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7 LONG TITLE
8 General Description:
9 This bill modifies provisions relating to the management of state facilities.
10 Highlighted Provisions:
11 This bill:
12 ▸ eliminates the State Building Board;
13 ▸ gives duties of the former State Building Board to the Division of Facilities
14 Construction and Management and the Department of Government Operations;
15 ▸ increases the limit of the value of property that the Division of Facilities
16 Construction and Management may acquire without legislative approval from
17 $250,000 to $500,000;
18 ▸ with respect to code provisions dealing with the disposal of property owned by the
19 Division of Facilities Construction and Management, increases the limit of the value
20 of property not subject to those code provisions from $250,000 to $500,000;
21 ▸ modifies provisions relating to the supervision and control of the allocation of space
22 for institutions of higher education and courts;
23 ▸ provides that the disposition of property owned by the Division of Facilities
24 Construction and Management in connection with the establishment of a state liquor
25 store or the construction of student housing is not subject to provisions otherwise
26 applicable to the disposition of division-owned property;
27 ▸ for a diagnostic, treatment, parole, probation, or other secured facility project,
28 increases the threshold for that project from $250,000 to $500,000 to trigger a
29 requirement for the director of the Division of Facilities Construction and
30 Management to notify a local government entity affected by the project; and
31 ▸ makes technical and conforming changes.
32 Money Appropriated in this Bill:
33 None
34 Other Special Clauses:
35 This bill provides a special effective date.
36 Utah Code Sections Affected:
37 AMENDS:
38 17B-2a-818.5, as last amended by Laws of Utah 2020, Chapters 32 and 152
39 19-1-206, as last amended by Laws of Utah 2020, Chapters 32 and 152
40 53B-2a-112 (Superseded 07/01/22), as last amended by Laws of Utah 2020, Chapter
41 365
42 53B-2a-112 (Effective 07/01/22), as last amended by Laws of Utah 2021, Second
43 Special Session, Chapter 1
44 53B-2a-117, as last amended by Laws of Utah 2020, Chapters 152 and 365
45 53B-7-101, as last amended by Laws of Utah 2020, Chapter 365
46 53B-22-204, as last amended by Laws of Utah 2020, Chapter 152
47 63A-5b-102, as last amended by Laws of Utah 2021, Chapter 187
48 63A-5b-303, as enacted by Laws of Utah 2020, Chapter 152
49 63A-5b-402, as enacted by Laws of Utah 2020, Chapter 152
50 63A-5b-403, as last amended by Laws of Utah 2021, Chapter 187
51 63A-5b-404, as enacted by Laws of Utah 2020, Chapter 152
52 63A-5b-503, as renumbered and amended by Laws of Utah 2020, Chapter 152
53 63A-5b-601, as enacted by Laws of Utah 2020, Chapter 152
54 63A-5b-603, as enacted by Laws of Utah 2020, Chapter 152
55 63A-5b-604, as enacted by Laws of Utah 2020, Chapter 152
56 63A-5b-802, as renumbered and amended by Laws of Utah 2020, Chapter 152
57 63A-5b-803, as last amended by Laws of Utah 2020, Chapter 365
58 63A-5b-806, as renumbered and amended by Laws of Utah 2020, Chapter 152
59 63A-5b-901, as renumbered and amended by Laws of Utah 2020, Chapter 152
60 63A-5b-902, as renumbered and amended by Laws of Utah 2020, Chapter 152
61 63A-5b-904, as renumbered and amended by Laws of Utah 2020, Chapter 152
62 63A-5b-905, as last amended by Laws of Utah 2021, Chapters 84 and 345
63 63A-5b-907, as renumbered and amended by Laws of Utah 2020, Chapter 152
64 63A-5b-910, as renumbered and amended by Laws of Utah 2020, Chapter 152
65 63A-5b-1001, as enacted by Laws of Utah 2020, Chapter 152
66 63A-5b-1003, as renumbered and amended by Laws of Utah 2020, Chapter 152
67 63A-5b-1104, as enacted by Laws of Utah 2020, Chapter 152
68 63B-1-101, as last amended by Laws of Utah 2003, Chapter 2
69 63B-1-304, as last amended by Laws of Utah 2020, Chapter 152
70 63C-9-403, as last amended by Laws of Utah 2020, Chapters 32 and 152
71 63G-6a-103, as last amended by Laws of Utah 2021, Chapters 179, 179, 344, and 345
72 63G-6a-109, as last amended by Laws of Utah 2020, Chapter 257
73 63G-6a-204, as last amended by Laws of Utah 2020, Chapters 257 and 354
74 63G-6a-303, as last amended by Laws of Utah 2021, Chapter 344
75 63G-6a-1302, as last amended by Laws of Utah 2020, Chapter 257
76 63H-6-103, as last amended by Laws of Utah 2021, Chapters 33, 84, and 345
77 63H-6-108, as last amended by Laws of Utah 2016, Third Special Session, Chapter 2
78 72-6-107.5, as last amended by Laws of Utah 2020, Chapters 32 and 152
79 79-2-404, as last amended by Laws of Utah 2020, Chapters 32 and 152
80 ENACTS:
81 63A-5b-907.5, Utah Code Annotated 1953
82 REPEALS:
83 63A-5b-201, as last amended by Laws of Utah 2021, Chapter 382
84 63A-5b-202, as last amended by Laws of Utah 2021, Chapters 187 and 344
85 63A-5b-203, as enacted by Laws of Utah 2020, Chapter 152
86
87 Be it enacted by the Legislature of the state of Utah:
88 Section 1. Section 17B-2a-818.5 is amended to read:
89 17B-2a-818.5. Contracting powers of public transit districts -- Health insurance
90 coverage.
91 (1) As used in this section:
92 (a) "Aggregate" means the sum of all contracts, change orders, and modifications
93 related to a single project.
94 (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
95 (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
96 "operative" who:
97 (i) works at least 30 hours per calendar week; and
98 (ii) meets employer eligibility waiting requirements for health care insurance, which
99 may not exceed the first day of the calendar month following 60 days after the day on which
100 the individual is hired.
101 (d) "Health benefit plan" means:
102 (i) the same as that term is defined in Section 31A-1-301; or
103 (ii) an employee welfare benefit plan:
104 (A) established under the Employee Retirement Income Security Act of 1974, 29
105 U.S.C. Sec. 1001 et seq.;
106 (B) for an employer with 100 or more employees; and
107 (C) in which the employer establishes a self-funded or partially self-funded group
108 health plan to provide medical care for the employer's employees and dependents of the
109 employees.
110 (e) "Qualified health coverage" means the same as that term is defined in Section
111 26-40-115.
112 (f) "Subcontractor" means the same as that term is defined in Section 63A-5b-605.
113 (g) "Third party administrator" or "administrator" means the same as that term is
114 defined in Section 31A-1-301.
115 (2) Except as provided in Subsection (3), the requirements of this section apply to:
116 (a) a contractor of a design or construction contract entered into by the public transit
117 district on or after July 1, 2009, if the prime contract is in an aggregate amount equal to or
118 greater than $2,000,000; and
119 (b) a subcontractor of a contractor of a design or construction contract entered into by
120 the public transit district on or after July 1, 2009, if the subcontract is in an aggregate amount
121 equal to or greater than $1,000,000.
122 (3) The requirements of this section do not apply to a contractor or subcontractor
123 described in Subsection (2) if:
124 (a) the application of this section jeopardizes the receipt of federal funds;
125 (b) the contract is a sole source contract; or
126 (c) the contract is an emergency procurement.
127 (4) A person that intentionally uses change orders, contract modifications, or multiple
128 contracts to circumvent the requirements of this section is guilty of an infraction.
129 (5) (a) A contractor subject to the requirements of this section shall demonstrate to the
130 public transit district that the contractor has and will maintain an offer of qualified health
131 coverage for the contractor's employees and the employee's dependents during the duration of
132 the contract by submitting to the public transit district a written statement that:
133 (i) the contractor offers qualified health coverage that complies with Section
134 26-40-115;
135 (ii) is from:
136 (A) an actuary selected by the contractor or the contractor's insurer;
137 (B) an underwriter who is responsible for developing the employer group's premium
138 rates; or
139 (C) if the contractor provides a health benefit plan described in Subsection (1)(d)(ii),
140 an actuary or underwriter selected by a third party administrator; and
141 (iii) was created within one year before the day on which the statement is submitted.
142 (b) (i) A contractor that provides a health benefit plan described in Subsection (1)(d)(ii)
143 shall provide the actuary or underwriter selected by an administrator, as described in
144 Subsection (5)(a)(ii)(C), sufficient information to determine whether the contractor's
145 contribution to the health benefit plan and the actuarial value of the health benefit plan meet the
146 requirements of qualified health coverage.
147 (ii) A contractor may not make a change to the contractor's contribution to the health
148 benefit plan, unless the contractor provides notice to:
149 (A) the actuary or underwriter selected by an administrator as described in Subsection
150 (5)(a)(ii)(C), for the actuary or underwriter to update the written statement described in
151 Subsection (5)(a) in compliance with this section; and
152 (B) the public transit district.
153 (c) A contractor that is subject to the requirements of this section shall:
154 (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
155 is subject to the requirements of this section shall obtain and maintain an offer of qualified
156 health coverage for the subcontractor's employees and the employees' dependents during the
157 duration of the subcontract; and
158 (ii) obtain from a subcontractor that is subject to the requirements of this section a
159 written statement that:
160 (A) the subcontractor offers qualified health coverage that complies with Section
161 26-40-115;
162 (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, an
163 underwriter who is responsible for developing the employer group's premium rates, or if the
164 subcontractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or
165 underwriter selected by an administrator; and
166 (C) was created within one year before the day on which the contractor obtains the
167 statement.
168 (d) (i) (A) A contractor that fails to maintain an offer of qualified health coverage as
169 described in Subsection (5)(a) during the duration of the contract is subject to penalties in
170 accordance with an ordinance adopted by the public transit district under Subsection (6).
171 (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
172 and maintain an offer of qualified health coverage described in Subsection (5)(c)(i).
173 (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
174 coverage described in Subsection (5)(c)(i) during the duration of the subcontract is subject to
175 penalties in accordance with an ordinance adopted by the public transit district under
176 Subsection (6).
177 (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
178 an offer of qualified health coverage described in Subsection (5)(a).
179 (6) The public transit district shall adopt ordinances:
180 (a) in coordination with:
181 (i) the Department of Environmental Quality in accordance with Section 19-1-206;
182 (ii) the Department of Natural Resources in accordance with Section 79-2-404;
183 (iii) the [
184 accordance with Section 63A-5b-607;
185 (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403; and
186 (v) the Department of Transportation in accordance with Section 72-6-107.5; and
187 (b) that establish:
188 (i) the requirements and procedures a contractor and a subcontractor shall follow to
189 demonstrate compliance with this section, including:
190 (A) that a contractor or subcontractor's compliance with this section is subject to an
191 audit by the public transit district or the Office of the Legislative Auditor General;
192 (B) that a contractor that is subject to the requirements of this section shall obtain a
193 written statement described in Subsection (5)(a); and
194 (C) that a subcontractor that is subject to the requirements of this section shall obtain a
195 written statement described in Subsection (5)(c)(ii);
196 (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
197 violates the provisions of this section, which may include:
198 (A) a three-month suspension of the contractor or subcontractor from entering into
199 future contracts with the public transit district upon the first violation;
200 (B) a six-month suspension of the contractor or subcontractor from entering into future
201 contracts with the public transit district upon the second violation;
202 (C) an action for debarment of the contractor or subcontractor in accordance with
203 Section 63G-6a-904 upon the third or subsequent violation; and
204 (D) monetary penalties which may not exceed 50% of the amount necessary to
205 purchase qualified health coverage for employees and dependents of employees of the
206 contractor or subcontractor who were not offered qualified health coverage during the duration
207 of the contract; and
208 (iii) a website on which the district shall post the commercially equivalent benchmark,
209 for the qualified health coverage identified in Subsection (1)(e), that is provided by the
210 Department of Health, in accordance with Subsection 26-40-115(2).
211 (7) (a) (i) In addition to the penalties imposed under Subsection (6)(b)(ii), a contractor
212 or subcontractor who intentionally violates the provisions of this section is liable to the
213 employee for health care costs that would have been covered by qualified health coverage.
214 (ii) An employer has an affirmative defense to a cause of action under Subsection
215 (7)(a)(i) if:
216 (A) the employer relied in good faith on a written statement described in Subsection
217 (5)(a) or (5)(c)(ii); or
218 (B) a department or division determines that compliance with this section is not
219 required under the provisions of Subsection (3).
220 (b) An employee has a private right of action only against the employee's employer to
221 enforce the provisions of this Subsection (7).
222 (8) Any penalties imposed and collected under this section shall be deposited into the
223 Medicaid Restricted Account created in Section 26-18-402.
224 (9) The failure of a contractor or subcontractor to provide qualified health coverage as
225 required by this section:
226 (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
227 or contractor under:
228 (i) Section 63G-6a-1602; or
229 (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
230 (b) may not be used by the procurement entity or a prospective bidder, offeror, or
231 contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
232 or construction.
233 (10) An administrator, including an administrator's actuary or underwriter, who
234 provides a written statement under Subsection (5)(a) or (c) regarding the qualified health
235 coverage of a contractor or subcontractor who provides a health benefit plan described in
236 Subsection (1)(d)(ii):
237 (a) subject to Subsection (10)(b), is not liable for an error in the written statement,
238 unless the administrator commits gross negligence in preparing the written statement;
239 (b) is not liable for any error in the written statement if the administrator relied in good
240 faith on information from the contractor or subcontractor; and
241 (c) may require as a condition of providing the written statement that a contractor or
242 subcontractor hold the administrator harmless for an action arising under this section.
243 Section 2. Section 19-1-206 is amended to read:
244 19-1-206. Contracting powers of department -- Health insurance coverage.
245 (1) As used in this section:
246 (a) "Aggregate" means the sum of all contracts, change orders, and modifications
247 related to a single project.
248 (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
249 (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
250 "operative" who:
251 (i) works at least 30 hours per calendar week; and
252 (ii) meets employer eligibility waiting requirements for health care insurance, which
253 may not exceed the first day of the calendar month following 60 days after the day on which
254 the individual is hired.
255 (d) "Health benefit plan" means:
256 (i) the same as that term is defined in Section 31A-1-301; or
257 (ii) an employee welfare benefit plan:
258 (A) established under the Employee Retirement Income Security Act of 1974, 29
259 U.S.C. Sec. 1001 et seq.;
260 (B) for an employer with 100 or more employees; and
261 (C) in which the employer establishes a self-funded or partially self-funded group
262 health plan to provide medical care for the employer's employees and dependents of the
263 employees.
264 (e) "Qualified health coverage" means the same as that term is defined in Section
265 26-40-115.
266 (f) "Subcontractor" means the same as that term is defined in Section 63A-5b-605.
267 (g) "Third party administrator" or "administrator" means the same as that term is
268 defined in Section 31A-1-301.
269 (2) Except as provided in Subsection (3), the requirements of this section apply to:
270 (a) a contractor of a design or construction contract entered into by, or delegated to, the
271 department, or a division or board of the department, on or after July 1, 2009, if the prime
272 contract is in an aggregate amount equal to or greater than $2,000,000; and
273 (b) a subcontractor of a contractor of a design or construction contract entered into by,
274 or delegated to, the department, or a division or board of the department, on or after July 1,
275 2009, if the subcontract is in an aggregate amount equal to or greater than $1,000,000.
276 (3) This section does not apply to contracts entered into by the department or a division
277 or board of the department if:
278 (a) the application of this section jeopardizes the receipt of federal funds;
279 (b) the contract or agreement is between:
280 (i) the department or a division or board of the department; and
281 (ii) (A) another agency of the state;
282 (B) the federal government;
283 (C) another state;
284 (D) an interstate agency;
285 (E) a political subdivision of this state; or
286 (F) a political subdivision of another state;
287 (c) the executive director determines that applying the requirements of this section to a
288 particular contract interferes with the effective response to an immediate health and safety
289 threat from the environment; or
290 (d) the contract is:
291 (i) a sole source contract; or
292 (ii) an emergency procurement.
293 (4) A person that intentionally uses change orders, contract modifications, or multiple
294 contracts to circumvent the requirements of this section is guilty of an infraction.
295 (5) (a) A contractor subject to the requirements of this section shall demonstrate to the
296 executive director that the contractor has and will maintain an offer of qualified health
297 coverage for the contractor's employees and the employees' dependents during the duration of
298 the contract by submitting to the executive director a written statement that:
299 (i) the contractor offers qualified health coverage that complies with Section
300 26-40-115;
301 (ii) is from:
302 (A) an actuary selected by the contractor or the contractor's insurer;
303 (B) an underwriter who is responsible for developing the employer group's premium
304 rates; or
305 (C) if the contractor provides a health benefit plan described in Subsection (1)(d)(ii),
306 an actuary or underwriter selected by a third party administrator; and
307 (iii) was created within one year before the day on which the statement is submitted.
308 (b) (i) A contractor that provides a health benefit plan described in Subsection (1)(d)(ii)
309 shall provide the actuary or underwriter selected by an administrator, as described in
310 Subsection (5)(a)(ii)(C), sufficient information to determine whether the contractor's
311 contribution to the health benefit plan and the actuarial value of the health benefit plan meet the
312 requirements of qualified health coverage.
313 (ii) A contractor may not make a change to the contractor's contribution to the health
314 benefit plan, unless the contractor provides notice to:
315 (A) the actuary or underwriter selected by an administrator, as described in Subsection
316 (5)(a)(ii)(C), for the actuary or underwriter to update the written statement described in
317 Subsection (5)(a) in compliance with this section; and
318 (B) the department.
319 (c) A contractor that is subject to the requirements of this section shall:
320 (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
321 is subject to the requirements of this section shall obtain and maintain an offer of qualified
322 health coverage for the subcontractor's employees and the employees' dependents during the
323 duration of the subcontract; and
324 (ii) obtain from a subcontractor that is subject to the requirements of this section a
325 written statement that:
326 (A) the subcontractor offers qualified health coverage that complies with Section
327 26-40-115;
328 (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, an
329 underwriter who is responsible for developing the employer group's premium rates, or if the
330 subcontractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or
331 underwriter selected by an administrator; and
332 (C) was created within one year before the day on which the contractor obtains the
333 statement.
334 (d) (i) (A) A contractor that fails to maintain an offer of qualified health coverage
335 described in Subsection (5)(a) during the duration of the contract is subject to penalties in
336 accordance with administrative rules adopted by the department under Subsection (6).
337 (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
338 and maintain an offer of qualified health coverage described in Subsection (5)(c)(i).
339 (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
340 coverage described in Subsection (5)(c) during the duration of the subcontract is subject to
341 penalties in accordance with administrative rules adopted by the department under Subsection
342 (6).
343 (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
344 an offer of qualified health coverage described in Subsection (5)(a).
345 (6) The department shall adopt administrative rules:
346 (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
347 (b) in coordination with:
348 (i) a public transit district in accordance with Section 17B-2a-818.5;
349 (ii) the Department of Natural Resources in accordance with Section 79-2-404;
350 (iii) the [
351 accordance with Section 63A-5b-607;
352 (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403;
353 (v) the Department of Transportation in accordance with Section 72-6-107.5; and
354 (vi) the Legislature's Administrative Rules Review Committee; and
355 (c) that establish:
356 (i) the requirements and procedures a contractor and a subcontractor shall follow to
357 demonstrate compliance with this section, including:
358 (A) that a contractor or subcontractor's compliance with this section is subject to an
359 audit by the department or the Office of the Legislative Auditor General;
360 (B) that a contractor that is subject to the requirements of this section shall obtain a
361 written statement described in Subsection (5)(a); and
362 (C) that a subcontractor that is subject to the requirements of this section shall obtain a
363 written statement described in Subsection (5)(c)(ii);
364 (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
365 violates the provisions of this section, which may include:
366 (A) a three-month suspension of the contractor or subcontractor from entering into
367 future contracts with the state upon the first violation;
368 (B) a six-month suspension of the contractor or subcontractor from entering into future
369 contracts with the state upon the second violation;
370 (C) an action for debarment of the contractor or subcontractor in accordance with
371 Section 63G-6a-904 upon the third or subsequent violation; and
372 (D) notwithstanding Section 19-1-303, monetary penalties which may not exceed 50%
373 of the amount necessary to purchase qualified health coverage for an employee and the
374 dependents of an employee of the contractor or subcontractor who was not offered qualified
375 health coverage during the duration of the contract; and
376 (iii) a website on which the department shall post the commercially equivalent
377 benchmark, for the qualified health coverage identified in Subsection (1)(e), that is provided by
378 the Department of Health, in accordance with Subsection 26-40-115(2).
379 (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
380 or subcontractor who intentionally violates the provisions of this section is liable to the
381 employee for health care costs that would have been covered by qualified health coverage.
382 (ii) An employer has an affirmative defense to a cause of action under Subsection
383 (7)(a)(i) if:
384 (A) the employer relied in good faith on a written statement described in Subsection
385 (5)(a) or (5)(c)(ii); or
386 (B) the department determines that compliance with this section is not required under
387 the provisions of Subsection (3).
388 (b) An employee has a private right of action only against the employee's employer to
389 enforce the provisions of this Subsection (7).
390 (8) Any penalties imposed and collected under this section shall be deposited into the
391 Medicaid Restricted Account created in Section 26-18-402.
392 (9) The failure of a contractor or subcontractor to provide qualified health coverage as
393 required by this section:
394 (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
395 or contractor under:
396 (i) Section 63G-6a-1602; or
397 (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
398 (b) may not be used by the procurement entity or a prospective bidder, offeror, or
399 contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
400 or construction.
401 (10) An administrator, including an administrator's actuary or underwriter, who
402 provides a written statement under Subsection (5)(a) or (c) regarding the qualified health
403 coverage of a contractor or subcontractor who provides a health benefit plan described in
404 Subsection (1)(d)(ii):
405 (a) subject to Subsection (10)(b), is not liable for an error in the written statement,
406 unless the administrator commits gross negligence in preparing the written statement;
407 (b) is not liable for any error in the written statement if the administrator relied in good
408 faith on information from the contractor or subcontractor; and
409 (c) may require as a condition of providing the written statement that a contractor or
410 subcontractor hold the administrator harmless for an action arising under this section.
411 Section 3. Section 53B-2a-112 (Superseded 07/01/22) is amended to read:
412 53B-2a-112 (Superseded 07/01/22). Technical colleges -- Relationships with other
413 public and higher education institutions -- Agreements -- Priorities -- New capital
414 facilities.
415 (1) As used in this section, "higher education institution" means:
416 (a) Utah State University for:
417 (i) Bridgerland Technical College;
418 (ii) Tooele Technical College; and
419 (iii) Uintah Basin Technical College;
420 (b) Weber State University for:
421 (i) Ogden-Weber Technical College; and
422 (ii) Davis Technical College;
423 (c) Utah Valley University for Mountainland Technical College;
424 (d) Southern Utah University for Southwest Technical College; and
425 (e) Dixie State University for Dixie Technical College.
426 (2) A technical college may enter into agreements:
427 (a) with other higher education institutions to cultivate cooperative relationships; or
428 (b) with other public and higher education institutions to enhance career and technical
429 education within the technical college's region.
430 (3) Before a technical college develops new instructional facilities, the technical
431 college shall give priority to:
432 (a) maintaining the technical college's existing instructional facilities for both
433 secondary and adult students;
434 (b) coordinating with the president of the technical college's higher education
435 institution and entering into any necessary agreements to provide career and technical
436 education to secondary and adult students that:
437 (i) maintain and support existing higher education career and technical education
438 programs; and
439 (ii) maximize the use of existing higher education facilities; and
440 (c) developing cooperative agreements with school districts, charter schools, other
441 higher education institutions, businesses, industries, and community and private agencies to
442 maximize the availability of career and technical education instructional facilities for both
443 secondary and adult students.
444 (4) (a) Before submitting a funding request pertaining to new capital facilities and land
445 purchases to the board, a technical college shall:
446 (i) ensure that all available instructional facilities are maximized in accordance with
447 Subsections (3)(a) through (c); and
448 (ii) coordinate the request with the president of the technical college's higher education
449 institution, if applicable.
450 (b) The [
451 shall make a finding that the requirements of this section are met before the [
452
453 from the board pertaining to new capital facilities and land purchases for a technical college.
454 (c) A technical college may not construct, approve the construction of, plan for the
455 design or construction of, or consent to the construction of a career and technical education
456 facility without approval of the Legislature.
457 (5) Before acquiring new fiscal and administrative support structures, a technical
458 college shall:
459 (a) review the use of existing public or higher education administrative and accounting
460 systems, financial record systems, and student and financial aid systems for the delivery of
461 career and technical education in the region;
462 (b) determine the feasibility of using existing systems; and
463 (c) with the approval of the technical college board of trustees and the board, use the
464 existing systems.
465 Section 4. Section 53B-2a-112 (Effective 07/01/22) is amended to read:
466 53B-2a-112 (Effective 07/01/22). Technical colleges -- Relationships with other
467 public and higher education institutions -- Agreements -- Priorities -- New capital
468 facilities.
469 (1) As used in this section, "higher education institution" means:
470 (a) Utah State University for:
471 (i) Bridgerland Technical College;
472 (ii) Tooele Technical College; and
473 (iii) Uintah Basin Technical College;
474 (b) Weber State University for:
475 (i) Ogden-Weber Technical College; and
476 (ii) Davis Technical College;
477 (c) Utah Valley University for Mountainland Technical College;
478 (d) Southern Utah University for Southwest Technical College; and
479 (e) Utah Tech University for Dixie Technical College.
480 (2) A technical college may enter into agreements:
481 (a) with other higher education institutions to cultivate cooperative relationships; or
482 (b) with other public and higher education institutions to enhance career and technical
483 education within the technical college's region.
484 (3) Before a technical college develops new instructional facilities, the technical
485 college shall give priority to:
486 (a) maintaining the technical college's existing instructional facilities for both
487 secondary and adult students;
488 (b) coordinating with the president of the technical college's higher education
489 institution and entering into any necessary agreements to provide career and technical
490 education to secondary and adult students that:
491 (i) maintain and support existing higher education career and technical education
492 programs; and
493 (ii) maximize the use of existing higher education facilities; and
494 (c) developing cooperative agreements with school districts, charter schools, other
495 higher education institutions, businesses, industries, and community and private agencies to
496 maximize the availability of career and technical education instructional facilities for both
497 secondary and adult students.
498 (4) (a) Before submitting a funding request pertaining to new capital facilities and land
499 purchases to the board, a technical college shall:
500 (i) ensure that all available instructional facilities are maximized in accordance with
501 Subsections (3)(a) through (c); and
502 (ii) coordinate the request with the president of the technical college's higher education
503 institution, if applicable.
504 (b) The [
505 shall make a finding that the requirements of this section are met before the [
506
507 from the board pertaining to new capital facilities and land purchases for a technical college.
508 (c) A technical college may not construct, approve the construction of, plan for the
509 design or construction of, or consent to the construction of a career and technical education
510 facility without approval of the Legislature.
511 (5) Before acquiring new fiscal and administrative support structures, a technical
512 college shall:
513 (a) review the use of existing public or higher education administrative and accounting
514 systems, financial record systems, and student and financial aid systems for the delivery of
515 career and technical education in the region;
516 (b) determine the feasibility of using existing systems; and
517 (c) with the approval of the technical college board of trustees and the board, use the
518 existing systems.
519 Section 5. Section 53B-2a-117 is amended to read:
520 53B-2a-117. Legislative approval -- Capital development projects --
521 Prioritization.
522 (1) As used in this section:
523 (a) "Consumer Price Index" means the Consumer Price Index for All Urban Consumers
524 as published by the Bureau of Labor Statistics of the United States Department of Labor.
525 (b) "Fund" means the Technical Colleges Capital Projects Fund created in Section
526 53B-2a-118.
527 (2) In accordance with this section, a technical college is required to receive legislative
528 approval in an appropriations act for a dedicated project or a nondedicated project.
529 (3) In accordance with Section 53B-2a-112, a technical college shall submit to the
530 board a proposal for a funding request for each dedicated project or nondedicated project for
531 which the technical college seeks legislative approval.
532 (4) The board shall:
533 (a) review each proposal submitted under Subsection (3) to ensure that the proposal
534 complies with Section 53B-2a-112;
535 (b) based on the results of the board's review under Subsection (4)(a), create:
536 (i) a list of approved dedicated projects, prioritized in accordance with Subsection (6);
537 and
538 (ii) a list of approved nondedicated projects, prioritized in accordance with Subsection
539 (6); and
540 (c) submit the lists described in Subsection (4)(b) to:
541 (i) the governor;
542 (ii) the Infrastructure and General Government Appropriations Subcommittee;
543 (iii) the Higher Education Appropriations Subcommittee; and
544 [
545 (iv) the Division of Facilities Construction and Management for a:
546 (A) recommendation, for the list described in Subsection (4)(b)(i); or
547 (B) recommendation and prioritization, for the list described in Subsection (4)(b)(ii).
548 (5) A dedicated project:
549 (a) is subject to the [
550 Facilities Construction and Management as described in Section 63A-5b-403; and
551 (b) is not subject to the [
552 Facilities Construction and Management as described in Section 63A-5b-403.
553 (6) (a) Subject to Subsection (7), the board shall prioritize funding requests for capital
554 development projects described in this section based on:
555 (i) growth and capacity;
556 (ii) effectiveness and support of critical programs;
557 (iii) cost effectiveness;
558 (iv) building deficiencies and life safety concerns; and
559 (v) alternative funding sources.
560 (b) The board shall establish:
561 (i) how the board will measure each factor described in Subsection (6)(a); and
562 (ii) procedures for prioritizing funding requests for capital development projects
563 described in this section.
564 (7) (a) Subject to Subsection (7)(b), and in accordance with Subsection (6), the board
565 may annually prioritize:
566 (i) up to three nondedicated projects if the ongoing appropriation to the fund is less
567 than $7,000,000;
568 (ii) up to two nondedicated projects if the ongoing appropriation to the fund is at least
569 $7,000,000 but less than $14,000,000; or
570 (iii) one nondedicated project if the ongoing appropriation to the fund is at least
571 $14,000,000.
572 (b) For each calendar year beginning on or after January 1, 2020, the dollar amounts
573 described in Subsection (7)(a) shall be adjusted by an amount equal to the percentage
574 difference between:
575 (i) the Consumer Price Index for the 2019 calendar year; and
576 (ii) the Consumer Price Index for the previous calendar year.
577 (8) (a) A technical college may request operations and maintenance funds for a capital
578 development project approved under this section.
579 (b) The Legislature shall consider a technical college's request described in Subsection
580 (8)(a).
581 Section 6. Section 53B-7-101 is amended to read:
582 53B-7-101. Combined requests for appropriations -- Board review of operating
583 budgets -- Submission of budgets -- Recommendations -- Hearing request --
584 Appropriation formulas -- Allocations -- Dedicated credits -- Financial affairs.
585 (1) As used in this section:
586 (a) "Higher education institution" or "institution" means an institution of higher
587 education listed in Section 53B-1-102.
588 (b) "Research university" means the University of Utah or Utah State University.
589 (2) (a) Subject to Subsection (3), the board shall recommend a combined appropriation
590 for the operating budgets of higher education institutions for inclusion in a state appropriations
591 act.
592 (b) The board's combined budget recommendation shall include:
593 (i) employee compensation;
594 (ii) mandatory costs, including building operations and maintenance, fuel, and power;
595 (iii) performance funding described in Part 7, Performance Funding;
596 (iv) statewide and institutional priorities, including scholarships, financial aid, and
597 technology infrastructure; and
598 (v) enrollment growth.
599 (c) The board's recommendations shall be available for presentation to the governor
600 and to the Legislature at least 30 days before the convening of the Legislature, and shall include
601 schedules showing the recommended amounts for each institution, including separately funded
602 programs or divisions.
603 (d) The recommended appropriations shall be determined by the board only after the
604 board has reviewed the proposed institutional operating budgets, and has consulted with the
605 various institutions and board staff in order to make appropriate adjustments.
606 (3) In the combined request for appropriation, the board shall differentiate between
607 appropriations requested for academic education and appropriations requested for technical
608 education.
609 (4) (a) Institutional operating budgets shall be submitted to the board at least 90 days
610 before the convening of the Legislature in accordance with procedures established by the board.
611 (b) Except as provided in Sections 53B-2a-117 and 53B-22-204, funding requests
612 pertaining to capital facilities and land purchases shall be submitted in accordance with
613 procedures prescribed by the [
614 Management.
615 (5) (a) The budget recommendations of the board shall be accompanied by full
616 explanations and supporting data.
617 (b) The appropriations recommended by the board shall be made with the dual
618 objective of:
619 (i) justifying for higher education institutions appropriations consistent with their
620 needs, and consistent with the financial ability of the state; and
621 (ii) determining an equitable distribution of funds among the respective institutions in
622 accordance with the aims and objectives of the statewide master plan for higher education.
623 (6) (a) The board shall request a hearing with the governor on the recommended
624 appropriations.
625 (b) After the governor delivers his budget message to the Legislature, the board shall
626 request hearings on the recommended appropriations with the Higher Education
627 Appropriations Subcommittee.
628 (c) If either the total amount of the state appropriations or its allocation among the
629 institutions as proposed by the Legislature or the Higher Education Appropriations
630 Subcommittee is substantially different from the recommendations of the board, the board may
631 request further hearings with the Legislature or the Higher Education Appropriations
632 Subcommittee to reconsider both the total amount and the allocation.
633 (7) The board may devise, establish, periodically review, and revise formulas for the
634 board's use and for the use of the governor and the Higher Education Appropriations
635 Subcommittee in making appropriation recommendations.
636 (8) (a) The board shall recommend to each session of the Legislature the minimum
637 tuitions, resident and nonresident, for each institution which it considers necessary to
638 implement the budget recommendations.
639 (b) The board may fix the tuition, fees, and charges for each institution at levels the
640 board finds necessary to meet budget requirements.
641 (9) Money allocated to each institution by legislative appropriation may be budgeted in
642 accordance with institutional work programs approved by the board, provided that the
643 expenditures funded by appropriations for each institution are kept within the appropriations
644 for the applicable period.
645 (10) The dedicated credits, including revenues derived from tuitions, fees, federal
646 grants, and proceeds from sales received by the institutions are appropriated to the respective
647 institutions to be used in accordance with institutional work programs.
648 (11) An institution may do the institution's own purchasing, issue the institution's own
649 payrolls, and handle the institution's own financial affairs under the general supervision of the
650 board.
651 (12) If the Legislature appropriates money in accordance with this section, the money
652 shall be distributed to the board and higher education institutions to fund the items described in
653 Subsection (2)(b).
654 Section 7. Section 53B-22-204 is amended to read:
655 53B-22-204. Funding request for capital development project -- Legislative
656 approval -- Board prioritization, approval, and review.
657 (1) In accordance with this section, an institution is required to receive legislative
658 approval in an appropriations act for a dedicated project or a nondedicated project.
659 (2) An institution shall submit to the board a proposal for a funding request for each
660 dedicated project or nondedicated project for which the institution seeks legislative approval.
661 (3) The board shall:
662 (a) review each proposal submitted under Subsection (2) to ensure the proposal:
663 (i) is cost effective and an efficient use of resources;
664 (ii) is consistent with the institution's mission and master plan; and
665 (iii) fulfills a critical institutional facility need;
666 (b) based on the results of the board's review under Subsection (3)(a), create:
667 (i) a list of approved dedicated projects; and
668 (ii) a list of approved nondedicated projects, prioritized in accordance with Subsection
669 (5); and
670 (c) submit the lists described in Subsection (3)(b) to:
671 (i) the governor;
672 (ii) the Infrastructure and General Government Appropriations Subcommittee;
673 (iii) the Higher Education Appropriations Subcommittee; and
674 [
675 (iv) the Division of Facilities Construction and Management for a:
676 (A) recommendation, for the list described in Subsection (3)(b)(i); or
677 (B) recommendation and prioritization, for the list described in Subsection (3)(b)(ii).
678 (4) A dedicated project:
679 (a) is subject to the [
680 Facilities Construction and Management as described in Section 63A-5b-403; and
681 (b) is not subject to the [
682 Facilities Construction and Management as described in Section 63A-5b-403.
683 (5) (a) Subject to Subsection (6), the board shall prioritize institution requests for
684 funding for nondedicated projects based on:
685 (i) capital facility need;
686 (ii) utilization of facilities;
687 (iii) maintenance and condition of facilities; and
688 (iv) any other factor determined by the board.
689 (b) On or before August 1, 2019, the board shall establish how the board will prioritize
690 institution requests for funding for nondedicated projects, including:
691 (i) how the board will measure each factor described in Subsection (5)(a); and
692 (ii) procedures for prioritizing requests.
693 (6) (a) Subject to Subsection (6)(b), and in accordance with Subsection (5), the board
694 may annually prioritize:
695 (i) up to three nondedicated projects if the ongoing appropriation to the fund is less
696 than $50,000,000;
697 (ii) up to two nondedicated projects if the ongoing appropriation to the fund is at least
698 $50,000,000 but less than $100,000,000; or
699 (iii) one nondedicated project if the ongoing appropriation to the fund is at least
700 $100,000,000.
701 (b) For each calendar year beginning on or after January 1, 2020, the dollar amounts
702 described in Subsection (6)(a) shall be adjusted by an amount equal to the percentage
703 difference between:
704 (i) the Consumer Price Index for the 2019 calendar year; and
705 (ii) the Consumer Price Index for the previous calendar year.
706 (7) (a) An institution may request operations and maintenance funds for a capital
707 development project approved under this section.
708 (b) The Legislature shall consider an institution's request described in Subsection
709 (7)(a).
710 (8) After an institution completes a capital development project described in this
711 section, the board shall review the capital development project, including the costs and design
712 of the capital development project.
713 Section 8. Section 63A-5b-102 is amended to read:
714 63A-5b-102. Definitions.
715 As used in this chapter:
716 [
717 [
718 63C-9-102.
719 [
720 63C-9-102.
721 [
722 15A-1-202.
723 [
724 [
725 created in Section 63A-5b-301.
726 [
727 53B-2-101(1).
728 [
729 Administration established in Section 53C-1-201.
730 [
731 established in Section 53B-1-402.
732 Section 9. Section 63A-5b-303 is amended to read:
733 63A-5b-303. Duties and authority of division.
734 (1) (a) The division shall:
735 (i) subject to Subsection (1)(b), supervise and control the allocation of space, in
736 accordance with legislative directive through annual appropriations acts, other legislation, or
737 statute, to agencies in all buildings or space owned, leased, or rented by or to the state, except
738 as provided in Subsection (3) or as otherwise provided by statute;
739 (ii) assure the efficient use of all building space under the division's supervision and
740 control;
741 (iii) acquire title to all real property, buildings, fixtures, and appurtenances for use by
742 the state or an agency, as authorized by the Legislature through an appropriation act, other
743 legislation, or statute, subject to Subsection (1)(c);
744 (iv) except as otherwise provided by statute, hold title to all real property, buildings,
745 fixtures, and appurtenances owned by the state or an agency;
746 (v) collect and maintain all deeds, abstracts of title, and all other documents evidencing
747 title to or an interest in property belonging to the state or [
748 institutions of higher education and the trust lands administration;
749 (vi) (A) periodically conduct a market analysis of proposed rates and fees; and
750 (B) include in a market analysis a comparison of the division's rates and fees with the
751 rates and fees of other public or private sector providers of comparable services, if rates and
752 fees for comparable services are reasonably available;
753 (vii) fulfill the division's responsibilities under Part 10, Energy Conservation and
754 Efficiency, including responsibilities:
755 (A) to implement the state building energy efficiency program under Section
756 63A-5b-1002; and
757 (B) related to the approval of loans from the State Facility Energy Efficiency Fund
758 under Section 63A-5a-1003;
759 (viii) convey, lease, or dispose of the real property, water rights, or water shares
760 associated with the Utah State Developmental Center if directed to do so by the Utah State
761 Developmental Center board, as provided in Subsection 62A-5-206.6(2); and
762 (ix) take all other action that the division is required to do under this chapter or other
763 applicable statute.
764 (b) In making an allocation of space under Subsection (1)(a)(i), the division shall
765 conduct one or more studies to determine the actual needs of each agency.
766 (c) The division may, without legislative approval, acquire title to real property for use
767 by the state or an agency if the acquisition cost does not exceed [
768 (2) The division may:
769 (a) sue and be sued;
770 (b) as authorized by the Legislature, buy, lease, or otherwise acquire, by exchange or
771 otherwise, and hold real or personal property necessary for the discharge of the division's
772 duties; and
773 (c) take all other action necessary for carrying out the purposes of this chapter.
774 (3) (a) The division may not supervise or control the allocation of space for [
775
776 (b) The supervision and control of the legislative area is reserved to the Legislature.
777 [
778 [
779 reserved to the State Capitol Preservation Board.
780 (d) (i) Subject to Subsection (3)(d)(ii), the supervision and control of the allocation of
781 space for an institution of higher education is reserved to the Utah Board of Higher Education.
782 (ii) The Utah Board of Higher Education shall consult and cooperate with the division
783 in the establishment and enforcement of standards for the supervision and control of the
784 allocation of space for an institution of higher education.
785 (e) (i) Subject to Subsection (3)(e)(ii), the supervision and control of the allocation of
786 space for the courts of record listed in Subsection 78A-1-101(1) is reserved to the
787 Administrative Office of the Courts referred to in Subsection 78A-2-108(3).
788 (ii) The Administrative Office of the Courts shall consult and cooperate with the
789 division in the establishment and enforcement of standards for the supervision and control of
790 the allocation of space for the courts of record listed in Subsection 78A-1-101(1).
791 (4) Before the division charges a rate, fee, or other amount for a service provided by
792 the division's internal service fund to an executive branch agency, or to a service subscriber
793 other than an executive branch agency, the division shall:
794 (a) submit an analysis of the proposed rate, fee, or other amount to the rate committee
795 created in Section 63A-1-114; and
796 (b) obtain the approval of the Legislature as required by Section 63J-1-410.
797 Section 10. Section 63A-5b-402 is amended to read:
798 63A-5b-402. Capital development process -- Approval requirements.
799 (1) Except as provided in Section 63A-5b-404, the [
800 all agencies, submit capital development project recommendations and priorities to the
801 Legislature for approval and prioritization.
802 (2) An agency that requests an appropriation for a capital development project shall
803 submit to the division for transmission to the [
804 request and a feasibility study relating to the capital development project.
805 (3) (a) The division shall, [
806 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules that establish standards and
807 requirements for a capital development project request and feasibility study.
808 (b) The rules shall include:
809 (i) a deadline by which an agency is required to submit a capital development project
810 request;
811 (ii) conditions under which an agency may modify the agency's capital development
812 project request after the agency submits the request, and requirements applicable to a
813 modification; and
814 (iii) requirements for the contents of a feasibility study, including:
815 (A) the need for the capital development project;
816 (B) the appropriateness of the scope of the capital development project;
817 (C) any private funding for the capital development project; and
818 (D) the economic and community impacts of the capital development project.
819 (4) The division shall verify the completion and accuracy of a feasibility study that an
820 agency submits under Subsection (2) prior to [
821 submitting capital development project recommendations and priorities under Subsection (1).
822 Section 11. Section 63A-5b-403 is amended to read:
823 63A-5b-403. Institutions of higher education -- Capital development projects --
824 Dedicated and nondedicated projects -- Recommendations and prioritization.
825 (1) As used in this section:
826 (a) "Dedicated project" has the same meaning as that term is defined in:
827 (i) Section 53B-2a-101, for a capital development project under Title 53B, Chapter 2a,
828 Technical Education; or
829 (ii) Section 53B-22-201, for a capital development project under Title 53B, Chapter 22,
830 Higher Education Capital Projects.
831 (b) "Nondedicated project" has the same meaning as that term is defined in:
832 (i) Section 53B-2a-101, for a capital development project under Title 53B, Chapter 2a,
833 Technical Education; or
834 (ii) Section 53B-22-201, for a capital development project under Title 53B, Chapter 22,
835 Higher Education Capital Projects.
836 (2) (a) The [
837 accordance with:
838 (i) Section 53B-2a-117, for a dedicated project under Title 53B, Chapter 2a, Technical
839 Education; or
840 (ii) Section 53B-22-204, for a dedicated project under Title 53B, Chapter 22, Higher
841 Education Capital Projects.
842 (b) A dedicated project is not subject to prioritization by the [
843 (3) (a) The [
844 (i) Section 63A-5b-402; and
845 (ii) (A) Section 53B-2a-117, for a nondedicated project under Title 53B, Chapter 2a,
846 Technical Education; or
847 (B) Section 53B-22-204, for a nondedicated project under Title 53B, Chapter 22,
848 Higher Education Capital Projects.
849 (b) In the [
850 [
851 the Utah Board of Higher Education than a request that is designated as a lower priority by the
852 Utah Board of Higher Education only for determining the order of prioritization among
853 requests submitted by the Utah Board of Higher Education.
854 (4) The [
855 submits a request for a capital development project address whether and how, as a result of the
856 project, the institution of higher education will:
857 (a) offer courses or other resources that will help meet demand for jobs, training, and
858 employment in the current market and the projected market for the next five years;
859 (b) respond to individual skilled and technical job demand over the next three, five,
860 and 10 years;
861 (c) respond to industry demands for trained workers;
862 (d) help meet commitments made by the Governor's Office of Economic Opportunity,
863 including relating to training and incentives;
864 (e) respond to changing needs in the economy; and
865 (f) respond to demands for online or in-class instruction, based on demographics.
866 (5) The division shall:
867 (a) (i) assist institutions of higher education in providing the information required by
868 Subsection [
869 (ii) verify the completion and accuracy of the information submitted by an institution
870 of higher education under Subsection [
871 (b) assist the Utah Board of Higher Education to fulfill the requirements of Section
872 53B-2a-112 in connection with the finding that the [
873 make under Subsection 53B-2a-112[
874 (c) assist the Utah Board of Higher Education in submitting a list of dedicated projects
875 to the [
876 recommendation and prioritization pursuant to Section 53B-22-204.
877 Section 12. Section 63A-5b-404 is amended to read:
878 63A-5b-404. Exceptions to requirement of legislative approval for capital
879 development projects.
880 (1) (a) Except as provided in this section, a capital development project may not be
881 constructed on state property without legislative approval.
882 (b) The [
883 without legislative approval only as provided in this section.
884 (2) (a) Legislative approval is not required for a capital development project that
885 consists of the design or construction of a new facility if:
886 (i) the [
887 assurance that state funds will not be used for the design or construction of the facility;
888 (ii) the agency provides to the [
889 of the agency:
890 (A) stating that funding or a revenue stream is in place, or will be in place before the
891 project is completed, to ensure that increased state funding will not be required to cover the
892 cost of operations and maintenance for the resulting facility or for immediate or future capital
893 improvements; and
894 (B) detailing the source of the funding that will be used for the cost of operations and
895 maintenance and for immediate and future capital improvements to the resulting facility; and
896 (iii) the [
897 (A) is appropriate and consistent with the master plan for the property; and
898 (B) will not create an adverse impact on the state.
899 (b) For a facility constructed without legislative approval under Subsection (2)(a), an
900 agency may not request:
901 (i) increased state funds for operations and maintenance; or
902 (ii) increased state capital improvement funding.
903 (3) Legislative approval is not required for:
904 (a) a facility:
905 (i) to be built with funds other than state funds and owned by an entity other than a
906 state entity; and
907 (ii) that is within a research park area at the University of Utah or Utah State
908 University;
909 (b) a facility to be built at This is the Place State Park by the This is the Place
910 Foundation with funds of the This is the Place Foundation or with donated services or materials
911 and that may include grant money from the state;
912 (c) a project that:
913 (i) is funded by the Uintah Basin Revitalization Fund or the Navajo Revitalization
914 Fund; and
915 (ii) does not provide a new facility for an agency or institution of higher education; or
916 (d) a project on school and institutional trust lands that:
917 (i) is funded by the trust lands administration from the Land Grant Management Fund;
918 and
919 (ii) does not fund construction of a new facility for an agency or institution of higher
920 education.
921 (4) (a) Legislative approval is not required for a capital development project to be built
922 for the Department of Transportation resulting from:
923 (i) an exchange of real property under Section 72-5-111; or
924 (ii) a sale or exchange of real property from a maintenance facility if the proceeds from
925 the sale of the real property are used for, or the real property is exchanged for:
926 (A) real property for another maintenance facility; or
927 (B) another maintenance facility, including improvements for a maintenance facility.
928 (b) If the Department of Transportation approves a sale or exchange under Subsection
929 (4)(a) for a capital development project subject to the board's approval, the Department of
930 Transportation shall notify the president of the Senate, the speaker of the House of
931 Representatives, and the cochairs of the Infrastructure and General Government Appropriations
932 Subcommittee of the Legislature's Joint Appropriations Committee about any new facilities to
933 be built or improved.
934 Section 13. Section 63A-5b-503 is amended to read:
935 63A-5b-503. Planning Fund expenditures authorized -- Ceiling on expenditures --
936 Recovery.
937 (1) The Planning Fund shall be used to make payments for engineering, architectural,
938 and other planning expenses necessary to make a meaningful cost estimate of any facility or
939 improvement with a demonstrable or immediate need.
940 (2) The director may make expenditures from the Planning Fund in order to provide
941 planning information to [
942 $350,000 in outstanding Planning Fund commitments.
943 (3) (a) The director shall authorize all payments made from the Planning Fund.
944 (b) Payments from the Planning Fund shall be a charge on the project for which they
945 were drawn.
946 (c) If the Legislature appropriates money for a building project for which planning
947 costs have previously been paid from the Planning Fund, the director shall credit that amount to
948 the Planning Fund.
949 (4) (a) The director may expend money from the Planning Fund for architectural and
950 engineering services incident to the planning and preparation of applications for funds on
951 construction financed by other than state sources, including federal grants.
952 (b) Upon approval of financing referred to in Subsection (4)(a), the director shall
953 reimburse to the Planning Fund the money spent for architectural and engineering services.
954 Section 14. Section 63A-5b-601 is amended to read:
955 63A-5b-601. Definitions.
956 As used in this part:
957 (1) (a) "Facility" means any building, structure, or other improvement that is
958 constructed:
959 (i) on property [
960 commissions, institutions, or agencies owns; or
961 (ii) by the state[
962 agencies on property [
963 (b) "Facility" does not mean an unoccupied structure that is a component of the state
964 highway system.
965 (2) "Local government" means the county, municipality, or local school district that
966 would have jurisdiction to act as the compliance agency if the division did not have jurisdiction
967 to act as the compliance agency.
968 Section 15. Section 63A-5b-603 is amended to read:
969 63A-5b-603. Contracting powers of director -- Bids -- Retainage.
970 (1) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, the director
971 may enter into a contract for any work or professional service that the division [
972 do or have done.
973 (2) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
974 the director may make rules establishing circumstances under which bids may be modified
975 when all bids for a construction project exceed available funds as determined by the director.
976 (b) In making the rules described in Subsection (2)(a), the director shall provide for the
977 fair and equitable treatment of bidders.
978 (c) The judgment of the director as to the responsibility and qualifications of a bidder is
979 conclusive, except in case of fraud or bad faith.
980 (3) The division shall make all payments to the contractor for completed work in
981 accordance with Section 15-6-2 and pay the interest specified in Section 15-6-3 on any
982 payments that are late.
983 (4) If the division retains or withholds a payment on a contract with a private contractor
984 to do work for the division, the division shall retain or withhold and release the payment as
985 provided in Section 13-8-5.
986 Section 16. Section 63A-5b-604 is amended to read:
987 63A-5b-604. Construction, alteration, and repair of state facilities -- Powers of
988 director -- Exceptions -- Expenditure of appropriations -- Compliance agency role.
989 (1) (a) Except as provided in this section and Section 63A-5b-1101, the director shall
990 exercise direct supervision over the design and construction of all new facilities, and all
991 alterations, repairs, and improvements to existing facilities, if the total project construction
992 cost, regardless of the funding source, is greater than $100,000.
993 (b) A state entity may exercise direct supervision over the design and construction of
994 all new facilities, and over all alterations, repairs, and improvements to existing facilities, if:
995 (i) the total project construction cost, regardless of the funding sources, is $100,000 or
996 less; and
997 (ii) the state entity assures compliance with the division's forms and contracts and the
998 division's design, construction, alteration, repair, improvement, and code inspection standards.
999 (2) The director may enter into a capital improvement partnering agreement with an
1000 institution of higher education that permits the institution of higher education to exercise direct
1001 supervision for a capital improvement project with oversight from the division.
1002 (3) (a) Subject to Subsection (3)(b), the director may delegate control over design,
1003 construction, and other aspects of any project to entities of state government on a
1004 project-by-project basis.
1005 (b) With respect to a delegation of control under Subsection (3)(a), the director may:
1006 (i) impose terms and conditions on the delegation that the director considers necessary
1007 or advisable to protect the interests of the state; and
1008 (ii) revoke the delegation and assume control of the design, construction, or other
1009 aspect of a delegated project if the director considers the revocation and assumption of control
1010 to be necessary to protect the interests of the state.
1011 (4) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1012 the [
1013 project to entities of state government on a categorical basis for projects within a particular
1014 dollar range and a particular project type.
1015 (b) Rules adopted by the [
1016 (i) impose the terms and conditions on categorical delegation that the [
1017 considers necessary or advisable to protect the interests of the state;
1018 (ii) provide for the revocation of the delegation on a categorical [
1019 basis and for the division to assume control of the design, construction, or other aspect of a
1020 category of delegated projects or a specific delegated project if the [
1021 revocation of the delegation and assumption of control to be necessary to protect the interests
1022 of the state;
1023 (iii) require that a categorical delegation be renewed by the [
1024 annual basis; and
1025 (iv) require the division's oversight of delegated projects.
1026 (5) (a) A state entity to which project control is delegated under this section shall:
1027 (i) assume fiduciary control over project finances;
1028 (ii) assume all responsibility for project budgets and expenditures; and
1029 (iii) receive all funds appropriated for the project, including any contingency funds
1030 contained in the appropriated project budget.
1031 (b) Notwithstanding a delegation of project control under this section, a state entity to
1032 which control is delegated is required to comply with the division's codes and guidelines for
1033 design and construction.
1034 (c) A state entity to which project control is delegated under this section may not
1035 access, for the delegated project, the division's statewide contingency reserve and project
1036 reserve authorized in Section 63A-5b-609.
1037 (d) For a facility that will be owned, operated, maintained, and repaired by an entity
1038 that is not an agency and that is located on [
1039 tenant, the director may authorize the facility's owner to administer the design and construction
1040 of the project relating to that facility.
1041 (6) (a) A project for the construction of a new facility and a project for alterations,
1042 repairs, and improvements to an existing facility are not subject to Subsection (1) if the project:
1043 (i) occurs on property under the jurisdiction of the State Capitol Preservation Board;
1044 (ii) is within a designated research park at the University of Utah or Utah State
1045 University;
1046 (iii) occurs within the boundaries of This is the Place State Park and is administered by
1047 This is the Place Foundation; or
1048 (iv) is for the creation and installation of art under Title 9, Chapter 6, Part 4, Utah
1049 Percent-for-Art Act.
1050 (b) Notwithstanding Subsection (6)(a)(iii), the This is the Place Foundation may
1051 request the director to administer the design and construction of a project within the boundaries
1052 of This is the Place State Park.
1053 (7) (a) The role of compliance agency under Title 15A, State Construction and Fire
1054 Codes Act, shall be filled by:
1055 (i) the director, for a project administered by the division;
1056 (ii) the entity designated by the State Capitol Preservation Board, for a project under
1057 Subsection (6)(a)(i);
1058 (iii) the local government, for a project that is:
1059 (A) not subject to the division's administration under Subsection (6)(a)(ii); or
1060 (B) administered by This is the Place Foundation under Subsection (6)(a)(iii);
1061 (iv) the compliance agency designated by the director, for a project under Subsection
1062 (2), (3), (4), or (5)(d); and
1063 (v) for the installation of art under Subsection (6)(a)(iv), the entity that is acting as the
1064 compliance officer for the balance of the project for which the art is being installed.
1065 (b) A local government acting as the compliance agency under Subsection (7)(a)(iii)
1066 may:
1067 (i) only review plans and inspect construction to enforce the state construction code or
1068 an approved code under Title 15A, State Construction and Fire Codes Act; and
1069 (ii) charge a building permit fee of no more than the amount the local government
1070 could have charged if the land upon which the improvements are located were not owned by
1071 the state.
1072 (8) (a) The zoning authority of a local government under [
1073
1074 Title 17, Chapter 27a, County Land Use, Development, and Management Act, does not apply
1075 to the use of [
1076 property that the state owns, including improvements constructed by an entity other than a state
1077 entity.
1078 (b) A state entity controlling the use of [
1079 consider any input received from a local government in determining how the property is to be
1080 used.
1081 Section 17. Section 63A-5b-802 is amended to read:
1082 63A-5b-802. Leasing responsibilities of the director.
1083 (1) The director shall:
1084 (a) prepare and submit a yearly request to the governor and Legislature for a designated
1085 amount of square footage by type of space to be leased by the division for that fiscal year;
1086 (b) lease, in the name of the division, all real property space to be occupied by a leasing
1087 agency;
1088 (c) in leasing space:
1089 (i) use a process consistent with the best interest of the state, the requirements of the
1090 leasing agency, and the anticipated use of the property; and
1091 (ii) comply with any legislative mandates contained in the appropriations act or other
1092 legislation;
1093 (d) apply the criteria contained in Subsection (1)(f) to prepare a report evaluating each
1094 high-cost lease at least 12 months before the lease expires;
1095 (e) evaluate each lease under the division's control and apply the criteria contained in
1096 Subsection (1)(f), as applicable, to evaluate the lease;
1097 (f) in evaluating leases:
1098 (i) determine whether the lease is cost-effective when the needs of the leasing agency
1099 to be housed in the leased facilities are considered;
1100 (ii) determine whether another option such as construction, use of other state-owned
1101 space, or a lease-purchase agreement is more cost-effective than leasing;
1102 (iii) determine whether the significant lease terms are cost-effective and provide the
1103 state with sufficient flexibility and protection from liability;
1104 (iv) compare the proposed lease payments to the current market rates, and evaluate
1105 whether the proposed lease payments are reasonable under current market conditions;
1106 (v) compare proposed significant lease terms to the current market, and recommend
1107 whether these proposed terms are reasonable under current market conditions; and
1108 (vi) if applicable, recommend that the lease or modification to a lease be approved or
1109 disapproved;
1110 (g) based upon the evaluation, include in the report recommendations that identify
1111 viable alternatives to:
1112 (i) make the lease cost-effective; or
1113 (ii) meet the leasing agency's needs when the lease expires; and
1114 (h) upon request, provide the information included in the report to:
1115 (i) the leasing agency benefitted by the lease; and
1116 (ii) the Office of the Legislative Fiscal Analyst.
1117 (2) The director may:
1118 (a) subject to legislative appropriation, enter into a facility lease with a term of up to 10
1119 years if the length of the lease's term is economically advantageous to the state; and
1120 (b) [
1121 facility lease with a term of more than 10 years if the length of the lease's term is economically
1122 advantageous to the state.
1123 Section 18. Section 63A-5b-803 is amended to read:
1124 63A-5b-803. Reporting of leasing activity.
1125 (1) The director shall:
1126 (a) prepare a standard form upon which a leasing agency and another state institution
1127 or entity can report the current and proposed lease activity of the leasing agency, institution, or
1128 entity, including any lease renewal; and
1129 (b) develop procedures and mechanisms within the division to:
1130 (i) obtain and share information about each leasing agency's real property needs; and
1131 (ii) provide oversight and review of lessors and lessees during the term of each lease.
1132 (2) Each leasing agency, the [
1133 and the board of trustees for each institution of higher education, shall report all current and
1134 proposed lease activity on the standard form prepared by the division to:
1135 (a) the division; and
1136 (b) the Office of the Legislative Fiscal Analyst.
1137 Section 19. Section 63A-5b-806 is amended to read:
1138 63A-5b-806. Division rules on the value of property bought or exchanged --
1139 Exception.
1140 (1) The division shall, in accordance with Title 63G, Chapter 3, Utah Administrative
1141 Rulemaking Act, make rules to ensure that, if the division buys or exchanges real property, the
1142 value of the real property is congruent with the proposed price and other terms of the purchase
1143 or exchange.
1144 (2) The rules:
1145 (a) shall establish procedures for determining the value of the real property;
1146 (b) may provide that an appraisal, as defined in Section 61-2g-102, demonstrates the
1147 real property's value; and
1148 (c) may require that the appraisal be completed by a state-certified general appraiser, as
1149 defined in Section 61-2g-102.
1150 (3) The rules adopted under Subsection (1) do not apply to the purchase or exchange of
1151 real property, or an interest in real property, with a value of less than [
1152 estimated by the division.
1153 Section 20. Section 63A-5b-901 is amended to read:
1154 63A-5b-901. Definitions.
1155 As used in this part:
1156 (1) "Applicant" means a person who submits a timely, qualified proposal to the
1157 division.
1158 (2) "Condemnee" means the same as that term is defined in Section 78B-6-520.3.
1159 [
1160 [
1161
1162 [
1163
1164
1165 [
1166 property, to which the division holds title, regardless of who occupies or uses the real property.
1167 [
1168 district, special service district, community development and renewal agency, conservation
1169 district, school district, or other political subdivision of the state.
1170 [
1171 to real property that the state agency occupies or uses, as provided in Subsection
1172 63A-5b-303(1)(a)(iv).
1173 [
1174 entity, or public purpose nonprofit entity.
1175 [
1176 organization, or entity that:
1177 (a) is located within the state;
1178 (b) is not a state agency or local government entity;
1179 (c) is exempt from federal income taxation under Section 501(c)(3), Internal Revenue
1180 Code; and
1181 (d) operates to fulfill a public purpose.
1182 [
1183 (a) meets the criteria established by the division by rule under Section 63A-5b-903;
1184 (b) if submitted by a local government entity or public purpose nonprofit entity,
1185 explains the public purpose for which the local government entity or public purpose nonprofit
1186 entity seeks a transfer of ownership or lease of the vacant division-owned property; and
1187 (c) the director determines will, if accepted and implemented, provide a material
1188 benefit to the state.
1189 [
1190 (a) that is authorized to hold title to real property that the state agency occupies or uses,
1191 as provided in [
1192 (b) for which the division does not hold title to real property that the state agency
1193 occupies or uses.
1194 [
1195 unit of state government.
1196 [
1197 division-owned property that occurs as part of an exchange of the vacant division-owned
1198 property for another property.
1199 [
1200 (a) a primary state agency [
1201 using; and
1202 (b) the director has determined should be made available for:
1203 (i) use or occupancy by a primary state agency; or
1204 (ii) a transfer of ownership or lease to a secondary state agency, local government
1205 entity, public purpose nonprofit entity, or private party.
1206 [
1207 (a) the proposed use or occupancy, transfer of ownership, or lease of vacant
1208 division-owned property; and
1209 (b) how the state will benefit from the proposed use or occupancy, transfer of
1210 ownership, or lease.
1211 Section 21. Section 63A-5b-902 is amended to read:
1212 63A-5b-902. Application of part.
1213 (1) The provisions of this part, other than this section, do not apply to:
1214 (a) a conveyance, lease, or disposal under Subsection 63A-5b-303(1)(a)[
1215 (b) the division's disposal or lease of division-owned property with a value under
1216 [
1217 (c) a conveyance, lease, or disposal of division-owned property in connection with:
1218 (i) the establishment of a state store, as defined in Section 32B-1-102; or
1219 (ii) the construction of student housing.
1220 (2) Nothing in Subsection (1)(b) or (c) may be construed to diminish or eliminate the
1221 division's responsibility to manage division-owned property in the best interests of the state.
1222 Section 22. Section 63A-5b-904 is amended to read:
1223 63A-5b-904. Division authority with respect to vacant division-owned property --
1224 Limitations.
1225 (1) Subject to Section 63A-5b-909, the division may[
1226 (a) provide for a primary state agency's occupancy or use of vacant division-owned
1227 property, if the director determines that the primary state agency's occupancy or use is in the
1228 best interests of the state;
1229 (b) effect a transfer of ownership or lease of vacant division-owned property [
1230
1231
1232 (c) refer vacant division-owned property to the Department of Transportation for sale
1233 by auction, as provided in Section 63A-5b-908.
1234 (2) (a) The division may effect a transfer of ownership or lease of vacant
1235 division-owned property to an applicant for fair market value if the director determines that the
1236 transfer of ownership or lease to that applicant is in the state's best interest.
1237 (b) In determining the state's best interest under Subsection (2)(a), the director may
1238 consider:
1239 (i) the price and financial terms of all qualified proposals; and
1240 (ii) the relative benefits to the state of the proposed uses of the vacant division-owned
1241 property as stated in the qualified proposals.
1242 [
1243 division-owned property without receiving fair market value in return [
1244 (a) the director determines that the transfer of ownership or lease is in the best interests
1245 of the state;
1246 (b) for a proposed transfer of ownership or lease to a local government entity, public
1247 purpose nonprofit entity, or private party, the director determines that the local government
1248 entity, public purpose nonprofit entity, or private party intends to use the property to fulfill a
1249 public purpose;
1250 (c) the director requests and receives a recommendation on the proposed transfer of
1251 ownership or lease from the Legislative Executive Appropriations Committee;
1252 (d) the director communicates the Executive Appropriations Committee's
1253 recommendation to the executive director; and
1254 (e) the executive director approves the transfer of ownership or lease.
1255 [
1256 property without receiving fair market value in return, [
1257 shall require the documents memorializing the transfer of ownership to preserve to the
1258 division:
1259 (i) in the case of a transfer of ownership of vacant division-owned property to a
1260 secondary state agency, local government entity, or public purpose nonprofit entity for no or
1261 nominal consideration, a right of reversion, providing for the ownership of the property to
1262 revert to the division if the property ceases to be used for the public benefit; or
1263 (ii) in the case of any other transfer of ownership of vacant division-owned property, a
1264 right of first refusal allowing the division to purchase the property from the transferee for the
1265 same price that the transferee paid to the division if the transferee wishes to transfer ownership
1266 of the former vacant division-owned property.
1267 (b) Subsection [
1268 at an auction under Section 63A-5b-908.
1269 Section 23. Section 63A-5b-905 is amended to read:
1270 63A-5b-905. Notice required before division may effect a transfer of ownership
1271 or lease of division-owned property.
1272 (1) Before the division may [
1273 division-owned property, the division shall give notice as provided in Subsection (2).
1274 (2) A notice required under Subsection (1) shall:
1275 (a) identify and describe the vacant division-owned property;
1276 (b) indicate the availability of the vacant division-owned property;
1277 (c) invite persons interested in the vacant division-owned property to submit a written
1278 proposal to the division;
1279 (d) indicate the deadline for submitting a written proposal;
1280 (e) be posted on the division's website for at least 60 consecutive days before the
1281 deadline for submitting a written proposal, in a location specifically designated for notices
1282 dealing with vacant division-owned property;
1283 (f) be posted on the Utah Public Notice Website created in Section 63A-16-601 for at
1284 least 60 consecutive days before the deadline for submitting a written proposal; and
1285 (g) be sent by email to each person who has previously submitted to the division a
1286 written request to receive notices under this section.
1287 Section 24. Section 63A-5b-907 is amended to read:
1288 63A-5b-907. Priorities for vacant division-owned property -- Division to convey
1289 vacant division-owned property.
1290 (1) This section applies to a proposed transfer of ownership or lease of vacant
1291 division-owned property at less than fair market value.
1292 [
1293 division-owned property over an applicant that is a local government entity, a public purpose
1294 nonprofit entity, and a private party.
1295 (b) [
1296 purpose nonprofit entity have:
1297 (i) priority for vacant division-owned property over an applicant that is a private party;
1298 and
1299 (ii) between them the same priority for vacant division-owned property.
1300 [
1301 with the highest and same priority, the division shall:
1302 (a) notify the [
1303 (i) the availability of the vacant division-owned property; and
1304 (ii) the applicants with the highest and same priority that have submitted qualified
1305 proposals; and
1306 (b) provide the [
1307 submitted by the applicants with the highest and same priority.
1308 [
1309 executive director shall:
1310 (a) determine which applicant's qualified proposal is most likely to result in the highest
1311 and best public benefit; and
1312 (b) notify the division of the [
1313 [
1314 [
1315 vacant division-owned property to:
1316 (a) the applicant with the highest priority under Subsection [
1317 receives a timely qualified proposal from a single applicant with the highest priority; or
1318 (b) the applicant whose qualified proposal was determined by the [
1319 director under Subsection [
1320 benefit, if the division receives multiple timely qualified proposals from applicants with the
1321 highest and same priority.
1322 [
1323
1324
1325 [
1326
1327 [
1328
1329 [
1330
1331
1332 Section 25. Section 63A-5b-907.5 is enacted to read:
1333 63A-5b-907.5. Lease of division-owned property to a private party.
1334 (1) If the division leases division-owned property to a private party, the division shall,
1335 within 30 days after a lease agreement is executed, provide written notice of the lease to:
1336 (a) the municipality in which the division-owned property is located, if the
1337 division-owned property is within a municipality; or
1338 (b) the county in whose unincorporated area the division-owned property is located, if
1339 the division-owned property is not located within a municipality.
1340 (2) Nothing in this part may be used by a private party leasing division-owned property
1341 as a basis for not complying with applicable local land use ordinances and regulations.
1342 Section 26. Section 63A-5b-910 is amended to read:
1343 63A-5b-910. Disposition of proceeds received by division from sale of vacant
1344 division-owned property.
1345 (1) (a) Except as provided in Section 62A-5-206.7, the division shall pay into the state
1346 treasury the money received from the transfer of ownership or lease of vacant division-owned
1347 property.
1348 (b) Money paid into the state treasury under Subsection (1)(a):
1349 (i) becomes a part of the funds provided by law for carrying out the building program
1350 of the state; and
1351 (ii) is appropriated for the purpose described in Subsection (1)(b)(i).
1352 (2) The proceeds from the transfer of ownership or lease of vacant division-owned
1353 property belonging to or used by a particular state agency shall, to the extent practicable, be
1354 expended for the construction of buildings or in the performance of other work for the benefit
1355 of that state agency.
1356 Section 27. Section 63A-5b-1001 is amended to read:
1357 63A-5b-1001. Definitions.
1358 As used in this part:
1359 (1) "Energy efficiency measure" means an action taken or initiated by an agency that:
1360 (a) reduces the agency's energy or fuel use or resource energy consumption, water or
1361 other resource consumption, operation and maintenance costs, or cost of energy, fuel, water, or
1362 other resource; or
1363 (b) increases the agency's energy or fuel efficiency or resource consumption efficiency.
1364 (2) "Energy efficiency program" means a program established under Section
1365 63A-5b-1002 for the purpose of improving energy efficiency measures and reducing the energy
1366 costs for state facilities.
1367 (3) "Fund" means the State Facility Energy Efficiency Fund created in Section
1368 63A-5b-1003.
1369 (4) "Performance efficiency agreement" means an agreement entered into by an agency
1370 whereby the agency implements one or more energy efficiency measures and finances the costs
1371 associated with implementation of performance efficiency measures using the stream of
1372 expected savings in costs resulting from implementation of the performance efficiency
1373 measures as a funding source for repayment.
1374 (5) (a) "State facility" means any building, structure, or other improvement that is
1375 constructed on property [
1376 institutions, or agencies, or a state institution of higher education owns or leases as a tenant.
1377 (b) "State facility" does not include:
1378 (i) an unoccupied structure that is a component of the state highway system;
1379 (ii) a privately owned structure that is located on property [
1380 any of the state's departments, commissions, institutions, or agencies, or a state institution of
1381 higher education owns or leases as a tenant; or
1382 (iii) a structure that is located on land administered by the trust lands administration
1383 under a lease, permit, or contract with the trust lands administration.
1384 Section 28. Section 63A-5b-1003 is amended to read:
1385 63A-5b-1003. State Facility Energy Efficiency Fund -- Contents -- Use of fund
1386 money.
1387 (1) There is created a revolving loan fund known as the "State Facility Energy
1388 Efficiency Fund."
1389 (2) The fund shall consist of:
1390 (a) money transferred from the Stripper Well-Petroleum Violation Escrow Fund;
1391 (b) money appropriated by the Legislature;
1392 (c) money received for the repayment of loans made from the fund; and
1393 (d) interest earned on the fund.
1394 (3) The [
1395 part of energy efficiency measures.
1396 (4) (a) (i) An agency requesting a loan shall submit an application to the [
1397 division in the form and containing the information that the [
1398 plans and specifications for the proposed energy efficiency measures.
1399 (ii) An agency may request a loan to fund all or part of the cost of energy efficiency
1400 measures.
1401 (b) If the [
1402 applicant stating the reasons for the rejection.
1403 (5) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1404 the [
1405 (i) criteria to determine:
1406 (A) loan eligibility;
1407 (B) energy efficiency measures priority; and
1408 (C) ways to measure energy savings that take into account fluctuations in energy costs
1409 and temperature; and
1410 (ii) a method of monitoring actual savings resulting from energy efficiency measures
1411 implemented using loan money from the fund, using objective and verifiable post-construction
1412 measures, if available.
1413 (b) In making rules that establish prioritization criteria for energy efficiency measures,
1414 the [
1415 (i) possible additional sources of revenue;
1416 (ii) the feasibility and practicality of the energy efficiency measures;
1417 (iii) the energy savings attributable to eligible energy efficiency measures;
1418 (iv) the annual energy savings;
1419 (v) the projected energy cost payback of eligible energy efficiency measures;
1420 (vi) other benefits to the state attributable to eligible energy efficiency measures;
1421 (vii) the availability of federal funds for the energy efficiency measures; and
1422 (viii) whether to require an agency to provide matching funds for the energy efficiency
1423 measures.
1424 (6) (a) In reviewing energy efficiency measures for possible funding, the [
1425 division shall:
1426 (i) review the loan application and the plans and specifications for the energy
1427 efficiency measures;
1428 (ii) determine whether to grant the loan by applying the loan eligibility criteria; and
1429 (iii) if the loan is granted, prioritize funding of the energy efficiency measures by
1430 applying the prioritization criteria.
1431 (b) The [
1432 availability of funds on assurances from the agency that the [
1433 necessary to ensure that the agency:
1434 (i) uses the proceeds to pay the cost of the energy efficiency measures; and
1435 (ii) implements the energy efficiency measures.
1436 (7) The division shall annually report to the Government Operations Interim
1437 Committee of the Legislature the actual savings resulting from energy efficiency measures
1438 implemented using loan money from the fund, as monitored pursuant to rules adopted under
1439 Subsection (5)(a)(ii).
1440 [
1441
1442 Section 29. Section 63A-5b-1104 is amended to read:
1443 63A-5b-1104. Notification to local governments for construction or modification
1444 of certain facilities.
1445 (1) (a) The director or the director's designee shall notify in writing the elected
1446 representatives of a local government entity directly and substantively affected by any
1447 diagnostic, treatment, parole, probation, or other secured facility project exceeding [
1448 $500,000, if:
1449 (i) the nature of the project has been significantly altered since an earlier notification;
1450 (ii) the project would significantly change the nature of the functions presently
1451 conducted at the location; or
1452 (iii) the project is new construction.
1453 (b) At the request of the state entity or the local government entity, representatives
1454 from the state entity and the affected local entity shall conduct or participate in a local public
1455 hearing or hearings to discuss the issues described in Subsection (1)(a).
1456 (2) (a) (i) Before beginning the construction of student housing on property owned by
1457 the state or an institution of higher education, the director shall provide written notice of the
1458 proposed construction, as provided in Subsection (2)(a)(ii), if any of the proposed student
1459 housing buildings is within 300 feet of privately owned residential property.
1460 (ii) Each notice under Subsection (2)(a)(i) shall be provided to the legislative body and,
1461 if applicable, the mayor of:
1462 (A) the county in whose unincorporated area the privately owned residential property is
1463 located; or
1464 (B) the municipality in whose boundary the privately owned residential property is
1465 located.
1466 (b) (i) Within 21 days after receiving the notice required by Subsection (2)(a)(i), a
1467 county or municipality entitled to the notice may submit a written request to the director for a
1468 public hearing on the proposed student housing construction.
1469 (ii) If a county or municipality requests a hearing under Subsection (2)(b)(i), the
1470 director and the county or municipality shall jointly hold a public hearing to provide
1471 information to the public and to allow the director and the county or municipality to receive
1472 input from the public about the proposed student housing construction.
1473 Section 30. Section 63B-1-101 is amended to read:
1474 63B-1-101. Definitions.
1475 As used in this title:
1476 [
1477 [
1478 (a) any financing note issued according to the procedures and requirements of this title
1479 in anticipation of the receipt of the proceeds of the sale of the bonds authorized under this title;
1480 and
1481 (b) any renewal of those notes.
1482 [
1483 authorized under this title for which the full faith, credit, and resources and ad valorem taxing
1484 power of the state have been pledged for the payment of the principal of and interest on the
1485 bonds.
1486 [
1487 equipment, or other property, or combination of them, that the state of Utah or any of its
1488 agencies, divisions, institutions, or other administrative subunits are authorized by law to
1489 acquire or construct.
1490 [
1491 63B-1-201.
1492 [
1493 [
1494 to hold money to pay the principal and interest on each series of bonds as they become due.
1495 Section 31. Section 63B-1-304 is amended to read:
1496 63B-1-304. State Building Ownership Authority created -- Members --
1497 Compensation -- Location in Department of Administrative Services.
1498 (1) There is created a body politic and corporate to be known as the State Building
1499 Ownership Authority composed of:
1500 (a) the governor;
1501 (b) the state treasurer; and
1502 (c) the [
1503 director of the Department of Government Operations.
1504 (2) A member may not receive compensation or benefits for the member's service, but
1505 may receive per diem and travel expenses in accordance with:
1506 (a) Section 63A-3-106;
1507 (b) Section 63A-3-107; and
1508 (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
1509 63A-3-107.
1510 (3) (a) Upon request, the division shall provide staff support to the State Building
1511 Ownership Authority.
1512 (b) The State Building Ownership Authority may seek and obtain independent financial
1513 advice, support, and information from the state financial advisor created under Section
1514 67-4-16.
1515 Section 32. Section 63C-9-403 is amended to read:
1516 63C-9-403. Contracting power of executive director -- Health insurance coverage.
1517 (1) As used in this section:
1518 (a) "Aggregate" means the sum of all contracts, change orders, and modifications
1519 related to a single project.
1520 (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
1521 (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
1522 "operative" who:
1523 (i) works at least 30 hours per calendar week; and
1524 (ii) meets employer eligibility waiting requirements for health care insurance, which
1525 may not exceed the first of the calendar month following 60 days after the day on which the
1526 individual is hired.
1527 (d) "Health benefit plan" means:
1528 (i) the same as that term is defined in Section 31A-1-301; or
1529 (ii) an employee welfare benefit plan:
1530 (A) established under the Employee Retirement Income Security Act of 1974, 29
1531 U.S.C. Sec. 1001 et seq.;
1532 (B) for an employer with 100 or more employees; and
1533 (C) in which the employer establishes a self-funded or partially self-funded group
1534 health plan to provide medical care for the employer's employees and dependents of the
1535 employees.
1536 (e) "Qualified health coverage" means the same as that term is defined in Section
1537 26-40-115.
1538 (f) "Subcontractor" means the same as that term is defined in Section 63A-5b-605.
1539 (g) "Third party administrator" or "administrator" means the same as that term is
1540 defined in Section 31A-1-301.
1541 (2) Except as provided in Subsection (3), the requirements of this section apply to:
1542 (a) a contractor of a design or construction contract entered into by the board, or on
1543 behalf of the board, on or after July 1, 2009, if the prime contract is in an aggregate amount
1544 equal to or greater than $2,000,000; and
1545 (b) a subcontractor of a contractor of a design or construction contract entered into by
1546 the board, or on behalf of the board, on or after July 1, 2009, if the subcontract is in an
1547 aggregate amount equal to or greater than $1,000,000.
1548 (3) The requirements of this section do not apply to a contractor or subcontractor
1549 described in Subsection (2) if:
1550 (a) the application of this section jeopardizes the receipt of federal funds;
1551 (b) the contract is a sole source contract; or
1552 (c) the contract is an emergency procurement.
1553 (4) A person that intentionally uses change orders, contract modifications, or multiple
1554 contracts to circumvent the requirements of this section is guilty of an infraction.
1555 (5) (a) A contractor subject to the requirements of this section shall demonstrate to the
1556 executive director that the contractor has and will maintain an offer of qualified health
1557 coverage for the contractor's employees and the employees' dependents during the duration of
1558 the contract by submitting to the executive director a written statement that:
1559 (i) the contractor offers qualified health coverage that complies with Section
1560 26-40-115;
1561 (ii) is from:
1562 (A) an actuary selected by the contractor or the contractor's insurer;
1563 (B) an underwriter who is responsible for developing the employer group's premium
1564 rates; or
1565 (C) if the contractor provides a health benefit plan described in Subsection (1)(d)(ii),
1566 an actuary or underwriter selected by a third party administrator; and
1567 (iii) was created within one year before the day on which the statement is submitted.
1568 (b) (i) A contractor that provides a health benefit plan described in Subsection (1)(d)(ii)
1569 shall provide the actuary or underwriter selected by the administrator, as described in
1570 Subsection (5)(a)(ii)(C), sufficient information to determine whether the contractor's
1571 contribution to the health benefit plan and the health benefit plan's actuarial value meets the
1572 requirements of qualified health coverage.
1573 (ii) A contractor may not make a change to the contractor's contribution to the health
1574 benefit plan, unless the contractor provides notice to:
1575 (A) the actuary or underwriter selected by the administrator, as described in Subsection
1576 (5)(a)(ii)(C), for the actuary or underwriter to update the written statement described in
1577 Subsection (5)(a) in compliance with this section; and
1578 (B) the executive director.
1579 (c) A contractor that is subject to the requirements of this section shall:
1580 (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
1581 is subject to the requirements of this section shall obtain and maintain an offer of qualified
1582 health coverage for the subcontractor's employees and the employees' dependents during the
1583 duration of the subcontract; and
1584 (ii) obtain from a subcontractor that is subject to the requirements of this section a
1585 written statement that:
1586 (A) the subcontractor offers qualified health coverage that complies with Section
1587 26-40-115;
1588 (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, an
1589 underwriter who is responsible for developing the employer group's premium rates, or if the
1590 subcontractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or
1591 underwriter selected by an administrator; and
1592 (C) was created within one year before the day on which the contractor obtains the
1593 statement.
1594 (d) (i) (A) A contractor that fails to maintain an offer of qualified health coverage as
1595 described in Subsection (5)(a) during the duration of the contract is subject to penalties in
1596 accordance with administrative rules adopted by the division under Subsection (6).
1597 (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
1598 and maintain an offer of qualified health coverage described in Subsection (5)(c)(i).
1599 (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
1600 coverage described in Subsection (5)(c)(i) during the duration of the subcontract is subject to
1601 penalties in accordance with administrative rules adopted by the department under Subsection
1602 (6).
1603 (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
1604 an offer of qualified health coverage described in Subsection (5)(a).
1605 (6) The department shall adopt administrative rules:
1606 (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1607 (b) in coordination with:
1608 (i) the Department of Environmental Quality in accordance with Section 19-1-206;
1609 (ii) the Department of Natural Resources in accordance with Section 79-2-404;
1610 (iii) the [
1611 accordance with Section 63A-5b-607;
1612 (iv) a public transit district in accordance with Section 17B-2a-818.5;
1613 (v) the Department of Transportation in accordance with Section 72-6-107.5; and
1614 (vi) the Legislature's Administrative Rules Review Committee; and
1615 (c) that establish:
1616 (i) the requirements and procedures a contractor and a subcontractor shall follow to
1617 demonstrate compliance with this section, including:
1618 (A) that a contractor or subcontractor's compliance with this section is subject to an
1619 audit by the department or the Office of the Legislative Auditor General;
1620 (B) that a contractor that is subject to the requirements of this section shall obtain a
1621 written statement described in Subsection (5)(a); and
1622 (C) that a subcontractor that is subject to the requirements of this section shall obtain a
1623 written statement described in Subsection (5)(c)(ii);
1624 (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
1625 violates the provisions of this section, which may include:
1626 (A) a three-month suspension of the contractor or subcontractor from entering into
1627 future contracts with the state upon the first violation;
1628 (B) a six-month suspension of the contractor or subcontractor from entering into future
1629 contracts with the state upon the second violation;
1630 (C) an action for debarment of the contractor or subcontractor in accordance with
1631 Section 63G-6a-904 upon the third or subsequent violation; and
1632 (D) monetary penalties which may not exceed 50% of the amount necessary to
1633 purchase qualified health coverage for employees and dependents of employees of the
1634 contractor or subcontractor who were not offered qualified health coverage during the duration
1635 of the contract; and
1636 (iii) a website on which the department shall post the commercially equivalent
1637 benchmark, for the qualified health coverage identified in Subsection (1)(e), that is provided by
1638 the Department of Health, in accordance with Subsection 26-40-115(2).
1639 (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
1640 or subcontractor who intentionally violates the provisions of this section is liable to the
1641 employee for health care costs that would have been covered by qualified health coverage.
1642 (ii) An employer has an affirmative defense to a cause of action under Subsection
1643 (7)(a)(i) if:
1644 (A) the employer relied in good faith on a written statement described in Subsection
1645 (5)(a) or (5)(c)(ii); or
1646 (B) the department determines that compliance with this section is not required under
1647 the provisions of Subsection (3).
1648 (b) An employee has a private right of action only against the employee's employer to
1649 enforce the provisions of this Subsection (7).
1650 (8) Any penalties imposed and collected under this section shall be deposited into the
1651 Medicaid Restricted Account created in Section 26-18-402.
1652 (9) The failure of a contractor or subcontractor to provide qualified health coverage as
1653 required by this section:
1654 (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
1655 or contractor under:
1656 (i) Section 63G-6a-1602; or
1657 (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
1658 (b) may not be used by the procurement entity or a prospective bidder, offeror, or
1659 contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
1660 or construction.
1661 (10) An administrator, including the administrator's actuary or underwriter, who
1662 provides a written statement under Subsection (5)(a) or (c) regarding the qualified health
1663 coverage of a contractor or subcontractor who provides a health benefit plan described in
1664 Subsection (1)(d)(ii):
1665 (a) subject to Subsection (10)(b), is not liable for an error in the written statement,
1666 unless the administrator commits gross negligence in preparing the written statement;
1667 (b) is not liable for any error in the written statement if the administrator relied in good
1668 faith on information from the contractor or subcontractor; and
1669 (c) may require as a condition of providing the written statement that a contractor or
1670 subcontractor hold the administrator harmless for an action arising under this section.
1671 Section 33. Section 63G-6a-103 is amended to read:
1672 63G-6a-103. Definitions.
1673 As used in this chapter:
1674 (1) "Approved vendor" means a person who has been approved for inclusion on an
1675 approved vendor list through the approved vendor list process.
1676 (2) "Approved vendor list" means a list of approved vendors established under Section
1677 63G-6a-507.
1678 (3) "Approved vendor list process" means the procurement process described in
1679 Section 63G-6a-507.
1680 (4) "Bidder" means a person who submits a bid or price quote in response to an
1681 invitation for bids.
1682 (5) "Bidding process" means the procurement process described in Part 6, Bidding.
1683 (6) "Board" means the Utah State Procurement Policy Board, created in Section
1684 63G-6a-202.
1685 [
1686
1687 [
1688 that directs the contractor to suspend work or make changes, as authorized by contract, without
1689 the consent of the contractor.
1690 [
1691 rate of delivery, period of performance, price, quantity, or other provisions of a contract, upon
1692 mutual agreement of the parties to the contract.
1693 [
1694 63A-2-102.
1695 [
1696 aspects of a procurement:
1697 (a) except:
1698 (i) reviewing a solicitation to verify that it is in proper form; and
1699 (ii) causing the publication of a notice of a solicitation; and
1700 (b) including:
1701 (i) preparing any solicitation document;
1702 (ii) appointing an evaluation committee;
1703 (iii) conducting the evaluation process, except the process relating to scores calculated
1704 for costs of proposals;
1705 (iv) selecting and recommending the person to be awarded a contract;
1706 (v) negotiating the terms and conditions of a contract, subject to the issuing
1707 procurement unit's approval; and
1708 (vi) contract administration.
1709 [
1710 17D-3-102.
1711 [
1712 (a) means a project for the construction, renovation, alteration, improvement, or repair
1713 of a public facility on real property, including all services, labor, supplies, and materials for the
1714 project; and
1715 (b) does not include services and supplies for the routine, day-to-day operation, repair,
1716 or maintenance of an existing public facility.
1717 [
1718 (a) means a contractor who enters into a contract:
1719 (i) for the management of a construction project; and
1720 (ii) that allows the contractor to subcontract for additional labor and materials that are
1721 not included in the contractor's cost proposal submitted at the time of the procurement of the
1722 contractor's services; and
1723 (b) does not include a contractor whose only subcontract work not included in the
1724 contractor's cost proposal submitted as part of the procurement of the contractor's services is to
1725 meet subcontracted portions of change orders approved within the scope of the project.
1726 [
1727 (a) means a person under contract with a contractor or another subcontractor to provide
1728 services or labor for the design or construction of a construction project;
1729 (b) includes a general contractor or specialty contractor licensed or exempt from
1730 licensing under Title 58, Chapter 55, Utah Construction Trades Licensing Act; and
1731 (c) does not include a supplier who provides only materials, equipment, or supplies to a
1732 contractor or subcontractor for a construction project.
1733 [
1734 [
1735 associated with managing, overseeing, and carrying out a contract between a procurement unit
1736 and a contractor, including:
1737 (a) implementing the contract;
1738 (b) ensuring compliance with the contract terms and conditions by the conducting
1739 procurement unit and the contractor;
1740 (c) executing change orders;
1741 (d) processing contract amendments;
1742 (e) resolving, to the extent practicable, contract disputes;
1743 (f) curing contract errors and deficiencies;
1744 (g) terminating a contract;
1745 (h) measuring or evaluating completed work and contractor performance;
1746 (i) computing payments under the contract; and
1747 (j) closing out a contract.
1748 [
1749 unit.
1750 [
1751 of:
1752 (a) more than one procurement unit; or
1753 (b) a procurement unit and a cooperative purchasing organization.
1754 [
1755 or alliance of purchasers established to combine purchasing power in order to obtain the best
1756 value for the purchasers by engaging in procurements in accordance with Section 63G-6a-2105.
1757 [
1758 contractor is paid a percentage of the total actual expenses or costs in addition to the
1759 contractor's actual expenses or costs.
1760 [
1761 is reimbursed for costs which are allowed and allocated in accordance with the contract terms
1762 and the provisions of this chapter, and a fee, if any.
1763 [
1764 [
1765 specified amount of supplies over a specified period, with deliveries scheduled according to a
1766 specified schedule.
1767 [
1768 (a) an individual licensed as an architect under Title 58, Chapter 3a, Architects
1769 Licensing Act;
1770 (b) an individual licensed as a professional engineer or professional land surveyor
1771 under Title 58, Chapter 22, Professional Engineers and Professional Land Surveyors Licensing
1772 Act; or
1773 (c) an individual certified as a commercial interior designer under Title 58, Chapter 86,
1774 State Certification of Commercial Interior Designers Act.
1775 [
1776 described in Part 15, Design Professional Services.
1777 [
1778 (a) professional services within the scope of the practice of architecture as defined in
1779 Section 58-3a-102;
1780 (b) professional engineering as defined in Section 58-22-102;
1781 (c) master planning and programming services; or
1782 (d) services within the scope of the practice of commercial interior design, as defined
1783 in Section 58-86-102.
1784 [
1785 construction by the use of a single contract.
1786 [
1787 in Section 63A-2-101.
1788 [
1789 (a) a school district;
1790 (b) a public school, including a local school board or a charter school;
1791 (c) the Utah Schools for the Deaf and the Blind;
1792 (d) the Utah Education and Telehealth Network;
1793 (e) an institution of higher education of the state described in Section 53B-1-102; or
1794 (f) the State Board of Education.
1795 [
1796 list, schedule, or other form that:
1797 (a) is regularly maintained by a manufacturer or contractor;
1798 (b) is published or otherwise available for inspection by customers; and
1799 (c) states prices at which sales are currently or were last made to a significant number
1800 of any category of buyers or buyers constituting the general buying public for the supplies or
1801 services involved.
1802 [
1803 office, bureau, agency, or other organization within the state executive branch.
1804 (b) "Executive branch procurement unit" does not include the Colorado River
1805 Authority of Utah as provided in Section 63M-14-210.
1806 [
1807 Management, created in Section 63A-5b-301.
1808 [
1809 procurement item obtained under the contract, that is not subject to adjustment except to the
1810 extent that:
1811 (a) the contract provides, under circumstances specified in the contract, for an
1812 adjustment in price that is not based on cost to the contractor; or
1813 (b) an adjustment is required by law.
1814 [
1815 that provides for an upward or downward revision of price, precisely described in the contract,
1816 that:
1817 (a) is based on the consumer price index or another commercially acceptable index,
1818 source, or formula; and
1819 (b) is not based on a percentage of the cost to the contractor.
1820 [
1821 agreement to expend public funds or other assistance, for a public purpose authorized by law,
1822 without acquiring a procurement item in exchange.
1823 [
1824 (a) means an irregularity or abnormality that is:
1825 (i) a matter of form that does not affect substance; or
1826 (ii) an inconsequential variation from a requirement of a solicitation that has no, little,
1827 or a trivial effect on the procurement process and that is not prejudicial to other vendors; and
1828 (b) includes:
1829 (i) a missing signature, missing acknowledgment of an addendum, or missing copy of a
1830 professional license, bond, or insurance certificate;
1831 (ii) a typographical error;
1832 (iii) an error resulting from an inaccuracy or omission in the solicitation; and
1833 (iv) any other error that the procurement official reasonably considers to be immaterial.
1834 [
1835 (a) is for an indefinite amount of procurement items to be supplied as ordered by a
1836 procurement unit; and
1837 (b) (i) does not require a minimum purchase amount; or
1838 (ii) provides a maximum purchase limit.
1839 [
1840 (a) (i) a legislative procurement unit;
1841 (ii) a judicial branch procurement unit;
1842 (iii) an educational procurement unit;
1843 (iv) a local government procurement unit;
1844 (v) a conservation district;
1845 (vi) a local building authority;
1846 (vii) a local district;
1847 (viii) a public corporation;
1848 (ix) a special service district; or
1849 (x) the Utah Communications Authority, established in Section 63H-7a-201;
1850 (b) [
1851 procurement authority provided under Title 63A, Chapter 5b, Administration of State
1852 Facilities;
1853 (c) the attorney general, but only to the extent of the procurement authority provided
1854 under Title 67, Chapter 5, Attorney General;
1855 (d) the Department of Transportation, but only to the extent of the procurement
1856 authority provided under Title 72, Transportation Code; or
1857 (e) any other executive branch department, division, office, or entity that has statutory
1858 procurement authority outside this chapter, but only to the extent of that statutory procurement
1859 authority.
1860 [
1861 (a) means a document used to solicit:
1862 (i) bids to provide a procurement item to a procurement unit; or
1863 (ii) quotes for a price of a procurement item to be provided to a procurement unit; and
1864 (b) includes all documents attached to or incorporated by reference in a document
1865 described in Subsection [
1866 [
1867 (a) reviews a solicitation to verify that it is in proper form;
1868 (b) causes the notice of a solicitation to be published; and
1869 (c) negotiates and approves the terms and conditions of a contract.
1870 [
1871 (a) the Utah Supreme Court;
1872 (b) the Utah Court of Appeals;
1873 (c) the Judicial Council;
1874 (d) a state judicial district; or
1875 (e) an office, committee, subcommittee, or other organization within the state judicial
1876 branch.
1877 [
1878 (a) the supplies and materials are not provided by, or through, the contractor; and
1879 (b) the contractor is paid a fixed rate that includes the cost of labor, overhead, and
1880 profit for a specified number of labor hours or days.
1881 [
1882 (a) the Legislature;
1883 (b) the Senate;
1884 (c) the House of Representatives;
1885 (d) a staff office of the Legislature, the Senate, or the House of Representatives; or
1886 (e) a committee, subcommittee, commission, or other organization:
1887 (i) within the state legislative branch; or
1888 (ii) (A) that is created by statute to advise or make recommendations to the Legislature;
1889 (B) the membership of which includes legislators; and
1890 (C) for which the Office of Legislative Research and General Counsel provides staff
1891 support.
1892 [
1893 17D-2-102.
1894 [
1895 17B-1-102.
1896 [
1897 (a) a county or municipality, and each office or agency of the county or municipality,
1898 unless the county or municipality adopts its own procurement code by ordinance;
1899 (b) a county or municipality that has adopted this entire chapter by ordinance, and each
1900 office or agency of that county or municipality; or
1901 (c) a county or municipality that has adopted a portion of this chapter by ordinance, to
1902 the extent that a term in the ordinance is used in the adopted portion of this chapter, and each
1903 office or agency of that county or municipality.
1904 [
1905 quantity of a procurement item to more than one person.
1906 [
1907 period, including a contract that permits renewal of the contract, without competition, beyond
1908 the first year of the contract.
1909 [
1910 [
1911 (a) a county or municipality that has not adopted Part 16, Protests, Part 17,
1912 Procurement Appeals Board, Part 18, Appeals to Court and Court Proceedings, and Part 19,
1913 General Provisions Related to Protest or Appeal; and
1914 (b) each office or agency of a county or municipality described in Subsection [
1915 (50)(a).
1916 [
1917 for proposals.
1918 [
1919 preference under the requirements of this chapter.
1920 [
1921 [
1922 expenditure of public funds, or an agreement to expend public funds, including an acquisition
1923 through a public-private partnership.
1924 [
1925 service, or a construction project.
1926 [
1927 (a) for a procurement unit other than an independent procurement unit, the chief
1928 procurement officer;
1929 (b) for a legislative procurement unit, the individual, individuals, or body designated in
1930 a policy adopted by the Legislative Management Committee;
1931 (c) for a judicial procurement unit, the Judicial Council or an individual or body
1932 designated by the Judicial Council by rule;
1933 (d) for a local government procurement unit:
1934 (i) the legislative body of the local government procurement unit; or
1935 (ii) an individual or body designated by the local government procurement unit;
1936 (e) for a local district, the board of trustees of the local district or the board of trustees'
1937 designee;
1938 (f) for a special service district, the governing body of the special service district or the
1939 governing body's designee;
1940 (g) for a local building authority, the board of directors of the local building authority
1941 or the board of directors' designee;
1942 (h) for a conservation district, the board of supervisors of the conservation district or
1943 the board of supervisors' designee;
1944 (i) for a public corporation, the board of directors of the public corporation or the board
1945 of directors' designee;
1946 (j) for a school district or any school or entity within a school district, the board of the
1947 school district or the board's designee;
1948 (k) for a charter school, the individual or body with executive authority over the charter
1949 school or the designee of the individual or body;
1950 (l) for an institution of higher education described in Section 53B-2-101, the president
1951 of the institution of higher education or the president's designee;
1952 (m) for the State Board of Education, the State Board of Education or the State Board
1953 of Education's designee;
1954 (n) for the Utah Board of Higher Education, the Commissioner of Higher Education or
1955 the designee of the Commissioner of Higher Education;
1956 (o) for the Utah Communications Authority, established in Section 63H-7a-201, the
1957 executive director of the Utah Communications Authority or the executive director's designee;
1958 or
1959 [
1960
1961
1962
1963 [
1964 of the facilities division as an independent procurement unit under the procurement authority
1965 provided under Title 63A, Chapter 5b, Administration of State Facilities, the director of the
1966 facilities division or the director's designee;
1967 [
1968 the attorney general as an independent procurement unit under the procurement authority
1969 provided under Title 67, Chapter 5, Attorney General, the attorney general or the attorney
1970 general's designee;
1971 [
1972 to the extent of procurement activities of the Department of Transportation as an independent
1973 procurement unit under the procurement authority provided under Title 72, Transportation
1974 Code, the executive director of the Department of Transportation or the executive director's
1975 designee; or
1976 [
1977 statutory procurement authority outside this chapter, and only to the extent of the procurement
1978 activities of the department, division, office, or entity as an independent procurement unit
1979 under the procurement authority provided outside this chapter for the department, division,
1980 office, or entity, the chief executive officer of the department, division, office, or entity or the
1981 chief executive officer's designee.
1982 [
1983 (a) means:
1984 (i) a legislative procurement unit;
1985 (ii) an executive branch procurement unit;
1986 (iii) a judicial procurement unit;
1987 (iv) an educational procurement unit;
1988 (v) the Utah Communications Authority, established in Section 63H-7a-201;
1989 (vi) a local government procurement unit;
1990 (vii) a local district;
1991 (viii) a special service district;
1992 (ix) a local building authority;
1993 (x) a conservation district;
1994 (xi) a public corporation; and
1995 (b) does not include a political subdivision created under Title 11, Chapter 13,
1996 Interlocal Cooperation Act.
1997 [
1998 knowledge, expertise, and discretion, including labor, effort, or work in the field of:
1999 (a) accounting;
2000 (b) administrative law judge service;
2001 (c) architecture;
2002 (d) construction design and management;
2003 (e) engineering;
2004 (f) financial services;
2005 (g) information technology;
2006 (h) the law;
2007 (i) medicine;
2008 (j) psychiatry; or
2009 (k) underwriting.
2010 [
2011 (a) for the division or an independent procurement unit:
2012 (i) the procurement official;
2013 (ii) the procurement official's designee who is an employee of the procurement unit; or
2014 (iii) a person designated by rule made by the rulemaking authority; or
2015 (b) for a procurement unit other than an independent procurement unit, the chief
2016 procurement officer or the chief procurement officer's designee who is an employee of the
2017 division .
2018 [
2019 63E-1-102.
2020 [
2021 state that expends public funds.
2022 [
2023 or other facility of a public entity.
2024 [
2025 federal government, that is owned or held by a procurement unit.
2026 [
2027 17B, Chapter 2a, Part 8, Public Transit District Act.
2028 [
2029 on or after January 1, 2017, between a procurement unit and one or more contractors to provide
2030 for a public need through the development or operation of a project in which the contractor or
2031 contractors share with the procurement unit the responsibility or risk of developing, owning,
2032 maintaining, financing, or operating the project.
2033 [
2034 (a) is responsible; and
2035 (b) submits a responsive statement of qualifications under Section 63G-6a-410 that
2036 meets the minimum mandatory requirements, evaluation criteria, and any applicable score
2037 thresholds set forth in the request for statement of qualifications.
2038 [
2039 appurtenance, structure, or other development that is permanently affixed to land.
2040 [
2041 procurement unit requests information relating to a procurement item.
2042 [
2043 provide a procurement item to a procurement unit, including all other documents that are
2044 attached to that document or incorporated in that document by reference.
2045 [
2046 in Part 7, Request for Proposals.
2047 [
2048 information about the qualifications of a person interested in responding to a potential
2049 procurement, including all other documents attached to that document or incorporated in that
2050 document by reference.
2051 [
2052 (a) under which a contractor agrees to provide a procurement unit's entire requirements
2053 for certain procurement items at prices specified in the contract during the contract period; and
2054 (b) that:
2055 (i) does not require a minimum purchase amount; or
2056 (ii) provides a maximum purchase limit.
2057 [
2058 (a) meeting all the requirements of a solicitation; and
2059 (b) fully performing all the requirements of the contract resulting from the solicitation,
2060 including being financially solvent with sufficient financial resources to perform the contract.
2061 [
2062 of a solicitation.
2063 [
2064 if adopting a policy or regulation is the method the rulemaking authority uses to adopt
2065 provisions that govern the applicable procurement unit.
2066 [
2067 (a) for a legislative procurement unit, the Legislative Management Committee;
2068 (b) for a judicial procurement unit, the Judicial Council;
2069 (c) (i) only to the extent of the procurement authority expressly granted to the
2070 procurement unit by statute:
2071 (A) for [
2072 division;
2073 (B) for the Office of the Attorney General, the attorney general;
2074 (C) for the Department of Transportation created in Section 72-1-201, the executive
2075 director of the Department of Transportation; and
2076 (D) for any other executive branch department, division, office, or entity that has
2077 statutory procurement authority outside this chapter, the governing authority of the department,
2078 division, office, or entity; and
2079 (ii) for each other executive branch procurement unit, the board;
2080 (d) for a local government procurement unit:
2081 (i) the governing body of the local government unit; or
2082 (ii) an individual or body designated by the local government procurement unit;
2083 (e) for a school district or a public school, the board, except to the extent of a school
2084 district's own nonadministrative rules that do not conflict with the provisions of this chapter;
2085 (f) for a state institution of higher education, the Utah Board of Higher Education;
2086 (g) for the State Board of Education or the Utah Schools for the Deaf and the Blind, the
2087 State Board of Education;
2088 (h) for a public transit district, the chief executive of the public transit district;
2089 (i) for a local district other than a public transit district or for a special service district,
2090 the board, except to the extent that the board of trustees of the local district or the governing
2091 body of the special service district makes its own rules:
2092 (i) with respect to a subject addressed by board rules; or
2093 (ii) that are in addition to board rules;
2094 (j) for the Utah Educational Savings Plan, created in Section 53B-8a-103, the Utah
2095 Board of Higher Education;
2096 (k) for the School and Institutional Trust Lands Administration, created in Section
2097 53C-1-201, the School and Institutional Trust Lands Board of Trustees;
2098 (l) for the School and Institutional Trust Fund Office, created in Section 53D-1-201,
2099 the School and Institutional Trust Fund Board of Trustees;
2100 (m) for the Utah Communications Authority, established in Section 63H-7a-201, the
2101 Utah Communications Authority board, created in Section 63H-7a-203; or
2102 (n) for any other procurement unit, the board.
2103 [
2104 (a) means labor, effort, or work to produce a result that is beneficial to a procurement
2105 unit;
2106 (b) includes a professional service; and
2107 (c) does not include labor, effort, or work provided under an employment agreement or
2108 a collective bargaining agreement.
2109 [
2110 Section 63G-6a-506.
2111 [
2112 procurement.
2113 [
2114 pursuant to a determination under Subsection 63G-6a-802(1)(a) that there is only one source
2115 for the procurement item.
2116 [
2117 for statement of qualifications.
2118 [
2119 (a) a bid submitted in response to an invitation for bids;
2120 (b) a proposal submitted in response to a request for proposals; or
2121 (c) a statement of qualifications submitted in response to a request for statement of
2122 qualifications.
2123 [
2124 17D-1-102.
2125 [
2126 characteristics or of the nature of a procurement item included in an invitation for bids or a
2127 request for proposals, or otherwise specified or agreed to by a procurement unit, including a
2128 description of:
2129 (a) a requirement for inspecting or testing a procurement item; or
2130 (b) preparing a procurement item for delivery.
2131 [
2132 (a) the bidding process;
2133 (b) the request for proposals process;
2134 (c) the approved vendor list process;
2135 (d) the small purchase process; or
2136 (e) the design professional procurement process.
2137 [
2138 and in behalf of all public entities.
2139 [
2140 procurement unit in response to a request for statement of qualifications.
2141 [
2142 (a) means a person under contract to perform part of a contractual obligation under the
2143 control of the contractor, whether the person's contract is with the contractor directly or with
2144 another person who is under contract to perform part of a contractual obligation under the
2145 control of the contractor; and
2146 (b) includes a supplier, distributor, or other vendor that furnishes supplies or services
2147 to a contractor.
2148 [
2149 Section 63A-16-102.
2150 [
2151 identical in price.
2152 [
2153 is paid:
2154 (a) the actual cost of direct labor at specified hourly rates;
2155 (b) the actual cost of materials and equipment usage; and
2156 (c) an additional amount, expressly described in the contract, to cover overhead and
2157 profit, that is not based on a percentage of the cost to the contractor.
2158 [
2159 (a) means the costs of changing:
2160 (i) from an existing provider of a procurement item to another provider of that
2161 procurement item; or
2162 (ii) from an existing type of procurement item to another type;
2163 (b) includes:
2164 (i) training costs;
2165 (ii) conversion costs;
2166 (iii) compatibility costs;
2167 (iv) costs associated with system downtime;
2168 (v) disruption of service costs;
2169 (vi) staff time necessary to implement the change;
2170 (vii) installation costs; and
2171 (viii) ancillary software, hardware, equipment, or construction costs; and
2172 (c) does not include:
2173 (i) the costs of preparing for or engaging in a procurement process; or
2174 (ii) contract negotiation or drafting costs.
2175 [
2176 (a) means a person who is seeking to enter into a contract with a procurement unit to
2177 provide a procurement item; and
2178 (b) includes:
2179 (i) a bidder;
2180 (ii) an offeror;
2181 (iii) an approved vendor;
2182 (iv) a design professional; and
2183 (v) a person who submits an unsolicited proposal under Section 63G-6a-712.
2184 Section 34. Section 63G-6a-109 is amended to read:
2185 63G-6a-109. Issuing procurement unit and conducting procurement unit.
2186 (1) With respect to a procurement by an executive branch procurement unit, except for
2187 a procurement by an executive branch procurement unit that, under Subsection
2188 63G-6a-103[
2189 (a) the division is the issuing procurement unit; and
2190 (b) the executive branch procurement unit is the conducting procurement unit and is
2191 responsible to ensure that the procurement is conducted in compliance with this chapter.
2192 (2) With respect to a procurement by any other procurement unit, the procurement unit
2193 is both the issuing procurement unit and the conducting procurement unit.
2194 (3) A conducting procurement unit is responsible for contract administration.
2195 Section 35. Section 63G-6a-204 is amended to read:
2196 63G-6a-204. Applicability of rules of Utah State Procurement Policy Board and
2197 Division of Facilities Construction and Management -- Report to interim committee.
2198 (1) Except as provided in Subsection (2), rules made by the board under this chapter
2199 shall govern all procurement units for which the board is the rulemaking authority.
2200 (2) The [
2201 construction, design professional services, and leases apply to the procurement of construction,
2202 design professional services, and leases of real property by the facilities division.
2203 (3) A rulemaking authority may make its own rules, consistent with this chapter,
2204 governing procurement by a person over which the rulemaking authority has rulemaking
2205 authority.
2206 (4) The board shall make a report on or before July 1 of each year to a legislative
2207 interim committee, designated by the Legislative Management Committee created under
2208 Section 36-12-6, on the establishment, implementation, and enforcement of the rules made
2209 under Section 63G-6a-203.
2210 Section 36. Section 63G-6a-303 is amended to read:
2211 63G-6a-303. Role, duties, and authority of chief procurement officer.
2212 (1) The chief procurement officer:
2213 (a) is the director of the division;
2214 (b) serves as the central procurement officer of the state;
2215 (c) serves as a voting member of the board; and
2216 (d) serves as the protest officer for a protest relating to a procurement of an executive
2217 branch procurement, except an executive branch procurement unit designated under Subsection
2218 63G-6a-103[
2219 cooperative contract procurement, unless the chief procurement officer designates another to
2220 serve as protest officer, as authorized in this chapter.
2221 (2) Except as otherwise provided in this chapter, the chief procurement officer shall:
2222 (a) develop procurement policies and procedures supporting ethical procurement
2223 practices, fair and open competition among vendors, and transparency within the state's
2224 procurement process;
2225 (b) administer the state's cooperative purchasing program, including state cooperative
2226 contracts and associated administrative fees;
2227 (c) enter into an agreement with a public entity for services provided by the division, if
2228 the agreement is in the best interest of the state;
2229 (d) ensure the division's compliance with any applicable law, rule, or policy, including
2230 a law, rule, or policy applicable to the division's role as an issuing procurement unit or
2231 conducting procurement unit, or as the state's central procurement organization;
2232 (e) manage the division's electronic procurement system;
2233 (f) oversee the recruitment, training, career development, certification requirements,
2234 and performance evaluation of the division's procurement personnel;
2235 (g) make procurement training available to procurement units and persons who do
2236 business with procurement units;
2237 (h) provide exemplary customer service and continually improve the division's
2238 procurement operations;
2239 (i) exercise all other authority, fulfill all other duties and responsibilities, and perform
2240 all other functions authorized under this chapter; and
2241 (j) ensure that any training described in this Subsection (2) complies with Title 63G,
2242 Chapter 22, State Training and Certification Requirements.
2243 (3) With respect to a procurement or contract over which the chief procurement officer
2244 has authority under this chapter, the chief procurement officer, except as otherwise provided in
2245 this chapter:
2246 (a) shall:
2247 (i) manage and supervise a procurement to ensure to the extent practicable that
2248 taxpayers receive the best value;
2249 (ii) prepare and issue standard specifications for procurement items;
2250 (iii) review contracts, coordinate contract compliance, conduct contract audits, and
2251 approve change orders;
2252 (iv) in accordance with Section 63A-16-204, coordinate with the Division of
2253 Technology Services, created in Section 63A-16-103, with respect to the procurement of
2254 information technology services by an executive branch procurement unit;
2255 (v) correct, amend, or cancel a procurement at any stage of the procurement process if
2256 the procurement is out of compliance with this chapter or a board rule;
2257 (vi) after consultation with the attorney general's office, correct, amend, or cancel a
2258 contract at any time during the term of the contract if:
2259 (A) the contract is out of compliance with this chapter or a board rule; and
2260 (B) the chief procurement officer determines that correcting, amending, or canceling
2261 the contract is in the best interest of the state; and
2262 (vii) make a reasonable attempt to resolve a contract dispute, in coordination with the
2263 attorney general's office; and
2264 (b) may:
2265 (i) delegate limited purchasing authority to a state agency, with appropriate oversight
2266 and control to ensure compliance with this chapter;
2267 (ii) delegate duties and authority to an employee of the division, as the chief
2268 procurement officer considers appropriate;
2269 (iii) negotiate and settle contract overcharges, undercharges, and claims, in accordance
2270 with the law and after consultation with the attorney general's office;
2271 (iv) authorize a procurement unit to make a procurement pursuant to a regional
2272 solicitation, as defined in Subsection 63G-6a-2105(7), even if the procurement item is also
2273 offered under a state cooperative contract, if the chief procurement officer determines that the
2274 procurement pursuant to a regional solicitation is in the best interest of the acquiring
2275 procurement unit; and
2276 (v) remove an individual from the procurement process or contract administration for:
2277 (A) having a conflict of interest or the appearance of a conflict of interest with a person
2278 responding to a solicitation or with a contractor;
2279 (B) having a bias or the appearance of bias for or against a person responding to a
2280 solicitation or for or against a contractor;
2281 (C) making an inconsistent or unexplainable score for a solicitation response;
2282 (D) having inappropriate contact or communication with a person responding to a
2283 solicitation;
2284 (E) socializing inappropriately with a person responding to a solicitation or with a
2285 contractor;
2286 (F) engaging in any other action or having any other association that causes the chief
2287 procurement officer to conclude that the individual cannot fairly evaluate a solicitation
2288 response or administer a contract; or
2289 (G) any other violation of a law, rule, or policy.
2290 (4) The chief procurement officer may not delegate to an individual outside the
2291 division the chief procurement officer's authority over a procurement described in Subsection
2292 (3)(a)(iv).
2293 (5) The chief procurement officer has final authority to determine whether an executive
2294 branch procurement unit's anticipated expenditure of public funds, anticipated agreement to
2295 expend public funds, or provision of a benefit constitutes a procurement that is subject to this
2296 chapter.
2297 (6) Except as otherwise provided in this chapter, the chief procurement officer shall
2298 review, monitor, and audit the procurement activities and delegated procurement authority of
2299 an executive branch procurement unit, except to the extent that an executive branch
2300 procurement unit is designated under Subsection 63G-6a-103(39)(b), (c), (d), or (e) as an
2301 independent procurement unit, to ensure compliance with this chapter, rules made by the
2302 applicable rulemaking authority, and division policies.
2303 Section 37. Section 63G-6a-1302 is amended to read:
2304 63G-6a-1302. Alternative methods of construction contracting management.
2305 (1) A rulemaking authority shall, by rule provide as many alternative methods of
2306 construction contracting management as determined to be feasible.
2307 (2) The rules described in Subsection (1) shall:
2308 (a) grant to the procurement official responsible for carrying out the construction
2309 project the discretion to select the appropriate method of construction contracting management
2310 for a particular project; and
2311 (b) require the procurement official to execute and include in the contract file a written
2312 statement describing the facts that led to the selection of a particular method of construction
2313 contracting management for each project.
2314 (3) Before choosing a construction contracting management method, the procurement
2315 official responsible for carrying out the construction project shall consider the following
2316 factors:
2317 (a) when the project must be ready to be occupied;
2318 (b) the type of project;
2319 (c) the extent to which the requirements of the procurement unit, and the way they are
2320 to be met are known;
2321 (d) the location of the project;
2322 (e) the size, scope, complexity, and economics of the project;
2323 (f) the source of funding and any resulting constraints necessitated by the funding
2324 source;
2325 (g) the availability, qualification, and experience of public personnel to be assigned to
2326 the project and the amount of time that the public personnel can devote to the project; and
2327 (h) the availability, qualifications, and experience of outside consultants and
2328 contractors to complete the project under the various methods being considered.
2329 (4) A rulemaking authority may make rules that authorize the use of a construction
2330 manager/general contractor as one method of construction contracting management.
2331 (5) The rules described in Subsection (2) shall require that:
2332 (a) the construction manager/general contractor be selected using:
2333 (i) a standard procurement process; or
2334 (ii) an exception to the requirement to use a standard procurement process, described in
2335 Part 8, Exceptions to Procurement Requirements; and
2336 (b) when entering into a subcontract that was not specifically included in the
2337 construction manager/general contractor's cost proposal, the construction manager/general
2338 contractor shall procure the subcontractor by using a standard procurement process, or an
2339 exception to the requirement to use a standard procurement process, described in Part 8,
2340 Exceptions to Procurement Requirements, in the same manner as if the subcontract work was
2341 procured directly by the procurement unit.
2342 (6) Procurement rules adopted by the [
2343 Subsections (1) through (3) for state building construction projects may authorize the use of a
2344 design-build provider as one method of construction contracting management.
2345 (7) A design-build contract may include a provision for obtaining the site for the
2346 construction project.
2347 (8) A design-build contract or a construction manager/general contractor contract may
2348 include provision by the contractor of operations, maintenance, or financing.
2349 Section 38. Section 63H-6-103 is amended to read:
2350 63H-6-103. Utah State Fair Corporation -- Legal status -- Powers.
2351 (1) There is created an independent public nonprofit corporation known as the "Utah
2352 State Fair Corporation."
2353 (2) The board shall file articles of incorporation for the corporation with the Division
2354 of Corporations and Commercial Code.
2355 (3) The corporation, subject to this chapter, has all powers and authority permitted
2356 nonprofit corporations by law.
2357 (4) The corporation shall:
2358 (a) manage, supervise, and control:
2359 (i) all activities relating to the annual exhibition described in Subsection (4)(j); and
2360 (ii) except as otherwise provided by statute, all state expositions, including setting the
2361 time, place, and purpose of any state exposition;
2362 (b) for public entertainment, displays, and exhibits or similar events:
2363 (i) provide, sponsor, or arrange the events;
2364 (ii) publicize and promote the events; and
2365 (iii) secure funds to cover the cost of the exhibits from:
2366 (A) private contributions;
2367 (B) public appropriations;
2368 (C) admission charges; and
2369 (D) other lawful means;
2370 (c) acquire and designate exposition sites;
2371 (d) use generally accepted accounting principles in accounting for the corporation's
2372 assets, liabilities, and operations;
2373 (e) seek corporate sponsorships for the state fair park or for individual buildings or
2374 facilities within the fair park;
2375 (f) work with county and municipal governments, the Salt Lake Convention and
2376 Visitor's Bureau, the Utah Travel Council, and other entities to develop and promote
2377 expositions and the use of the state fair park;
2378 (g) develop and maintain a marketing program to promote expositions and the use of
2379 the state fair park;
2380 (h) in accordance with provisions of this part, operate and maintain the state fair park,
2381 including the physical appearance and structural integrity of the state fair park and the
2382 buildings located at the state fair park;
2383 (i) prepare an economic development plan for the state fair park;
2384 (j) hold an annual exhibition that:
2385 (i) is called the state fair or a similar name;
2386 (ii) promotes and highlights agriculture throughout the state;
2387 (iii) includes expositions of livestock, poultry, agricultural, domestic science,
2388 horticultural, floricultural, mineral and industrial products, manufactured articles, and domestic
2389 animals that, in the corporation's opinion will best stimulate agricultural, industrial, artistic, and
2390 educational pursuits and the sharing of talents among the people of Utah;
2391 (iv) includes the award of premiums for the best specimens of the exhibited articles
2392 and animals;
2393 (v) permits competition by livestock exhibited by citizens of other states and territories
2394 of the United States; and
2395 (vi) is arranged according to plans approved by the board;
2396 (k) fix the conditions of entry to the annual exhibition described in Subsection (4)(j);
2397 and
2398 (l) publish a list of premiums that will be awarded at the annual exhibition described in
2399 Subsection (4)(j) for the best specimens of exhibited articles and animals.
2400 (5) In addition to the annual exhibition described in Subsection (4)(j), the corporation
2401 may hold other exhibitions of livestock, poultry, agricultural, domestic science, horticultural,
2402 floricultural, mineral and industrial products, manufactured articles, and domestic animals that,
2403 in the corporation's opinion, will best stimulate agricultural, industrial, artistic, and educational
2404 pursuits and the sharing of talents among the people of Utah.
2405 (6) The corporation may:
2406 (a) employ advisers, consultants, and agents, including financial experts and
2407 independent legal counsel, and fix their compensation;
2408 (b) (i) participate in the state's Risk Management Fund created under Section
2409 63A-4-201 or any captive insurance company created by the risk manager; or
2410 (ii) procure insurance against any loss in connection with the corporation's property
2411 and other assets, including mortgage loans;
2412 (c) receive and accept aid or contributions of money, property, labor, or other things of
2413 value from any source, including any grants or appropriations from any department, agency, or
2414 instrumentality of the United States or Utah;
2415 (d) hold, use, loan, grant, and apply that aid and those contributions to carry out the
2416 purposes of the corporation, subject to the conditions, if any, upon which the aid and
2417 contributions were made;
2418 (e) enter into management agreements with any person or entity for the performance of
2419 the corporation's functions or powers;
2420 (f) establish whatever accounts and procedures as necessary to budget, receive, and
2421 disburse, account for, and audit all funds received, appropriated, or generated;
2422 (g) subject to Subsection (8), lease any of the facilities at the state fair park;
2423 (h) sponsor events as approved by the board; and
2424 (i) enter into one or more agreements to develop the state fair park.
2425 (7) (a) Except as provided in Subsection (7)(c), as an independent agency of Utah, the
2426 corporation is exempt from:
2427 (i) Title 51, Chapter 5, Funds Consolidation Act;
2428 (ii) Title 51, Chapter 7, State Money Management Act;
2429 (iii) Title 63A, Utah Government Operations Code;
2430 (iv) Title 63J, Chapter 1, Budgetary Procedures Act; and
2431 (v) Title 63A, Chapter 17, Utah State Personnel Management Act.
2432 (b) The board shall adopt policies parallel to and consistent with:
2433 (i) Title 51, Chapter 5, Funds Consolidation Act;
2434 (ii) Title 51, Chapter 7, State Money Management Act;
2435 (iii) Title 63A, Utah Government Operations Code; and
2436 (iv) Title 63J, Chapter 1, Budgetary Procedures Act.
2437 (c) The corporation shall comply with:
2438 (i) Title 52, Chapter 4, Open and Public Meetings Act;
2439 (ii) Title 63G, Chapter 2, Government Records Access and Management Act;
2440 (iii) the provisions of Section 67-3-12;
2441 (iv) Title 63G, Chapter 6a, Utah Procurement Code, except for a procurement for:
2442 (A) entertainment provided at the state fair park;
2443 (B) judges for competitive exhibits; or
2444 (C) sponsorship of an event at the state fair park; and
2445 (v) the legislative approval requirements for new facilities established in Section
2446 63A-5b-404.
2447 (8) (a) Before the corporation executes a lease described in Subsection (6)(g) with a
2448 term of 10 or more years, the corporation shall:
2449 (i) submit the proposed lease to the [
2450
2451 (ii) if the [
2452 proposed lease to the Executive Appropriations Committee for the Executive Appropriation
2453 Committee's review and recommendation in accordance with Subsection (8)(b).
2454 (b) The Executive Appropriations Committee shall review a proposed lease submitted
2455 in accordance with Subsection (8)(a) and recommend to the corporation that the corporation:
2456 (i) execute the proposed sublease; or
2457 (ii) reject the proposed sublease.
2458 Section 39. Section 63H-6-108 is amended to read:
2459 63H-6-108. Operation of the state fair park.
2460 (1) The corporation shall:
2461 (a) operate and maintain the state fair park in accordance with the facility maintenance
2462 standards approved by the [
2463 (b) pay for all costs associated with operating and maintaining the state fair park;
2464 (c) obtain approval from the division before the corporation commences capital
2465 developments or capital improvements on the state fair park that involve:
2466 (i) a construction project that costs more than $250,000; or
2467 (ii) the construction of a new building that costs more than $1,000,000;
2468 (d) obtain a building permit from the division before commencing an activity that
2469 requires a building permit;
2470 (e) ensure that:
2471 (i) any design plan related to the state fair park satisfies any applicable design standards
2472 established by the division [
2473 (ii) construction performed on the state fair park satisfies any applicable construction
2474 standards established by the division [
2475 (f) for any new construction project on the state fair park that costs $250,000 or more:
2476 (i) notify the division before commencing the new construction project; and
2477 (ii) coordinate with the division regarding review of design plans and construction
2478 management;
2479 (g) obtain approval from the division before the corporation makes any alteration or
2480 addition to the water system, heating system, plumbing system, air conditioning system, or
2481 electrical system;
2482 (h) obtain approval from the [
2483 demolishes a building or facility on the state fair park;
2484 (i) keep the state fair park fully insured to protect against loss or damage by fire,
2485 vandalism, or malicious mischief;
2486 (j) in accordance with Subsection (3), at the corporation's expense, and for the mutual
2487 benefit of the division, maintain general public liability insurance in an amount equal to at least
2488 $1,000,000 through one or more companies that are:
2489 (i) licensed to do business in the state;
2490 (ii) selected by the corporation; and
2491 (iii) approved by the division and the Division of Risk Management;
2492 (k) ensure that the division is an additional insured with primary coverage on each
2493 insurance policy that the corporation obtains in accordance with this section;
2494 (l) give the division notice at least 30 days before the day on which the corporation
2495 cancels any insurance policy that the corporation obtains in accordance with this section; and
2496 (m) if any lien is recorded or filed against the state fair park as a result of an act or
2497 omission of the corporation, cause the lien to be satisfied or cancelled within 10 days after the
2498 day on which the corporation receives notice of the lien.
2499 (2) [
2500 begins, the division shall notify the State Historic Preservation Office of any [
2501
2502 demolish a facility on the state fair park.
2503 (3) The general public liability insurance described in Subsection (1)(j) shall:
2504 (a) insure against any claim for personal injury, death, or property damage that occurs
2505 at the state fair park; and
2506 (b) be a blanket policy that covers all activities of the corporation.
2507 (4) The division shall administer any capital improvements on the state fair park that
2508 cost more than $250,000.
2509 (5) Upon 24 hours notice to the corporation, the division may enter the state fair park
2510 to inspect the state fair park and make any repairs that the division determines necessary.
2511 (6) If the corporation no longer operates as an independent public nonprofit corporation
2512 as described in this chapter, the state shall assume the responsibilities of the corporation under
2513 any contract that is:
2514 (a) in effect as of the day on which the status of the corporation changes; and
2515 (b) for the lease, construction, or development of a building or facility on the state fair
2516 park.
2517 (7) (a) A debt or obligation contracted by the corporation is a debt or obligation of the
2518 corporation.
2519 (b) The state is not liable and assumes no responsibility for any debt or obligation
2520 described in Subsection (7)(a), unless the Legislature expressly:
2521 (i) authorizes the corporation to contract for the debt or obligation; and
2522 (ii) accepts liability or assumes responsibility for the debt or obligation.
2523 (8) The provisions of this section apply notwithstanding any contrary provision in Title
2524 63A, Chapter 5b, Administration of State Facilities.
2525 Section 40. Section 72-6-107.5 is amended to read:
2526 72-6-107.5. Construction of improvements of highway -- Contracts -- Health
2527 insurance coverage.
2528 (1) As used in this section:
2529 (a) "Aggregate" means the sum of all contracts, change orders, and modifications
2530 related to a single project.
2531 (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
2532 (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
2533 "operative" who:
2534 (i) works at least 30 hours per calendar week; and
2535 (ii) meets employer eligibility waiting requirements for health care insurance, which
2536 may not exceed the first day of the calendar month following 60 days after the day on which
2537 the individual is hired.
2538 (d) "Health benefit plan" means:
2539 (i) the same as that term is defined in Section 31A-1-301; or
2540 (ii) an employee welfare benefit plan:
2541 (A) established under the Employee Retirement Income Security Act of 1974, 29
2542 U.S.C. Sec. 1001 et seq.;
2543 (B) for an employer with 100 or more employees; and
2544 (C) in which the employer establishes a self-funded or partially self-funded group
2545 health plan to provide medical care for the employer's employees and dependents of the
2546 employees.
2547 (e) "Qualified health coverage" means the same as that term is defined in Section
2548 26-40-115.
2549 (f) "Subcontractor" means the same as that term is defined in Section 63A-5b-605.
2550 (g) "Third party administrator" or "administrator" means the same as that term is
2551 defined in Section 31A-1-301.
2552 (2) Except as provided in Subsection (3), the requirements of this section apply to:
2553 (a) a contractor of a design or construction contract entered into by the department on
2554 or after July 1, 2009, if the prime contract is in an aggregate amount equal to or greater than
2555 $2,000,000; and
2556 (b) a subcontractor of a contractor of a design or construction contract entered into by
2557 the department on or after July 1, 2009, if the subcontract is in an aggregate amount equal to or
2558 greater than $1,000,000.
2559 (3) The requirements of this section do not apply to a contractor or subcontractor
2560 described in Subsection (2) if:
2561 (a) the application of this section jeopardizes the receipt of federal funds;
2562 (b) the contract is a sole source contract; or
2563 (c) the contract is an emergency procurement.
2564 (4) A person that intentionally uses change orders, contract modifications, or multiple
2565 contracts to circumvent the requirements of this section is guilty of an infraction.
2566 (5) (a) A contractor subject to the requirements of this section shall demonstrate to the
2567 department that the contractor has and will maintain an offer of qualified health coverage for
2568 the contractor's employees and the employees' dependents during the duration of the contract
2569 by submitting to the department a written statement that:
2570 (i) the contractor offers qualified health coverage that complies with Section
2571 26-40-115;
2572 (ii) is from:
2573 (A) an actuary selected by the contractor or the contractor's insurer;
2574 (B) an underwriter who is responsible for developing the employer group's premium
2575 rates; or
2576 (C) if the contractor provides a health benefit plan described in Subsection (1)(d)(ii),
2577 an actuary or underwriter selected by a third party administrator; and
2578 (iii) was created within one year before the day on which the statement is submitted.
2579 (b) (i) A contractor that provides a health benefit plan described in Subsection (1)(d)(ii)
2580 shall provide the actuary or underwriter selected by an administrator, as described in
2581 Subsection (5)(a)(ii)(C), sufficient information to determine whether the contractor's
2582 contribution to the health benefit plan and the actuarial value of the health benefit plan meet the
2583 requirements of qualified health coverage.
2584 (ii) A contractor may not make a change to the contractor's contribution to the health
2585 benefit plan, unless the contractor provides notice to:
2586 (A) the actuary or underwriter selected by an administrator, as described in Subsection
2587 (5)(a)(ii)(C), for the actuary or underwriter to update the written statement described in
2588 Subsection (5)(a) in compliance with this section; and
2589 (B) the department.
2590 (c) A contractor that is subject to the requirements of this section shall:
2591 (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
2592 is subject to the requirements of this section shall obtain and maintain an offer of qualified
2593 health coverage for the subcontractor's employees and the employees' dependents during the
2594 duration of the subcontract; and
2595 (ii) obtain from a subcontractor that is subject to the requirements of this section a
2596 written statement that:
2597 (A) the subcontractor offers qualified health coverage that complies with Section
2598 26-40-115;
2599 (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, an
2600 underwriter who is responsible for developing the employer group's premium rates, or if the
2601 subcontractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or
2602 underwriter selected by an administrator; and
2603 (C) was created within one year before the day on which the contractor obtains the
2604 statement.
2605 (d) (i) (A) A contractor that fails to maintain an offer of qualified health coverage
2606 described in Subsection (5)(a) during the duration of the contract is subject to penalties in
2607 accordance with administrative rules adopted by the department under Subsection (6).
2608 (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
2609 and maintain an offer of qualified health coverage described in Subsection (5)(c)(i).
2610 (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
2611 coverage described in Subsection (5)(c) during the duration of the subcontract is subject to
2612 penalties in accordance with administrative rules adopted by the department under Subsection
2613 (6).
2614 (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
2615 an offer of qualified health coverage described in Subsection (5)(a).
2616 (6) The department shall adopt administrative rules:
2617 (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
2618 (b) in coordination with:
2619 (i) the Department of Environmental Quality in accordance with Section 19-1-206;
2620 (ii) the Department of Natural Resources in accordance with Section 79-2-404;
2621 (iii) the [
2622 accordance with Section 63A-5b-607;
2623 (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403;
2624 (v) a public transit district in accordance with Section 17B-2a-818.5; and
2625 (vi) the Legislature's Administrative Rules Review Committee; and
2626 (c) that establish:
2627 (i) the requirements and procedures a contractor and a subcontractor shall follow to
2628 demonstrate compliance with this section, including:
2629 (A) that a contractor or subcontractor's compliance with this section is subject to an
2630 audit by the department or the Office of the Legislative Auditor General;
2631 (B) that a contractor that is subject to the requirements of this section shall obtain a
2632 written statement described in Subsection (5)(a); and
2633 (C) that a subcontractor that is subject to the requirements of this section shall obtain a
2634 written statement described in Subsection (5)(c)(ii);
2635 (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
2636 violates the provisions of this section, which may include:
2637 (A) a three-month suspension of the contractor or subcontractor from entering into
2638 future contracts with the state upon the first violation;
2639 (B) a six-month suspension of the contractor or subcontractor from entering into future
2640 contracts with the state upon the second violation;
2641 (C) an action for debarment of the contractor or subcontractor in accordance with
2642 Section 63G-6a-904 upon the third or subsequent violation; and
2643 (D) monetary penalties which may not exceed 50% of the amount necessary to
2644 purchase qualified health coverage for an employee and a dependent of the employee of the
2645 contractor or subcontractor who was not offered qualified health coverage during the duration
2646 of the contract; and
2647 (iii) a website on which the department shall post the commercially equivalent
2648 benchmark, for the qualified health coverage identified in Subsection (1)(e), that is provided by
2649 the Department of Health, in accordance with Subsection 26-40-115(2).
2650 (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
2651 or subcontractor who intentionally violates the provisions of this section is liable to the
2652 employee for health care costs that would have been covered by qualified health coverage.
2653 (ii) An employer has an affirmative defense to a cause of action under Subsection
2654 (7)(a)(i) if:
2655 (A) the employer relied in good faith on a written statement described in Subsection
2656 (5)(a) or (5)(c)(ii); or
2657 (B) the department determines that compliance with this section is not required under
2658 the provisions of Subsection (3).
2659 (b) An employee has a private right of action only against the employee's employer to
2660 enforce the provisions of this Subsection (7).
2661 (8) Any penalties imposed and collected under this section shall be deposited into the
2662 Medicaid Restricted Account created in Section 26-18-402.
2663 (9) The failure of a contractor or subcontractor to provide qualified health coverage as
2664 required by this section:
2665 (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
2666 or contractor under:
2667 (i) Section 63G-6a-1602; or
2668 (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
2669 (b) may not be used by the procurement entity or a prospective bidder, offeror, or
2670 contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
2671 or construction.
2672 (10) An administrator, including an administrator's actuary or underwriter, who
2673 provides a written statement under Subsection (5)(a) or (c) regarding the qualified health
2674 coverage of a contractor or subcontractor who provides a health benefit plan described in
2675 Subsection (1)(d)(ii):
2676 (a) subject to Subsection (10)(b), is not liable for an error in the written statement,
2677 unless the administrator commits gross negligence in preparing the written statement;
2678 (b) is not liable for any error in the written statement if the administrator relied in good
2679 faith on information from the contractor or subcontractor; and
2680 (c) may require as a condition of providing the written statement that a contractor or
2681 subcontractor hold the administrator harmless for an action arising under this section.
2682 Section 41. Section 79-2-404 is amended to read:
2683 79-2-404. Contracting powers of department -- Health insurance coverage.
2684 (1) As used in this section:
2685 (a) "Aggregate" means the sum of all contracts, change orders, and modifications
2686 related to a single project.
2687 (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
2688 (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
2689 "operative" who:
2690 (i) works at least 30 hours per calendar week; and
2691 (ii) meets employer eligibility waiting requirements for health care insurance, which
2692 may not exceed the first day of the calendar month following 60 days after the day on which
2693 the individual is hired.
2694 (d) "Health benefit plan" means:
2695 (i) the same as that term is defined in Section 31A-1-301; or
2696 (ii) an employee welfare benefit plan:
2697 (A) established under the Employee Retirement Income Security Act of 1974, 29
2698 U.S.C. Sec. 1001 et seq.;
2699 (B) for an employer with 100 or more employees; and
2700 (C) in which the employer establishes a self-funded or partially self-funded group
2701 health plan to provide medical care for the employer's employees and dependents of the
2702 employees.
2703 (e) "Qualified health coverage" means the same as that term is defined in Section
2704 26-40-115.
2705 (f) "Subcontractor" means the same as that term is defined in Section 63A-5b-605.
2706 (g) "Third party administrator" or "administrator" means the same as that term is
2707 defined in Section 31A-1-301.
2708 (2) Except as provided in Subsection (3), the requirements of this section apply to:
2709 (a) a contractor of a design or construction contract entered into by, or delegated to, the
2710 department or a division, board, or council of the department on or after July 1, 2009, if the
2711 prime contract is in an aggregate amount equal to or greater than $2,000,000; and
2712 (b) a subcontractor of a contractor of a design or construction contract entered into by,
2713 or delegated to, the department or a division, board, or council of the department on or after
2714 July 1, 2009, if the subcontract is in an aggregate amount equal to or greater than $1,000,000.
2715 (3) This section does not apply to contracts entered into by the department or a
2716 division, board, or council of the department if:
2717 (a) the application of this section jeopardizes the receipt of federal funds;
2718 (b) the contract or agreement is between:
2719 (i) the department or a division, board, or council of the department; and
2720 (ii) (A) another agency of the state;
2721 (B) the federal government;
2722 (C) another state;
2723 (D) an interstate agency;
2724 (E) a political subdivision of this state; or
2725 (F) a political subdivision of another state; or
2726 (c) the contract or agreement is:
2727 (i) for the purpose of disbursing grants or loans authorized by statute;
2728 (ii) a sole source contract; or
2729 (iii) an emergency procurement.
2730 (4) A person that intentionally uses change orders, contract modifications, or multiple
2731 contracts to circumvent the requirements of this section is guilty of an infraction.
2732 (5) (a) A contractor subject to the requirements of this section shall demonstrate to the
2733 department that the contractor has and will maintain an offer of qualified health coverage for
2734 the contractor's employees and the employees' dependents during the duration of the contract
2735 by submitting to the department a written statement that:
2736 (i) the contractor offers qualified health coverage that complies with Section
2737 26-40-115;
2738 (ii) is from:
2739 (A) an actuary selected by the contractor or the contractor's insurer;
2740 (B) an underwriter who is responsible for developing the employer group's premium
2741 rates; or
2742 (C) if the contractor provides a health benefit plan described in Subsection (1)(d)(ii),
2743 an actuary or underwriter selected by a third party administrator; and
2744 (iii) was created within one year before the day on which the statement is submitted.
2745 (b) (i) A contractor that provides a health benefit plan described in Subsection (1)(d)(ii)
2746 shall provide the actuary or underwriter selected by an administrator, as described in
2747 Subsection (5)(a)(ii)(C), sufficient information to determine whether the contractor's
2748 contribution to the health benefit plan and the actuarial value of the health benefit plan meet the
2749 requirements of qualified health coverage.
2750 (ii) A contractor may not make a change to the contractor's contribution to the health
2751 benefit plan, unless the contractor provides notice to:
2752 (A) the actuary or underwriter selected by an administrator, as described in Subsection
2753 (5)(a)(ii)(C), for the actuary or underwriter to update the written statement described in
2754 Subsection (5)(a) in compliance with this section; and
2755 (B) the department.
2756 (c) A contractor that is subject to the requirements of this section shall:
2757 (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
2758 is subject to the requirements of this section shall obtain and maintain an offer of qualified
2759 health coverage for the subcontractor's employees and the employees' dependents during the
2760 duration of the subcontract; and
2761 (ii) obtain from a subcontractor that is subject to the requirements of this section a
2762 written statement that:
2763 (A) the subcontractor offers qualified health coverage that complies with Section
2764 26-40-115;
2765 (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, an
2766 underwriter who is responsible for developing the employer group's premium rates, or if the
2767 subcontractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or
2768 underwriter selected by an administrator; and
2769 (C) was created within one year before the day on which the contractor obtains the
2770 statement.
2771 (d) (i) (A) A contractor that fails to maintain an offer of qualified health coverage
2772 described in Subsection (5)(a) during the duration of the contract is subject to penalties in
2773 accordance with administrative rules adopted by the department under Subsection (6).
2774 (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
2775 and maintain an offer of qualified health coverage described in Subsection (5)(c)(i).
2776 (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
2777 coverage described in Subsection (5)(c) during the duration of the subcontract is subject to
2778 penalties in accordance with administrative rules adopted by the department under Subsection
2779 (6).
2780 (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
2781 an offer of qualified health coverage described in Subsection (5)(a).
2782 (6) The department shall adopt administrative rules:
2783 (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
2784 (b) in coordination with:
2785 (i) the Department of Environmental Quality in accordance with Section 19-1-206;
2786 (ii) a public transit district in accordance with Section 17B-2a-818.5;
2787 (iii) the [
2788 accordance with Section 63A-5b-607;
2789 (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403;
2790 (v) the Department of Transportation in accordance with Section 72-6-107.5; and
2791 (vi) the Legislature's Administrative Rules Review Committee; and
2792 (c) that establish:
2793 (i) the requirements and procedures a contractor and a subcontractor shall follow to
2794 demonstrate compliance with this section, including:
2795 (A) that a contractor or subcontractor's compliance with this section is subject to an
2796 audit by the department or the Office of the Legislative Auditor General;
2797 (B) that a contractor that is subject to the requirements of this section shall obtain a
2798 written statement described in Subsection (5)(a); and
2799 (C) that a subcontractor that is subject to the requirements of this section shall obtain a
2800 written statement described in Subsection (5)(c)(ii);
2801 (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
2802 violates the provisions of this section, which may include:
2803 (A) a three-month suspension of the contractor or subcontractor from entering into
2804 future contracts with the state upon the first violation;
2805 (B) a six-month suspension of the contractor or subcontractor from entering into future
2806 contracts with the state upon the second violation;
2807 (C) an action for debarment of the contractor or subcontractor in accordance with
2808 Section 63G-6a-904 upon the third or subsequent violation; and
2809 (D) monetary penalties which may not exceed 50% of the amount necessary to
2810 purchase qualified health coverage for an employee and a dependent of an employee of the
2811 contractor or subcontractor who was not offered qualified health coverage during the duration
2812 of the contract; and
2813 (iii) a website on which the department shall post the commercially equivalent
2814 benchmark, for the qualified health coverage identified in Subsection (1)(e), provided by the
2815 Department of Health, in accordance with Subsection 26-40-115(2).
2816 (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
2817 or subcontractor who intentionally violates the provisions of this section is liable to the
2818 employee for health care costs that would have been covered by qualified health coverage.
2819 (ii) An employer has an affirmative defense to a cause of action under Subsection
2820 (7)(a)(i) if:
2821 (A) the employer relied in good faith on a written statement described in Subsection
2822 (5)(a) or (5)(c)(ii); or
2823 (B) the department determines that compliance with this section is not required under
2824 the provisions of Subsection (3).
2825 (b) An employee has a private right of action only against the employee's employer to
2826 enforce the provisions of this Subsection (7).
2827 (8) Any penalties imposed and collected under this section shall be deposited into the
2828 Medicaid Restricted Account created in Section 26-18-402.
2829 (9) The failure of a contractor or subcontractor to provide qualified health coverage as
2830 required by this section:
2831 (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
2832 or contractor under:
2833 (i) Section 63G-6a-1602; or
2834 (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
2835 (b) may not be used by the procurement entity or a prospective bidder, offeror, or
2836 contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
2837 or construction.
2838 (10) An administrator, including an administrator's actuary or underwriter, who
2839 provides a written statement under Subsection (5)(a) or (c) regarding the qualified health
2840 coverage of a contractor or subcontractor who provides a health benefit plan described in
2841 Subsection (1)(d)(ii):
2842 (a) subject to Subsection (10)(b), is not liable for an error in the written statement,
2843 unless the administrator commits gross negligence in preparing the written statement;
2844 (b) is not liable for any error in the written statement if the administrator relied in good
2845 faith on information from the contractor or subcontractor; and
2846 (c) may require as a condition of providing the written statement that a contractor or
2847 subcontractor hold the administrator harmless for an action arising under this section.
2848 Section 42. Repealer.
2849 This bill repeals:
2850 Section 63A-5b-201, Creation of state building board -- Composition --
2851 Appointment -- Per diem and expenses -- Board officers.
2852 Section 63A-5b-202, State Building Board powers and duties.
2853 Section 63A-5b-203, Meetings of state building board -- Rules of procedure --
2854 Quorum.
2855 Section 43. Effective date.
2856 This bill takes effect on May 4, 2022, except that the amendments to Section
2857 53B-2a-112 (Effective 07/01/22) take effect on July 1, 2022.