This document includes House Floor Amendments incorporated into the bill on Wed, Feb 7, 2024 at 11:57 AM by housengrossing.
Senator Ronald M. Winterton proposes the following substitute bill:


1     
ROAD CONSTRUCTION BID LIMIT AMENDMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Ronald M. Winterton

5     
House Sponsor: Christine F. Watkins

6     

7     LONG TITLE
8     General Description:
9          This bill updates a statutory bid limit related to procurement for class B and class C
10     road projects.
11     Highlighted Provisions:
12          This bill:
13          ▸     increases the bid limit for class B and class C road construction projects to allow
14     local governments more flexibility in granting construction projects;
15          ▸     adjusts the inflation factor on the bid limit to tie increases to the National Highway
16     Construction Cost Index instead of the Consumer Price Index;
17          ▸     removes a cap on the annual increase due to inflation;
18          ▸     amends provisions related to bid requirements for construction self-performed by a
19     county or municipality;
20          ▸     requires construction materials used by a county or municipality for self-performed
21     construction are tested to ensure that the materials meet certain quality standards;
22     and
23          ▸     makes technical changes.
24     Money Appropriated in this Bill:
25          None

26     Other Special Clauses:
27          None
28     Utah Code Sections Affected:
29     AMENDS:
30          72-6-109, as last amended by Laws of Utah 2007, Chapter 69
31     

32     Be it enacted by the Legislature of the state of Utah:
33          Section 1. Section 72-6-109 is amended to read:
34          72-6-109. Class B and C roads -- Construction and maintenance -- Definitions --
35     Estimates lower than bids -- Accountability.
36          (1) As used in this section and Section 72-6-108:
37          (a) "Bid limit" means:
38          (i) for the year [2003, $125,000] 2024, $350,000; and
39          (ii) for each year after [2003] 2024, the amount of the bid limit for the previous year,
40     plus an amount calculated by multiplying the amount of the bid limit for the previous year by
41     [the lesser of 3% or] the actual percent change in the [Consumer Price Index] National
42     Highway Construction Cost Index during the previous calendar year.
43          [(b) "Consumer Price Index" means the Consumer Price Index for All Urban
44     Consumers as published by the Bureau of Labor Statistics of the United States Department of
45     Labor.]
46          [(c)] (b) (i) "Construction" means the work that would apply to:
47          (A) any new roadbed either by addition to existing systems or relocation;
48          (B) resurfacing of existing roadways with more than two inches of bituminous
49     pavement; or
50          (C) new structures or replacement of existing structures, except the replacement of
51     drainage culverts.
52          (ii) "Construction" does not include maintenance, emergency repairs, or the installation
53     of traffic control devices as described in Section 41-6a-302.
54          [(d)] (c) "Improvement project" means construction and maintenance as defined in this
55     section except for that maintenance excluded under Subsection (2).
56          [(e)] (d) "Maintenance" means the keeping of a road facility in a safe and usable

57     condition to which it was constructed or improved, and includes:
58          (i) the reworking of an existing surface by the application of up to and including two
59     inches of bituminous pavement;
60          (ii) the installation or replacement of guardrails, seal coats, and culverts;
61          (iii) the grading or widening of an existing unpaved road or flattening of shoulders or
62     side slopes to meet current width and safety standards; and
63          (iv) horizontal or vertical alignment changes necessary to bring an existing road in
64     compliance with current safety standards.
65          (e) "National Highway Construction Cost Index" means the National Highway
66     Construction Cost Index published by the Federal Highway Administration.
67          (f) "Project" means the performance of a clearly identifiable group of associated road
68     construction activities or the same type of maintenance process, where the construction or
69     maintenance is performed on any one class B or C road, within a half-mile proximity and
70     occurs within the same calendar year.
71          (2) The following types of maintenance work are not subject to the contract or bid limit
72     requirements of this section:
73          (a) the repair of less than the entire surface by crack sealing or patching; and
74          (b) road repairs incidental to the installation, replacement, or repair of water mains,
75     sewers, drainage pipes, culverts, or curbs and gutters.
76          (3) (a) (i) If the estimates of a qualified engineer referred to in Section 72-6-108 are
77     substantially lower than any responsible bid received or in the event no bids are received, the
78     county or municipality may perform the work by force account.
79          (ii) In no event shall "substantially lower" mean estimates that are less than 10% below
80     the lowest responsible bid.
81          (b) If a county or municipality performs an improvement project by force account, it
82     shall:
83          (i) provide an accounting of the costs and expenditures of the improvement including
84     material, labor, and direct equipment costs to be calculated using the Cost Reference Guide for
85     Construction Equipment by Dataquest Inc. or the Federal Emergency Management Agency
86     schedule of equipment rates;
87          (ii) disclose the costs and expenditures to any person upon request and allow the

88     person to make a copy and pay for the actual cost of the copy; and
89          (iii) perform the work using the same specifications and standards that would apply to
90     a private contractor.
91          (4) A county or municipality may not provide construction services to another
92     municipality until satisfying the requirements in Section 72-6-108 have been satisfied by the
93     receiving county or municipality.
94          (5) For any construction self-performed by a county or municipality that exceeds the
95     bid limit, the county or municipality shall seek private bids in accordance with Section
96     72-6-108.
97          (6) (a) Before self-performing any construction, and at least annually, a county or
98     municipality shall ensure that the aggregate, asphalt, and concrete materials owned by the
99     county or municipality for construction use are tested by an independent, qualified firm to
100     ensure the materials meet the same standards required Ĥ→ by the department ←Ĥ for private
100a     contractors for the same
101     work:
102          (b) The legislative body of the county or municipality shall ensure that the results of
103     the tests described in Subsection (6)(a) are public record.
104          Section 2. Effective date.
105          This bill takes effect on May 1, 2024.