection process.
             6172          [(e) For purposes of Subsection (6), "state" includes any of the following of the state:]
             6173          (e) "State executive entity" means:
             6174          (i) a state executive branch:
             6175          [(i) a] (A) department;
             6176          [(ii) a] (B) division;
             6177          [(iii) an] (C) agency;
             6178          [(iv) a] (D) board;
             6179          [(v) a] (E) commission;
             6180          [(vi) a] (F) council;
             6181          [(vii) a] (G) committee; [and] or
             6182          [(viii) an] (H) institution[, including a state institution of higher education, as defined
             6183      under Section 53B-3-102 .]; or
             6184          (ii) a state institution of higher education, as defined in Section 53B-3-102 .
             6185          (f) "State construction contract" means a contract for design or construction entered
             6186      into by a state [public procurement unit] executive entity.
             6187          [(g) (i) "Subcontractor" means a person under contract with a contractor or another
             6188      subcontractor to provide services or labor for design or construction.]
             6189          [(ii) "Subcontractor" includes a trade contractor or specialty contractor.]
             6190          [(iii) "Subcontractor" does not include a supplier who provides only materials,
             6191      equipment, or supplies to a contractor or subcontractor.]
             6192          (2) Except as provided in Subsection (7), [on and after July 1, 2010,] a state [public
             6193      procurement unit] executive entity may not enter into a state construction contract unless the
             6194      [state] public construction contract requires [the following] that the contractor demonstrate to
             6195      the state executive entity that the contractor:
             6196          [(a) A contractor shall demonstrate to the state public procurement unit that the


             6197      contractor:]
             6198          [(i)] (a) has and will maintain a drug and alcohol testing policy during the period of the
             6199      state construction contract that applies to the covered individuals hired by the contractor;
             6200          [(ii)] (b) posts in one or more conspicuous places notice to covered individuals hired
             6201      by the contractor that the contractor has the drug and alcohol testing policy described in
             6202      Subsection (2)(a)[(i); and];
             6203          [(iii)] (c) subjects the covered individuals to random testing under the drug and alcohol
             6204      testing policy described in Subsection (2)(a)[(i)] if at any time during the period of the state
             6205      construction contract there are 10 or more individuals who are covered individuals hired by the
             6206      contractor[.]; and
             6207          [(b) A contractor shall demonstrate to the state public procurement unit that the
             6208      contractor]
             6209          (d) requires that as a condition of contracting with the contractor, a subcontractor:
             6210          (i) has and will maintain a drug and alcohol testing policy during the period of the state
             6211      construction contract that applies to the covered individuals hired by the subcontractor;
             6212          (ii) posts in one or more conspicuous places notice to covered individuals hired by the
             6213      subcontractor that the subcontractor has the drug and alcohol testing policy described in
             6214      Subsection (2)[(b)](d)(i); and
             6215          (iii) subjects the covered individuals hired by the subcontractor to random testing under
             6216      the drug and alcohol testing policy described in Subsection (2)[(b)](d)(i) if at any time during
             6217      the period of the state construction contract there are 10 or more individuals who are covered
             6218      individuals hired by the subcontractor.
             6219          (3) (a) Except as otherwise provided in this Subsection (3), if a contractor or
             6220      subcontractor fails to comply with Subsection (2), the contractor or subcontractor may be
             6221      suspended or debarred in accordance with this chapter.
             6222          (b) [On and after July 1, 2010, a] A state [public procurement unit] executive entity
             6223      shall include in a state construction contract:
             6224          (i) a reference to the rules described in Subsection (4)(b); or
             6225          (ii) if the [state public procurement unit] applicable rulemaking authority has not made
             6226      the rules described in Subsection (4)(b), a process that provides a contractor or subcontractor
             6227      reasonable notice and opportunity to cure a violation of this section before suspension or


             6228      debarment of the contractor or subcontractor in light of the circumstances of the state
             6229      construction contract or the violation.
             6230          (c) (i) A contractor is not subject to penalties for the failure of a subcontractor to
             6231      comply with Subsection (2).
             6232          (ii) A subcontractor is not subject to penalties for the failure of a contractor to comply
             6233      with Subsection (2).
             6234          [(4) If otherwise authorized to make rules, in accordance with Title 63G, Chapter 3,
             6235      Utah Administrative Rulemaking Act, a state public procurement unit:]
             6236          (4) An authorized rulemaking authority:
             6237          (a) may make rules that establish the requirements and procedures a contractor [shall]
             6238      is required to follow to comply with Subsection (2); and
             6239          (b) shall make rules that establish:
             6240          (i) the penalties that may be imposed in accordance with Subsection (3); and
             6241          (ii) a process that provides a contractor or subcontractor reasonable notice and
             6242      opportunity to cure a violation of this section before suspension or debarment of the contractor
             6243      or subcontractor in light of the circumstances of the state construction contract or the violation.
             6244          (5) The failure of a contractor or subcontractor to meet the requirements of Subsection
             6245      (2):
             6246          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
             6247      or contractor under Part [8, Legal and Contractual Remedies] 17, Procurement Appeals Board,
             6248      or Part 18, Appeals to Court and Court Proceedings; and
             6249          (b) may not be used by a state public procurement unit, a prospective bidder, an
             6250      offeror, a contractor, or a subcontractor as a basis for an action that would suspend, disrupt, or
             6251      terminate the design or construction under a state construction contract.
             6252          (6) (a) After a state [public procurement unit] executive entity enters into a state
             6253      construction contract in compliance with this section, the state is not required to audit, monitor,
             6254      or take any other action to ensure compliance with this section.
             6255          (b) The state is not liable in any action related to this section, including not being liable
             6256      in relation to:
             6257          (i) a contractor or subcontractor having or not having a drug and alcohol testing policy;
             6258          (ii) failure to test for a drug or alcohol under a contractor's or subcontractor's drug and


             6259      alcohol testing policy;
             6260          (iii) the requirements of a contractor's or subcontractor's drug and alcohol testing
             6261      policy;
             6262          (iv) a contractor's or subcontractor's implementation of a drug and alcohol testing
             6263      policy, including procedures for:
             6264          (A) collection of a sample;
             6265          (B) testing of a sample;
             6266          (C) evaluation of a test; or
             6267          (D) disciplinary or rehabilitative action on the basis of a test result;
             6268          (v) an individual being under the influence of drugs or alcohol; or
             6269          (vi) an individual under the influence of drugs or alcohol harming another person or
             6270      causing property damage.
             6271          (7) This section does not apply if the state [public procurement unit] executive entity
             6272      determines that the application of this section would severely disrupt the operation of a [state
             6273      agency] public entity to the detriment of the [state agency] public entity or the general public,
             6274      including:
             6275          (a) jeopardizing the receipt of federal funds;
             6276          (b) causing the state construction contract [being] to be a sole source contract; or
             6277          (c) causing the state construction contract [being] to be an emergency procurement.
             6278          (8) If a contractor or subcontractor meets the requirements of this section, this section
             6279      may not be construed to restrict the contractor's or subcontractor's ability to impose or
             6280      implement an otherwise lawful provision as part of a drug and alcohol testing policy.
             6281          Section 158. Section 63G-6a-1401 is enacted to read:
             6282     
Part 14. Transportation Contracts

             6283          63G-6a-1401. Title.
             6284          This part is known as "Transportation Contracts."
             6285          Section 159. Section 63G-6a-1402 , which is renumbered from Section 63G-6-502 is
             6286      renumbered and amended to read:
             6287           [63G-6-502].     63G-6a-1402. Procurement of design-build transportation
             6288      project contracts.
             6289          (1) As used in this section:


             6290          (a) "Design-build transportation project contract" means the procurement of both the
             6291      design and construction of a transportation project in a single contract with a company or
             6292      combination of companies capable of providing the necessary engineering services and
             6293      construction.
             6294          (b) "Transportation agency" means:
             6295          (i) the Department of Transportation;
             6296          (ii) a county of the first or second class, as defined in Section 17-50-501 ;
             6297          (iii) a municipality of the first class, as defined in Section 10-2-301 ;
             6298          (iv) a public transit district that has more than 200,000 people residing within its
             6299      boundaries; and
             6300          (v) a public airport authority.
             6301          (2) Except as provided in Subsection (3), a transportation agency may award a
             6302      design-build transportation project contract for any transportation project that has an estimated
             6303      cost of at least $50,000,000 by following the requirements of this section.
             6304          (3) (a) The Department of Transportation:
             6305          (i) may award a design-build transportation project contract for any transportation
             6306      project by following the requirements of this section; and
             6307          (ii) shall make rules, [by following the procedures and requirements of] in accordance
             6308      with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establishing requirements for
             6309      the procurement of its design-build transportation project contracts in addition to those required
             6310      by this section.
             6311          (b) A public transit district that has more than 200,000 people residing within its
             6312      boundaries:
             6313          (i) may award a design-build transportation project contract for any transportation
             6314      project by following the requirements of this section; and
             6315          (ii) shall pass ordinances or a resolution establishing requirements for the procurement
             6316      of its design-build transportation project contracts in addition to those required by this section.
             6317          (c) A design-build transportation project contract authorized under this Subsection (3)
             6318      is not subject to the estimated cost threshold [under] described in Subsection (2).
             6319          (d) A design-build transportation project contract may include provision by the
             6320      contractor of operations, maintenance, or financing.


             6321          (4) (a) Before entering into a design-build transportation project contract, a
             6322      transportation agency may issue a request for qualifications to prequalify potential contractors.
             6323          (b) Public notice of the request for qualifications shall be given in accordance with
             6324      [policy] board rules.
             6325          (c) A transportation agency shall require, as part of the qualifications specified in the
             6326      request for qualifications, that potential contractors at least demonstrate their:
             6327          (i) construction experience;
             6328          (ii) design experience;
             6329          (iii) financial, manpower, and equipment resources available for the project; and
             6330          (iv) experience in other design-build transportation projects with attributes similar to
             6331      the project being procured.
             6332          (d) The request for qualifications shall identify the number of eligible competing
             6333      proposers that the transportation agency will select to submit a proposal, which [must be at
             6334      least] may not be less than two.
             6335          (5) [(a)] The transportation agency shall:
             6336          [(i)] (a) evaluate the responses received from the request for qualifications;
             6337          [(ii)] (b) select from their number those qualified to submit proposals; and
             6338          [(iii)] (c) invite those respondents to submit proposals based upon the transportation
             6339      agency's request for proposals.
             6340          [(b) (i)] (6) Except as provided in Subsection [(5)(b)(ii)] (7), if the transportation
             6341      agency fails to receive at least two qualified eligible competing [proposers] proposals, the
             6342      transportation agency shall readvertise the project.
             6343          [(ii)] (7) A transportation agency may award a contract for a transportation project that
             6344      has an estimated cost of $5,000,000 or less to a qualified eligible proposer if:
             6345          [(A)] (a) only a single proposal is received; and
             6346          [(B)] (b) the transportation agency determines that:
             6347          [(I)] (i) the proposal is advantageous to the state; and
             6348          [(II)] (ii) the proposal price is reasonable.
             6349          [(6)] (8) The transportation agency shall issue a request for proposals to those qualified
             6350      respondents that:
             6351          (a) includes a scope of work statement constituting an information for proposal that


             6352      may include:
             6353          (i) preliminary design concepts;
             6354          (ii) design criteria, needs, and objectives;
             6355          (iii) warranty and quality control requirements;
             6356          (iv) applicable standards;
             6357          (v) environmental documents;
             6358          (vi) constraints;
             6359          (vii) time expectations or limitations;
             6360          (viii) incentives or disincentives; and
             6361          (ix) other special considerations;
             6362          (b) requires submitters to provide:
             6363          (i) a sealed cost proposal;
             6364          (ii) a critical path matrix schedule, including cash flow requirements;
             6365          (iii) proposal security; and
             6366          (iv) other items required by the department for the project; and
             6367          (c) may include award of a stipulated fee to be paid to [submitters] offerors who submit
             6368      unsuccessful proposals.
             6369          [(7)] (9) The transportation agency shall:
             6370          (a) evaluate the submissions received in response to the request for proposals from the
             6371      prequalified [proposers] offerors;
             6372          (b) comply with rules relating to discussion of proposals, best and final offers, and
             6373      evaluations of the proposals submitted; and
             6374          (c) after considering price and other identified factors, award the contract to the
             6375      responsive and responsible [proposer] offeror whose proposal is most advantageous to the
             6376      state.
             6377          Section 160. Section 63G-6a-1403 , which is renumbered from Section 63G-6-503 is
             6378      renumbered and amended to read:
             6379           [63G-6-503].     63G-6a-1403. Procurement of tollway development
             6380      agreements.
             6381          (1) As used in this section[: (a) "Department" means the Department of
             6382      Transportation. (b) "Tollway], "tollway development agreement" [has the same meaning] is as


             6383      defined in Section 72-6-202 .
             6384          (2) The [department] Department of Transportation and the Transportation
             6385      Commission:
             6386          (a) may solicit a tollway development agreement proposal by following the
             6387      requirements of this section;
             6388          (b) may award a solicited tollway development agreement contract for any tollway
             6389      project by following the requirements of this section; and
             6390          (c) shall make rules, [by following the procedures and requirements of] in accordance
             6391      with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establishing requirements for
             6392      the procurement of tollway development agreement proposals in addition to those required by
             6393      this section.
             6394          (3) (a) Before entering into a tollway development agreement, the [department]
             6395      Department of Transportation may issue a request for qualifications to prequalify potential
             6396      contractors.
             6397          (b) Public notice of the request for qualifications shall be given in accordance with
             6398      [policy] board rules.
             6399          (c) The [department] Department of Transportation shall require, as part of the
             6400      qualifications specified in the request for qualifications, that potential contractors at least
             6401      provide:
             6402          (i) a demonstration of their experience with other transportation concession projects
             6403      with attributes similar to the project being procured;
             6404          (ii) a financial statement of the firm or consortium of firms making the proposal;
             6405          (iii) a conceptual project development plan and financing plan;
             6406          (iv) the legal structure of the firm or consortium of firms making the proposal;
             6407          (v) the organizational structure for the project; and
             6408          (vi) a statement describing why the firm or consortium of firms is best qualified for the
             6409      project.
             6410          (d) The request for qualifications shall identify the number of eligible competing
             6411      [proposers] offerors that the [department] Department of Transportation will select to submit a
             6412      proposal.
             6413          (4) The [department] Department of Transportation shall:


             6414          (a) evaluate the responses received from the request for qualifications;
             6415          (b) select from their number those qualified to submit proposals; and
             6416          (c) invite those respondents to submit proposals based upon the [department's]
             6417      Department of Transportation's request for proposals.
             6418          (5) The [department] Department of Transportation shall issue a request for proposals
             6419      to those qualified respondents that may require, as appropriate for the procurement:
             6420          (a) a description of the proposed project or projects;
             6421          (b) a financial plan for the project, including:
             6422          (i) the anticipated financial commitment of all parties;
             6423          (ii) equity, debt, and other financing mechanisms;
             6424          (iii) an analysis of the projected return, rate of return, or both; and
             6425          (iv) the monetary benefit and other value to a government entity;
             6426          (c) assumptions about user fees or toll rates;
             6427          (d) a project development and management plan, including:
             6428          (i) the contracting structure;
             6429          (ii) the plan for quality management;
             6430          (iii) the proposed toll enforcement plan; and
             6431          (iv) the plan for safety management; and
             6432          (e) that the proposal to comply with the minimum guidelines for tollway development
             6433      agreement proposals under Section 72-6-204 .
             6434          (6) The [department] Department of Transportation and the Transportation
             6435      Commission:
             6436          (a) shall evaluate the submissions received in response to the request for proposals
             6437      from the prequalified [proposers] offerors;
             6438          (b) shall comply with rules relating to discussion of proposals, best and final offers,
             6439      and evaluations of the proposals submitted; and
             6440          (c) may, after considering price and other identified factors and complying with the
             6441      requirements of Section 72-6-206 , award the contract to the responsive and responsible
             6442      [proposer] offeror whose proposal is most advantageous to the state.
             6443          Section 161. Section 63G-6a-1501 is enacted to read:
             6444     
Part 15. Architect-Engineer Services


             6445          63G-6a-1501. Title.
             6446          This part is known as "Architect-Engineer Services."
             6447          Section 162. Section 63G-6a-1502 , which is renumbered from Section 63G-6-701 is
             6448      renumbered and amended to read:
             6449           [63G-6-701].     63G-6a-1502. Policy regarding architect-engineer services.
             6450          (1) It is the policy of this state to publicly announce all requirements for
             6451      architect-engineer services and to negotiate contracts for architect-engineer services on the
             6452      basis of demonstrated competence and qualification for the type of services required, and at fair
             6453      and reasonable prices.
             6454          (2) Architect-engineer services shall be procured as provided in this part except as
             6455      authorized by Sections [ 63G-6-409 through 63G-6-411 ] 63G-6a-408 , 63G-6a-802 , and
             6456      63G-6a-803 .
             6457          (3) This part does not affect the authority of, and does not apply to procedures
             6458      undertaken by, a public procurement unit to obtain the services of architects or engineers in the
             6459      capacity of employees of [such] the public procurement unit.
             6460          Section 163. Section 63G-6a-1503 , which is renumbered from Section 63G-6-702 is
             6461      renumbered and amended to read:
             6462           [63G-6-702].     63G-6a-1503. Selection committee for architect-engineer
             6463      services.
             6464          (1) In the procurement of architect-engineer services, the [chief] procurement officer or
             6465      the head of a state purchasing [agency] unit shall encourage firms engaged in the lawful
             6466      practice of their profession to submit annually a statement of qualifications and performance
             6467      data.
             6468          (2) The Building Board shall be the [selection] evaluation committee for
             6469      architect-engineer services contracts under its authority. [Selection committees]
             6470          (3) An evaluation committee for architect-engineer services contracts not under the
             6471      authority of the Building Board shall be established in accordance with rules [and regulations
             6472      promulgated by the policy board. Selection committees shall] made by the applicable
             6473      rulemaking authority.
             6474          (4) An evaluation committee shall:
             6475          (a) evaluate current statements of qualifications and performance data on file with the


             6476      state, together with those that may be submitted by other firms in response to the
             6477      announcement of the proposed contract[. Selection committees shall];
             6478          (b) consider no less than three firms [and then shall select therefrom,]; and
             6479          (c) based upon criteria established and published by the [selection committees,]
             6480      authorized purchasing entity, select no less than three of the firms considered to be the most
             6481      highly qualified to provide the services required.
             6482          Section 164. Section 63G-6a-1504 , which is renumbered from Section 63G-6-703 is
             6483      renumbered and amended to read:
             6484           [63G-6-703].     63G-6a-1504. Selection as part of design-build or lease.
             6485          Notwithstanding any other provision of this chapter, architect-engineer services may be
             6486      procured under Title 63A, Chapter 5, State Building Board - Division of Facilities Construction
             6487      and Management, as part of the services obtained in a design-build contract or as part of the
             6488      services obtained in a lease contract for real property, [provided that] if the qualifications of
             6489      those providing the architect-engineer services are part of the consideration in the selection
             6490      process.
             6491          Section 165. Section 63G-6a-1505 , which is renumbered from Section 63G-6-704 is
             6492      renumbered and amended to read:
             6493           [63G-6-704].     63G-6a-1505. Determination of compensation for
             6494      architect-engineer services.
             6495          (1) The procurement officer shall award a contract to a qualified firm at compensation
             6496      [which] that the procurement officer determines, in writing, to be fair and reasonable to the
             6497      state.
             6498          (2) In making [this decision,] the determination described in Subsection (1), the
             6499      procurement officer shall take into account the services':
             6500          (a) estimated value[, the];
             6501          (b) scope[, and];
             6502          (c) complexity[,]; and [the]
             6503          (d) professional nature [of the services to be rendered. Should].
             6504          (3) If the procurement officer [be] is unable to agree to a satisfactory contract with the
             6505      firm first selected, at a price the procurement officer determines to be fair and reasonable to the
             6506      state, [discussions with that firm shall be formally terminated. The] the procurement officer


             6507      shall [then]:
             6508          (a) formally terminate discussions with that firm; and
             6509          (b) undertake discussions with a second qualified firm. [Failing accord with the
             6510      second firm, the procurement officer shall formally terminate discussions. The procurement
             6511      officer shall then]
             6512          (4) If the procurement officer is unable to agree to a satisfactory contract with the
             6513      second firm selected, at a price the procurement officer determines to be fair and reasonable to
             6514      the state, the procurement officer shall:
             6515          (a) formally terminate discussions with that firm; and
             6516          (b) undertake discussions with a third qualified firm. [Should the procurement officer
             6517      be]
             6518          (5) If the procurement officer is unable to award a contract at a fair and reasonable
             6519      price [with] to any of the selected firms, the procurement officer shall:
             6520          (a) select additional firms[,]; and [the procurement officer shall]
             6521          (b) continue discussions in accordance with this part until an agreement is reached.
             6522          Section 166. Section 63G-6a-1506 , which is renumbered from Section 63G-6-705 is
             6523      renumbered and amended to read:
             6524           [63G-6-705].     63G-6a-1506. Restrictions on procurement of
             6525      architect-engineer services.
             6526          (1) Except as provided in Subsection (2), when [a public procurement unit] an
             6527      authorized purchasing entity, in accordance with Section [ 63G-6-701 ] 63G-6a-1502 , elects to
             6528      obtain architect or engineering services by using a competitive procurement process and has
             6529      provided public notice of its competitive procurement process:
             6530          (a) a higher education entity, or any part of one, may not submit a proposal in response
             6531      to the [public procurement unit's] authorized purchasing entity's competitive procurement
             6532      process; and
             6533          (b) the [public procurement unit] authorized purchasing entity may not award a
             6534      contract to perform the architect or engineering services solicited in the competitive
             6535      procurement process to a higher education entity or any part of one.
             6536          (2) [A public procurement unit need not comply with the requirements of] Subsection
             6537      (1) does not apply when the [public procurement unit] authorized purchasing entity is


             6538      procuring architect or engineer services for contracts related to research activities and
             6539      technology transfer.
             6540          Section 167. Section 63G-6a-1601 is enacted to read:
             6541     
Part 16. Controversies and Protests

             6542          63G-6a-1601. Title.
             6543          This part is known as "Controversies and Protests."
             6544          Section 168. Section 63G-6a-1602 , which is renumbered from Section 63G-6-805 is
             6545      renumbered and amended to read:
             6546           [63G-6-805].     63G-6a-1602. Authority to resolve controversy between
             6547      public procurement unit and contractor.
             6548          The [chief] procurement officer, the head of [a purchasing agency] an authorized
             6549      purchasing entity, or a designee of either [officer is authorized, prior to] may, before
             6550      commencement of an action in court concerning the controversy, [to] settle and resolve a
             6551      controversy [which] that arises between [the state] a public procurement unit or an authorized
             6552      purchasing entity and a contractor [under or by virtue of a contract between them. This
             6553      includes, without limitation, controversies] in relation to a contract or a procurement, including
             6554      a controversy based upon breach of contract, [mistakes] a mistake, misrepresentation, or other
             6555      cause for contract modification or rescission.
             6556          Section 169. Section 63G-6a-1603 , which is renumbered from Section 63G-6-801 is
             6557      renumbered and amended to read:
             6558           [63G-6-801].     63G-6a-1603. Protest to procurement officer -- Time --
             6559      Authority to resolve protest.
             6560          (1) Any actual or prospective bidder, offeror, or contractor who is aggrieved in
             6561      connection with the solicitation or award of a contract may protest to the [chief] procurement
             6562      officer or the head of [a purchasing agency] an authorized purchasing entity. A protest with
             6563      respect to an invitation for bids or a request for proposals shall be submitted in writing [prior
             6564      to] before the opening of bids or the closing date for proposals, unless the aggrieved person did
             6565      not know and should not have known of the facts giving rise to the protest [prior to] before the
             6566      bid opening or the closing date for proposals. [The protest shall be submitted] An aggrieved
             6567      person shall submit a protest in writing within [five working] seven days after the aggrieved
             6568      person knows or should have known of the facts giving rise [thereto] to the protest.


             6569          (2) Subject to the applicable requirements in Section 63G-10-403 , the [chief]
             6570      procurement officer, the head of [a purchasing agency] an authorized purchasing entity, or a
             6571      designee of either [officer shall have the authority, prior to], may, before the commencement of
             6572      an action in court concerning the controversy, [to] settle and resolve the protest.
             6573          Section 170. Section 63G-6a-1604 , which is renumbered from Section 63G-6-806 is
             6574      renumbered and amended to read:
             6575           [63G-6-806].     63G-6a-1604. Decisions to be in writing -- Effect of no
             6576      writing.
             6577          (1) The [chief procurement officer, the head of a purchasing agency, or the designee of
             6578      either officer] person who conducts a hearing under Section 63G-6a-1603 shall promptly issue
             6579      a written decision regarding any protest, debarment [or], suspension, or contract controversy if
             6580      it is not settled by a mutual agreement.
             6581          (2) The decision shall state the reasons for the action taken and inform the protestor,
             6582      contractor, or prospective contractor of the right to judicial or administrative review as
             6583      provided in this chapter.
             6584          [(2)] (3) A decision [shall be] described in this section is effective until stayed or
             6585      reversed on appeal, except to the extent provided in Section [ 63G-6-802 ] 63G-6a-1607 . [A
             6586      copy of the decision under Subsection (1) shall be mailed]
             6587          (4) A person who issues a decision under this section shall mail or otherwise
             6588      [furnished] immediately furnish a copy of the decision to the protestor, prospective contractor,
             6589      or contractor.
             6590          (5) The decision shall be final and conclusive unless the protestor, prospective
             6591      contractor, or contractor:
             6592          (a) appeals administratively to the [procurement] applicable appeals board, if any, in
             6593      accordance with Subsection [ 63G-6-810 ] 63G-6a-1703 (2); or [the protestor, prospective
             6594      contractor, or contractor]
             6595          (b) if there is not an applicable appeals board, commences an action in district court in
             6596      accordance with Section [ 63G-6-815 ] 63G-6a-1803 .
             6597          [(3)] (6) If the [chief] procurement officer, the head of [a purchasing agency] an
             6598      authorized purchasing entity, or the designee of either [officer] does not issue the written
             6599      decision [regarding a contract controversy] as required by this section within 60 [calendar] days


             6600      after the day on which a written request for a final decision is made, or within [such] a longer
             6601      period as may be agreed upon by the parties, then the protestor, contractor, or prospective
             6602      contractor may proceed as if an adverse decision had been received.
             6603          Section 171. Section 63G-6a-1605 , which is renumbered from Section 63G-6-907 is
             6604      renumbered and amended to read:
             6605           [63G-6-907].     63G-6a-1605. Resolution of local public procurement
             6606      controversies.
             6607          [Any] A local public procurement unit [is authorized to] may enter into an agreement
             6608      with the State Procurement Appeals Board to resolve controversies between the local public
             6609      procurement unit and its bidders, offerors, contractors, regardless of whether [or not such] the
             6610      controversy arose from a cooperative purchasing agreement.
             6611          Section 172. Section 63G-6a-1606 , which is renumbered from Section 63G-6-802 is
             6612      renumbered and amended to read:
             6613           [63G-6-802].     63G-6a-1606. Effect of timely protest.
             6614          In the event of a timely protest under Subsection [ 63G-6-801 (1), 63G-6-810 (1), or
             6615      63G-6-815 (1), the state shall] 63G-6a-1603 (1), 63G-6a-1703 (1), or 63G-6a-1803 (1), an
             6616      authorized purchasing entity may not proceed further with the solicitation or with the award of
             6617      the contract until all administrative and judicial remedies [have been] are exhausted or until the
             6618      [chief] procurement officer, after consultation with the head of the [using agency] public
             6619      procurement unit or the head of [a purchasing agency] an authorized purchasing entity, makes a
             6620      written determination that the award of the contract without delay is necessary to protect
             6621      substantial interests of the state.
             6622          Section 173. Section 63G-6a-1607 , which is renumbered from Section 63G-6-803 is
             6623      renumbered and amended to read:
             6624           [63G-6-803].     63G-6a-1607. Costs to or against protestor.
             6625          (1) When a protest is sustained administratively or upon administrative or judicial
             6626      review and the protesting bidder or offeror should have been awarded the contract under the
             6627      solicitation but is not, the protestor shall be entitled to the following relief as a claim against
             6628      the state:
             6629          (a) the reasonable costs incurred in connection with the solicitation, including bid
             6630      preparation and appeal costs; and


             6631          (b) any equitable relief determined to be appropriate by the reviewing administrative or
             6632      judicial body.
             6633          (2) When a protest is not sustained by the [Procurement Appeals Board] appeals board,
             6634      the protestor shall reimburse the [Division of Purchasing and General Services] public entity
             6635      for the per diem and expenses paid by the [division] public entity to witnesses or appeals board
             6636      members and any additional expenses incurred by the [state agency] staff of the public entity
             6637      who have provided materials and administrative services to the appeals board for that case.
             6638          Section 174. Section 63G-6a-1701 is enacted to read:
             6639     
Part 17. Procurement Appeals Board

             6640          63G-6a-1701. Title.
             6641          This part is known as "Procurement Appeals Board."
             6642          Section 175. Section 63G-6a-1702 , which is renumbered from Section 63G-6-807 is
             6643      renumbered and amended to read:
             6644           [63G-6-807].     63G-6a-1702. Creation of Procurement Appeals Board --
             6645      Creation of other appeals boards.
             6646          (1) (a) A Procurement Appeals Board is created in the executive branch. The
             6647      Procurement Appeals Board shall be composed of a chair and one other member, to be
             6648      appointed by the governor, and a third member to be designated by the two appointed members
             6649      on a case-by-case basis.
             6650          (b) None of the members of the Procurement Appeals Board shall otherwise be
             6651      full-time employees of the state.
             6652          (c) The appointed members of the Procurement Appeals Board shall have been
             6653      members in good standing of the state bar for at least five years and shall be experienced in
             6654      contract or commercial matters.
             6655          (d) The designated member shall possess the technical expertise and experience needed
             6656      for the proper disposition of the factual issues presented by the case.
             6657          (2) (a) Except as required by Subsection (2)(b), as terms of current [board] members
             6658      expire, the governor shall appoint each new member or reappointed member to a four-year
             6659      term.
             6660          (b) Notwithstanding the requirements of Subsection (2)(a), the governor shall, at the
             6661      time of appointment or reappointment, adjust the length of terms to ensure that the terms of


             6662      [board] members are staggered so that approximately half of the [board is] members of the
             6663      Procurement Appeals Board are appointed every two years.
             6664          (c) The designated member shall serve for the case on which designated until the final
             6665      disposition of the case.
             6666          (d) Appointed members may be reappointed for succeeding terms and may continue to
             6667      serve after the expiration of their terms until a successor takes office.
             6668          (e) Qualified persons may be redesignated as members.
             6669          (3) When a vacancy occurs in the membership for any reason, the replacement shall be
             6670      appointed for the unexpired term.
             6671          (4) A member may not receive compensation or benefits for the member's service, but
             6672      may receive per diem and travel expenses in accordance with:
             6673          (a) Section 63A-3-106 ;
             6674          (b) Section 63A-3-107 ; and
             6675          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             6676      63A-3-107 .
             6677          (5) A local public procurement unit, a non-executive state procurement unit, or a state
             6678      institution of higher education may form its own appeals board to hear procurement protests.
             6679          Section 176. Section 63G-6a-1703 , which is renumbered from Section 63G-6-810 is
             6680      renumbered and amended to read:
             6681           [63G-6-810].     63G-6a-1703. Jurisdiction of appeals board.
             6682          Unless an action has been initiated previously in district courts for essentially the same
             6683      cause of action, [the] an appeals board shall have jurisdiction to review and determine de novo:
             6684          (1) any protest of a solicitation or award of a contract addressed to the appeals board by
             6685      an aggrieved actual or prospective bidder or offeror, or a contractor; and
             6686          (2) any appeal by an aggrieved party from a decision rendered or considered to have
             6687      been rendered pursuant to Section [ 63G-6-806 ] 63G-6a-1604 .
             6688          Section 177. Section 63G-6a-1704 , which is renumbered from Section 63G-6-808 is
             6689      renumbered and amended to read:
             6690           [63G-6-808].     63G-6a-1704. Rules of procedure to be adopted.
             6691          The Procurement Appeals Board:
             6692          (1) shall adopt rules of procedure [which] that, to the fullest extent possible, [will]


             6693      provide for the expeditious resolution of controversies, including procedures to encourage
             6694      agreements between the parties to a controversy prior to a hearing[. The board]; and
             6695          (2) may adopt small claims procedures for the resolution of controversies involving
             6696      claims of less than $15,000.
             6697          Section 178. Section 63G-6a-1705 , which is renumbered from Section 63G-6-809 is
             6698      renumbered and amended to read:
             6699           [63G-6-809].     63G-6a-1705. Decisions of appeals board to be in writing.
             6700          [The Procurement Appeals Board shall]
             6701          An appeals board shall:
             6702          (1) issue a decision in writing or take other appropriate action of each appeal
             6703      submitted[. A]; and
             6704          (2) provide a copy of any decision [shall be provided] to all parties and the [chief]
             6705      procurement officer or the head of [a purchasing agency] an authorized purchasing entity.
             6706          Section 179. Section 63G-6a-1706 , which is renumbered from Section 63G-6-811 is
             6707      renumbered and amended to read:
             6708           [63G-6-811].     63G-6a-1706. Time limits to file protest or appeal -- Effect of
             6709      filing.
             6710          (1) For a protest under Subsection [ 63G-6-810 ] 63G-6a-1703 (1), the aggrieved person
             6711      shall file a protest with the appeals board within [five working] seven days after the aggrieved
             6712      person knows or should have known of the facts and circumstances upon which the protest is
             6713      based[; provided, however,] except that a protest with respect to an invitation for bids or
             6714      request for proposals shall be filed [prior to] before the opening of bids or the closing date for
             6715      proposals unless the aggrieved person did not know and should not have known of the facts
             6716      giving rise to the protest [prior to] before the bid opening or the closing date for proposals.
             6717          (2) For an appeal from a decision regarding a protested solicitation or award, the
             6718      aggrieved person shall file an appeal within seven [calendar days of receipt of a] days after the
             6719      day on which the decision is rendered or considered to have been rendered [pursuant to Section
             6720      63G-6-806 ] under Section 63G-6a-1604 .
             6721          (3) For an appeal from a decision regarding a debarment, suspension, or contract
             6722      controversy, the aggrieved person shall file an appeal within 60 [calendar days of receipt of]
             6723      days after the day on which the person receives a decision rendered or considered to have been


             6724      rendered [pursuant to Section 63G-6-806 ] under Section 63G-6a-1604 .
             6725          Section 180. Section 63G-6a-1707 , which is renumbered from Section 63G-6-812 is
             6726      renumbered and amended to read:
             6727           [63G-6-812].     63G-6a-1707. Discontinued appeal with prejudice, except as
             6728      authorized.
             6729          After notice of an appeal [has been] is filed with the [Procurement Appeals Board]
             6730      applicable appeals board, no party may discontinue the appeal without prejudice, except as
             6731      authorized by the [Procurement Appeals Board] applicable appeals board.
             6732          Section 181. Section 63G-6a-1708 , which is renumbered from Section 63G-6-813 is
             6733      renumbered and amended to read:
             6734           [63G-6-813].     63G-6a-1708. Factual determination of appeals board final
             6735      and conclusive.
             6736          (1) On any protest or appeal under Section [ 63G-6-810 ] 63G-6a-1703 , the
             6737      [Procurement Appeals Board] applicable appeals board shall promptly decide the contract
             6738      controversy or whether the [solicitation] procurement or award was in accordance with this
             6739      chapter. Any prior determinations by administrative officials regarding protests of
             6740      [solicitations] procurements or awards, suspension or debarments, contract controversies, or
             6741      breach of contract controversies [shall not be] are not final or conclusive.
             6742          (2) A determination of an issue of fact by the [Procurement Appeals Board] applicable
             6743      appeals board under Subsection (1) [shall be] is final and conclusive unless arbitrary and
             6744      capricious or clearly erroneous. No determination on an issue of law [shall be] by the
             6745      applicable appeals board is final or conclusive.
             6746          (3) The applicable appeals board may, without a hearing, determine, in writing, that a
             6747      protest is without merit.
             6748          Section 182. Section 63G-6a-1801 is enacted to read:
             6749     
Part 18. Appeals to Court and Court Proceedings

             6750          63G-6a-1801. Title.
             6751          This part is known as "Appeals to Court and Court Proceedings."
             6752          Section 183. Section 63G-6a-1802 , which is renumbered from Section 63G-6-814 is
             6753      renumbered and amended to read:
             6754           [63G-6-814].     63G-6a-1802. Right to appeal to Court of Appeals.


             6755          Any person receiving an adverse decision, or the state, may appeal a decision of [the
             6756      Procurement Appeals Board] an appeals board to the Court of Appeals. [However, no appeal
             6757      may be made by the state] The state may not appeal a decision of an appeals board unless:
             6758          (1) recommended by the chief procurement officer or the head of the state purchasing
             6759      [agency] unit involved, and approved by the attorney general[.]; or
             6760          (2) for a non-executive state procurement unit, approved by a person authorized by rule
             6761      made by the applicable rulemaking authority.
             6762          Section 184. Section 63G-6a-1803 , which is renumbered from Section 63G-6-815 is
             6763      renumbered and amended to read:
             6764           [63G-6-815].     63G-6a-1803. Jurisdiction of district court.
             6765          (1) The district court shall have jurisdiction over an action, whether the action is at law
             6766      or in equity, between the state and:
             6767          (a) a bidder, offeror, or contractor, prospective or actual, who is aggrieved in
             6768      connection with the [solicitation] procurement or award of a contract;
             6769          (b) a person who is subject to a suspension or debarment proceeding; and
             6770          (c) a contractor, for any cause of action [which] that arises under, or [by virtue of] or in
             6771      relation to a contract.
             6772          (2) The provisions of Title 63G, Chapter 7, Part 4, Notice of Claim Against a
             6773      Governmental Entity or a Government Employee, and Section 63G-7-601 do not apply to
             6774      actions brought under this chapter by an aggrieved party for equitable relief or reasonable costs
             6775      incurred in preparing or appealing an unsuccessful bid or offer.
             6776          Section 185. Section 63G-6a-1804 , which is renumbered from Section 63G-6-817 is
             6777      renumbered and amended to read:
             6778           [63G-6-817].     63G-6a-1804. Statutes of limitations.
             6779          (1) [Any] An action under Subsection [ 63G-6-815 ] 63G-6a-1803 (1)(a) shall be
             6780      initiated [as follows]:
             6781          (a) within 20 [calendar] days after the day on which the aggrieved person knows or
             6782      should have known of the facts giving rise to the action; [provided, however, that an action]
             6783          (b) with respect to an invitation for bids or request for proposals [shall be initiated
             6784      prior to], before the opening of bids or the closing date for proposals unless the aggrieved
             6785      person did not know and should not have known of the facts giving rise to the action [prior to


             6786      bid opening or the closing date for proposals]; or
             6787          [(b)] (c) within 14 [calendar] days after receipt of a final administrative decision
             6788      pursuant to either Section [ 63G-6-806 or Section 63G-6-813 ] 63G-6a-1604 or 63G-6a-1708 ,
             6789      whichever is applicable.
             6790          (2) [Any] An action under Subsection [ 63G-6-815 ] 63G-6a-1803 (1)(b) shall be
             6791      commenced within six months after receipt of a final administrative decision, pursuant to
             6792      Section [ 63G-6-806 or Section 63G-6-813 , whichever is applicable] 63G-6a-1604 or
             6793      63G-6a-1708 .
             6794          (3) The statutory limitations on an action between private persons on a contract or for
             6795      breach of contract shall apply to any action commenced pursuant to Subsection [ 63G-6-815 ]
             6796      63G-6a-1803 (1)(c), except notice of appeals from [the Procurement Appeals Board] an appeals
             6797      board pursuant to Section [ 63G-6-814 ] 63G-6a-1802 concerning actions on a contract or for
             6798      breach of contract, shall be filed within one year after the [date of the Procurement Appeals
             6799      Board decision] day on which the decision of the appeals board is made.
             6800          Section 186. Section 63G-6a-1805 , which is renumbered from Section 63G-6-816 is
             6801      renumbered and amended to read:
             6802           [63G-6-816].     63G-6a-1805. Effect of prior determination by agents of
             6803      state.
             6804          In any judicial action under Section [ 63G-6-815 ] 63G-6a-1803 , determinations by
             6805      employees, agents, or other persons appointed by the state shall be final and conclusive only as
             6806      provided in Sections [ 63G-6-419 and 63G-6-806 ] 63G-6a-1604 and 63G-6a-1902 , and
             6807      Subsection [ 63G-6-813 ] 63G-6a-1708 (2).
             6808          Section 187. Section 63G-6a-1901 is enacted to read:
             6809     
Part 19. General Provisions Related to Protest or Appeal

             6810          63G-6a-1901. Title.
             6811          This part is known as "General Provisions Related to Protest or Appeal."
             6812          Section 188. Section 63G-6a-1902 , which is renumbered from Section 63G-6-419 is
             6813      renumbered and amended to read:
             6814           [63G-6-419].     63G-6a-1902. Determinations final except when arbitrary
             6815      and capricious.
             6816          The determinations required [by Subsections 63G-6-401 (6), 63G-6-408 (1) and (6),


             6817      Sections 63G-6-410 , 63G-6-411 , 63G-6-413 , Subsection 63G-6-415 (4), Section 63G-6-416 ,
             6818      and Subsection 63G-6-417 (2)] under the following provisions are final and conclusive unless
             6819      they are arbitrary and capricious or clearly erroneous[.]:
             6820          (1) Section 63G-6a-605 ;
             6821          (2) Section 63G-6a-702 ;
             6822          (3) Subsection 63G-6a-708 (1)(a);
             6823          (4) Subsection 63G-6a-709 (1);
             6824          (5) Section 63G-6a-803 ;
             6825          (6) Section 63G-6a-804 ;
             6826          (7) Section 63G-6a-903 ;
             6827          (8) Subsection 63G-6a-1204 (1) or (2);
             6828          (9) Subsection 63G-6a-1204 (5);
             6829          (10) Section 63G-6a-1205 ; or
             6830          (11) Subsection 63G-6a-1206 (5).
             6831          Section 189. Section 63G-6a-1903 , which is renumbered from Section 63G-6-818 is
             6832      renumbered and amended to read:
             6833           [63G-6-818].     63G-6a-1903. Effect of violation prior to award of contract.
             6834          If [prior to], before award of a contract, it is determined administratively or upon
             6835      administrative or judicial review that a [solicitation] procurement or proposed award of a
             6836      contract is in violation of law, the [solicitation] procurement or proposed award shall be
             6837      cancelled or revised to comply with the law.
             6838          Section 190. Section 63G-6a-1904 , which is renumbered from Section 63G-6-819 is
             6839      renumbered and amended to read:
             6840           [63G-6-819].     63G-6a-1904. Effect of violation after award of contract.
             6841          If, after [an] award of a contract, it is determined administratively or upon
             6842      administrative or judicial review that a [solicitation] procurement or award of a contract is in
             6843      violation of law:
             6844          (1) if the person awarded the contract [has not acted] did not act fraudulently or in bad
             6845      faith:
             6846          (a) the contract may be ratified and affirmed if it is [determined that doing so is] in the
             6847      best interests of the state; or


             6848          (b) (i) the contract may be terminated; and
             6849          (ii) the person awarded the contract shall be compensated for the actual expenses
             6850      reasonably incurred under the contract [prior to] before the termination, plus a reasonable
             6851      profit;
             6852          (2) if the person awarded the contract has acted fraudulently or in bad faith:
             6853          (a) the contract may be declared null and void; or
             6854          (b) the contract may be ratified and affirmed if [such action] it is in the best interests of
             6855      the state, without prejudice to the state's rights to any appropriate damages.
             6856          Section 191. Section 63G-6a-1905 , which is renumbered from Section 63G-6-820 is
             6857      renumbered and amended to read:
             6858           [63G-6-820].     63G-6a-1905. Interest rate.
             6859          (1) Except as provided in Subsection (2), in controversies between the state and
             6860      contractors under this part, Part 16, Controversies and Protests, Part 17, Procurement Appeals
             6861      Board, or Part 18, Appeals to Court and Court Proceedings, interest on amounts ultimately
             6862      determined to be due to a contractor or [to] the state are payable at the rate applicable to
             6863      judgments from the date the claim arose through the date of decision or judgment, whichever is
             6864      later.
             6865          (2) This section does not apply to public assistance benefits programs.
             6866          Section 192. Section 63G-6a-2001 is enacted to read:
             6867     
Part 20. Records

             6868          63G-6a-2001. Title.
             6869          This part is known as "Records."
             6870          Section 193. Section 63G-6a-2002 , which is renumbered from Section 63G-6-106 is
             6871      renumbered and amended to read:
             6872           [63G-6-106].     63G-6a-2002. Records -- Retention.
             6873          (1) All procurement records shall be retained and disposed of in accordance with Title
             6874      63G, Chapter 2, Government Records Access and Management Act.
             6875          (2) Written determinations required by this chapter shall [also] be retained in the
             6876      appropriate official contract file of [the Division of Purchasing and General Services or the
             6877      purchasing agency.]:
             6878          (a) the division;


             6879          (b) the state purchasing unit; or
             6880          (c) for a non-executive state procurement unit, the person designated by rule made by
             6881      the applicable rulemaking authority.
             6882          (3) A public procurement unit shall keep, and make available to the public, upon
             6883      request, a written record of all procurements made under this section for which an expenditure
             6884      of $50 or more is made, for the longer of:
             6885          (a) four years;
             6886          (b) the time otherwise required by law; or
             6887          (c) the time period provided by rule made by the applicable rulemaking authority.
             6888          (4) The written record described in Subsection (3) shall include:
             6889          (a) the name of the provider from whom the procurement was made;
             6890          (b) a description of the procurement item;
             6891          (c) the date of the procurement; and
             6892          (d) the expenditure made for the procurement.
             6893          Section 194. Section 63G-6a-2003 , which is renumbered from Section 63G-6-421 is
             6894      renumbered and amended to read:
             6895           [63G-6-421].     63G-6a-2003. Records of contracts made -- Audits --
             6896      Contract requirements.
             6897          The [chief] procurement officer or the head of [a purchasing agency] an authorized
             6898      purchasing entity shall maintain a record listing all contracts made under Section [ 63G-6-410
             6899      or 63G-6-411 and shall maintain the record] 63G-6a-408 , 63G-6a-802 , or 63G-6a-803 , in
             6900      accordance with Title 63G, Chapter 2, Government Records Access and Management Act.
             6901      The record shall contain each contractor's name, the amount and type of each contract, and a
             6902      listing of the [supplies, services, or construction procured under each contract] procurement
             6903      items to which the contract relates .
             6904          Section 195. Section 63G-6a-2004 , which is renumbered from Section 63G-6-905 is
             6905      renumbered and amended to read:
             6906           [63G-6-905].     63G-6a-2004. Chief procurement officer's collection of
             6907      information on procurement items.
             6908          (1) To the extent possible, the chief procurement officer may collect information
             6909      concerning the type, cost, quality, and quantity of commonly used [supplies, services, or


             6910      construction being] procurement items procured or used by [state] public procurement units
             6911      [and local public procurement units].
             6912          (2) The chief procurement officer may make the information described in Subsection
             6913      (1) available to any public procurement unit upon request.
             6914          Section 196. Section 63G-6a-2101 is enacted to read:
             6915     
Part 21. Interaction Between Public Procurement Units

             6916          63G-6a-2101. Title.
             6917          This part is known as "Interaction Between Public Procurement Units."
             6918          Section 197. Section 63G-6a-2102 , which is renumbered from Section 63G-6-901 is
             6919      renumbered and amended to read:
             6920           [63G-6-901].     63G-6a-2102. Agreements between public procurement
             6921      units.
             6922          [Under the terms agreed upon among the parties, any]
             6923          (1) For purposes of this section only, "public procurement unit" includes an external
             6924      procurement unit.
             6925          (2) A public procurement unit may enter into [agreements] an agreement with one or
             6926      more other public procurement units to:
             6927          [(1)] (a) sponsor, conduct, or administer a cooperative agreement for the procurement
             6928      or disposal of [any supplies, services, or construction] a procurement item;
             6929          [(2)] (b) cooperatively use [supplies or services] a procurement item;
             6930          [(3)] (c) commonly use or share warehousing facilities, capital equipment, and other
             6931      facilities;
             6932          [(4)] (d) provide personnel[; provided that the requesting], if the receiving public
             6933      procurement unit [shall pay] pays the public procurement unit providing the personnel the
             6934      direct and indirect cost of providing the personnel, in accordance with the agreement; or
             6935          [(5)] (e) make available informational, technical, and other services, [provided that], if:
             6936          (i) the requirements of the public procurement unit tendering the services [shall] have
             6937      precedence over the [requesting] public procurement unit that receives the services; and [that]
             6938          (ii) the [requesting] receiving public procurement unit [shall pay for] pays the expenses
             6939      of the services [so] provided, in accordance with the agreement.
             6940          (3) If a public procurement unit does not have the expertise necessary to administer a


             6941      particular procurement, the public procurement unit may enter into an agreement for
             6942      administration of the procurement with:
             6943          (a) another public procurement unit; or
             6944          (b) a person that is under contract to administer procurements.
             6945          Section 198. Section 63G-6a-2103 , which is renumbered from Section 63G-6-902 is
             6946      renumbered and amended to read:
             6947           [63G-6-902].     63G-6a-2103. Services between public procurement units.
             6948          (1) Upon request, [any] a public procurement unit may make services available to
             6949      [other] another public procurement [units the following services, among others] unit, including:
             6950          (a) standard forms;
             6951          (b) printed manuals;
             6952          (c) qualified products lists;
             6953          (d) source information;
             6954          (e) common use commodities listings;
             6955          (f) supplier prequalification information;
             6956          (g) supplier performance ratings;
             6957          (h) debarred and suspended bidders lists;
             6958          (i) forms for invitation for bids, requests for proposals, instructions to bidders, general
             6959      contract provisions, and [other] contract forms; [and] or
             6960          (j) contracts or published summaries [thereof] of contracts, including price and time of
             6961      delivery information.
             6962          (2) [Any] A public procurement unit may provide [the following] technical services[,]
             6963      [among others, to other] to another public procurement [units;] unit, including:
             6964          (a) development of specifications;
             6965          (b) development of quality assurance test methods, including receiving, inspection, and
             6966      acceptance procedures;
             6967          (c) use of testing and inspection facilities; [and] or
             6968          (d) use of personnel training programs.
             6969          (3) Public procurement units may enter into contractual arrangements and publish a
             6970      schedule of fees for the services provided under Subsections (1) and (2).
             6971          Section 199. Section 63G-6a-2104 , which is renumbered from Section 63G-6-904 is


             6972      renumbered and amended to read:
             6973           [63G-6-904].     63G-6a-2104. Compliance by one public procurement unit
             6974      pursuant to agreement considered compliance by others to agreement.
             6975          [Where the] (1) When a public procurement unit [administering] that administers a
             6976      cooperative purchase complies with the requirements of this chapter, any public procurement
             6977      unit participating in [such a] the purchase [shall be] is considered to have complied with this
             6978      chapter. [Public procurement units]
             6979          (2) A public procurement unit may not enter into a cooperative purchasing agreement
             6980      for the purpose of circumventing this chapter.
             6981          Section 200. Section 63G-6a-2105 , which is renumbered from Section 63G-6-424 is
             6982      renumbered and amended to read:
             6983           [63G-6-424].     63G-6a-2105. Participation of counties, municipalities, and
             6984      public procurement units in agreements or contracts of public procurement units.
             6985          [Utah counties, municipalities, and local public procurement units]
             6986          (1) A Utah county or municipality may purchase [from] under or otherwise participate
             6987      in [state public procurement unit agreements and contracts.] an agreement or contract of a Utah
             6988      public procurement unit.
             6989          (2) A state purchasing unit or a Utah public procurement unit may:
             6990          (a) contract with the federal government without going through a procurement process
             6991      or an exception to a procurement process;
             6992          (b) purchase under, or otherwise participate in, an agreement or contract of another
             6993      Utah public procurement unit; or
             6994          (c) purchase under, or otherwise participate in, an agreement or contract of an external
             6995      public procurement unit, if:
             6996          (i) the procurement was conducted in accordance with the requirements of this chapter;
             6997      and
             6998          (ii) the Utah participating addendum to the contract contains the terms and conditions
             6999      required by the applicable rulemaking authority that enters into the Utah participating
             7000      addendum.
             7001          Section 201. Section 63G-6a-2201 is enacted to read:
             7002     
Part 22. Ethical Requirements


             7003          63G-6a-2201. Title.
             7004          This part is known as "Ethical Requirements."
             7005          Section 202. Section 63G-6a-2202 is enacted to read:
             7006          63G-6a-2202. Ethical requirements for public procurement.
             7007          (1) As used in this section, "interested person" means a person who is interested in
             7008      providing a procurement item to a public entity in response to an anticipated or pending
             7009      acquisition of a procurement item by an invitation for bids, a request for proposals, a request
             7010      for quotes, or another process.
             7011          (2) A person acting on behalf of a public entity in a procurement by the public entity,
             7012      regardless of whether the person is a public employee, shall conduct and participate in the
             7013      procurement in an ethical manner.
             7014          (3) Ethical conduct and participation by a person described in Subsection (2) includes:
             7015          (a) acting as a fiduciary and trustee of public money;
             7016          (b) remaining independent from a person who is interested in providing a procurement
             7017      item to the public entity, including an actual or prospective bidder, offeror, or contractor;
             7018          (c) acting only in the public interest;
             7019          (d) abiding by all applicable law and rules relating to a procurement by the public
             7020      entity;
             7021          (e) avoiding the appearance of unethical behavior;
             7022          (f) except as provided in Subsection (4), not engaging in a social interaction with an
             7023      interested person of the public entity, if engaging in the social interaction would lead a
             7024      reasonable person to believe that the interested person is receiving an unfair advantage in an
             7025      anticipated or pending procurement by the public entity;
             7026          (g) subject to the provisions of the Government Records Access and Management Act,
             7027      maintaining confidentiality in a manner that ensures a fair procurement process; and
             7028          (h) identifying and eliminating any conflict of interest.
             7029          (4) Subsection (3)(f) does not prohibit a chance meeting.
             7030          (5) An interested person, or any other person that may benefit from a procurement by a
             7031      public entity, shall act in an ethnical manner with respect to the procurement, including:
             7032          (a) refraining from engaging in any conduct with the intent to gain an unfair advantage
             7033      in a procurement from a public entity;


             7034          (b) refraining from engaging in any conduct that would lead a reasonable person to
             7035      believe that the interested person will, or is, receiving an unfair advantage in a procurement
             7036      from a public entity;
             7037          (c) refraining from any activity that would create the appearance of impropriety or
             7038      conflict of interest with respect to the procurement by the public entity;
             7039          (d) identifying and eliminating any conflicts of interest with respect to the procurement
             7040      by the public entity;
             7041          (e) not interfering with efforts by the public entity to ensure that all interested persons
             7042      are afforded an equal opportunity to compete in a fair and open environment;
             7043          (f) not engaging in a social interaction with a person acting on behalf of a public entity
             7044      in a procurement, if engaging in the social interaction would lead a reasonable person to
             7045      believe that the interested person is receiving an unfair advantage in an anticipated or pending
             7046      procurement by the public entity; and
             7047          (g) not entering into collusion with other interested buyers with the intent to unfairly
             7048      manipulate the price or other terms of a procurement by a public entity.
             7049          (6) The applicable rulemaking authority may make rules to further define and regulate
             7050      the ethical requirements described in this section.
             7051          (7) The provisions of this section are in addition to, and not in lieu of, Title 67, Chapter
             7052      16, Utah Public Officers' and Employees' Ethics Act.
             7053          Section 203. Section 63G-6a-2301 is enacted to read:
             7054     
Part 23. Unlawful Conduct and Penalties

             7055          63G-6a-2301. Title.
             7056          This part is known as "Unlawful Conduct and Penalties."
             7057          Section 204. Section 63G-6a-2302 , which is renumbered from Section 63G-6-420 is
             7058      renumbered and amended to read:
             7059           [63G-6-420].     63G-6a-2302. Factual information to attorney general if
             7060      collusion suspected.
             7061          [When for any reason] If a public procurement unit suspects collusion or other
             7062      anticompetitive practices [are suspected] among bidders or offerors, the public procurement
             7063      unit shall transmit a notice of the relevant facts [shall be transmitted] to the attorney general.
             7064          Section 205. Section 63G-6a-2303 is enacted to read:


             7065          63G-6a-2303. Offering a gratuity.
             7066          (1) As used in this section, "interested person" means a person who is interested in any
             7067      way in the sale of a procurement item, real property, or insurance to a public entity.
             7068          (2) Except as provided in Subsection (5), it is unlawful for an interested person to give,
             7069      offer, or promise to give an emolument, gratuity, contribution, loan, or reward to:
             7070          (a) a procurement officer of the public entity that is seeking to obtain the procurement
             7071      item;
             7072          (b) any employee, official, or agent of the public entity that is seeking to obtain the
             7073      procurement item; or
             7074          (c) another person or entity on behalf of a person described in Subsection (2)(a) or (b).
             7075          (3) The conduct described in Subsection (2) is unlawful, regardless of whether the
             7076      emolument, gratuity, contribution, loan, or reward is given for:
             7077          (a) the person's own use; or
             7078          (b) the use or benefit of any other person.
             7079          (4) A person who violates this section is guilty of:
             7080          (a) a felony of the second degree if the total value of the emolument, gratuity,
             7081      contribution, loan, or reward is $1,000 or more;
             7082          (b) a felony of the third degree if the total value of the emolument, gratuity,
             7083      contribution, loan, or reward is $250 or more, but less then $1,000;
             7084          (c) a class A misdemeanor if the value of the emolument, gratuity, contribution, loan,
             7085      or reward is $100 or more, but less than $250; or
             7086          (d) a class B misdemeanor if the value of the emolument, gratuity, contribution, loan,
             7087      or reward is less than $100.
             7088          (5) A person is not guilty of a violation of this section if:
             7089          (a) (i) the gift is an item of less than $10 in value;
             7090          (ii) the total value of all gifts given by the person to a person described in Subsection
             7091      (2), or another person in that person's behalf, during that calendar year does not exceed $50;
             7092      and
             7093          (iii) the gift is not given with the intent to induce a person to make a procurement
             7094      decision in reciprocation for the gift; or
             7095          (b) the gift:


             7096          (i) is a philanthropic donation to a government entity; and
             7097          (ii) is not given with the intent to induce a person to make a procurement decision in
             7098      reciprocation for the gift.
             7099          Section 206. Section 63G-6a-2304 is enacted to read:
             7100          63G-6a-2304. Accepting or requesting a gratuity.
             7101          (1) As used in this section, "associate" means any of the following:
             7102          (a) the chief procurement officer;
             7103          (b) a procurement officer;
             7104          (c) a public employee;
             7105          (d) a public official; or
             7106          (e) an agent of a public entity.
             7107          (2) Except as provided in Subsection (4), it is unlawful for an associate of a public
             7108      entity that is engaged in obtaining a procurement item, real property, or insurance to ask,
             7109      receive, offer to receive, accept, or ask for a promise to receive, an emolument, gratuity,
             7110      contribution, loan, or reward for the associate's own use or benefit, or the use or benefit of any
             7111      other person interested in the procurement item, real property, or insurance.
             7112          (3) A person who violates this section is guilty of:
             7113          (a) a felony of the second degree if the total value of the emolument, gratuity,
             7114      contribution, loan, or reward is $1,000 or more;
             7115          (b) a felony of the third degree if the total value of the emolument, gratuity,
             7116      contribution, loan, or reward is $250 or more, but less then $1,000;
             7117          (c) a class A misdemeanor if the value of the emolument, gratuity, contribution, loan,
             7118      or reward is $100 or more, but less than $250; or
             7119          (d) a class B misdemeanor if the value of the emolument, gratuity, contribution, loan,
             7120      or reward is less than $100.
             7121          (4) A person is not guilty of a violation of this section if:
             7122          (a) (i) the associate receives a gift of less than $10 in value;
             7123          (ii) the total value of all gifts received by the associate from the same person during
             7124      that calendar year does not exceed $50; and
             7125          (iii) the associate does not make a procurement decision, or intend to make a
             7126      procurement decision, in reciprocation for the gift; or


             7127          (b) the associate:
             7128          (i) receives a philanthropic donation on behalf of a government entity; and
             7129          (ii) does not make a procurement decision, or intend to make a procurement decision,
             7130      in reciprocation for the donation.
             7131          Section 207. Section 63G-6a-2305 is enacted to read:
             7132          63G-6a-2305. Penalties for artificially dividing a purchase.
             7133          (1) Except as described in Subsection (2), a person who violates Subsection
             7134      63G-6a-408 (3), (4), or (5) is guilty of:
             7135          (a) a felony of the second degree if the total value of the divided procurements is
             7136      $1,000,000 or more;
             7137          (b) a felony of the third degree if the total value of the divided procurements is
             7138      $250,000 or more, but less than $1,000,000;
             7139          (c) a class A misdemeanor if the total value of the divided procurements is $100,000 or
             7140      more, but less than $250,000; or
             7141          (d) a class B misdemeanor if the total value of the divided procurements is less than
             7142      $100,000.
             7143          (2) A person who violates Subsection 63G-6a-408 (3) with the intent to financially
             7144      benefit himself, herself, or another, is guilty of:
             7145          (a) a felony of the second degree if the total value of the divided procurements is
             7146      $250,000 or more; or
             7147          (b) a felony of the third degree if the total value of the divided procurements is less
             7148      than $250,000.
             7149          Section 208. Section 63G-6a-2306 is enacted to read:
             7150          63G-6a-2306. Penalties.
             7151          (1) Except as provided in Subsection (2), in addition to any penalty contained in any
             7152      other provision of law, a public officer or public employee who intentionally violates a
             7153      provision of Section 63G-6a-2303 , Section 63G-6a-2304 , or Section 63G-6a-2305 shall be
             7154      dismissed from employment or removed from office.
             7155          (2) An elected official who intentionally violates a provision of Section 63G-6a-2303 ,
             7156      Section 63G-6a-2304 , or Section 63G-6a-2305 may only be removed from office in accordance
             7157      with the requirements of law relating to removal of the elected official from office.


             7158          (3) Except as provided in Subsection (4), a public officer or public employee who
             7159      intentionally violates a provision of this chapter, including Part 22, Ethical Requirements, is
             7160      subject to disciplinary action, up to and including dismissal from employment or dismissal
             7161      from office.
             7162          (4) An elected official who intentionally violates a provision of this chapter, including
             7163      Part 22, Ethical Requirements, may only be disciplined or removed from office in accordance
             7164      with the requirements of law relating to discipline of the elected official or removal of the
             7165      elected official from office.
             7166          Section 209. Section 63G-6a-2307 is enacted to read:
             7167          63G-6a-2307. Contract awarded in relation to criminal conduct void.
             7168          If a person who is awarded a contract intentionally violates a provision of Section
             7169      63G-6a-2303 or Section 63G-6a-2304 in relation to the contract, the contract is void and
             7170      unenforceable.
             7171          Section 210. Section 63G-7-804 is amended to read:
             7172           63G-7-804. Liability insurance -- Methods for purchase or renewal.
             7173          (1) Except as provided in Subsection (2), a contract or policy of insurance may be
             7174      purchased or renewed under this chapter only upon public bid to be let to the lowest and best
             7175      bidder.
             7176          (2) The purchase or renewal of insurance by the state shall be conducted in accordance
             7177      with the provisions of Title 63G, Chapter [6] 6a, Utah Procurement Code.
             7178          Section 211. Section 63G-10-403 is amended to read:
             7179           63G-10-403. Department of Transportation bid or request for proposals protest
             7180      settlement agreement approval and review.
             7181          (1) As used in this section:
             7182          (a) "Department" means the Department of Transportation created in Section 72-1-201 .
             7183          (b) "Settlement agreement" includes stipulations, consent decrees, settlement
             7184      agreements, or other legally binding documents or representations resolving a dispute between
             7185      the department and another party when the department is required to pay money or required to
             7186      take legally binding action.
             7187          (2) The department shall obtain the approval of the Transportation Commission or the
             7188      governor or review by the Legislative Management Committee of a settlement agreement that


             7189      involves a bid or request for proposal protest in accordance with this section.
             7190          (3) A settlement agreement that is being settled by the department as part of a bid or
             7191      request for proposal protest, in accordance with Section [ 63G-6-801 ] 63G-6a-1603 , that might
             7192      cost government entities more than $100,000 to implement shall be presented to the
             7193      Transportation Commission for approval or rejection.
             7194          (4) A settlement agreement that is being settled by the department as part of a bid or
             7195      request for proposal protest, in accordance with Section [ 63G-6-801 ] 63G-6a-1603 , that might
             7196      cost government entities more than $500,000 to implement shall be presented:
             7197          (a) to the Transportation Commission for approval or rejection; and
             7198          (b) to the governor for approval or rejection.
             7199          (5) (a) A settlement agreement that is being settled by the department as part of a bid or
             7200      request for proposal protest, in accordance with Section [ 63G-6-801 ] 63G-6a-1603 , that might
             7201      cost government entities more than $1,000,000 to implement shall be presented:
             7202          (i) to the Transportation Commission for approval or rejection;
             7203          (ii) to the governor for approval or rejection; and
             7204          (iii) if the settlement agreement is approved by the Transportation Commission and the
             7205      governor, to the Legislative Management Committee.
             7206          (b) The Legislative Management Committee may recommend approval or rejection of
             7207      the settlement agreement.
             7208          (6) (a) The department may not enter into a settlement agreement that resolves a bid or
             7209      request for proposal protest, in accordance with Section [ 63G-6-801 ] 63G-6a-1603 , that might
             7210      cost government entities more than $100,000 to implement until the Transportation
             7211      Commission has approved the agreement.
             7212          (b) The department may not enter into a settlement agreement that resolves a bid or
             7213      request for proposal protest, in accordance with Section [ 63G-6-801 ] 63G-6a-1603 , that might
             7214      cost government entities more than $500,000 to implement until the Transportation
             7215      Commission and the governor have approved the agreement.
             7216          (c) The department may not enter into a settlement agreement that resolves a bid or
             7217      request for proposal protest, in accordance with Section [ 63G-6-801 ] 63G-6a-1603 , that might
             7218      cost government entities more than $1,000,000 to implement until:
             7219          (i) the Transportation Commission has approved the agreement;


             7220          (ii) the governor has approved the agreement; and
             7221          (iii) the Legislative Management Committee has reviewed the agreement.
             7222          Section 212. Section 63H-2-504 is amended to read:
             7223           63H-2-504. Relation to other state statutes.
             7224          (1) The authority is subject to review by the Retirement and Independent Entities
             7225      Committee in accordance with Title 63E, Chapter 1, Independent Entities Act.
             7226          (2) The authority is subject to:
             7227          (a) Title 51, Chapter 5, Funds Consolidation Act;
             7228          (b) Title 51, Chapter 7, State Money Management Act;
             7229          (c) Title 52, Chapter 4, Open and Public Meetings Act;
             7230          (d) Title 63A, Utah Administrative Services Code;
             7231          (e) Title 63G, Chapter 2, Government Records Access and Management Act;
             7232          (f) Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             7233          (g) Title 63G, Chapter 4, Administrative Procedures Act;
             7234          (h) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             7235          (i) Title 63J, Chapter 1, Budgetary Procedures Act;
             7236          (j) Title 63J, Chapter 2, Revenue Procedures and Control Act; and
             7237          (k) Title 67, Chapter 19, Utah State Personnel Management Act.
             7238          Section 213. Section 63H-3-109 is amended to read:
             7239           63H-3-109. Relation to certain acts.
             7240          (1) The authority is exempt from:
             7241          (a) Title 51, Chapter 5, Funds Consolidation Act;
             7242          (b) Title 63A, Chapter 1, Department of Administrative Services;
             7243          (c) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             7244          (d) Title 63J, Chapter 1, Budgetary Procedures Act; and
             7245          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
             7246          (2) The authority is subject to audit by:
             7247          (a) the state auditor pursuant to Title 67, Chapter 3, Auditor; and
             7248          (b) the legislative auditor general pursuant to Section 36-12-15 .
             7249          (3) The authority shall annually report to the Retirement and Independent Entities
             7250      Committee created under Section 63E-1-201 concerning the authority's implementation of this


             7251      part.
             7252          Section 214. Section 63H-4-108 is amended to read:
             7253           63H-4-108. Relation to certain acts.
             7254          (1) The authority is exempt from:
             7255          (a) Title 51, Chapter 5, Funds Consolidation Act;
             7256          (b) Title 63A, Utah Administrative Services Code;
             7257          (c) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             7258          (d) Title 63J, Chapter 1, Budgetary Procedures Act; and
             7259          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
             7260          (2) The authority is subject to audit by the state auditor pursuant to Title 67, Chapter 3,
             7261      Auditor, and by the legislative auditor general pursuant to Section 36-12-15 .
             7262          Section 215. Section 63H-5-108 is amended to read:
             7263           63H-5-108. Relation to certain acts.
             7264          (1) The authority is exempt from:
             7265          (a) Title 51, Chapter 5, Funds Consolidation Act;
             7266          (b) Title 63A, Chapter 1, Department of Administrative Services;
             7267          (c) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             7268          (d) Title 63J, Chapter 1, Budgetary Procedures Act; and
             7269          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
             7270          (2) The authority is subject to audit by the state auditor pursuant to Title 67, Chapter 3,
             7271      Auditor, and by the legislative auditor general pursuant to Section 36-12-15 .
             7272          Section 216. Section 63H-6-103 is amended to read:
             7273           63H-6-103. Utah State Fair Corporation -- Legal status -- Powers.
             7274          (1) There is created an independent public nonprofit corporation known as the "Utah
             7275      State Fair Corporation."
             7276          (2) The board shall file articles of incorporation for the corporation with the Division
             7277      of Corporations and Commercial Code.
             7278          (3) The corporation, subject to this chapter, has all powers and authority permitted
             7279      nonprofit corporations by law.
             7280          (4) The corporation shall, subject to approval of the board:
             7281          (a) have general management, supervision, and control over all activities relating to the


             7282      state fair and have charge of all state expositions except as otherwise provided by statute;
             7283          (b) for public entertainment, displays, and exhibits or similar events:
             7284          (i) provide, sponsor, or arrange the events;
             7285          (ii) publicize and promote the events; and
             7286          (iii) secure funds to cover the cost of the exhibits from:
             7287          (A) private contributions;
             7288          (B) public appropriations;
             7289          (C) admission charges; and
             7290          (D) other lawful means;
             7291          (c) establish the time, place, and purpose of state expositions; and
             7292          (d) acquire and designate exposition sites.
             7293          (5) (a) The corporation shall:
             7294          (i) use generally accepted accounting principals in accounting for its assets, liabilities,
             7295      and operations;
             7296          (ii) seek corporate sponsorships for the state fair park and for individual buildings or
             7297      facilities within the fair park;
             7298          (iii) work with county and municipal governments, the Salt Lake Convention and
             7299      Visitor's Bureau, the Utah Travel Council, and other entities to develop and promote
             7300      expositions and the use of the state fair park;
             7301          (iv) develop and maintain a marketing program to promote expositions and the use of
             7302      the state fair park;
             7303          (v) in cooperation with the Division of Facilities Construction and Management,
             7304      maintain the physical appearance and structural integrity of the state fair park and the buildings
             7305      located at the state fair park;
             7306          (vi) hold an annual exhibition that:
             7307          (A) is called the state fair or a similar name;
             7308          (B) includes expositions of livestock, poultry, agricultural, domestic science,
             7309      horticultural, floricultural, mineral, and industrial products, manufactured articles, and
             7310      domestic animals that, in the corporation's opinion will best stimulate agricultural, industrial,
             7311      artistic, and educational pursuits and the sharing of talents among the people of Utah;
             7312          (C) includes the award of premiums for the best specimens of the exhibited articles and


             7313      animals;
             7314          (D) permits competition by livestock exhibited by citizens of other states and territories
             7315      of the United States; and
             7316          (E) is arranged according to plans approved by the board;
             7317          (vii) fix the conditions of entry to the exposition described in Subsection (5)(a)(vi); and
             7318          (viii) publish a list of premiums that will be awarded at the exhibition described in
             7319      Subsection (5)(a)(vi) for the best specimens of exhibited articles and animals.
             7320          (b) In addition to the state fair to be held in accordance with Subsection (5)(a)(vi), the
             7321      corporation may hold other exhibitions of livestock, poultry, agricultural, domestic science,
             7322      horticultural, floricultural, mineral, and industrial products, manufactured articles, and
             7323      domestic animals that, in its opinion, will best stimulate agricultural, industrial, artistic, and
             7324      educational pursuits and the sharing of talents among the people of Utah.
             7325          (6) The corporation may:
             7326          (a) employ advisers, consultants, and agents, including financial experts and
             7327      independent legal counsel, and fix their compensation;
             7328          (b) procure insurance against any loss in connection with its property and other assets,
             7329      including mortgage loans;
             7330          (c) receive and accept aid or contributions of money, property, labor, or other things of
             7331      value from any source, including any grants or appropriations from any department, agency, or
             7332      instrumentality of the United States or Utah;
             7333          (d) hold, use, loan, grant, and apply that aid and those contributions to carry out the
             7334      purposes of the corporation, subject to the conditions, if any, upon which the aid and
             7335      contributions were made;
             7336          (e) enter into management agreements with any person or entity for the performance of
             7337      its functions or powers;
             7338          (f) establish whatever accounts and procedures as necessary to budget, receive, and
             7339      disburse, account for, and audit all funds received, appropriated, or generated;
             7340          (g) enter into agreements for the leasing of any of the facilities at the state fair park, if
             7341      approved by the board; and
             7342          (h) sponsor events as approved by the board.
             7343          (7) (a) Except as provided in Subsection (7)(c), as an independent agency of Utah, the


             7344      corporation is exempt from:
             7345          (i) Title 51, Chapter 5, Funds Consolidation Act;
             7346          (ii) Title 51, Chapter 7, State Money Management Act;
             7347          (iii) Title 63A, Utah Administrative Services Code;
             7348          (iv) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             7349          (v) Title 63J, Chapter 1, Budgetary Procedures Act; and
             7350          (vi) Title 67, Chapter 19, Utah State Personnel Management Act.
             7351          (b) The board shall adopt policies parallel to and consistent with:
             7352          (i) Title 51, Chapter 5, Funds Consolidation Act;
             7353          (ii) Title 51, Chapter 7, State Money Management Act;
             7354          (iii) Title 63A, Utah Administrative Services Code;
             7355          (iv) Title 63G, Chapter [6] 6a, Utah Procurement Code; and
             7356          (v) Title 63J, Chapter 1, Budgetary Procedures Act.
             7357          (c) The corporation shall comply with the legislative approval requirements for new
             7358      facilities established in Subsection 63A-5-104 (3).
             7359          Section 217. Section 63I-1-263 is amended to read:
             7360           63I-1-263. Repeal dates, Titles 63A to 63M.
             7361          (1) Section 63A-4-204 , authorizing the Risk Management Fund to provide coverage to
             7362      any public school district which chooses to participate, is repealed July 1, 2016.
             7363          (2) Section 63A-5-603 , State Facility Energy Efficiency Fund, is repealed July 1, 2016.
             7364          (3) Section 63C-8-106 , rural residency training program, is repealed July 1, 2015.
             7365          (4) Title 63C, Chapter 13, Prison Relocation and Development Authority Act, is
             7366      repealed July 1, 2014.
             7367          (5) Subsection [ 63G-6-502 (5)(b)(ii)] 63G-6a-1402 (7) authorizing certain transportation
             7368      agencies to award a contract for a design-build transportation project in certain circumstances,
             7369      is repealed July 1, 2015.
             7370          (6) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
             7371      2020.
             7372          (7) The Resource Development Coordinating Committee, created in Section
             7373      63J-4-501 , is repealed July 1, 2015.
             7374          (8) Title 63M, Chapter 1, Part 4, Enterprise Zone Act, is repealed July 1, 2018.


             7375          (9) (a) Title 63M, Chapter 1, Part 11, Recycling Market Development Zone Act, is
             7376      repealed January 1, 2021.
             7377          (b) Subject to Subsection (9)(c), Sections 59-7-610 and 59-10-1007 regarding tax
             7378      credits for certain persons in recycling market development zones, are repealed for taxable
             7379      years beginning on or after January 1, 2012.
             7380          (c) A person may not claim a tax credit under Section 59-7-610 or 59-10-1007 :
             7381          (i) for the purchase price of machinery or equipment described in Section 59-7-610 or
             7382      59-10-1007 , if the machinery or equipment is purchased on or after January 1, 2012; or
             7383          (ii) for an expenditure described in Subsection 59-7-610 (1)(b) or 59-10-1007 (1)(b), if
             7384      the expenditure is made on or after January 1, 2012.
             7385          (d) Notwithstanding Subsections (9)(b) and (c), a person may carry forward a tax credit
             7386      in accordance with Section 59-7-610 or 59-10-1007 if:
             7387          (i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007 ; and
             7388          (ii) (A) for the purchase price of machinery or equipment described in Section
             7389      59-7-610 or 59-10-1007 , the machinery or equipment is purchased on or before December 31,
             7390      2011; or
             7391          (B) for an expenditure described in Subsection 59-7-610 (1)(b) or 59-10-1007 (1)(b), the
             7392      expenditure is made on or before December 31, 2011.
             7393          (10) The Crime Victim Reparations and Assistance Board, created in Section
             7394      63M-7-504 , is repealed July 1, 2017.
             7395          (11) Title 63M, Chapter 8, Utah Commission for Women and Families Act, is repealed
             7396      July 1, 2011.
             7397          (12) Title 63M, Chapter 9, Families, Agencies, and Communities Together for
             7398      Children and Youth At Risk Act, is repealed July 1, 2016.
             7399          (13) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2012.
             7400          Section 218. Section 63M-1-2602 is amended to read:
             7401           63M-1-2602. Definitions.
             7402          As used in this part:
             7403          (1) "Affected department" means, as applicable, the Board of Education or the
             7404      Department of Technology Services.
             7405          (2) "Board" means the Board of Business and Economic Development created under


             7406      Section 63M-1-301 .
             7407          (3) "Board of Education" means the Utah State Board of Education.
             7408          (4) "Chief procurement officer" means the chief procurement officer appointed under
             7409      Section [ 63G-6-203 ] 63G-6a-302 .
             7410          (5) "Committee" means the proposal review committee created under Section
             7411      63M-1-2604 .
             7412          (6) "Day" means a calendar day.
             7413          (7) "Director" is as defined in Section 63M-1-102 .
             7414          (8) "Executive Appropriations Committee" means the Legislature's Executive
             7415      Appropriations Committee.
             7416          (9) "Information technology" is as defined in Section 63F-1-102 .
             7417          (10) "Office" means the Governor's Office of Economic Development created under
             7418      Section 63M-1-201 .
             7419          (11) "Private entity" means a person submitting a proposal under this part for the
             7420      purpose of entering into a project.
             7421          (12) "Project" means the subject of a proposal or an agreement for the procurement or
             7422      disposal of:
             7423          (a) information technology or telecommunications products or services; or
             7424          (b) supplies or services for or on behalf of the Department of Technology Services or
             7425      the Board of Education.
             7426          (13) "Proposal" means an unsolicited offer by a private entity to undertake a project,
             7427      including an initial proposal under Section 63M-1-2605 and a detailed proposal under Section
             7428      63M-1-2608 .
             7429          (14) "Services" is as defined in Section [ 63G-6-103 ] 63G-6a-103 .
             7430          (15) "Supplies" is as defined in Section [ 63G-6-103 ] 63G-6a-103 .
             7431          (16) "Telecommunications" is as defined in Section 63F-1-102 .
             7432          Section 219. Section 63M-1-2603 is amended to read:
             7433           63M-1-2603. Government Procurement Private Proposal Program -- Proposals --
             7434      Rulemaking.
             7435          (1) There is created within the office the Government Procurement Private Proposal
             7436      Program.


             7437          (2) In accordance with this part, the board may:
             7438          (a) accept a proposal for a project;
             7439          (b) solicit comments, suggestions, and modifications to a project in accordance with
             7440      Section [ 63G-6-408.5 ] 63G-6a-711 ; and
             7441          (c) make rules in accordance with Title 63G, Chapter 3, Utah Administrative
             7442      Rulemaking Act, establishing requirements, including time limits for any action required by the
             7443      affected department, a directly affected state entity or school district, or the Governor's Office
             7444      of Planning and Budget, for the procurement of a project to the extent not governed by Title
             7445      63G, Chapter [6] 6a, Utah Procurement Code.
             7446          Section 220. Section 63M-1-2605 is amended to read:
             7447           63M-1-2605. Initial proposal -- Requirements.
             7448          (1) In accordance with this part, a private entity may at any time submit to the
             7449      committee an initial proposal for a project.
             7450          (2) An initial proposal shall include:
             7451          (a) a conceptual description of the project;
             7452          (b) a description of the economic benefit of the project to the state and the affected
             7453      department;
             7454          (c) information concerning the products, services, and supplies currently being
             7455      provided by the state, that are similar to the project;
             7456          (d) an estimate of the following costs associated with the project:
             7457          (i) design;
             7458          (ii) implementation;
             7459          (iii) operation and maintenance; and
             7460          (iv) any other related project cost; and
             7461          (e) the name and address of a person who may be contacted for further information
             7462      concerning the initial proposal.
             7463          (3) A private entity submitting an initial proposal under this section shall pay the fee
             7464      required by Section 63M-1-2612 when the initial proposal is submitted.
             7465          (4) An initial proposal submitted under this section is a protected record under Title
             7466      63G, Chapter 2, Government Records Access and Management Act, until the chief
             7467      procurement officer initiates a procurement process in accordance with Section [ 63G-6-408.5 ]


             7468      63G-6a-711 .
             7469          (5) The board shall make rules in accordance with Title 63G, Chapter 3, Utah
             7470      Administrative Rulemaking Act, detailing the portions of an initial proposal that remain
             7471      protected after the chief procurement officer initiates a procurement process.
             7472          Section 221. Section 63M-1-2606 is amended to read:
             7473           63M-1-2606. Review of initial proposal -- Affected department review.
             7474          (1) The committee shall review and evaluate an initial proposal submitted in
             7475      accordance with:
             7476          (a) this part; and
             7477          (b) any rule established by the board under Section 63M-1-2603 .
             7478          (2) If the committee, in its sole discretion, determines to proceed with the project, the
             7479      committee shall submit a copy of the initial proposal to:
             7480          (a) the affected department; and
             7481          (b) the Governor's Office of Planning and Budget.
             7482          (3) (a) An affected department, directly affected state entity, and school district
             7483      receiving a copy of the initial proposal under Subsection (2) or (4) shall review the initial
             7484      proposal and provide the committee with any comment, suggestion, or modification to the
             7485      project.
             7486          (b) After receiving an initial proposal, the Governor's Office of Planning and Budget
             7487      shall prepare an economic feasibility report containing:
             7488          (i) information concerning the economic feasibility and effectiveness of the project
             7489      based upon competent evidence;
             7490          (ii) a dollar amount representing the total estimated fiscal impact of the project to the
             7491      affected department and the state; and
             7492          (iii) any other matter the committee requests or is required by the board by rule.
             7493          (4) In reviewing an initial proposal, the affected department shall share the initial
             7494      proposal with any other state entity or school district that will be directly affected if the
             7495      proposal is ultimately adopted, if the confidentiality of the initial proposal is maintained.
             7496          (5) If the committee determines to proceed with the project, the committee shall submit
             7497      a copy of the initial proposal, including any comment, suggestion, or modification to the initial
             7498      proposal, to:


             7499          (a) the chief procurement officer in accordance with Section [ 63G-6-408.5 ]
             7500      63G-6a-711 ; and
             7501          (b) the Executive Appropriations Committee, for informational purposes.
             7502          (6) Before taking any action under Subsection (5), the committee shall consider:
             7503          (a) any comment, suggestion, or modification to the initial proposal submitted in
             7504      accordance with Subsection (3);
             7505          (b) the extent to which the project is practical, efficient, and economically beneficial to
             7506      the state and the affected department;
             7507          (c) the economic feasibility report prepared by the Governor's Office of Planning and
             7508      Budget; and
             7509          (d) any other reasonable factor identified by the committee or required by the board by
             7510      rule.
             7511          Section 222. Section 63M-1-2607 is amended to read:
             7512           63M-1-2607. Acceptance of initial proposal -- Obtaining detailed proposals.
             7513          (1) If an initial proposal is accepted under Section 63M-1-2606 , the chief procurement
             7514      officer shall:
             7515          (a) take action under Section [ 63G-6-408.5 ] 63G-6a-711 to initiate a procurement
             7516      process to obtain one or more detailed proposals using information from portions of the initial
             7517      proposal that are not protected records under Title 63G, Chapter 2, Government Records [and]
             7518      Access and Management Act;
             7519          (b) consult with the committee during the procurement process; and
             7520          (c) submit all detailed proposals that meet the guidelines established under Subsection
             7521      63M-1-2608 (1), including the detailed proposal submitted by the private entity that submitted
             7522      the initial proposal for the project, to:
             7523          (i) the committee; and
             7524          (ii) the Governor's Office of Planning and Budget.
             7525          (2) The office is considered the purchasing agency for a procurement process initiated
             7526      under this part.
             7527          Section 223. Section 63M-1-2608 is amended to read:
             7528           63M-1-2608. Detailed proposal -- Requirements -- Cooperation of affected
             7529      department.


             7530          (1) A detailed proposal submitted in response to a procurement process initiated under
             7531      Section 63M-1-2607 shall include:
             7532          (a) a conceptual description of the project, including the scope of the work;
             7533          (b) a description of the economic benefit of the project to the state and the affected
             7534      department;
             7535          (c) an estimate of the design, implementation, operation, maintenance, or other costs
             7536      associated with the project;
             7537          (d) information concerning the information technology or telecommunication product
             7538      and service or other supply or service currently provided by the state that is similar to the
             7539      project being proposed, if applicable;
             7540          (e) a statement setting forth the private entity's general plan for financing the project,
             7541      including any appropriation by the Legislature or other public money and, if applicable, the
             7542      sources of the private entity's funds and identification of any dedicated revenue source or
             7543      proposed debt or equity investment on behalf of the private entity;
             7544          (f) the name and address of the person who may be contacted for further information
             7545      concerning the detailed proposal;
             7546          (g) a statement describing the private entity's experience with other similar projects and
             7547      a description of why the private entity is best qualified for the project; and
             7548          (h) any other information:
             7549          (i) reasonably requested by the affected department or the committee, or required by
             7550      the board by rule; or
             7551          (ii) that the private entity considers necessary or appropriate to complete or describe
             7552      the detailed proposal.
             7553          (2) To assist each private entity in preparing a detailed proposal:
             7554          (a) the affected department shall provide each private entity with access to all
             7555      information, records, documents, and reports related to the proposal and the project that are
             7556      designated public records under Title 63G, Chapter 2, Government Records Access and
             7557      Management Act; and
             7558          (b) the affected department and the committee shall cooperate with each private entity
             7559      to assist the private entity in the development of a detailed proposal that is:
             7560          (i) practical;


             7561          (ii) efficient; and
             7562          (iii) economically beneficial to the state and the affected department.
             7563          (3) The committee or any private entity may choose to terminate the development of
             7564      the detailed proposal at any time before the submission of the detailed proposal to the chief
             7565      procurement officer under Section [ 63G-6-408.5 ] 63G-6a-711 .
             7566          Section 224. Section 63M-1-2610 is amended to read:
             7567           63M-1-2610. Project agreement.
             7568          (1) If the board accepts the detailed proposal, the director shall:
             7569          (a) prepare a project agreement in consultation with the affected department and any
             7570      other state entity directly impacted by the detailed proposal; and
             7571          (b) enter into the project agreement with the private entity.
             7572          (2) A project agreement shall be signed by the director, the affected department, a
             7573      directly affected state entity or school district, and the private entity.
             7574          (3) A project agreement shall include provisions concerning:
             7575          (a) the scope of the project;
             7576          (b) the pricing method of the project;
             7577          (c) the director's or the state's ability to terminate for convenience or for default, and
             7578      any termination compensation to be paid to the private entity, if applicable;
             7579          (d) the ability to monitor performance under the project agreement;
             7580          (e) the appropriate limits of liability;
             7581          (f) the appropriate transition of services, if applicable;
             7582          (g) the exceptions from applicable rules and procedures for the implementation and
             7583      administration of the project by the affected department, if any;
             7584          (h) the clauses and remedies applicable to state contracts under Title 63G, Chapter [6,
             7585      Part 6, Contract Clauses] 6a, Part 12, Contracts and Change Orders; and
             7586          (i) any other matter reasonably requested by the committee or required by the board by
             7587      rule.
             7588          (4) A copy of the signed project agreement shall be submitted to:
             7589          (a) the affected department; and
             7590          (b) the Executive Appropriations Committee.
             7591          (5) A project agreement is considered a contract under Title 63G, Chapter [6] 6a, Utah


             7592      Procurement Code.
             7593          (6) The affected department shall implement and administer the project agreement in
             7594      accordance with rules made under Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             7595      except as modified by the project agreement under Subsection (3)(g).
             7596          Section 225. Section 64-13a-13 is amended to read:
             7597           64-13a-13. Purchases of material -- Exemption.
             7598          (1) The Division of Correctional Industries is exempt from the provisions of Title 63G,
             7599      Chapter [6] 6a, Utah Procurement Code, in respect to goods or services purchased by or sold to
             7600      the department.
             7601          (2) The purchase of raw materials for use by the division in manufacturing or
             7602      processing products for resale is exempt from the powers and duties of the state purchasing
             7603      agent.
             7604          Section 226. Section 67-16-4 is amended to read:
             7605           67-16-4. Improperly disclosing or using private, controlled, or protected
             7606      information -- Using position to secure privileges or exemptions -- Accepting employment
             7607      which would impair independence of judgment or ethical performance -- Exceptions.
             7608          (1) Except as provided in Subsection (3), it is an offense for a public officer, public
             7609      employee, or legislator, under circumstances not amounting to a violation of Section
             7610      [ 63G-6-1001 ] 63G-6a-2304 or 76-8-105 , to:
             7611          (a) accept employment or engage in any business or professional activity that he might
             7612      reasonably expect would require or induce him to improperly disclose controlled information
             7613      that he has gained by reason of his official position;
             7614          (b) disclose or improperly use controlled, private, or protected information acquired by
             7615      reason of his official position or in the course of official duties in order to further substantially
             7616      the officer's or employee's personal economic interest or to secure special privileges or
             7617      exemptions for himself or others;
             7618          (c) use or attempt to use his official position to:
             7619          (i) further substantially the officer's or employee's personal economic interest; or
             7620          (ii) secure special privileges or exemptions for himself or others;
             7621          (d) accept other employment that he might expect would impair his independence of
             7622      judgment in the performance of his public duties; or


             7623          (e) accept other employment that he might expect would interfere with the ethical
             7624      performance of his public duties.
             7625          (2) (a) Subsection (1) does not apply to the provision of education-related services to
             7626      public school students by public education employees acting outside their regular employment.
             7627          (b) The conduct referred to in Subsection (2)(a) is subject to Section 53A-1-402.5 .
             7628          (3) A county legislative body member who does not participate in the process of
             7629      selecting a mental health or substance abuse service provider does not commit an offense under
             7630      Subsection (1)(a) or (b) by:
             7631          (a) serving also as a member of the governing board of the provider of mental health or
             7632      substance abuse services under contract with the county; or
             7633          (b) discharging, in good faith, the duties and responsibilities of each position.
             7634          Section 227. Section 67-16-5 is amended to read:
             7635           67-16-5. Accepting gift, compensation, or loan -- When prohibited.
             7636          (1) As used in this section, "economic benefit tantamount to a gift" includes:
             7637          (a) a loan at an interest rate that is substantially lower than the commercial rate then
             7638      currently prevalent for similar loans; and
             7639          (b) compensation received for private services rendered at a rate substantially
             7640      exceeding the fair market value of the services.
             7641          (2) It is an offense for a public officer or public employee, under circumstances not
             7642      amounting to a violation of Section [ 63G-6-1001 ] 63G-6a-2304 or 76-8-105 , to knowingly
             7643      receive, accept, take, seek, or solicit, directly or indirectly for himself or another a gift of
             7644      substantial value or a substantial economic benefit tantamount to a gift:
             7645          (a) that would tend improperly to influence a reasonable person in the person's position
             7646      to depart from the faithful and impartial discharge of the person's public duties;
             7647          (b) that the public officer or public employee knows or that a reasonable person in that
             7648      position should know under the circumstances is primarily for the purpose of rewarding the
             7649      public officer or public employee for official action taken; or
             7650          (c) if the public officer or public employee recently has been, is now, or in the near
             7651      future may be involved in any governmental action directly affecting the donor or lender,
             7652      unless a disclosure of the gift, compensation, or loan and other relevant information has been
             7653      made in the manner provided in Section 67-16-6 .


             7654          (3) Subsection (2) does not apply to:
             7655          (a) an occasional nonpecuniary gift, having a value of not in excess of $50;
             7656          (b) an award publicly presented in recognition of public services;
             7657          (c) any bona fide loan made in the ordinary course of business; or
             7658          (d) a political campaign contribution.
             7659          Section 228. Section 67-16-5.3 is amended to read:
             7660           67-16-5.3. Requiring donation, payment, or service to government agency in
             7661      exchange for approval -- When prohibited.
             7662          (1) It is an offense for a public officer, public employee, or legislator, under
             7663      circumstances not amounting to a violation of Section [ 63G-6-1001 ] 63G-6a-2304 or 76-8-105 ,
             7664      to demand from any person as a condition of granting any application or request for a permit,
             7665      approval, or other authorization, that the person donate personal property, money, or services to
             7666      any agency.
             7667          (2) (a) Subsection (1) does not apply to any donation of property, funds, or services to
             7668      an agency that is:
             7669          (i) expressly required by statute, ordinance, or agency rule;
             7670          (ii) mutually agreed to between the applicant and the entity issuing the permit,
             7671      approval, or other authorization;
             7672          (iii) made voluntarily by the applicant; or
             7673          (iv) a condition of a consent decree, settlement agreement, or other binding instrument
             7674      entered into to resolve, in whole or in part, an actual or threatened agency enforcement action.
             7675          (b) If a person donates property, funds, or services to an agency, the agency shall, as
             7676      part of the permit or other written authorization:
             7677          (i) identify that a donation has been made;
             7678          (ii) describe the donation;
             7679          (iii) certify, in writing, that the donation was voluntary; and
             7680          (iv) place that information in its files.
             7681          Section 229. Section 67-16-6 is amended to read:
             7682           67-16-6. Receiving compensation for assistance in transaction involving an
             7683      agency -- Filing sworn statement.
             7684          (1) It is an offense for a public officer or public employee, under circumstances not


             7685      amounting to a violation of Section [ 63G-6-1001 ] 63G-6a-2304 or 76-8-105 , to receive or
             7686      agree to receive compensation for assisting any person or business entity in any transaction
             7687      involving an agency unless the public officer or public employee files a sworn, written
             7688      statement containing the information required by Subsection (2) with:
             7689          (a) the head of the officer or employee's own agency;
             7690          (b) the agency head of the agency with which the transaction is being conducted; and
             7691          (c) the state attorney general.
             7692          (2) The statement shall contain:
             7693          (a) the name and address of the public officer or public employee involved;
             7694          (b) the name of the public officer's or public employee's agency;
             7695          (c) the name and address of the person or business entity being or to be assisted; and
             7696          (d) a brief description of:
             7697          (i) the transaction as to which service is rendered or is to be rendered; and
             7698          (ii) the nature of the service performed or to be performed.
             7699          (3) The statement required to be filed under Subsection (1) shall be filed within 10
             7700      days after the date of any agreement between the public officer or public employee and the
             7701      person or business entity being assisted or the receipt of compensation, whichever is earlier.
             7702          (4) The statement is public information and shall be available for examination by the
             7703      public.
             7704          Section 230. Section 72-6-107 is amended to read:
             7705           72-6-107. Construction or improvement of highway -- Contracts -- Retainage --
             7706      Certain indemnification provisions forbidden.
             7707          (1) As used in this section, "design professional" means:
             7708          (a) an architect, licensed under Title 58, Chapter 3a, Architects Licensing Act;
             7709          (b) a landscape architect, licensed under Title 58, Chapter 53, Landscape Architects
             7710      Licensing Act; and
             7711          (c) a professional engineer or professional land surveyor, licensed under Title 58,
             7712      Chapter 22, Professional Engineers and Professional Land Surveyors Licensing Act.
             7713          (2) (a) The department shall make plans, specifications, and estimates prior to the
             7714      construction or improvement of any state highway.
             7715          (b) Except as provided in Section [ 63G-6-502 ] 63G-6a-1402 and except for


             7716      construction or improvements performed with state prison labor, a construction or
             7717      improvement project with an estimated cost exceeding the bid limit as defined in Section
             7718      72-6-109 for labor and materials shall be performed under contract awarded to the lowest
             7719      responsible bidder.
             7720          (c) (i) The department:
             7721          (A) shall publish an advertisement for bids in accordance with Section 45-1-101 , for a
             7722      period of two weeks ending no more than 10 days before bids are opened; and
             7723          (B) may publish an advertisement for bids in a newspaper of general circulation in the
             7724      county in which the work is to be performed.
             7725          (ii) If the department publishes an advertisement for bids in a newspaper under
             7726      Subsection (2)(c)(i)(B), the department shall publish the advertisement at least once a week for
             7727      two consecutive weeks, with the last publication at least 10 days before bids are opened.
             7728          (d) The department shall receive sealed bids and open the bids at the time and place
             7729      designated in the advertisement. The department may then award the contract but may reject
             7730      any and all bids.
             7731          (e) If the department's estimates are substantially lower than any responsible bid
             7732      received, the department may perform any work by force account.
             7733          (3) If any payment on a contract with a private contractor for construction or
             7734      improvement of a state highway is retained or withheld, the payment shall be retained or
             7735      withheld and released as provided in Section 13-8-5 .
             7736          (4) If the department performs a construction or improvement project by force account,
             7737      the department shall:
             7738          (a) provide an accounting of the costs and expenditures of the improvement including
             7739      material and labor;
             7740          (b) disclose the costs and expenditures to any person upon request and allow the person
             7741      to make a copy and pay for the actual cost of the copy; and
             7742          (c) perform the work using the same specifications and standards that would apply to a
             7743      private contractor.
             7744          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             7745      department shall establish procedures for:
             7746          (a) hearing evidence that a region within the department violated this section; and


             7747          (b) administering sanctions against the region if the region is found in violation.
             7748          (6) (a) Beginning May 12, 2009, a contract, including an amendment to an existing
             7749      contract, entered into under authority of this chapter may not require that a design professional
             7750      indemnify another from liability claims that arise out of the design professional's services,
             7751      unless the liability claim arises from the design professional's negligent act, wrongful act, error
             7752      or omission, or other liability imposed by law.
             7753          (b) Subsection (6)(a) may not be waived by contract.
             7754          (c) Notwithstanding Subsections (6)(a) and (b), a design professional may be required
             7755      to indemnify a person for whom the design professional has direct or indirect control or
             7756      responsibility.
             7757          Section 231. Section 72-6-107.5 is amended to read:
             7758           72-6-107.5. Construction of improvements of highway -- Contracts -- Health
             7759      insurance coverage.
             7760          (1) For purposes of this section:
             7761          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
             7762      34A-2-104 who:
             7763          (i) works at least 30 hours per calendar week; and
             7764          (ii) meets employer eligibility waiting requirements for health care insurance which
             7765      may not exceed the first day of the calendar month following 90 days from the date of hire.
             7766          (b) "Health benefit plan" has the same meaning as provided in Section 31A-1-301 .
             7767          (c) "Qualified health insurance coverage" is as defined in Section 26-40-115 .
             7768          (d) "Subcontractor" has the same meaning provided for in Section 63A-5-208 .
             7769          (2) (a) Except as provided in Subsection (3), this section applies to contracts entered
             7770      into by the department on or after July 1, 2009, for construction or design of highways and to a
             7771      prime contractor or to a subcontractor in accordance with Subsection (2)(b).
             7772          (b) (i) A prime contractor is subject to this section if the prime contract is in the
             7773      amount of $1,500,000 or greater.
             7774          (ii) A subcontractor is subject to this section if a subcontract is in the amount of
             7775      $750,000 or greater.
             7776          (3) This section does not apply if:
             7777          (a) the application of this section jeopardizes the receipt of federal funds;


             7778          (b) the contract is a sole source contract; or
             7779          (c) the contract is an emergency procurement.
             7780          (4) (a) This section does not apply to a change order as defined in Section [ 63G-6-103 ]
             7781      63G-6a-103 , or a modification to a contract, when the contract does not meet the initial
             7782      threshold required by Subsection (2).
             7783          (b) A person who intentionally uses change orders or contract modifications to
             7784      circumvent the requirements of Subsection (2) is guilty of an infraction.
             7785          (5) (a) A contractor subject to Subsection (2) shall demonstrate to the department that
             7786      the contractor has and will maintain an offer of qualified health insurance coverage for the
             7787      contractor's employees and the employees' dependents during the duration of the contract.
             7788          (b) If a subcontractor of the contractor is subject to Subsection (2), the contractor shall
             7789      demonstrate to the department that the subcontractor has and will maintain an offer of qualified
             7790      health insurance coverage for the subcontractor's employees and the employees' dependents
             7791      during the duration of the contract.
             7792          (c) (i) (A) A contractor who fails to meet the requirements of Subsection (5)(a) during
             7793      the duration of the contract is subject to penalties in accordance with administrative rules
             7794      adopted by the department under Subsection (6).
             7795          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
             7796      requirements of Subsection (5)(b).
             7797          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
             7798      the duration of the contract is subject to penalties in accordance with administrative rules
             7799      adopted by the department under Subsection (6).
             7800          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
             7801      requirements of Subsection (5)(a).
             7802          (6) The department shall adopt administrative rules:
             7803          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             7804          (b) in coordination with:
             7805          (i) the Department of Environmental Quality in accordance with Section 19-1-206 ;
             7806          (ii) the Department of Natural Resources in accordance with Section 79-2-404 ;
             7807          (iii) the State Building Board in accordance with Section 63A-5-205 ;
             7808          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403 ;


             7809          (v) a public transit district in accordance with Section 17B-2a-818.5 ; and
             7810          (vi) the Legislature's Administrative Rules Review Committee; and
             7811          (c) which establish:
             7812          (i) the requirements and procedures a contractor must follow to demonstrate to the
             7813      department compliance with this section which shall include:
             7814          (A) that a contractor will not have to demonstrate compliance with Subsection (5)(a) or
             7815      (b) more than twice in any 12-month period; and
             7816          (B) that the actuarially equivalent determination required for qualified health insurance
             7817      coverage in Subsection (1) is met by the contractor if the contractor provides the department or
             7818      division with a written statement of actuarial equivalency from either:
             7819          (I) the Utah Insurance Department;
             7820          (II) an actuary selected by the contractor or the contractor's insurer; or
             7821          (III) an underwriter who is responsible for developing the employer group's premium
             7822      rates;
             7823          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
             7824      violates the provisions of this section, which may include:
             7825          (A) a three-month suspension of the contractor or subcontractor from entering into
             7826      future contracts with the state upon the first violation;
             7827          (B) a six-month suspension of the contractor or subcontractor from entering into future
             7828      contracts with the state upon the second violation;
             7829          (C) an action for debarment of the contractor or subcontractor in accordance with
             7830      Section [ 63G-6-804 ] 63G-6a-904 upon the third or subsequent violation; and
             7831          (D) monetary penalties which may not exceed 50% of the amount necessary to
             7832      purchase qualified health insurance coverage for an employee and a dependent of the employee
             7833      of the contractor or subcontractor who was not offered qualified health insurance coverage
             7834      during the duration of the contract; and
             7835          (iii) a website on which the department shall post the benchmark for the qualified
             7836      health insurance coverage identified in Subsection (1)(c).
             7837          (7) (a) (i) In addition to the penalties imposed under Subsection (6), a contractor or
             7838      subcontractor who intentionally violates the provisions of this section shall be liable to the
             7839      employee for health care costs that would have been covered by qualified health insurance


             7840      coverage.
             7841          (ii) An employer has an affirmative defense to a cause of action under Subsection
             7842      (7)(a)(i) if:
             7843          (A) the employer relied in good faith on a written statement of actuarial equivalency
             7844      provided by:
             7845          (I) an actuary; or
             7846          (II) an underwriter who is responsible for developing the employer group's premium
             7847      rates; or
             7848          (B) the department determines that compliance with this section is not required under
             7849      the provisions of Subsection (3) or (4).
             7850          (b) An employee has a private right of action only against the employee's employer to
             7851      enforce the provisions of this Subsection (7).
             7852          (8) Any penalties imposed and collected under this section shall be deposited into the
             7853      Medicaid Restricted Account created in Section 26-18-402 .
             7854          (9) The failure of a contractor or subcontractor to provide qualified health insurance
             7855      coverage as required by this section:
             7856          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
             7857      or contractor under Section [ 63G-6-801 ] 63G-6a-1603 or any other provision in Title 63G,
             7858      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code; and
             7859          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
             7860      contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
             7861      or construction.
             7862          Section 232. Section 72-6-108 is amended to read:
             7863           72-6-108. Class B and C roads -- Improvement projects -- Contracts -- Retainage.
             7864          (1) A county executive for class B roads and the municipal executive for class C roads
             7865      shall cause plans, specifications, and estimates to be made prior to the construction of any
             7866      improvement project, as defined in Section 72-6-109 , on a class B or C road if the estimated
             7867      cost for any one project exceeds the bid limit as defined in Section 72-6-109 for labor,
             7868      equipment, and materials.
             7869          (2) (a) All projects in excess of the bid limit shall be performed under contract to be let
             7870      to the lowest responsible bidder.


             7871          (b) If the estimated cost of the improvement project exceeds the bid limit for labor,
             7872      equipment, and materials, the project may not be divided to permit the construction in parts,
             7873      unless each part is done by contract.
             7874          (3) (a) The advertisement on bids shall be published:
             7875          (i) in a newspaper of general circulation in the county in which the work is to be
             7876      performed at least once a week for three consecutive weeks; and
             7877          (ii) in accordance with Section 45-1-101 for three weeks.
             7878          (b) If there is no newspaper of general circulation as described in Subsection (3)(a)(i),
             7879      the notice shall be posted for at least 20 days in at least five public places in the county.
             7880          (4) The county or municipal executive or their designee shall receive sealed bids and
             7881      open the bids at the time and place designated in the advertisement. The county or municipal
             7882      executive or their designee may then award the contract but may reject any and all bids.
             7883          (5) The person, firm, or corporation that is awarded a contract under this section is
             7884      subject to the provisions of Title 63G, Chapter [6] 6a, Utah Procurement Code.
             7885          (6) If any payment on a contract with a private contractor for construction or
             7886      improvement of a class B or C road is retained or withheld, the payment shall be retained or
             7887      withheld and released as provided in Section 13-8-5 .
             7888          Section 233. Section 72-6-205 is amended to read:
             7889           72-6-205. Solicited and unsolicited tollway development agreement proposals.
             7890          (1) In accordance with this section, the department may:
             7891          (a) accept unsolicited tollway development agreement proposals; or
             7892          (b) solicit tollway development agreement proposals for a proposed project.
             7893          (2) The department shall solicit tollway development agreement proposals in
             7894      accordance with Section [ 63G-6-503 ] 63G-6a-1403 .
             7895          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             7896      department and the commission shall establish rules and procedures for accepting unsolicited
             7897      proposals that require the:
             7898          (a) private entity that submits the unsolicited proposal to comply with the minimum
             7899      requirements for tollway development agreement proposals under Section 72-6-204 ;
             7900          (b) department to issue a request for competing proposals and qualifications that
             7901      includes:


             7902          (i) a description of the proposed tollway development facility and the terms and
             7903      conditions of a tollway development agreement;
             7904          (ii) submittal requirements;
             7905          (iii) the criteria to be used to evaluate the proposals;
             7906          (iv) the relative weight given to the criteria; and
             7907          (v) the deadline by which competing proposals must be received; and
             7908          (c) department to publish a notice advertising the request for competing proposals and
             7909      providing information regarding how to obtain a copy of the request.
             7910          (4) (a) The department may establish a fee in accordance with Section 63J-1-504 for
             7911      reviewing unsolicited proposals and competing proposals submitted under this section.
             7912          (b) The department may waive the fee under Subsection (4)(a) if it determines that it is
             7913      reasonable and in the best interest of the state.
             7914          Section 234. Section 72-7-504 is amended to read:
             7915           72-7-504. Advertising prohibited near interstate or primary system -- Exceptions
             7916      -- Logo advertising -- Department rules.
             7917          (1) Outdoor advertising that is capable of being read or comprehended from any place
             7918      on the main-traveled way of an interstate or primary system may not be erected or maintained,
             7919      except:
             7920          (a) directional and other official signs and notices authorized or required by law,
             7921      including signs and notices pertaining to natural wonders and scenic and historic attractions,
             7922      informational or directional signs regarding utility service, emergency telephone signs, buried
             7923      or underground utility markers, and above ground utility closure signs;
             7924          (b) signs advertising the sale or lease of property upon which they are located;
             7925          (c) signs advertising activities conducted on the property where they are located,
             7926      including signs on the premises of a public assembly facility as provided in Section 72-7-504.5 ;
             7927          (d) signs located in a commercial or industrial zone;
             7928          (e) signs located in unzoned industrial or commercial areas as determined from actual
             7929      land uses; and
             7930          (f) logo advertising under Subsection (2).
             7931          (2) (a) The department may itself or by contract erect, administer, and maintain
             7932      informational signs on the main-traveled way of an interstate or primary system for the display


             7933      of logo advertising and information of interest to the traveling public if:
             7934          (i) the department complies with Title 63G, Chapter [6] 6a, Utah Procurement Code, in
             7935      the lease or other contract agreement with a private party for the sign or sign space; and
             7936          (ii) the private party for the lease of the sign or sign space pays an amount set by the
             7937      department to be paid to the department or the party under contract with the department under
             7938      this Subsection (2).
             7939          (b) The amount shall be sufficient to cover the costs of erecting, administering, and
             7940      maintaining the signs or sign spaces.
             7941          (c) The department may consult the Governor's Office of Economic Development in
             7942      carrying out this Subsection (2).
             7943          (3) (a) Revenue generated under Subsection (2) shall be:
             7944          (i) applied first to cover department costs under Subsection (2); and
             7945          (ii) deposited in the Transportation Fund.
             7946          (b) Revenue in excess of costs under Subsection (2)(a) shall be deposited in the
             7947      General Fund as a dedicated credit for use by the Governor's Office of Economic Development
             7948      no later than the following fiscal year.
             7949          (4) Outdoor advertising under Subsections (1)(a), (d), (e), and (f) shall conform to the
             7950      rules made by the department under Sections 72-7-506 and 72-7-507 .
             7951          Section 235. Section 73-10-27 is amended to read:
             7952           73-10-27. Definitions -- Project priorities -- Considerations -- Determinations of
             7953      feasibility -- Bids and contracts -- Definitions -- Retainage.
             7954          (1) As used in this section:
             7955          (a) "Board" means the Board of Water Resources created in Section 73-10-1.5 .
             7956          (b) "Estimated cost" means the cost of the labor, material, and equipment necessary for
             7957      construction of the contemplated project.
             7958          (c) "Lowest responsible bidder" means a licensed contractor:
             7959          (i) who:
             7960          (A) submits the lowest bid; and
             7961          (B) furnishes a payment bond and a performance bond under Sections 14-1-18 and
             7962      [ 63G-6-505 ] 63G-6a-1103 ; and
             7963          (ii) whose bid:


             7964          (A) is in compliance with the invitation for a bid; and
             7965          (B) meets the plans and specifications.
             7966          (2) In considering the priority for a project to be built or financed with funds made
             7967      available under Section 73-10-24 , the board shall give preference to a project that:
             7968          (a) is sponsored by, or for the benefit of, the state or a political subdivision of the state;
             7969          (b) meets a critical local need;
             7970          (c) has greater economic feasibility;
             7971          (d) will yield revenue to the state within a reasonable time or will return a reasonable
             7972      rate of interest, based on financial feasibility; and
             7973          (e) meets other considerations deemed necessary by the board, including wildlife
             7974      management and recreational needs.
             7975          (3) (a) In determining the economic feasibility, the board shall establish a
             7976      benefit-to-cost ratio for each project, using a uniform standard of procedure for all projects.
             7977          (b) In considering whether a project should be built, the benefit-to-cost ratio for each
             7978      project shall be weighted based on the relative cost of the project.
             7979          (c) A project, when considered in total with all other projects constructed under this
             7980      chapter and still the subject of a repayment contract, may not cause the accumulative
             7981      benefit-to-cost ratio of the projects to be less than one to one.
             7982          (4) A project may not be built if the project is not:
             7983          (a) in the public interest, as determined by the board; or
             7984          (b) adequately designed based on sound engineering and geologic considerations.
             7985          (5) In preparing a project constructed by the board, the board shall:
             7986          (a) based on a competitive bid, award a contract for:
             7987          (i) a flood control project:
             7988          (A) involving a city or county; and
             7989          (B) costing in excess of $35,000;
             7990          (ii) the construction of a storage reservoir in excess of 100 acre-feet; or
             7991          (iii) the construction of a hydroelectric generating facility;
             7992          (b) publish an advertisement for a competitive bid:
             7993          (i) at least once a week for three consecutive weeks in a newspaper with general
             7994      circulation in the state, with the last date of publication appearing at least five days before the


             7995      schedule bid opening; and
             7996          (ii) indicating that the board:
             7997          (A) will award the contract to the lowest responsible bidder; and
             7998          (B) reserves the right to reject any and all bids;
             7999          (c) readvertise the project in the manner specified in Subsection (5)(b) if the board
             8000      rejects all of the initial bids on the project; and
             8001          (d) keep an accurate record of all facts and representations relied upon in preparing the
             8002      board's estimated cost for a project that is subject to the competitive bidding requirements of
             8003      this section.
             8004          (6) If no satisfactory bid is received by the board upon the readvertisement of the
             8005      project in accordance with Subsection (5), the board may proceed to construct the project in
             8006      accordance with the plan and specifications used to calculate the estimated cost of the project.
             8007          (7) If a payment on a contract with a private contractor for construction of a project
             8008      under this section is retained or withheld, it shall be retained or withheld and released as
             8009      provided in Section 13-8-5 .
             8010          Section 236. Section 73-23-3 is amended to read:
             8011           73-23-3. Duties and powers of Division of Water Resources.
             8012          For purposes of this chapter, the Division of Water Resources:
             8013          (1) shall provide for the construction, operation, and maintenance of the West Desert
             8014      Pumping Project;
             8015          (2) may enter into agreements as necessary to provide for all or any portion of the West
             8016      Desert Pumping Project, including any indemnification agreements required by the federal
             8017      government;
             8018          (3) may acquire land or any other property right by any lawful means, including
             8019      eminent domain;
             8020          (4) is exempt from Title 63G, Chapter [6, the] 6a, Utah Procurement Code; and
             8021          (5) may proceed without obtaining water right approval from the state engineer.
             8022          Section 237. Section 76-10-1602 is amended to read:
             8023           76-10-1602. Definitions.
             8024          As used in this part:
             8025          (1) "Enterprise" means any individual, sole proprietorship, partnership, corporation,


             8026      business trust, association, or other legal entity, and any union or group of individuals
             8027      associated in fact although not a legal entity, and includes illicit as well as licit entities.
             8028          (2) "Pattern of unlawful activity" means engaging in conduct which constitutes the
             8029      commission of at least three episodes of unlawful activity, which episodes are not isolated, but
             8030      have the same or similar purposes, results, participants, victims, or methods of commission, or
             8031      otherwise are interrelated by distinguishing characteristics. Taken together, the episodes shall
             8032      demonstrate continuing unlawful conduct and be related either to each other or to the
             8033      enterprise. At least one of the episodes comprising a pattern of unlawful activity shall have
             8034      occurred after July 31, 1981. The most recent act constituting part of a pattern of unlawful
             8035      activity as defined by this part shall have occurred within five years of the commission of the
             8036      next preceding act alleged as part of the pattern.
             8037          (3) "Person" includes any individual or entity capable of holding a legal or beneficial
             8038      interest in property, including state, county, and local governmental entities.
             8039          (4) "Unlawful activity" means to directly engage in conduct or to solicit, request,
             8040      command, encourage, or intentionally aid another person to engage in conduct which would
             8041      constitute any offense described by the following crimes or categories of crimes, or to attempt
             8042      or conspire to engage in an act which would constitute any of those offenses, regardless of
             8043      whether the act is in fact charged or indicted by any authority or is classified as a misdemeanor
             8044      or a felony:
             8045          (a) any act prohibited by the criminal provisions of Title 13, Chapter 10, Unauthorized
             8046      Recording Practices Act;
             8047          (b) any act prohibited by the criminal provisions of Title 19, Environmental Quality
             8048      Code, Sections 19-1-101 through 19-7-109 ;
             8049          (c) taking, destroying, or possessing wildlife or parts of wildlife for the primary
             8050      purpose of sale, trade, or other pecuniary gain, in violation of Title 23, Wildlife Resources
             8051      Code of Utah, or Section 23-20-4 ;
             8052          (d) false claims for medical benefits, kickbacks, and any other act prohibited by Title
             8053      26, Chapter 20, Utah False Claims Act, Sections 26-20-1 through 26-20-12 ;
             8054          (e) any act prohibited by the criminal provisions of Title 32B, Chapter 4, Criminal
             8055      Offenses and Procedure Act;
             8056          (f) any act prohibited by the criminal provisions of Title 57, Chapter 11, Utah Uniform


             8057      Land Sales Practices Act;
             8058          (g) any act prohibited by the criminal provisions of Title 58, Chapter 37, Utah
             8059      Controlled Substances Act, or Title 58, Chapter 37b, Imitation Controlled Substances Act,
             8060      Title 58, Chapter 37c, Utah Controlled Substance Precursor Act, or Title 58, Chapter 37d,
             8061      Clandestine Drug Lab Act;
             8062          (h) any act prohibited by the criminal provisions of Title 61, Chapter 1, Utah Uniform
             8063      Securities Act;
             8064          (i) any act prohibited by the criminal provisions of Title 63G, Chapter [6] 6a, Utah
             8065      Procurement Code;
             8066          (j) assault or aggravated assault, Sections 76-5-102 and 76-5-103 ;
             8067          (k) a threat of terrorism, Section 76-5-107.3 ;
             8068          (l) criminal homicide, Sections 76-5-201 , 76-5-202 , and 76-5-203 ;
             8069          (m) kidnapping or aggravated kidnapping, Sections 76-5-301 and 76-5-302 ;
             8070          (n) sexual exploitation of a minor, Section 76-5b-201 ;
             8071          (o) arson or aggravated arson, Sections 76-6-102 and 76-6-103 ;
             8072          (p) causing a catastrophe, Section 76-6-105 ;
             8073          (q) burglary or aggravated burglary, Sections 76-6-202 and 76-6-203 ;
             8074          (r) burglary of a vehicle, Section 76-6-204 ;
             8075          (s) manufacture or possession of an instrument for burglary or theft, Section 76-6-205 ;
             8076          (t) robbery or aggravated robbery, Sections 76-6-301 and 76-6-302 ;
             8077          (u) theft, Section 76-6-404 ;
             8078          (v) theft by deception, Section 76-6-405 ;
             8079          (w) theft by extortion, Section 76-6-406 ;
             8080          (x) receiving stolen property, Section 76-6-408 ;
             8081          (y) theft of services, Section 76-6-409 ;
             8082          (z) forgery, Section 76-6-501 ;
             8083          (aa) fraudulent use of a credit card, Sections 76-6-506.2 , 76-6-506.3 , 76-6-506.5 , and
             8084      76-6-506.6 ;
             8085          (bb) deceptive business practices, Section 76-6-507 ;
             8086          (cc) bribery or receiving bribe by person in the business of selection, appraisal, or
             8087      criticism of goods, Section 76-6-508 ;


             8088          (dd) bribery of a labor official, Section 76-6-509 ;
             8089          (ee) defrauding creditors, Section 76-6-511 ;
             8090          (ff) acceptance of deposit by insolvent financial institution, Section 76-6-512 ;
             8091          (gg) unlawful dealing with property by fiduciary, Section 76-6-513 ;
             8092          (hh) bribery or threat to influence contest, Section 76-6-514 ;
             8093          (ii) making a false credit report, Section 76-6-517 ;
             8094          (jj) criminal simulation, Section 76-6-518 ;
             8095          (kk) criminal usury, Section 76-6-520 ;
             8096          (ll) fraudulent insurance act, Section 76-6-521 ;
             8097          (mm) retail theft, Section 76-6-602 ;
             8098          (nn) computer crimes, Section 76-6-703 ;
             8099          (oo) identity fraud, Section 76-6-1102 ;
             8100          (pp) mortgage fraud, Section 76-6-1203 ;
             8101          (qq) sale of a child, Section 76-7-203 ;
             8102          (rr) bribery to influence official or political actions, Section 76-8-103 ;
             8103          (ss) threats to influence official or political action, Section 76-8-104 ;
             8104          (tt) receiving bribe or bribery by public servant, Section 76-8-105 ;
             8105          (uu) receiving bribe or bribery for endorsement of person as public servant, Section
             8106      76-8-106 ;
             8107          (vv) official misconduct, Sections 76-8-201 and 76-8-202 ;
             8108          (ww) obstruction of justice, Section 76-8-306 ;
             8109          (xx) acceptance of bribe or bribery to prevent criminal prosecution, Section 76-8-308 ;
             8110          (yy) false or inconsistent material statements, Section 76-8-502 ;
             8111          (zz) false or inconsistent statements, Section 76-8-503 ;
             8112          (aaa) written false statements, Section 76-8-504 ;
             8113          (bbb) tampering with a witness or soliciting or receiving a bribe, Section 76-8-508 ;
             8114          (ccc) retaliation against a witness, victim, or informant, Section 76-8-508.3 ;
             8115          (ddd) extortion or bribery to dismiss criminal proceeding, Section 76-8-509 ;
             8116          (eee) public assistance fraud in violation of Section 76-8-1203 , 76-8-1204 , or
             8117      76-8-1205 ;
             8118          (fff) unemployment insurance fraud, Section 76-8-1301 ;


             8119          (ggg) intentionally or knowingly causing one animal to fight with another, Subsection
             8120      76-9-301 (2)(d) or (e), or Section 76-9-301.1 ;
             8121          (hhh) possession, use, or removal of explosives, chemical, or incendiary devices or
             8122      parts, Section 76-10-306 ;
             8123          (iii) delivery to common carrier, mailing, or placement on premises of an incendiary
             8124      device, Section 76-10-307 ;
             8125          (jjj) possession of a deadly weapon with intent to assault, Section 76-10-507 ;
             8126          (kkk) unlawful marking of pistol or revolver, Section 76-10-521 ;
             8127          (lll) alteration of number or mark on pistol or revolver, Section 76-10-522 ;
             8128          (mmm) forging or counterfeiting trademarks, trade name, or trade device, Section
             8129      76-10-1002 ;
             8130          (nnn) selling goods under counterfeited trademark, trade name, or trade devices,
             8131      Section 76-10-1003 ;
             8132          (ooo) sales in containers bearing registered trademark of substituted articles, Section
             8133      76-10-1004 ;
             8134          (ppp) selling or dealing with article bearing registered trademark or service mark with
             8135      intent to defraud, Section 76-10-1006 ;
             8136          (qqq) gambling, Section 76-10-1102 ;
             8137          (rrr) gambling fraud, Section 76-10-1103 ;
             8138          (sss) gambling promotion, Section 76-10-1104 ;
             8139          (ttt) possessing a gambling device or record, Section 76-10-1105 ;
             8140          (uuu) confidence game, Section 76-10-1109 ;
             8141          (vvv) distributing pornographic material, Section 76-10-1204 ;
             8142          (www) inducing acceptance of pornographic material, Section 76-10-1205 ;
             8143          (xxx) dealing in harmful material to a minor, Section 76-10-1206 ;
             8144          (yyy) distribution of pornographic films, Section 76-10-1222 ;
             8145          (zzz) indecent public displays, Section 76-10-1228 ;
             8146          (aaaa) prostitution, Section 76-10-1302 ;
             8147          (bbbb) aiding prostitution, Section 76-10-1304 ;
             8148          (cccc) exploiting prostitution, Section 76-10-1305 ;
             8149          (dddd) aggravated exploitation of prostitution, Section 76-10-1306 ;


             8150          (eeee) communications fraud, Section 76-10-1801 ;
             8151          (ffff) any act prohibited by the criminal provisions of [Chapter 10,] Part 19, Money
             8152      Laundering and Currency Transaction Reporting Act;
             8153          (gggg) vehicle compartment for contraband, Section 76-10-2801 ;
             8154          (hhhh) any act prohibited by the criminal provisions of the laws governing taxation in
             8155      this state; and
             8156          (iiii) any act illegal under the laws of the United States and enumerated in 18 U.S.C.
             8157      Sec. 1961 (1)(B), (C), and (D).
             8158          Section 238. Section 78A-2-112 is amended to read:
             8159           78A-2-112. Grants to nonprofit legal assistance organization.
             8160          Subject to legislative appropriation, the state court administrator shall, in accordance
             8161      with Title 63G, Chapter [6] 6a, Utah Procurement Code, solicit requests for proposals and
             8162      award grants to nonprofit legal assistance providers to provide legal assistance throughout the
             8163      state to:
             8164          (1) low to moderate income victims of domestic violence; and
             8165          (2) low to moderate income individuals in family law matters.
             8166          Section 239. Section 79-2-404 is amended to read:
             8167           79-2-404. Contracting powers of department -- Health insurance coverage.
             8168          (1) For purposes of this section:
             8169          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
             8170      34A-2-104 who:
             8171          (i) works at least 30 hours per calendar week; and
             8172          (ii) meets employer eligibility waiting requirements for health care insurance which
             8173      may not exceed the first day of the calendar month following 90 days from the date of hire.
             8174          (b) "Health benefit plan" has the same meaning as provided in Section 31A-1-301 .
             8175          (c) "Qualified health insurance coverage" is as defined in Section 26-40-115 .
             8176          (d) "Subcontractor" has the same meaning provided for in Section 63A-5-208 .
             8177          (2) (a) Except as provided in Subsection (3), this section applies a design or
             8178      construction contract entered into by, or delegated to, the department or a division, board, or
             8179      council of the department on or after July 1, 2009, and to a prime contractor or to a
             8180      subcontractor in accordance with Subsection (2)(b).


             8181          (b) (i) A prime contractor is subject to this section if the prime contract is in the
             8182      amount of $1,500,000 or greater.
             8183          (ii) A subcontractor is subject to this section if a subcontract is in the amount of
             8184      $750,000 or greater.
             8185          (3) This section does not apply to contracts entered into by the department or a
             8186      division, board, or council of the department if:
             8187          (a) the application of this section jeopardizes the receipt of federal funds;
             8188          (b) the contract or agreement is between:
             8189          (i) the department or a division, board, or council of the department; and
             8190          (ii) (A) another agency of the state;
             8191          (B) the federal government;
             8192          (C) another state;
             8193          (D) an interstate agency;
             8194          (E) a political subdivision of this state; or
             8195          (F) a political subdivision of another state; or
             8196          (c) the contract or agreement is:
             8197          (i) for the purpose of disbursing grants or loans authorized by statute;
             8198          (ii) a sole source contract; or
             8199          (iii) an emergency procurement.
             8200          (4) (a) This section does not apply to a change order as defined in Section [ 63G-6-103 ]
             8201      63G-6a-103 , or a modification to a contract, when the contract does not meet the initial
             8202      threshold required by Subsection (2).
             8203          (b) A person who intentionally uses change orders or contract modifications to
             8204      circumvent the requirements of Subsection (2) is guilty of an infraction.
             8205          (5) (a) A contractor subject to Subsection (2)(b)(i) shall demonstrate to the department
             8206      that the contractor has and will maintain an offer of qualified health insurance coverage for the
             8207      contractor's employees and the employees' dependents during the duration of the contract.
             8208          (b) If a subcontractor of the contractor is subject to Subsection (2)(b)(ii), the contractor
             8209      shall demonstrate to the department that the subcontractor has and will maintain an offer of
             8210      qualified health insurance coverage for the subcontractor's employees and the employees'
             8211      dependents during the duration of the contract.


             8212          (c) (i) (A) A contractor who fails to meet the requirements of Subsection (5)(a) during
             8213      the duration of the contract is subject to penalties in accordance with administrative rules
             8214      adopted by the department under Subsection (6).
             8215          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
             8216      requirements of Subsection (5)(b).
             8217          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
             8218      the duration of the contract is subject to penalties in accordance with administrative rules
             8219      adopted by the department under Subsection (6).
             8220          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
             8221      requirements of Subsection (5)(a).
             8222          (6) The department shall adopt administrative rules:
             8223          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             8224          (b) in coordination with:
             8225          (i) the Department of Environmental Quality in accordance with Section 19-1-206 ;
             8226          (ii) a public transit district in accordance with Section 17B-2a-818.5 ;
             8227          (iii) the State Building Board in accordance with Section 63A-5-205 ;
             8228          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403 ;
             8229          (v) the Department of Transportation in accordance with Section 72-6-107.5 ; and
             8230          (vi) the Legislature's Administrative Rules Review Committee; and
             8231          (c) which establish:
             8232          (i) the requirements and procedures a contractor must follow to demonstrate
             8233      compliance with this section to the department which shall include:
             8234          (A) that a contractor will not have to demonstrate compliance with Subsection (5)(a) or
             8235      (b) more than twice in any 12-month period; and
             8236          (B) that the actuarially equivalent determination required for qualified health insurance
             8237      coverage in Subsection (1) is met by the contractor if the contractor provides the department or
             8238      division with a written statement of actuarial equivalency from either:
             8239          (I) the Utah Insurance Department;
             8240          (II) an actuary selected by the contractor or the contractor's insurer; or
             8241          (III) an underwriter who is responsible for developing the employer group's premium
             8242      rates;


             8243          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
             8244      violates the provisions of this section, which may include:
             8245          (A) a three-month suspension of the contractor or subcontractor from entering into
             8246      future contracts with the state upon the first violation;
             8247          (B) a six-month suspension of the contractor or subcontractor from entering into future
             8248      contracts with the state upon the second violation;
             8249          (C) an action for debarment of the contractor or subcontractor in accordance with
             8250      Section [ 63G-6-804 ] 63G-6a-904 upon the third or subsequent violation; and
             8251          (D) monetary penalties which may not exceed 50% of the amount necessary to
             8252      purchase qualified health insurance coverage for an employee and a dependent of an employee
             8253      of the contractor or subcontractor who was not offered qualified health insurance coverage
             8254      during the duration of the contract; and
             8255          (iii) a website on which the department shall post the benchmark for the qualified
             8256      health insurance coverage identified in Subsection (1)(c).
             8257          (7) (a) (i) In addition to the penalties imposed under Subsection (6), a contractor or
             8258      subcontractor who intentionally violates the provisions of this section shall be liable to the
             8259      employee for health care costs that would have been covered by qualified health insurance
             8260      coverage.
             8261          (ii) An employer has an affirmative defense to a cause of action under Subsection
             8262      (7)(a)(i) if:
             8263          (A) the employer relied in good faith on a written statement of actuarial equivalency
             8264      provided by:
             8265          (I) an actuary; or
             8266          (II) an underwriter who is responsible for developing the employer group's premium
             8267      rates; or
             8268          (B) the department determines that compliance with this section is not required under
             8269      the provisions of Subsection (3) or (4).
             8270          (b) An employee has a private right of action only against the employee's employer to
             8271      enforce the provisions of this Subsection (7).
             8272          (8) Any penalties imposed and collected under this section shall be deposited into the
             8273      Medicaid Restricted Account created in Section 26-18-402 .


             8274          (9) The failure of a contractor or subcontractor to provide qualified health insurance
             8275      coverage as required by this section:
             8276          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
             8277      or contractor under Section [ 63G-6-801 ] 63G-6a-1603 or any other provision in Title 63G,
             8278      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code; and
             8279          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
             8280      contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
             8281      or construction.
             8282          Section 240. Section 79-4-203 is amended to read:
             8283           79-4-203. Powers and duties of division.
             8284          (1) As used in this section, "real property" includes land under water, upland, and all
             8285      other property commonly or legally defined as real property.
             8286          (2) The Division of Wildlife Resources shall retain the power and jurisdiction
             8287      conferred upon it by law within state parks and on property controlled by the Division of Parks
             8288      and Recreation with reference to fish and game.
             8289          (3) The division shall permit multiple use of state parks and property controlled by it
             8290      for purposes such as grazing, fishing, hunting, mining, and the development and utilization of
             8291      water and other natural resources.
             8292          (4) (a) The division may acquire real and personal property in the name of the state by
             8293      all legal and proper means, including purchase, gift, devise, eminent domain, lease, exchange,
             8294      or otherwise, subject to the approval of the executive director and the governor.
             8295          (b) In acquiring any real or personal property, the credit of the state may not be pledged
             8296      without the consent of the Legislature.
             8297          (5) (a) Before acquiring any real property, the division shall notify the county
             8298      legislative body of the county where the property is situated of its intention to acquire the
             8299      property.
             8300          (b) If the county legislative body requests a hearing within 10 days of receipt of the
             8301      notice, the division shall hold a public hearing in the county concerning the matter.
             8302          (6) Acceptance of gifts or devises of land or other property is at the discretion of the
             8303      division, subject to the approval of the executive director and the governor.
             8304          (7) The division shall acquire property by eminent domain in the manner authorized by


             8305      Title 78B, Chapter 6, Part 5, Eminent Domain.
             8306          (8) (a) The division may make charges for special services and use of facilities, the
             8307      income from which is available for park and recreation purposes.
             8308          (b) The division may conduct and operate those services necessary for the comfort and
             8309      convenience of the public.
             8310          (9) (a) The division may lease or rent concessions of all lawful kinds and nature in state
             8311      parks and property to persons, partnerships, and corporations for a valuable consideration upon
             8312      the recommendation of the board.
             8313          (b) The division shall comply with Title 63G, Chapter [6] 6a, Utah Procurement Code,
             8314      in selecting concessionaires.
             8315          (10) The division shall proceed without delay to negotiate with the federal government
             8316      concerning the Weber Basin and other recreation and reclamation projects.
             8317          (11) The division shall receive and distribute voluntary contributions collected under
             8318      Section 41-1a-422 in accordance with Section 79-4-404 .
             8319          Section 241. Repealer.
             8320          This bill repeals:
             8321          Section 10-7-87, Procurement -- Use of recycled goods.
             8322          Section 11-37-101, Definition -- Procurement -- Use of recycled goods.
             8323          Section 17-15-24, Procurement -- Use of recycled goods.
             8324          Section 17B-1-109, Procurement -- Use of recycled goods.
             8325          Section 26A-1-108.7, Procurement -- Use of recycled goods.
             8326          Section 63G-6-206, Transfer of power to policy board.
             8327          Section 63G-6-301, Rules for specifications.
             8328          Section 63G-6-401, Contracts awarded by sealed bidding -- Procedure.
             8329          Section 63G-6-402, Contracts awarded by reverse auction.
             8330          Section 63G-6-403, Procurement -- Use of recycled goods.
             8331          Section 63G-6-406, Preference for recycled paper and paper products.
             8332          Section 63G-6-407, Use of alkaline paper.
             8333          Section 63G-6-408, Use of competitive sealed proposals in lieu of bids -- Procedure.
             8334          Section 63G-6-409, Small purchases.
             8335          Section 63G-6-411, Emergency procurements.


             8336          Section 63G-6-414, Prequalification of suppliers.
             8337          Section 63G-6-417, Period of time for contract of supplies.
             8338          Section 63G-6-418, Right of state to inspect place of business of contractor or
             8339      subcontractor.
             8340          Section 63G-6-422, Exemptions from source selection and contract requirements --
             8341      Violation penalty.
             8342          Section 63G-6-426, Tie bids -- Preference for providers of state products --
             8343      Resolution of tie bids -- Record of tie bids.
             8344          Section 63G-6-903, Payments between public procurement units.
             8345          Section 63G-6-906, Resolving controversy arising under a cooperative purchasing
             8346      agreement.
             8347          Section 63G-6-1001, Felony to accept emolument.
             8348          Section 63G-6-1002, Felony to offer emolument.
             8349          Section 242. Effective date.
             8350          This bill takes effect on January 1, 2013.




Legislative Review Note
    as of 1-26-12 8:59 AM


Office of Legislative Research and General Counsel


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