Representative Candice B. Pierucci proposes the following substitute bill:


1     
PUBLIC ENTITY RESTRICTIONS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Candice B. Pierucci

5     
Senate Sponsor: Daniel McCay

6     Cosponsors:
7     Cheryl K. Acton
8     Kera Birkeland
9     Bridger Bolinder
10     Jefferson S. Burton
11     Kay J. Christofferson
12     Tyler Clancy
13     Jennifer Dailey-Provost
Stephanie Gricius
Jon Hawkins
Ken Ivory
Colin W. Jack
Tim Jimenez
Michael L. Kohler
Trevor Lee
Rosemary T. Lesser
Karianne Lisonbee
A. Cory Maloy
Jefferson Moss
Michael J. Petersen
Val L. Peterson
Andrew Stoddard
Jordan D. Teuscher
Christine F. Watkins
14     

15     LONG TITLE
16     General Description:
17          This bill concerns restrictions on a public entity.
18     Highlighted Provisions:
19          This bill:
20          ▸     defines terms;
21          ▸     prohibits a municipality from entering into a sister city relationship with certain
22     other municipalities;
23          ▸     prohibits certain public entities from using the procurement process under certain

24     circumstances to:
25               •     contract with certain foreign entities for certain technology products or services;
26     or
27               •     obtain a product that was made using forced labor;
28          ▸     requires certain entities to provide a certification involving certain procurement
29     contracts;
30          ▸     includes cross references relating to the new requirements; and
31          ▸     makes technical and conforming changes.
32     Money Appropriated in this Bill:
33          None
34     Other Special Clauses:
35          This bill provides a coordination clause.
36     Utah Code Sections Affected:
37     AMENDS:
38          63G-6a-602, as last amended by Laws of Utah 2020, Chapter 257
39          63G-6a-702, as last amended by Laws of Utah 2020, Chapter 257
40     ENACTS:
41          10-1-206, Utah Code Annotated 1953
42          63G-6a-121, Utah Code Annotated 1953
43     Utah Code Sections Affected By Coordination Clause:
44          63G-6a-121, as Utah Code Annotated 1953
45     

46     Be it enacted by the Legislature of the state of Utah:
47          Section 1. Section 10-1-206 is enacted to read:
48          10-1-206. Sister municipality restriction.
49          (1) As used in this section, "forced labor" means labor from a child or an adult that is
50     obtained through the use of force or coercion.
51          (2) A municipality may not enter into or renew a sister city agreement or arrangement
52     with another municipality unless the other municipality confirms that there are no forced labor
53     production facilities within the other municipality's borders.
54          (3) An agreement in violation of Subsection (2) is void.

55     The following section is affected by a coordination clause at the end of this bill.
56          Section 2. Section 63G-6a-121 is enacted to read:
57          63G-6a-121. Specific procurement restrictions relating to forced labor and
58     restricted foreign entities.
59          (1) As used in this section:
60          (a) "Forced labor" means labor from a child or an adult that is obtained through the use
61     of force or coercion.
62          (b) "Forced labor product" means a product that was made:
63          (i) using forced labor; or
64          (ii) includes a component that was made using forced labor.
65          (c) "Restricted foreign entity" means:
66          (i) a company that is owned or directly controlled by the government of China, Iran,
67     North Korea, or Russia;
68          (ii) a company that the United States Secretary of Defense is required to list as a
69     military company under the requirements of federal national defense authorization acts;
70          (iii) an affiliate of a company described in Subsection (1)(c)(i) or (1)(c)(ii);
71          (iv) a company, entity, or other subsidiary headquartered in the country with a
72     commercial or defense industrial base of which a company described in Subsection (1)(c)(ii) is
73     a part; or
74          (v) a subsidiary of a company described in Subsection (1)(c)(i) or (1)(c)(ii) or a
75     country, company, or other entity described in Subsection (1)(c)(iv).
76          (2) (a) Except as provided under Subsection (3), an executive branch procurement unit,
77     judicial procurement unit, or legislative procurement unit may not procure:
78          (i) technology or technology services, networks, or systems from a restricted foreign
79     entity; or
80          (ii) a forced labor product.
81          (b) (i) A vendor that submits a bid or a proposal to a procurement unit described in
82     Subsection (2)(a) for a contract involving technology or technology services, networks, or
83     systems, shall certify that the vendor is not a restricted foreign entity.
84          (ii) A vendor that submits a bid or proposal to a procurement unit described in
85     Subsection (2)(a) for a contract involving a product shall certify that the product is not a forced

86     labor product.
87          (3) (a) Except as provided under Subsection (3)(b), a procurement unit described in
88     Subsection (2)(a) shall reject a bid or proposal submitted in violation of Subsection (2).
89          (b) A procurement unit described in Subsection (2)(a) is not required to comply with
90     the requirements described in Subsection (2) if the procurement unit has determined that there
91     are no other reasonable options for the procurement.
92          (4) The board may make rules in accordance with Chapter 3, Utah Administrative
93     Rulemaking Act, to address procurement restrictions relating to restricted foreign entities and
94     forced labor products.
95          Section 3. Section 63G-6a-602 is amended to read:
96          63G-6a-602. Contracts awarded by bidding.
97          A procurement unit may award a contract for a procurement item by the bidding
98     process, in accordance with:
99          (1) the rules of the rulemaking authority; and
100          (2) if applicable, the requirements under Section 63G-6a-121, Specific procurement
101     restrictions relating to forced labor and restricted foreign entities.
102          Section 4. Section 63G-6a-702 is amended to read:
103          63G-6a-702. Contracts awarded by request for proposals.
104          (1) A procurement unit may award a contract for a procurement item by the request for
105     proposals process, in accordance with:
106          (a) rulemaking authority rules[.]; and
107          (b) if applicable, the requirements under Section 63G-6a-121, Specific procurement
108     restrictions relating to forced labor and restricted foreign entities.
109          (2) The procurement of architect-engineer services is governed by Part 15, Design
110     Professional Services.
111          Section 5. Effective date.
112          This bill takes effect on May 1, 2024.
113          Section 6. Coordinating H.B. 404 with S.B. 135.
114          If H.B. 404, Public Entity Restrictions, and S.B. 135, Advanced Air Mobility and
115     Aeronautics Amendments, both pass and become law, the Legislature intends that, on January
116     1, 2025, the following language be added as Subsection (5) to Section 63G-6a-121 enacted in

117     H.B. 404:
118          "(5) Notwithstanding this section, a procurement of an unmanned aircraft system is
119     governed by Title 72, Chapter 10, Part 12, Prohibition on the Purchase of Unmanned Aircraft
120     Manufactured or Assembled by a Covered Foreign Entity.".