Senator Karen Mayne proposes the following substitute bill:


1     
RESALE OF PROCUREMENT ITEM AMENDMENTS

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Karen Mayne

5     
House Sponsor: Don L. Ipson

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to the resale of a procurement item.
10     Highlighted Provisions:
11          This bill:
12          ▸     imposes requirements and places limits on a state or local government entity that
13     sells a procurement item to the original seller for more than the purchase price.
14     Money Appropriated in this Bill:
15          None
16     Other Special Clauses:
17          None
18     Utah Code Sections Affected:
19     ENACTS:
20          11-54-101, Utah Code Annotated 1953
21          11-54-102, Utah Code Annotated 1953
22          11-54-103, Utah Code Annotated 1953
23          63G-6a-110, Utah Code Annotated 1953
24     

25     Be it enacted by the Legislature of the state of Utah:

26          Section 1. Section 11-54-101 is enacted to read:
27     
CHAPTER 54. LOCAL GOVERNMENT SALE OF PROCUREMENT ITEM

28          11-54-101. Title.
29          This chapter is known as "Local Government Sale of Procurement Item."
30          Section 2. Section 11-54-102 is enacted to read:
31          11-54-102. Definitions.
32          As used in this chapter:
33          (1) "Buyback purchaser" means a person who buys a procurement item from the local
34     government entity to which the person previously sold the procurement item.
35          (2) "Excess repurchase amount" means the difference between:
36          (a) the amount a buyback purchaser pays to a local government entity to purchase a
37     procurement item that the buyback purchaser previously sold to the local government entity;
38     and
39          (b) the amount the local government entity paid to the buyback purchaser to purchase
40     the procurement item.
41          (3) "Local government entity" means a county, city, town, metro township, local
42     district, special service district, community development and renewal agency, conservation
43     district, or school district that is not subject to Title 63G, Chapter 6a, Utah Procurement Code.
44          (4) "Procurement item" means the same as that term is defined in Section 63G-6a-103.
45          Section 3. Section 11-54-103 is enacted to read:
46          11-54-103. Sale of previously purchased item -- Limitations.
47          A local government entity that sells a procurement item to a buyback purchaser for an
48     amount that exceeds the amount the local government entity paid for the procurement item:
49          (1) shall require the buyback purchaser to pay cash for the procurement item;
50          (2) may not accept the excess repurchase amount in the form of a credit, discount, or
51     other incentive on a future purchase that the local government entity makes from the buyback
52     purchaser; and
53          (3) may not use the excess repurchase amount to acquire an additional procurement
54     item from the person who paid the excess repurchase amount.
55          Section 4. Section 63G-6a-110 is enacted to read:
56          63G-6a-110. Sale of previously purchased procurement item -- Limitations.

57          (1) As used in this section:
58          (a) "Buyback purchaser" means a person who buys a procurement item from the
59     procurement unit to which the person previously sold the procurement item.
60          (b) "Excess repurchase amount" means the difference between:
61          (i) the amount a buyback purchaser pays to a procurement unit to purchase a
62     procurement item that the buyback purchaser previously sold to the procurement unit; and
63          (ii) the amount the procurement unit paid to the buyback purchaser to purchase the
64     procurement item.
65          (2) A procurement unit that sells a procurement item to a buyback purchaser for an
66     amount that exceeds the amount the procurement unit paid for the procurement item:
67          (a) shall require the buyback purchaser to pay cash for the procurement item;
68          (b) may not accept the excess repurchase amount in the form of a credit, discount, or
69     other incentive on a future purchase that the procurement unit makes from the buyback
70     purchaser; and
71          (c) may not use the excess repurchase amount to acquire an additional procurement
72     item from the person who paid the excess repurchase amount.