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Fourth Substitute H.B. 94

This document includes House Floor Amendments incorporated into the bill on Mon, Mar 11, 2013 at 10:48 AM by lerror. -->

Representative Keven J. Stratton proposes the following substitute bill:


             1     
FREE MARKET PROTECTION AND PRIVATIZATION

             2     
BOARD ACT AMENDMENTS

             3     
2013 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Keven J. Stratton

             6     
Senate Sponsor: Curtis S. Bramble

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill recodifies and amends the Privatization Policy Board Act, changes the
             11      membership on the board, and renames the board.
             12      Highlighted Provisions:
             13          This bill:
             14          .    recodifies the Privatization Policy Board Act;
             15          .    changes the name of the board to the Free Market Protection and Privatization
             16      Board;
             17          .    changes the membership and terms of members of the board;
             18          .    provides that the Governor's Office of Planning and Budget shall staff the board and
             19      permits the board to contract with a private entity for additional staff;
             20          .    revises the duties and powers of the board; and
             21          .    makes technical changes.
             22      Money Appropriated in this Bill:
             23          None
             24      Other Special Clauses:
             25          None


             26      Utah Code Sections Affected:
             27      AMENDS:
             28          10-1-119, as enacted by Laws of Utah 2008, Chapter 23
             29          17-50-107, as enacted by Laws of Utah 2008, Chapter 23
             30          26-18-3.3, as enacted by Laws of Utah 2011, Chapter 162
             31      ENACTS:
             32          63I-4a-201, Utah Code Annotated 1953
             33          63I-4a-204, Utah Code Annotated 1953
             34          63I-4a-301, Utah Code Annotated 1953
             35          63I-4a-401, Utah Code Annotated 1953
             36      RENUMBERS AND AMENDS:
             37          63I-4a-101, (Renumbered from 63I-4-101, as enacted by Laws of Utah 2008, Chapter
             38      147)
             39          63I-4a-102, (Renumbered from 63I-4-102, as last amended by Laws of Utah 2012,
             40      Chapter 212)
             41          63I-4a-202, (Renumbered from 63I-4-201, as last amended by Laws of Utah 2010,
             42      Chapter 286)
             43          63I-4a-203, (Renumbered from 63I-4-202, as renumbered and amended by Laws of
             44      Utah 2008, Chapter 147)
             45          63I-4a-205, (Renumbered from 63I-4-203, as enacted by Laws of Utah 2008, Chapter
             46      147)
             47          63I-4a-302, (Renumbered from 63I-4-301, as enacted by Laws of Utah 2008, Chapter
             48      147)
             49          63I-4a-303, (Renumbered from 63I-4-302, as enacted by Laws of Utah 2008, Chapter
             50      147)
             51          63I-4a-304, (Renumbered from 63I-4-303, as enacted by Laws of Utah 2008, Chapter
             52      147)
             53          63I-4a-402, (Renumbered from 63I-4-304, as enacted by Laws of Utah 2008, Chapter
             54      147)
             55      Uncodified Material Affected:
             56      ENACTS UNCODIFIED MATERIAL


             57     
             58      Be it enacted by the Legislature of the state of Utah:
             59          Section 1. Section 10-1-119 is amended to read:
             60           10-1-119. Inventory of competitive activities.
             61          (1) As used in this section:
             62          (a) "Applicable city" means:
             63          (i) on and after July 1, 2009, a city of the first class; and
             64          (ii) on and after July 1, 2010, a city of the first or second class.
             65          (b) "Competitive activity" means an activity engaged in by a city or an entity created by
             66      the city by which the city or an entity created by the city provides a good or service that is
             67      substantially similar to a good or service that is provided by a person:
             68          (i) who is not an entity of the federal government, state government, or a political
             69      subdivision of the state; and
             70          (ii) within the boundary of the county in which the city is located.
             71          (c) (i) Subject to Subsection (1)(c)(ii), "entity created by the city" includes:
             72          (A) an entity created by an interlocal agreement under Title 11, Chapter 13, Interlocal
             73      Cooperation Act, in which the city participates; and
             74          (B) a special service district created under Title 17D, Chapter 1, Special Service
             75      District Act.
             76          (ii) "Entity created by the city" does not include a local district created by a city under
             77      Title 17B, Limited Purpose Local Government Entities - Local Districts.
             78          (2) (a) The governing body of an applicable city shall create an inventory of activities
             79      of the city or an entity created by the city to:
             80          (i) classify whether an activity is a competitive activity; and
             81          (ii) identify efforts that have been made to privatize aspects of the activity.
             82          (b) An applicable city shall comply with this section by no later than:
             83          (i) June 30, 2010, if the applicable city is a city of the first class; and
             84          (ii) June 30, 2011, if the applicable city is a city of the second class.
             85          (3) The governing body of an applicable city shall update the inventory created under
             86      this section at least every two years.
             87          (4) An applicable city shall:


             88          (a) provide a copy of the inventory and an update to the inventory to the Free Market
             89      Protection and Privatization [Policy] Board created in Title 63I, Chapter [4,] 4a, Free Market
             90      Protection and Privatization [Policy] Board Act; and
             91          (b) make the inventory available to the public through electronic means.
             92          Section 2. Section 17-50-107 is amended to read:
             93           17-50-107. Inventory of competitive activities.
             94          (1) As used in this section:
             95          (a) "Applicable county" means:
             96          (i) on and after July 1, 2009, a county of the first class; and
             97          (ii) on and after July 1, 2010, a county of the first or second class.
             98          (b) "Competitive activity" means an activity engaged in by a county or an entity created
             99      by the county by which the county or an entity created by the county provides a good or service
             100      that is substantially similar to a good or service that is provided by a person:
             101          (i) who is not an entity of the federal government, state government, or a political
             102      subdivision of the state; and
             103          (ii) within the boundary of the county.
             104          (c) (i) Subject to Subsection (1)(c)(ii), "entity created by the county" includes:
             105          (A) an entity created by an interlocal agreement under Title 11, Chapter 13, Interlocal
             106      Cooperation Act, in which the county participates; and
             107          (B) a special service district created under Title 17D, Chapter 1, Special Service
             108      District Act.
             109          (ii) "Entity created by the county" does not include a local district created by a county
             110      under Title 17B, Limited Purpose Local Government Entities - Local Districts.
             111          (2) (a) The governing body of an applicable county shall create an inventory of
             112      activities of the county or an entity created by the county to:
             113          (i) classify whether an activity is a competitive activity; and
             114          (ii) identify efforts that have been made to privatize aspects of the activity.
             115          (b) An applicable county shall comply with this section by no later than:
             116          (i) June 30, 2010, if the applicable county is a county of the first class; and
             117          (ii) June 30, 2011, if the applicable county is a county of the second class.
             118          (3) The governing body of an applicable county shall update the inventory created


             119      under this section at least every two years.
             120          (4) An applicable county shall:
             121          (a) provide a copy of the inventory and an update to the inventory to the Free Market
             122      Protection and Privatization [Policy] Board created in Title 63I, Chapter [4,] 4a, Free Market
             123      Protection and Privatization [Policy] Board Act; and
             124          (b) make the inventory available to the public through electronic means.
             125          Section 3. Section 26-18-3.3 is amended to read:
             126           26-18-3.3. Study of privatization of eligibility determination.
             127          (1) The department shall work with the Department of Workforce Services, the
             128      Department of Human Services, and the Free Market Protection and Privatization [Policy]
             129      Board created in Section [ 63I-4-201 ] 63I-4a-202 to study the state's eligibility determination
             130      system for the state Medicaid program in accordance with this section.
             131          (2) (a) The study shall include the state's eligibility determination system for the
             132      following programs:
             133          (i) the state Medicaid program;
             134          (ii) the Utah Children's Health Insurance Program created under Chapter 40, Utah
             135      Children's Health Insurance Act;
             136          (iii) the Primary Care Network;
             137          (iv) the Utah Premium Partnership; and
             138          (v) other eligibility systems administered by the Department of Workforce Services.
             139          (b) The study shall include:
             140          (i) the workflow and operations of the eligibility determination systems for the
             141      programs described in Subsection (2)(a); and
             142          (ii) efficiencies that may be obtained through:
             143          (A) consolidation of the eligibility determination systems;
             144          (B) privatization of the eligibility determination systems; and
             145          (C) other technology or organizational solutions for the eligibility determination
             146      systems.
             147          (3) The department, the Department of Workforce Services, and the Free Market
             148      Protection and Privatization [Policy] Board shall, prior to October 20, 2011, report to the
             149      Legislature's Health and Human Services Interim Committee and to the Social Services


             150      Appropriations Subcommittee regarding the findings of the study and any recommendations
             151      and options regarding the advantages and disadvantages to the state in privatizing the eligibility
             152      determination system.
             153          Section 4. Section 63I-4a-101 , which is renumbered from Section 63I-4-101 is
             154      renumbered and amended to read:
             155     
CHAPTER 4a. FREE MARKET PROTECTION AND

             156     
PRIVATIZATION BOARD ACT

             157     
Part 1. General Provisions

             158           [63I-4-101].     63I-4a-101. Title.
             159          (1) This chapter is known as the "Free Market Protection and Privatization [Policy]
             160      Board Act."
             161          (2) This part is known as "General Provisions."
             162          Section 5. Section 63I-4a-102 , which is renumbered from Section 63I-4-102 is
             163      renumbered and amended to read:
             164           [63I-4-102].     63I-4a-102. Definitions.
             165          (1) (a) "Activity" means to provide a good or service.
             166          (b) "Activity" includes to:
             167          (i) manufacture a good or service;
             168          (ii) process a good or service;
             169          (iii) sell a good or service;
             170          (iv) offer for sale a good or service;
             171          (v) rent a good or service;
             172          (vi) lease a good or service;
             173          (vii) deliver a good or service;
             174          (viii) distribute a good or service; or
             175          (ix) advertise a good or service.
             176          (2) (a) Except as provided in Subsection (2)(b), "agency" means:
             177          (i) the state; or
             178          (ii) an entity of the state including a department, office, division, authority,
             179      commission, or board.
             180          (b) "Agency" does not include:


             181          (i) the Legislature;
             182          (ii) an entity or agency of the Legislature;
             183          (iii) the state auditor;
             184          (iv) the state treasurer;
             185          (v) the Office of the Attorney General;
             186          (vi) the Dairy Commission created in Title 4, Chapter 22, Dairy Promotion Act;
             187          (vii) the Utah Science Center Authority created in Title 63H, Chapter 3, Utah Science
             188      Center Authority;
             189          (viii) the Heber Valley Railroad Authority created in Title 63H, Chapter 4, Heber
             190      Valley Historic Railroad Authority;
             191          (ix) the Utah State Railroad Museum Authority created in Title 63H, Chapter 5, Utah
             192      State Railroad Museum Authority;
             193          (x) the Utah Housing Corporation created in Title 35A, Chapter 8, Part 7, Utah
             194      Housing Corporation Act;
             195          (xi) the Utah State Fair Corporation created in Title 63H, Chapter 6, Utah State Fair
             196      Corporation Act;
             197          (xii) the Workers' Compensation Fund created in Title 31A, Chapter 33, Workers'
             198      Compensation Fund;
             199          (xiii) the Utah State Retirement Office created in Title 49, Chapter 11, Utah State
             200      Retirement Systems Administration;
             201          (xiv) a charter school chartered by the State Charter School Board or a board of
             202      trustees of a higher education institution under Title 53A, Chapter 1a, Part 5, The Utah Charter
             203      Schools Act;
             204          (xv) the Utah Schools for the Deaf and the Blind created in Title 53A, Chapter 25b,
             205      Utah Schools for the Deaf and the Blind;
             206          (xvi) an institution of higher education as defined in Section 53B-3-102 ;
             207          (xvii) the School and Institutional Trust Lands Administration created in Title 53C,
             208      Chapter 1, Part 2, School and Institutional Trust Lands Administration;
             209          (xviii) the Utah Communications Agency Network created in Title 63C, Chapter 7,
             210      Utah Communications Agency Network Act; or
             211          (xix) the Utah Capital Investment Corporation created in Title 63M, Chapter 1, Part 12,


             212      Utah Venture Capital Enhancement Act.
             213          (3) "Agency head" means the chief administrative officer of an agency.
             214          (4) "Board" means the Free Market Protection and Privatization [Policy] Board created
             215      in Section [ 63I-4-201 ] 63I-4a-202 .
             216          (5) "Commercial activity" means to engage in an activity that can be obtained in whole
             217      or in part from a private enterprise.
             218          (6) "Local entity" means:
             219          (a) a political subdivision of the state, including a:
             220          (i) county;
             221          (ii) city;
             222          (iii) town;
             223          (iv) local school district;
             224          (v) local district; or
             225          (vi) special service district;
             226          (b) an agency of an entity described in this Subsection (6), including a department,
             227      office, division, authority, commission, or board; [and] or
             228          (c) an entity created by an interlocal cooperative agreement under Title 11, Chapter 13,
             229      Interlocal Cooperation Act, between two or more entities described in this Subsection (6).
             230          (7) "Private enterprise" means a person that engages in an activity for profit[:].
             231          [(a) manufactures a good or service;]
             232          [(b) processes a good or service;]
             233          [(c) sells a good or service;]
             234          [(d) offers for sale a good or service;]
             235          [(e) rents a good or service;]
             236          [(f) leases a good or service;]
             237          [(g) delivers a good or service;]
             238          [(h) distributes a good or service; or]
             239          [(i) advertises a good or service.]
             240          (8) "Privatize" means that an activity engaged in by an agency is transferred so that a
             241      private enterprise engages in the activity, including a transfer by:
             242          (a) contract;


             243          (b) transfer of property; or
             244          (c) another arrangement.
             245          (9) "Special district" means:
             246          (a) a local district, as defined in Section 17B-1-102 ;
             247          (b) a special service district, as defined in Section 17D-1-102 ; or
             248          (c) a conservation district, as defined in Section 17D-3-102 .
             249          Section 6. Section 63I-4a-201 is enacted to read:
             250     
Part 2. Free Market Protection and Privatization Board

             251          63I-4a-201. Title.
             252          This part is known as "Free Market Protection and Privatization Board."
             253          Section 7. Section 63I-4a-202 , which is renumbered from Section 63I-4-201 is
             254      renumbered and amended to read:
             255           [63I-4-201].     63I-4a-202. Free Market Protection and Privatization Board --
             256      Created -- Membership -- Operations -- Expenses.
             257          (1) (a) There is created a Privatization Policy Board composed of 17 members.
             258          (b) The governor shall appoint board members as follows:
             259          (i) two senators, one each from the majority and minority political parties, from names
             260      recommended by the president of the Senate;
             261          (ii) two representatives, one each from the majority and minority political parties, from
             262      names recommended by the speaker of the House of Representatives;
             263          (iii) two members representing public employees, from names recommended by the
             264      largest public employees' association;
             265          (iv) one member from state management;
             266          (v) [eight] seven members from the private business community;
             267          (vi) one member representing the Utah League of Cities and Towns from names
             268      recommended by the Utah League of Cities and Towns; [and]
             269          (vii) one member representing the Utah Association of Counties from names
             270      recommended by the Utah Association of Counties[.]; and
             271          (viii) one member representing the Utah Association of Special Districts, from names
             272      recommended by the Utah Association of Special Districts.
             273          (2) (a) Except as [required by] provided in Subsection (2)(b), a board member[: (i)


             274      appointed under Subsection (1)(b)(i) or (ii) shall serve a two-year term; and (ii) appointed
             275      under Subsections (1)(b)(iii) through (vii)] shall serve a [four] two-year term.
             276          (b) Notwithstanding the requirements of Subsection (2)(a), the governor shall, at the
             277      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             278      board members are staggered so that approximately half of the board is appointed every two
             279      years.
             280          [(c) The governor shall on or before July 1, 2008 change the appointments to the board
             281      to reflect the membership requirements of Subsection (1)(b).]
             282          (3) (a) A board member shall hold office until the board member's successor is
             283      appointed and qualified.
             284          (b) When a vacancy occurs in the membership for any reason, a replacement shall be
             285      appointed for the unexpired term.
             286          (c) H. [ [ ] Nine [ ] ] [ Six ] .H members of the board constitute a quorum.
             287          (d) The vote of a majority of board members voting when a quorum is present is
             288      necessary for the board to act.
             289          (4) (a) The board shall select one of the members to serve as chair of the board.
             290          (b) A chair shall serve as chair for a term of one-year, and may be selected as chair for
             291      more than one term.
             292          [(5) The chief procurement officer or the chief procurement officer's designee shall
             293      staff the board.]
             294          (5) The Governor's Office of Planning and Budget shall staff the board. The board
             295      may contract for additional staff from the private sector under Section 63I-4a-204 .
             296          [(6)] (6) The board shall meet:
             297          (a) at least quarterly; and
             298          (b) as necessary to conduct its business, as called by the chair.
             299          (7) A member may not receive compensation or benefits for the member's service, but
             300      may receive per diem and travel expenses in accordance with:
             301          (a) Section 63A-3-106 ;
             302          (b) Section 63A-3-107 ; and
             303          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             304      63A-3-107 .


             305          Section 8. Section 63I-4a-203 , which is renumbered from Section 63I-4-202 is
             306      renumbered and amended to read:
             307           [63I-4-202].     63I-4a-203. Free Market Protection and Privatization Board --
             308      Duties.
             309          (1) The board shall:
             310          (a) [review] determine whether [or not a good or service] an activity provided by an
             311      agency could be privatized to provide the same types and quality of a good or service that
             312      would result in cost savings;
             313          (b) review privatization of [a good or service] an activity at the request of:
             314          (i) an agency; or
             315          (ii) a private enterprise;
             316          (c) review issues concerning agency competition with one or more private enterprises
             317      to determine:
             318          (i) whether privatization:
             319          (A) would be feasible;
             320          (B) would result in cost savings; and
             321          (C) would result in equal or better quality of a good or service; and
             322          (ii) ways to eliminate any unfair competition with a private enterprise;
             323          (d) recommend privatization to an agency if a proposed privatization is demonstrated
             324      to provide a more cost efficient and effective manner of providing a good or service[;], taking
             325      into account:
             326          (i) the scope of providing the good or service;
             327          (ii) whether cost savings will be realized;
             328          (iii) whether quality will be improved;
             329          (iv) the impact on risk management;
             330          (v) the impact on timeliness;
             331          (vi) the ability to accommodate fluctuating demand;
             332          (vii) the ability to access outside expertise;
             333          (viii) the impact on oversight;
             334          (ix) the ability to develop sound policy and implement best practices; and
             335          (x) legal and practical impediments to privatization;


             336          (e) comply with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, in making
             337      rules establishing privatization standards, procedures, and requirements;
             338          (f) in fulfilling the duties described in this Subsection (1), consult with, maintain
             339      communication with, and access information from[,]:
             340          (i) other entities promoting privatization; and
             341          (ii) managers and employees in the public sector;
             342          (g) comply with Part 3, Commercial Activities Inventory and Review; and
             343          (h) (i) prepare an annual report for each calendar year that contains:
             344          (A) information about the board's activities;
             345          (B) recommendations on privatizing [a good or service] an activity provided by an
             346      agency; and
             347          (C) the status of the inventory created under Part 3, Commercial Activities Inventory
             348      and Review;
             349          (ii) submit the annual report to the Legislature and the governor by no later than
             350      January 15 immediately following the calendar year for which the report is made; and
             351          (iii) [provide] each interim, provide an oral report to the Government Operations
             352      Interim Committee and the Economic Development and Workforce Services Interim
             353      Committee.
             354          (2) The board may, using the criteria described in Subsection (1), consider whether to
             355      recommend privatization of an activity provided by an agency, a county, or a special district:
             356          (a) on the board's own initiative;
             357          (b) upon request by an agency, a county, or a special district;
             358          (c) in response to a complaint that an agency, a county, or a special district is engaging
             359      in unfair competition with a private enterprise; or
             360          (d) in light of a proposal made by any person, regardless of whether the proposal was
             361      solicited.
             362          [(2)] (3) In addition to filing a copy of recommendations for privatization with an
             363      agency head, the board shall file a copy of its recommendations for privatization with:
             364          (a) the governor's office; and
             365          (b) the Office of Legislative Fiscal Analyst for submission to the relevant legislative
             366      appropriation subcommittee.


             367          [(3)] (4) (a) The board may appoint advisory groups to conduct studies, research, or
             368      analyses, and make reports and recommendations with respect to a matter within the
             369      jurisdiction of the board.
             370          (b) At least one member of the board shall serve on each advisory group.
             371          [(4)] (5) (a) Subject to Subsection [(4)] (5)(b), this chapter does not preclude an agency
             372      from privatizing the provision of a good or service independent of the board.
             373          (b) If an agency privatizes the provision of a good or service, the agency shall include
             374      as part of the contract that privatizes the provision of the good or service that any contractor
             375      assumes all liability to provide the good or service.
             376          [(5) The board may review upon the request of a local entity a matter relevant to:]
             377          [(a) (i) privatization; or]
             378          [(ii) unfair competition with one or more private enterprises; and]
             379          [(b) an activity or proposed activity of the local entity.]
             380          Section 9. Section 63I-4a-204 is enacted to read:
             381          63I-4a-204. Staff support -- Assistance to an agency or local entity.
             382          (1) The board may, within funds appropriated by the Legislature for this purpose, issue
             383      a request for proposals to contract with a private sector person or entity to:
             384          (a) provide staff support to the board;
             385          (b) assist the board in conducting its duties, including completing the inventory
             386      described in Part 3, Commercial Activities Inventory and Review; and
             387          (c) at the board's direction, assist an agency or a local entity to:
             388          (i) develop a business case for potential privatization of an activity, using the criteria
             389      described in Subsection 63I-4a-203 (1);
             390          (ii) draft, issue, or evaluate a request for proposals to privatize an activity; or
             391          (iii) award a contract to privatize an activity.
             392          (2) The private sector person described in Subsection (1):
             393          (a) may not be an advocate for or against privatization; and
             394          (b) shall be neutral on the issue of privatization.
             395          Section 10. Section 63I-4a-205 , which is renumbered from Section 63I-4-203 is
             396      renumbered and amended to read:
             397           [63I-4-203].     63I-4a-205. Board accounting method.


             398          The board by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             399      Rulemaking Act, shall establish an accounting method that:
             400          (1) is similar to generally accepted accounting principles used by a private enterprise;
             401          (2) allows an agency to identify the total actual cost of engaging in a commercial
             402      activity in a manner similar to how a private enterprise identifies the total actual cost to the
             403      private enterprise, including the following:
             404          (a) a labor expense, [such as] including:
             405          (i) compensation and benefits;
             406          (ii) a cost of training;
             407          (iii) a cost of paying overtime;
             408          (iv) a cost of supervising labor; or
             409          (v) another personnel expense;
             410          (b) an operating cost, [such as] including:
             411          (i) vehicle maintenance and repair;
             412          (ii) a marketing, advertising, or other sales expense;
             413          (iii) an office expense;
             414          (iv) a cost of an accounting operation, [such as] including billing;
             415          (v) an insurance expense;
             416          (vi) a real estate or equipment cost;
             417          (vii) a debt service cost; or
             418          (viii) a proportionate amount of other overhead or of a capital expense, such as vehicle
             419      depreciation and depreciation of other fixed assets;
             420          (c) a contract management cost; and
             421          (d) another cost particular to a person supplying the good or service; and
             422          (3) provides a process to estimate the taxes an agency would pay related to engaging in
             423      a commercial activity if the agency were required to pay federal, state, and local taxes to the
             424      same extent as a private enterprise engaging in the commercial activity.
             425          Section 11. Section 63I-4a-301 is enacted to read:
             426     
Part 3. Commercial Activities Inventory and Review

             427          63I-4a-301. Title.
             428          This part is known as "Commercial Activities Inventory and Review."


             429          Section 12. Section 63I-4a-302 , which is renumbered from Section 63I-4-301 is
             430      renumbered and amended to read:
             431           [63I-4-301].     63I-4a-302. Board to create inventory.
             432          [(1) By no later than June 30, 2009] At least every two years, the board shall [create]
             433      compile and make available to the public, by electronic means, an updated inventory of
             434      activities of the agencies in [this] the state to classify whether each activity is:
             435          [(a)] (1) a commercial activity; or
             436          [(b)] (2) an inherently governmental activity.
             437          [(2) The board shall update the inventory created under this section at least every two
             438      years.]
             439          [(3) The board shall make the inventory available to the public through electronic
             440      means.]
             441          Section 13. Section 63I-4a-303 , which is renumbered from Section 63I-4-302 is
             442      renumbered and amended to read:
             443           [63I-4-302].     63I-4a-303. Governor to require review of commercial activities.
             444          [Beginning with fiscal year 2009-10, the] The governor [shall at least once every two
             445      fiscal years] may:
             446          (1) select [at least three] one or more commercial activities that are being performed by
             447      an agency for examination; and
             448          (2) require the Governor's Office of Planning and Budget to conduct the examination
             449      and make the determinations and recommendations described in Subsections 63I-4a-203 (1)(a),
             450      (c), and (d).
             451          Section 14. Section 63I-4a-304 , which is renumbered from Section 63I-4-303 is
             452      renumbered and amended to read:
             453           [63I-4-303].     63I-4a-304. Duties of the Governor's Office of Planning and
             454      Budget.
             455          (1) The Governor's Office of Planning and Budget shall:
             456          (a) determine the amount of an appropriation that is no longer needed by an executive
             457      branch agency because all or a portion of the agency's provision of a good or service is
             458      privatized; and
             459          (b) adjust the governor's budget recommendations to reflect the amount determined


             460      under Subsection (1)(a).
             461          (2) The Governor's Office of Planning and Budget shall report its findings to the
             462      Legislature.
             463          (3) This section does not prevent the governor from recommending in a budget
             464      recommendation the restoration of a portion of the appropriation to an agency that is reduced
             465      under this section.
             466          Section 15. Section 63I-4a-401 is enacted to read:
             467     
Part 4. Miscellaneous Provisions

             468          63I-4a-401. Title.
             469          This part is known as "Miscellaneous Provisions."
             470          Section 16. Section 63I-4a-402 , which is renumbered from Section 63I-4-304 is
             471      renumbered and amended to read:
             472           [63I-4-304].     63I-4a-402. Government immunity.
             473          (1) This chapter or the inclusion of an activity on an inventory made under this chapter
             474      may not be construed as a waiver of any right, claim, or defense of immunity that an agency
             475      may have under Title 63G, Chapter 7, Governmental Immunity Act of Utah, or other law.
             476          (2) The inclusion in an inventory of an activity as a commercial activity for purposes of
             477      this chapter may not be construed to find that the activity does not constitute an exercise of a
             478      governmental function.


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