1     
STATE CONTRACTOR EMPLOYEE HEALTH COVERAGE

2     
AMENDMENTS

3     
2016 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: James A. Dunnigan

6     
Senate Sponsor: Curtis S. Bramble

7     

8     LONG TITLE
9     General Description:
10          This bill addresses employee health insurance requirements for state contractors.
11     Highlighted Provisions:
12          This bill:
13          ▸     amends the types of contracts that trigger a state contractor's employee health
14     insurance requirements;
15          ▸     amends provisions for a state contractor to demonstrate compliance;
16          ▸     amends employee health insurance requirements;
17          ▸     requires the Department of Health to post a benchmark plan for qualified health
18     insurance coverage; and
19          ▸     makes technical changes.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          This bill provides a special effective date.
24     Utah Code Sections Affected:
25     AMENDS:
26          17B-2a-818.5, as last amended by Laws of Utah 2014, Chapter 425
27          19-1-206, as last amended by Laws of Utah 2014, Chapter 425
28          26-40-115, as last amended by Laws of Utah 2015, Chapter 107
29          63A-5-205, as last amended by Laws of Utah 2014, Chapter 425
30          63C-9-403, as last amended by Laws of Utah 2014, Chapter 425
31          72-6-107.5, as last amended by Laws of Utah 2014, Chapter 425
32          79-2-404, as last amended by Laws of Utah 2014, Chapter 425
33     

34     Be it enacted by the Legislature of the state of Utah:
35          Section 1. Section 17B-2a-818.5 is amended to read:
36          17B-2a-818.5. Contracting powers of public transit districts -- Health insurance
37     coverage.
38          (1) For purposes of this section:
39          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
40     34A-2-104 who:
41          (i) works at least 30 hours per calendar week; and
42          (ii) meets employer eligibility waiting requirements for health care insurance which
43     may not exceed the first day of the calendar month following 60 days from the date of hire.
44          (b) "Health benefit plan" [has the same meaning as provided] means the same as that
45     term is defined in Section 31A-1-301.
46          (c) "Qualified health insurance coverage" [is as] means the same as that term is defined
47     in Section 26-40-115.
48          (d) "Subcontractor" [has the same meaning provided for] means the same as that term
49     is defined in Section 63A-5-208.
50          (2) (a) Except as provided in Subsection (3), this section applies to a design or
51     construction contract entered into by the public transit district on or after July 1, 2009, and to a
52     prime contractor or to a subcontractor in accordance with Subsection (2)(b).
53          (b) (i) A prime contractor is subject to this section if the prime contract is in the
54     amount of [$1,500,000] $2,000,000 or greater at the original execution of the contract.
55          (ii) A subcontractor is subject to this section if a subcontract is in the amount of
56     [$750,000] $1,000,000 or greater at the original execution of the contract.
57          (3) This section does not apply if:
58          (a) the application of this section jeopardizes the receipt of federal funds;
59          (b) the contract is a sole source contract; or
60          (c) the contract is an emergency procurement.
61          (4) (a) This section does not apply to a change order as defined in Section 63G-6a-103,
62     or a modification to a contract, when the contract does not meet the initial threshold required
63     by Subsection (2).
64          (b) A person who intentionally uses change orders or contract modifications to
65     circumvent the requirements of Subsection (2) is guilty of an infraction.
66          (5) (a) A contractor subject to Subsection (2) shall demonstrate to the public transit
67     district that the contractor has and will maintain an offer of qualified health insurance coverage
68     for the contractor's employees and the employee's dependents during the duration of the
69     contract.
70          [(b) If a subcontractor of the contractor is subject to Subsection (2)(b), the contractor
71     shall demonstrate to the public transit district that the subcontractor has and will maintain an
72     offer of qualified health insurance coverage for the subcontractor's employees and the
73     employee's dependents during the duration of the contract.]
74          (b) If a subcontractor of the contractor is subject to Subsection (2)(b), the contractor
75     shall:
76          (i) place a requirement in the subcontract that the subcontractor shall obtain and
77     maintain an offer of qualified health insurance coverage for the subcontractor's employees and
78     the employees' dependants during the duration of the subcontract; and
79          (ii) certify to the public transit district that the subcontractor has and will maintain an
80     offer of qualified health insurance coverage for the subcontractor's employees and the
81     employees' dependents during the duration of the prime contract.
82          (c) (i) (A) A contractor who fails to meet the requirements of Subsection (5)(a) during
83     the duration of the contract is subject to penalties in accordance with an ordinance adopted by
84     the public transit district under Subsection (6).
85          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
86     requirements of Subsection (5)(b).
87          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
88     the duration of the contract is subject to penalties in accordance with an ordinance adopted by
89     the public transit district under Subsection (6).
90          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
91     requirements of Subsection (5)(a).
92          (6) The public transit district shall adopt ordinances:
93          (a) in coordination with:
94          (i) the Department of Environmental Quality in accordance with Section 19-1-206;
95          (ii) the Department of Natural Resources in accordance with Section 79-2-404;
96          (iii) the State Building Board in accordance with Section 63A-5-205;
97          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403; and
98          (v) the Department of Transportation in accordance with Section 72-6-107.5; and
99          (b) [which] that establish:
100          (i) the requirements and procedures a contractor shall follow to demonstrate to the
101     public transit district compliance with this section [which] that shall include:
102          (A) that a contractor [will not have to] shall demonstrate compliance with Subsection
103     (5)(a) or (b) [more than twice in any 12-month period; and] at the time of the execution of each
104     initial contract described in Subsection (2)(b);
105          (B) that the contractor's compliance is subject to an audit by the public transit district
106     or the Office of the Legislative Auditor General; and
107          [(B)] (C) that the actuarially equivalent determination required for the qualified health
108     insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
109     department or division with a written statement of actuarial equivalency, which is no more than
110     one year old, regarding the contractor's offer of qualified health coverage from [either: (I) the
111     Utah Insurance Department; (II)] an actuary selected by the contractor or the contractor's
112     insurer[;], or [(III)] an underwriter who is responsible for developing the employer group's
113     premium rates;
114          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
115     violates the provisions of this section, which may include:
116          (A) a three-month suspension of the contractor or subcontractor from entering into
117     future contracts with the public transit district upon the first violation;
118          (B) a six-month suspension of the contractor or subcontractor from entering into future
119     contracts with the public transit district upon the second violation;
120          (C) an action for debarment of the contractor or subcontractor in accordance with
121     Section 63G-6a-904 upon the third or subsequent violation; and
122          (D) monetary penalties which may not exceed 50% of the amount necessary to
123     purchase qualified health insurance coverage for employees and dependents of employees of
124     the contractor or subcontractor who were not offered qualified health insurance coverage
125     during the duration of the contract; and
126          (iii) a website on which the district shall post the commercially equivalent benchmark,
127     for the qualified health insurance coverage identified in Subsection (1)(c), that is provided by
128     the Department of Health, in accordance with Subsection 26-40-115(2).
129          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(b)(ii), a contractor
130     or subcontractor who intentionally violates the provisions of this section shall be liable to the
131     employee for health care costs that would have been covered by qualified health insurance
132     coverage.
133          (ii) An employer has an affirmative defense to a cause of action under Subsection
134     (7)(a)(i) if:
135          (A) the employer relied in good faith on a written statement of actuarial equivalency
136     provided by an:
137          (I) actuary; or
138          (II) underwriter who is responsible for developing the employer group's premium rates;
139     or
140          (B) a department or division determines that compliance with this section is not
141     required under the provisions of Subsection (3) or (4).
142          (b) An employee has a private right of action only against the employee's employer to
143     enforce the provisions of this Subsection (7).
144          (8) Any penalties imposed and collected under this section shall be deposited into the
145     Medicaid Restricted Account created in Section 26-18-402.
146          (9) The failure of a contractor or subcontractor to provide qualified health insurance
147     coverage as required by this section:
148          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
149     or contractor under Section 63G-6a-1603 or any other provision in Title 63G, Chapter 6a, Utah
150     Procurement Code; and
151          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
152     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
153     or construction.
154          Section 2. Section 19-1-206 is amended to read:
155          19-1-206. Contracting powers of department -- Health insurance coverage.
156          (1) For purposes of this section:
157          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
158     34A-2-104 who:
159          (i) works at least 30 hours per calendar week; and
160          (ii) meets employer eligibility waiting requirements for health care insurance which
161     may not exceed the first day of the calendar month following 60 days from the date of hire.
162          (b) "Health benefit plan" [has the same meaning as provided] means the same as that
163     term is defined in Section 31A-1-301.
164          (c) "Qualified health insurance coverage" [is as] means the same as that term is defined
165     in Section 26-40-115.
166          (d) "Subcontractor" [has the same meaning provided for] means the same as that term
167     is defined in Section 63A-5-208.
168          (2) (a) Except as provided in Subsection (3), this section applies to a design or
169     construction contract entered into by or delegated to the department or a division or board of
170     the department on or after July 1, 2009, and to a prime contractor or subcontractor in
171     accordance with Subsection (2)(b).
172          (b) (i) A prime contractor is subject to this section if the prime contract is in the
173     amount of [$1,500,000] $2,000,000 or greater at the original execution of the contract.
174          (ii) A subcontractor is subject to this section if a subcontract is in the amount of
175     [$750,000] $1,000,000 or greater at the original execution of the contract.
176          (3) This section does not apply to contracts entered into by the department or a division
177     or board of the department if:
178          (a) the application of this section jeopardizes the receipt of federal funds;
179          (b) the contract or agreement is between:
180          (i) the department or a division or board of the department; and
181          (ii) (A) another agency of the state;
182          (B) the federal government;
183          (C) another state;
184          (D) an interstate agency;
185          (E) a political subdivision of this state; or
186          (F) a political subdivision of another state;
187          (c) the executive director determines that applying the requirements of this section to a
188     particular contract interferes with the effective response to an immediate health and safety
189     threat from the environment; or
190          (d) the contract is:
191          (i) a sole source contract; or
192          (ii) an emergency procurement.
193          (4) (a) This section does not apply to a change order as defined in Section 63G-6a-103,
194     or a modification to a contract, when the contract does not meet the initial threshold required
195     by Subsection (2).
196          (b) A person who intentionally uses change orders or contract modifications to
197     circumvent the requirements of Subsection (2) is guilty of an infraction.
198          (5) (a) A contractor subject to Subsection (2) shall demonstrate to the executive
199     director that the contractor has and will maintain an offer of qualified health insurance
200     coverage for the contractor's employees and the employees' dependents during the duration of
201     the contract.
202          [(b) If a subcontractor of the contractor is subject to Subsection (2), the contractor shall
203     demonstrate to the executive director that the subcontractor has and will maintain an offer of
204     qualified health insurance coverage for the subcontractor's employees and the employees'
205     dependents during the duration of the contract.]
206          (b) If a subcontractor of the contractor is subject to Subsection (2), the contractor shall:
207          (i) place a requirement in the subcontract that the subcontractor shall obtain and
208     maintain an offer of qualified health insurance coverage for the subcontractor's employees and
209     the employees' dependants during the duration of the subcontract; and
210          (ii) certify to the executive director that the subcontractor has and will maintain an
211     offer of qualified health insurance coverage for the subcontractor's employees and the
212     employees' dependents during the duration of the prime contract.
213          (c) (i) (A) A contractor who fails to comply with Subsection (5)(a) during the duration
214     of the contract is subject to penalties in accordance with administrative rules adopted by the
215     department under Subsection (6).
216          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
217     requirements of Subsection (5)(b).
218          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
219     the duration of the contract is subject to penalties in accordance with administrative rules
220     adopted by the department under Subsection (6).
221          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
222     requirements of Subsection (5)(a).
223          (6) The department shall adopt administrative rules:
224          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
225          (b) in coordination with:
226          (i) a public transit district in accordance with Section 17B-2a-818.5;
227          (ii) the Department of Natural Resources in accordance with Section 79-2-404;
228          (iii) the State Building Board in accordance with Section 63A-5-205;
229          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403;
230          (v) the Department of Transportation in accordance with Section 72-6-107.5; and
231          (vi) the Legislature's Administrative Rules Review Committee; and
232          (c) [which] that establish:
233          (i) the requirements and procedures a contractor shall follow to demonstrate to the
234     public transit district compliance with this section that shall include:
235          (A) that a contractor [will not have to] shall demonstrate compliance with Subsection
236     (5)(a) or (b) [more than twice in any 12-month period; and] at the time of the execution of each
237     initial contract described in Subsection (2)(b);
238          (B) that the contractor's compliance is subject to an audit by the department or the
239     Office of the Legislative Auditor General; and
240          [(B)] (C) that the actuarially equivalent determination required for the qualified health
241     insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
242     department or division with a written statement of actuarial equivalency, which is no more than
243     one year old, regarding the contractor's offer of qualified health coverage from [either: (I) the
244     Utah Insurance Department; (II)] an actuary selected by the contractor or the contractor's
245     insurer[;], or [(III)] an underwriter who is responsible for developing the employer group's
246     premium rates;
247          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
248     violates the provisions of this section, which may include:
249          (A) a three-month suspension of the contractor or subcontractor from entering into
250     future contracts with the state upon the first violation;
251          (B) a six-month suspension of the contractor or subcontractor from entering into future
252     contracts with the state upon the second violation;
253          (C) an action for debarment of the contractor or subcontractor in accordance with
254     Section 63G-6a-904 upon the third or subsequent violation; and
255          (D) notwithstanding Section 19-1-303, monetary penalties which may not exceed 50%
256     of the amount necessary to purchase qualified health insurance coverage for an employee and
257     the dependents of an employee of the contractor or subcontractor who was not offered qualified
258     health insurance coverage during the duration of the contract; and
259          (iii) a website on which the department shall post the commercially equivalent
260     benchmark, for the qualified health insurance coverage identified in Subsection (1)(c), that is
261     provided by the Department of Health, in accordance with Subsection 26-40-115(2).
262          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c), a contractor or
263     subcontractor who intentionally violates the provisions of this section shall be liable to the
264     employee for health care costs that would have been covered by qualified health insurance
265     coverage.
266          (ii) An employer has an affirmative defense to a cause of action under Subsection
267     (7)(a)(i) if:
268          (A) the employer relied in good faith on a written statement of actuarial equivalency
269     provided by:
270          (I) an actuary; or
271          (II) an underwriter who is responsible for developing the employer group's premium
272     rates; or
273          (B) the department determines that compliance with this section is not required under
274     the provisions of Subsection (3) or (4).
275          (b) An employee has a private right of action only against the employee's employer to
276     enforce the provisions of this Subsection (7).
277          (8) Any penalties imposed and collected under this section shall be deposited into the
278     Medicaid Restricted Account created in Section 26-18-402.
279          (9) The failure of a contractor or subcontractor to provide qualified health insurance
280     coverage as required by this section:
281          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
282     or contractor under Section 63G-6a-1603 or any other provision in Title 63G, Chapter 6a, Utah
283     Procurement Code; and
284          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
285     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
286     or construction.
287          Section 3. Section 26-40-115 is amended to read:
288          26-40-115. State contractor -- Employee and dependent health benefit plan
289     coverage.
290          (1) For purposes of Sections 17B-2a-818.5, 19-1-206, 63A-5-205, 63C-9-403,
291     72-6-107.5, and 79-2-404, "qualified health insurance coverage" means, at the time the contract
292     is entered into or renewed:
293          [(1)] (a) a health benefit plan and employer contribution level with a combined
294     actuarial value at least actuarially equivalent to the combined actuarial value of the benchmark
295     plan determined by the program under Subsection 26-40-106(1), and a contribution level [of] at
296     which the employer pays at least 50% of the premium for the employee and the dependents of
297     the employee who reside or work in the state[, in which:]; or
298          [(a) the employer pays at least 50% of the premium for the employee and the
299     dependents of the employee who reside or work in the state; and]
300          [(b) for purposes of calculating actuarial equivalency under this Subsection (1)(b):]
301          [(i) rather than the benchmark plan's deductible, and the benchmark plan's
302     out-of-pocket maximum based on income levels:]
303          [(A) the deductible is $1,000 per individual and $3,000 per family; and]
304          [(B) the out-of-pocket maximum is $3,000 per individual and $9,000 per family;]
305          [(ii) dental coverage is not required; and]
306          [(iii) other than Subsection 26-40-106(1), the provisions of Section 26-40-106 do not
307     apply; or]
308          [(2)] (b) a federally qualified high deductible health plan that, at a minimum:
309          [(a)] (i) has a deductible that is [either]:
310          [(i)] (A) the lowest deductible permitted for a federally qualified high deductible health
311     plan; or
312          [(ii)] (B) a deductible that is higher than the lowest deductible permitted for a federally
313     qualified high deductible health plan, but includes an employer contribution to a health savings
314     account in a dollar amount at least equal to the dollar amount difference between the lowest
315     deductible permitted for a federally qualified high deductible plan and the deductible for the
316     employer offered federally qualified high deductible plan;
317          [(b)] (ii) has an out-of-pocket maximum that does not exceed three times the amount of
318     the annual deductible; and
319          [(c)] (iii) provides that the employer pays 60% of the premium for the employee and
320     the dependents of the employee who work or reside in the state.
321          (2) The department shall:
322          (a) on or before July 1, 2016:
323          (i) determine the commercial equivalent of the benchmark plan described in Subsection
324     (1)(a); and
325          (ii) post the commercially equivalent benchmark plan described in Subsection (2)(a)(i)
326     on the department's website, noting the date posted; and
327          (b) update the posted commercially equivalent benchmark plan annually and at the
328     time of any change in the benchmark.
329          Section 4. Section 63A-5-205 is amended to read:
330          63A-5-205. Contracting powers of director -- Retainage -- Health insurance
331     coverage.
332          (1) As used in this section:
333          (a) "Capital developments" [has the same meaning as provided] means the same as that
334     term is defined in Section 63A-5-104.
335          (b) "Capital improvements" [has the same meaning as provided] means the same as
336     that term is defined in Section 63A-5-104.
337          (c) "Employee" means an "employee," "worker," or "operative" as defined in Section
338     34A-2-104 who:
339          (i) works at least 30 hours per calendar week; and
340          (ii) meets employer eligibility waiting requirements for health care insurance which
341     may not exceed the first day of the calendar month following 60 days from the date of hire.
342          (d) "Health benefit plan" [has the same meaning as provided] means the same as that
343     term is defined in Section 31A-1-301.
344          (e) "Qualified health insurance coverage" [is as] means the same as that term is defined
345     in Section 26-40-115.
346          (f) "Subcontractor" [has the same meaning provided for] means the same as that term is
347     defined in Section 63A-5-208.
348          (2) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, the director
349     may:
350          (a) subject to [Subsection] Subsections (3) and (4), enter into contracts for any work or
351     professional services which the division or the State Building Board may do or have done; and
352          (b) as a condition of any contract for architectural or engineering services, prohibit the
353     architect or engineer from retaining a sales or agent engineer for the necessary design work.
354          (3) [(a)] Except as provided in Subsection [(3)(b)] (4), this Subsection (3) applies to all
355     design or construction contracts entered into by the division or the State Building Board on or
356     after July 1, 2009, and:
357          [(i)] (a) applies to a prime contractor if the prime contract is in the amount of
358     [$1,500,000] $2,000,000 or greater at the original execution of the contract; and
359          [(ii)] (b) applies to a subcontractor if the subcontract is in the amount of [$750,000]
360     $1,000,000 or greater at the original execution of the contract.
361          [(b) This] (4) Subsection (3) does not apply:
362          [(i)] (a) if the application of [this] Subsection (3) jeopardizes the receipt of federal
363     funds;
364          [(ii)] (b) if the contract is a sole source contract;
365          [(iii)] (c) if the contract is an emergency procurement; or
366          [(iv)] (d) to a change order as defined in Section 63G-6a-103, or a modification to a
367     contract, when the contract does not meet the threshold required by Subsection (3)[(a)].
368          [(c)] (5) A person who intentionally uses change orders or contract modifications to
369     circumvent the requirements of Subsection (3)[(a)] is guilty of an infraction.
370          [(d) (i)] (6) (a) A contractor subject to Subsection (3)[(a)] shall demonstrate to the
371     director that the contractor has and will maintain an offer of qualified health insurance
372     coverage for the contractor's employees and the employees' dependents.
373          [(ii) If a subcontractor of the contractor is subject to Subsection (3)(a), the contractor
374     shall demonstrate to the director that the subcontractor has and will maintain an offer of
375     qualified health insurance coverage for the subcontractor's employees and the employees'
376     dependents.]
377          (b) If a subcontractor of the contractor is subject to Subsection (3), the contractor shall:
378          (i) place a requirement in the subcontract that the subcontractor shall obtain and
379     maintain an offer of qualified health insurance coverage for the subcontractor's employees and
380     the employees' dependants during the duration of the subcontract; and
381          (ii) certify to the director that the subcontractor has and will maintain an offer of
382     qualified health insurance coverage for the subcontractor's employees and the employees'
383     dependents during the duration of the prime contract.
384          [(e)] (c) (i) [(A)] A contractor who fails to meet the requirements of Subsection
385     [(3)(d)(i)] (6)(a) during the duration of the contract is subject to penalties in accordance with
386     administrative rules adopted by the division under Subsection [(3)(f)] (7).
387          [(B)] (ii) A contractor is not subject to penalties for the failure of a subcontractor to
388     meet the requirements of Subsection [(3)(d)(ii)] (6)(b).
389          [(ii) (A)] (iii) A subcontractor who fails to meet the requirements of Subsection
390     [(3)(d)(ii)] (6)(b) during the duration of the contract is subject to penalties in accordance with
391     administrative rules adopted by the division under Subsection [(3)(f)] (7).
392          [(B)] (iv) A subcontractor is not subject to penalties for the failure of a contractor to
393     meet the requirements of Subsection [(3)(d)(i)] (6)(a).
394          [(f)] (7) The division shall adopt administrative rules:
395          [(i)] (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
396     Act;
397          [(ii)] (b) in coordination with:
398          [(A)] (i) the Department of Environmental Quality in accordance with Section
399     19-1-206;
400          [(B)] (ii) the Department of Natural Resources in accordance with Section 79-2-404;
401          [(C)] (iii) a public transit district in accordance with Section 17B-2a-818.5;
402          [(D)] (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403;
403          [(E)] (v) the Department of Transportation in accordance with Section 72-6-107.5; and
404          [(F)] (vi) the Legislature's Administrative Rules Review Committee; and
405          [(iii) which] (c) that establish:
406          [(A)] (i) the requirements and procedures a contractor must follow to demonstrate to
407     the director compliance with [this Subsection (3) which] Subsections (3) through (10) that shall
408     include:
409          [(I)] (A) that a contractor [will not have to] shall demonstrate compliance with
410     Subsection [(3)(d)(i) or (ii) more than twice in any 12-month period; and] (6)(a) or (b) at the
411     time of the execution of each initial contract described in Subsection (3);
412          (B) that the contractor's compliance is subject to an audit by the division or the Office
413     of the Legislative Auditor General; and
414          [(II)] (C) that the actuarially equivalent determination required for the qualified health
415     insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
416     department or division with a written statement of actuarial equivalency, which is not more
417     than one year old, regarding the contractor's offer of qualified health coverage from [either:
418     (Aa) the Utah Insurance Department; (Bb)] an actuary selected by the contractor or the
419     contractor's insurer[; or (Cc)], or an underwriter who is responsible for developing the
420     employer group's premium rates;
421          [(B)] (ii) the penalties that may be imposed if a contractor or subcontractor
422     intentionally violates the provisions of [this Subsection (3)] Subsections (3) through (10),
423     which may include:
424          [(I)] (A) a three-month suspension of the contractor or subcontractor from entering into
425     future contracts with the state upon the first violation;
426          [(II)] (B) a six-month suspension of the contractor or subcontractor from entering into
427     future contracts with the state upon the second violation;
428          [(III)] (C) an action for debarment of the contractor or subcontractor in accordance
429     with Section 63G-6a-904 upon the third or subsequent violation; and
430          [(IV)] (D) monetary penalties which may not exceed 50% of the amount necessary to
431     purchase qualified health insurance coverage for an employee and the dependents of an
432     employee of the contractor or subcontractor who was not offered qualified health insurance
433     coverage during the duration of the contract; and
434          [(C)] (iii) a website on which the department shall post the commercially equivalent
435     benchmark, for the qualified health insurance coverage identified in Subsection (1)(e), that is
436     provided by the Department of Health, in accordance with Subsection 26-40-115(2).
437          [(g) (i)] (8) (a) In addition to the penalties imposed under Subsection [(3)(f)(iii)] (7)(c),
438     a contractor or subcontractor who intentionally violates the provisions of this section shall be
439     liable to the employee for health care costs that would have been covered by qualified health
440     insurance coverage.
441          [(ii)] (b) An employer has an affirmative defense to a cause of action under Subsection
442     [(3)(g)(i)] (8)(a) if:
443          [(A)] (i) the employer relied in good faith on a written statement of actuarial
444     equivalency provided by:
445          [(I)] (A) an actuary; or
446          [(II)] (B) an underwriter who is responsible for developing the employer group's
447     premium rates; or
448          [(B)] (ii) the department determines that compliance with this section is not required
449     under the provisions of Subsection [(3)(b)] (4).
450          [(iii)] (c) An employee has a private right of action only against the employee's
451     employer to enforce the provisions of this Subsection [(3)(g)] (8).
452          [(h)] (9) Any penalties imposed and collected under this section shall be deposited into
453     the Medicaid Restricted Account created by Section 26-18-402.
454          [(i)] (10) The failure of a contractor or subcontractor to provide qualified health
455     insurance coverage as required by this section:
456          [(i)] (a) may not be the basis for a protest or other action from a prospective bidder,
457     offeror, or contractor under Section 63G-6a-1603 or any other provision in Title 63G, Chapter
458     6a, Utah Procurement Code; and
459          [(ii)] (b) may not be used by the procurement entity or a prospective bidder, offeror, or
460     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
461     or construction.
462          [(4)] (11) The judgment of the director as to the responsibility and qualifications of a
463     bidder is conclusive, except in case of fraud or bad faith.
464          [(5)] (12) The division shall make all payments to the contractor for completed work in
465     accordance with the contract and pay the interest specified in the contract on any payments that
466     are late.
467          [(6)] (13) If any payment on a contract with a private contractor to do work for the
468     division or the State Building Board is retained or withheld, it shall be retained or withheld and
469     released as provided in Section 13-8-5.
470          Section 5. Section 63C-9-403 is amended to read:
471          63C-9-403. Contracting power of executive director -- Health insurance coverage.
472          (1) For purposes of this section:
473          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
474     34A-2-104 who:
475          (i) works at least 30 hours per calendar week; and
476          (ii) meets employer eligibility waiting requirements for health care insurance which
477     may not exceed the first of the calendar month following 60 days from the date of hire.
478          (b) "Health benefit plan" [has the same meaning as provided] means the same as that
479     term is defined in Section 31A-1-301.
480          (c) "Qualified health insurance coverage" [is as] means the same as that term is defined
481     in Section 26-40-115.
482          (d) "Subcontractor" [has the same meaning provided for] means the same as that term
483     is defined in Section 63A-5-208.
484          (2) (a) Except as provided in Subsection (3), this section applies to a design or
485     construction contract entered into by the board or on behalf of the board on or after July 1,
486     2009, and to a prime contractor or a subcontractor in accordance with Subsection (2)(b).
487          (b) (i) A prime contractor is subject to this section if the prime contract is in the
488     amount of [$1,500,000] $2,000,000 or greater at the original execution of the contract.
489          (ii) A subcontractor is subject to this section if a subcontract is in the amount of
490     [$750,000] $1,000,000 or greater at the original execution of the contract.
491          (3) This section does not apply if:
492          (a) the application of this section jeopardizes the receipt of federal funds;
493          (b) the contract is a sole source contract; or
494          (c) the contract is an emergency procurement.
495          (4) (a) This section does not apply to a change order as defined in Section 63G-6a-103,
496     or a modification to a contract, when the contract does not meet the initial threshold required
497     by Subsection (2).
498          (b) A person who intentionally uses change orders or contract modifications to
499     circumvent the requirements of Subsection (2) is guilty of an infraction.
500          (5) (a) A contractor subject to Subsection (2) shall demonstrate to the executive
501     director that the contractor has and will maintain an offer of qualified health insurance
502     coverage for the contractor's employees and the employees' dependents during the duration of
503     the contract.
504          [(b) If a subcontractor of the contractor is subject to Subsection (2)(b), the contractor
505     shall demonstrate to the executive director that the subcontractor has and will maintain an offer
506     of qualified health insurance coverage for the subcontractor's employees and the employees'
507     dependents during the duration of the contract.]
508          (b) If a subcontractor of the contractor is subject to Subsection (2)(b), the contractor
509     shall:
510          (i) place a requirement in the subcontract that the subcontractor shall obtain and
511     maintain an offer of qualified health insurance coverage for the subcontractor's employees and
512     the employees' dependants during the duration of the subcontract; and
513          (ii) certify to the executive director that the subcontractor has and will maintain an
514     offer of qualified health insurance coverage for the subcontractor's employees and the
515     employees' dependents during the duration of the prime contract.
516          (c) (i) (A) A contractor who fails to meet the requirements of Subsection (5)(a) during
517     the duration of the contract is subject to penalties in accordance with administrative rules
518     adopted by the division under Subsection (6).
519          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
520     requirements of Subsection (5)(b).
521          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
522     the duration of the contract is subject to penalties in accordance with administrative rules
523     adopted by the department under Subsection (6).
524          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
525     requirements of Subsection (5)(a).
526          (6) The department shall adopt administrative rules:
527          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
528          (b) in coordination with:
529          (i) the Department of Environmental Quality in accordance with Section 19-1-206;
530          (ii) the Department of Natural Resources in accordance with Section 79-2-404;
531          (iii) the State Building Board in accordance with Section 63A-5-205;
532          (iv) a public transit district in accordance with Section 17B-2a-818.5;
533          (v) the Department of Transportation in accordance with Section 72-6-107.5; and
534          (vi) the Legislature's Administrative Rules Review Committee; and
535          (c) [which] that establish:
536          (i) the requirements and procedures a contractor must follow to demonstrate to the
537     executive director compliance with this section [which] that shall include:
538          (A) that a contractor [will not have to] shall demonstrate compliance with Subsection
539     (5)(a) or (b) [more than twice in any 12-month period; and] at the time of the execution of each
540     initial contract described in Subsection (2)(b);
541          (B) that the contractor's compliance is subject to an audit by the department or the
542     Office of the Legislative Auditor General; and
543          [(B)] (C) that the actuarially equivalent determination required for the qualified health
544     insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
545     department or division with a written statement of actuarial equivalency, which is no more than
546     one year old, regarding the contractor's offer of qualified health coverage from [either: (I) the
547     Utah Insurance Department; (II)] an actuary selected by the contractor or the contractor's
548     insurer[;], or [(III)] an underwriter who is responsible for developing the employer group's
549     premium rates;
550          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
551     violates the provisions of this section, which may include:
552          (A) a three-month suspension of the contractor or subcontractor from entering into
553     future contracts with the state upon the first violation;
554          (B) a six-month suspension of the contractor or subcontractor from entering into future
555     contracts with the state upon the second violation;
556          (C) an action for debarment of the contractor or subcontractor in accordance with
557     Section 63G-6a-904 upon the third or subsequent violation; and
558          (D) monetary penalties which may not exceed 50% of the amount necessary to
559     purchase qualified health insurance coverage for employees and dependents of employees of
560     the contractor or subcontractor who were not offered qualified health insurance coverage
561     during the duration of the contract; and
562          (iii) a website on which the department shall post the commercially equivalent
563     benchmark, for the qualified health insurance coverage identified in Subsection (1)(c), that is
564     provided by the Department of Health, in accordance with Subsection 26-40-115(2).
565          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c), a contractor or
566     subcontractor who intentionally violates the provisions of this section shall be liable to the
567     employee for health care costs that would have been covered by qualified health insurance
568     coverage.
569          (ii) An employer has an affirmative defense to a cause of action under Subsection
570     (7)(a)(i) if:
571          (A) the employer relied in good faith on a written statement of actuarial equivalency
572     provided by:
573          (I) an actuary; or
574          (II) an underwriter who is responsible for developing the employer group's premium
575     rates; or
576          (B) the department determines that compliance with this section is not required under
577     the provisions of Subsection (3) or (4).
578          (b) An employee has a private right of action only against the employee's employer to
579     enforce the provisions of this Subsection (7).
580          (8) Any penalties imposed and collected under this section shall be deposited into the
581     Medicaid Restricted Account created in Section 26-18-402.
582          (9) The failure of a contractor or subcontractor to provide qualified health insurance
583     coverage as required by this section:
584          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
585     or contractor under Section 63G-6a-1603 or any other provision in Title 63G, Chapter 6a, Utah
586     Procurement Code; and
587          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
588     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
589     or construction.
590          Section 6. Section 72-6-107.5 is amended to read:
591          72-6-107.5. Construction of improvements of highway -- Contracts -- Health
592     insurance coverage.
593          (1) For purposes of this section:
594          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
595     34A-2-104 who:
596          (i) works at least 30 hours per calendar week; and
597          (ii) meets employer eligibility waiting requirements for health care insurance which
598     may not exceed the first day of the calendar month following 60 days from the date of hire.
599          (b) "Health benefit plan" [has the same meaning as provided] means the same as that
600     term is defined in Section 31A-1-301.
601          (c) "Qualified health insurance coverage" [is as] means the same as that term is defined
602     in Section 26-40-115.
603          (d) "Subcontractor" [has the same meaning provided for] means the same as that term
604     is defined in Section 63A-5-208.
605          (2) (a) Except as provided in Subsection (3), this section applies to contracts entered
606     into by the department on or after July 1, 2009, for construction or design of highways and to a
607     prime contractor or to a subcontractor in accordance with Subsection (2)(b).
608          (b) (i) A prime contractor is subject to this section if the prime contract is in the
609     amount of [$1,500,000] $2,000,000 or greater at the original execution of the contract.
610          (ii) A subcontractor is subject to this section if a subcontract is in the amount of
611     [$750,000] $1,000,000 or greater at the original execution of the contract.
612          (3) This section does not apply if:
613          (a) the application of this section jeopardizes the receipt of federal funds;
614          (b) the contract is a sole source contract; or
615          (c) the contract is an emergency procurement.
616          (4) (a) This section does not apply to a change order as defined in Section 63G-6a-103,
617     or a modification to a contract, when the contract does not meet the initial threshold required
618     by Subsection (2).
619          (b) A person who intentionally uses change orders or contract modifications to
620     circumvent the requirements of Subsection (2) is guilty of an infraction.
621          (5) (a) A contractor subject to Subsection (2) shall demonstrate to the department that
622     the contractor has and will maintain an offer of qualified health insurance coverage for the
623     contractor's employees and the employees' dependents during the duration of the contract.
624          [(b) If a subcontractor of the contractor is subject to Subsection (2), the contractor shall
625     demonstrate to the department that the subcontractor has and will maintain an offer of qualified
626     health insurance coverage for the subcontractor's employees and the employees' dependents
627     during the duration of the contract.]
628          (b) If a subcontractor of the contractor is subject to Subsection (2), the contractor shall:
629          (i) place a requirement in the subcontract that the subcontractor shall obtain and
630     maintain an offer of qualified health insurance coverage for the subcontractor's employees and
631     the employees' dependants during the duration of the subcontract; and
632          (ii) certify to the department that the subcontractor has and will maintain an offer of
633     qualified health insurance coverage for the subcontractor's employees and the employees'
634     dependents during the duration of the prime contract.
635          (c) (i) (A) A contractor who fails to meet the requirements of Subsection (5)(a) during
636     the duration of the contract is subject to penalties in accordance with administrative rules
637     adopted by the department under Subsection (6).
638          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
639     requirements of Subsection (5)(b).
640          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
641     the duration of the contract is subject to penalties in accordance with administrative rules
642     adopted by the department under Subsection (6).
643          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
644     requirements of Subsection (5)(a).
645          (6) The department shall adopt administrative rules:
646          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
647          (b) in coordination with:
648          (i) the Department of Environmental Quality in accordance with Section 19-1-206;
649          (ii) the Department of Natural Resources in accordance with Section 79-2-404;
650          (iii) the State Building Board in accordance with Section 63A-5-205;
651          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403;
652          (v) a public transit district in accordance with Section 17B-2a-818.5; and
653          (vi) the Legislature's Administrative Rules Review Committee; and
654          (c) [which] that establish:
655          (i) the requirements and procedures a contractor must follow to demonstrate to the
656     department compliance with this section [which] that shall include:
657          (A) that a contractor [will not have to] shall demonstrate compliance with Subsection
658     (5)(a) or (b) [more than twice in any 12-month period; and] at the time of the execution of each
659     initial contract described in Subsection (2)(b);
660          (B) that the contractor's compliance is subject to an audit by the department or the
661     Office of the Legislative Auditor General; and
662          [(B)] (C) that the actuarially equivalent determination required for qualified health
663     insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
664     department or division with a written statement of actuarial equivalency, which is no more than
665     one year old, regarding the contractor's offer of qualified health coverage from [either: (I) the
666     Utah Insurance Department; (II)] an actuary selected by the contractor or the contractor's
667     insurer[;], or [(III)] an underwriter who is responsible for developing the employer group's
668     premium rates;
669          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
670     violates the provisions of this section, which may include:
671          (A) a three-month suspension of the contractor or subcontractor from entering into
672     future contracts with the state upon the first violation;
673          (B) a six-month suspension of the contractor or subcontractor from entering into future
674     contracts with the state upon the second violation;
675          (C) an action for debarment of the contractor or subcontractor in accordance with
676     Section 63G-6a-904 upon the third or subsequent violation; and
677          (D) monetary penalties which may not exceed 50% of the amount necessary to
678     purchase qualified health insurance coverage for an employee and a dependent of the employee
679     of the contractor or subcontractor who was not offered qualified health insurance coverage
680     during the duration of the contract; and
681          (iii) a website on which the department shall post the commercially equivalent
682     benchmark, for the qualified health insurance coverage identified in Subsection (1)(c), that is
683     provided by the Department of Health, in accordance with Subsection 26-40-115(2).
684          (7) (a) (i) In addition to the penalties imposed under Subsection (6), a contractor or
685     subcontractor who intentionally violates the provisions of this section shall be liable to the
686     employee for health care costs that would have been covered by qualified health insurance
687     coverage.
688          (ii) An employer has an affirmative defense to a cause of action under Subsection
689     (7)(a)(i) if:
690          (A) the employer relied in good faith on a written statement of actuarial equivalency
691     provided by:
692          (I) an actuary; or
693          (II) an underwriter who is responsible for developing the employer group's premium
694     rates; or
695          (B) the department determines that compliance with this section is not required under
696     the provisions of Subsection (3) or (4).
697          (b) An employee has a private right of action only against the employee's employer to
698     enforce the provisions of this Subsection (7).
699          (8) Any penalties imposed and collected under this section shall be deposited into the
700     Medicaid Restricted Account created in Section 26-18-402.
701          (9) The failure of a contractor or subcontractor to provide qualified health insurance
702     coverage as required by this section:
703          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
704     or contractor under Section 63G-6a-1603 or any other provision in Title 63G, Chapter 6a, Utah
705     Procurement Code; and
706          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
707     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
708     or construction.
709          Section 7. Section 79-2-404 is amended to read:
710          79-2-404. Contracting powers of department -- Health insurance coverage.
711          (1) For purposes of this section:
712          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
713     34A-2-104 who:
714          (i) works at least 30 hours per calendar week; and
715          (ii) meets employer eligibility waiting requirements for health care insurance which
716     may not exceed the first day of the calendar month following 60 days from the date of hire.
717          (b) "Health benefit plan" [has the same meaning as provided] means the same as that
718     term is defined in Section 31A-1-301.
719          (c) "Qualified health insurance coverage" [is as] means the same as that term is defined
720     in Section 26-40-115.
721          (d) "Subcontractor" [has the same meaning provided for] means the same as that term
722     is defined in Section 63A-5-208.
723          (2) (a) Except as provided in Subsection (3), this section applies a design or
724     construction contract entered into by, or delegated to, the department or a division, board, or
725     council of the department on or after July 1, 2009, and to a prime contractor or to a
726     subcontractor in accordance with Subsection (2)(b).
727          (b) (i) A prime contractor is subject to this section if the prime contract is in the
728     amount of [$1,500,000] $2,000,000 or greater at the original execution of the contract.
729          (ii) A subcontractor is subject to this section if a subcontract is in the amount of
730     [$750,000] $1,000,000 or greater at the original execution of the contract.
731          (3) This section does not apply to contracts entered into by the department or a
732     division, board, or council of the department if:
733          (a) the application of this section jeopardizes the receipt of federal funds;
734          (b) the contract or agreement is between:
735          (i) the department or a division, board, or council of the department; and
736          (ii) (A) another agency of the state;
737          (B) the federal government;
738          (C) another state;
739          (D) an interstate agency;
740          (E) a political subdivision of this state; or
741          (F) a political subdivision of another state; or
742          (c) the contract or agreement is:
743          (i) for the purpose of disbursing grants or loans authorized by statute;
744          (ii) a sole source contract; or
745          (iii) an emergency procurement.
746          (4) (a) This section does not apply to a change order as defined in Section 63G-6a-103,
747     or a modification to a contract, when the contract does not meet the initial threshold required
748     by Subsection (2).
749          (b) A person who intentionally uses change orders or contract modifications to
750     circumvent the requirements of Subsection (2) is guilty of an infraction.
751          (5) (a) A contractor subject to Subsection (2)(b)(i) shall demonstrate to the department
752     that the contractor has and will maintain an offer of qualified health insurance coverage for the
753     contractor's employees and the employees' dependents during the duration of the contract.
754          [(b) If a subcontractor of the contractor is subject to Subsection (2)(b)(ii), the
755     contractor shall demonstrate to the department that the subcontractor has and will maintain an
756     offer of qualified health insurance coverage for the subcontractor's employees and the
757     employees' dependents during the duration of the contract.]
758          (b) If a subcontractor of the contractor is subject to Subsection (2)(b), the contractor
759     shall:
760          (i) place a requirement in the subcontract that the subcontractor shall obtain and
761     maintain an offer of qualified health insurance coverage for the subcontractor's employees and
762     the employees' dependants during the duration of the subcontract; and
763          (ii) certify to the department that the subcontractor has and will maintain an offer of
764     qualified health insurance coverage for the subcontractor's employees and the employees'
765     dependents during the duration of the prime contract.
766          (c) (i) (A) A contractor who fails to meet the requirements of Subsection (5)(a) during
767     the duration of the contract is subject to penalties in accordance with administrative rules
768     adopted by the department under Subsection (6).
769          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
770     requirements of Subsection (5)(b).
771          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
772     the duration of the contract is subject to penalties in accordance with administrative rules
773     adopted by the department under Subsection (6).
774          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
775     requirements of Subsection (5)(a).
776          (6) The department shall adopt administrative rules:
777          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
778          (b) in coordination with:
779          (i) the Department of Environmental Quality in accordance with Section 19-1-206;
780          (ii) a public transit district in accordance with Section 17B-2a-818.5;
781          (iii) the State Building Board in accordance with Section 63A-5-205;
782          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403;
783          (v) the Department of Transportation in accordance with Section 72-6-107.5; and
784          (vi) the Legislature's Administrative Rules Review Committee; and
785          (c) [which] that establish:
786          (i) the requirements and procedures a contractor must follow to demonstrate
787     compliance with this section to the department [which] that shall include:
788          (A) that a contractor [will not have to] shall demonstrate compliance with Subsection
789     (5)(a) or (b) [more than twice in any 12-month period; and] at the time of the execution of each
790     initial contract described in Subsection (2)(b);
791          (B) that the contractor's compliance is subject to an audit by the department or the
792     Office of the Legislative Auditor General; and
793          [(B)] (C) that the actuarially equivalent determination required for qualified health
794     insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
795     department or division with a written statement of actuarial equivalency, which is no more than
796     one year old, regarding the contractor's offer of qualified health coverage from [either: (I) the
797     Utah Insurance Department; (II)] an actuary selected by the contractor or the contractor's
798     insurer[;], or [(III)] an underwriter who is responsible for developing the employer group's
799     premium rates;
800          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
801     violates the provisions of this section, which may include:
802          (A) a three-month suspension of the contractor or subcontractor from entering into
803     future contracts with the state upon the first violation;
804          (B) a six-month suspension of the contractor or subcontractor from entering into future
805     contracts with the state upon the second violation;
806          (C) an action for debarment of the contractor or subcontractor in accordance with
807     Section 63G-6a-904 upon the third or subsequent violation; and
808          (D) monetary penalties which may not exceed 50% of the amount necessary to
809     purchase qualified health insurance coverage for an employee and a dependent of an employee
810     of the contractor or subcontractor who was not offered qualified health insurance coverage
811     during the duration of the contract; and
812          (iii) a website on which the department shall post the commercially equivalent
813     benchmark, for the qualified health insurance coverage identified in Subsection (1)(c),
814     provided by the Department of Health, in accordance with Subsection 26-40-115(2).
815          (7) (a) (i) In addition to the penalties imposed under Subsection (6), a contractor or
816     subcontractor who intentionally violates the provisions of this section shall be liable to the
817     employee for health care costs that would have been covered by qualified health insurance
818     coverage.
819          (ii) An employer has an affirmative defense to a cause of action under Subsection
820     (7)(a)(i) if:
821          (A) the employer relied in good faith on a written statement of actuarial equivalency
822     provided by:
823          (I) an actuary; or
824          (II) an underwriter who is responsible for developing the employer group's premium
825     rates; or
826          (B) the department determines that compliance with this section is not required under
827     the provisions of Subsection (3) or (4).
828          (b) An employee has a private right of action only against the employee's employer to
829     enforce the provisions of this Subsection (7).
830          (8) Any penalties imposed and collected under this section shall be deposited into the
831     Medicaid Restricted Account created in Section 26-18-402.
832          (9) The failure of a contractor or subcontractor to provide qualified health insurance
833     coverage as required by this section:
834          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
835     or contractor under Section 63G-6a-1603 or any other provision in Title 63G, Chapter 6a, Utah
836     Procurement Code; and
837          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
838     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
839     or construction.
840          Section 8. Effective date.
841          If approved by two-thirds of all the members elected to each house, this bill takes effect
842     upon approval by the governor, or the day following the constitutional time limit of Utah
843     Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
844     the date of veto override.