8 LONG TITLE
9 General Description:
10 This bill modifies provisions related to the Free Market Protection and Privatization
11 Board Act.
12 Highlighted Provisions:
13 This bill:
14 ▸ authorizes the Free Market Protection and Privatization Board to review
15 privatization of an activity of an exempted state entity if the entity requests that the
16 board review privatization of the activity provided by the entity; and
17 ▸ makes technical changes.
18 Money Appropriated in this Bill:
20 Other Special Clauses:
22 Utah Code Sections Affected:
24 63I-4a-203, as last amended by Laws of Utah 2014, Chapter 371
26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 63I-4a-203 is amended to read:
28 63I-4a-203. Free Market Protection and Privatization Board -- Duties.
29 (1) The board shall:
30 (a) determine whether an activity provided by an agency could be privatized to provide
31 the same types and quality of a good or service that would result in cost savings;
32 (b) review privatization of an activity at the request of:
33 (i) an agency; or
34 (ii) a private enterprise;
35 (c) review issues concerning agency competition with one or more private enterprises
36 to determine:
37 (i) whether privatization:
38 (A) would be feasible;
39 (B) would result in cost savings; and
40 (C) would result in equal or better quality of a good or service; and
41 (ii) ways to eliminate any unfair competition with a private enterprise;
42 (d) recommend privatization to an agency if a proposed privatization is demonstrated
43 to provide a more cost efficient and effective manner of providing a good or service, taking
44 into account:
45 (i) the scope of providing the good or service;
46 (ii) whether cost savings will be realized;
47 (iii) whether quality will be improved;
48 (iv) the impact on risk management;
49 (v) the impact on timeliness;
50 (vi) the ability to accommodate fluctuating demand;
51 (vii) the ability to access outside expertise;
52 (viii) the impact on oversight;
53 (ix) the ability to develop sound policy and implement best practices; and
54 (x) legal and practical impediments to privatization;
55 (e) comply with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, in making
56 rules establishing privatization standards, procedures, and requirements;
57 (f) in fulfilling the duties described in this Subsection (1), consult with, maintain
58 communication with, and access information from:
59 (i) other entities promoting privatization; and
60 (ii) managers and employees in the public sector;
61 (g) comply with Part 3, Commercial Activities Inventory and Review; and
62 (h) (i) prepare an annual report for each calendar year that contains:
63 (A) information about the board's activities;
64 (B) recommendations on privatizing an activity provided by an agency; and
65 (C) the status of the inventory created under Part 3, Commercial Activities Inventory
66 and Review;
67 (ii) submit the annual report to the Legislature and the governor by no later than
68 January 15 immediately following the calendar year for which the report is made; and
69 (iii) submit, before November 1, an annual written report to the Government Operations
70 Interim Committee.
71 (2) (a) The board may, using the criteria described in Subsection (1), consider whether
72 to recommend privatization of an activity provided by an agency[
77 local entity is engaging in unfair competition with a private enterprise; or
79 was solicited.
80 (b) The board may, using the criteria described in Subsection (1), consider whether to
81 recommend privatization of an activity provided by an entity that is an exempted agency under
82 Subsection 63I-4a-102(2)(b) if the entity requests that the board review privatization of the
83 activity provided by the entity.
84 (3) In addition to filing a copy of recommendations for privatization with an agency
85 head, the board shall file a copy of its recommendations for privatization with:
86 (a) the governor's office; and
87 (b) the Office of Legislative Fiscal Analyst for submission to the relevant legislative
88 appropriation subcommittee.
89 (4) (a) The board may appoint advisory groups to conduct studies, research, or
90 analyses, and make reports and recommendations with respect to a matter within the
91 jurisdiction of the board.
92 (b) At least one member of the board shall serve on each advisory group.
93 (5) (a) Subject to Subsection (5)(b), this chapter does not preclude an agency from
94 privatizing the provision of a good or service independent of the board.
95 (b) If an agency privatizes the provision of a good or service, the agency shall include
96 as part of the contract that privatizes the provision of the good or service that any contractor
97 assumes all liability to provide the good or service.