Utah 2023 Regular Session

Utah House Bill HB0561 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	H.B. 561
2	2	LEGISLATIVE GENERAL COUNSEL
3	3	6 Approved for Filing: E.A. Evans 6
4	4	6 02-24-23 12:46 PM 6
5	5	H.B. 561
6	6	1 DEPARTMENT OF HEALTH AND HUMAN SERVI CES
7	7	2 PROCUREMENT AMENDMENTS
8	8	3 2023 GENERAL SESSION
9	9	4 STATE OF UTAH
10	10	5 Chief Sponsor: Andrew Stoddard
11	11	6 Senate Sponsor: ____________
12	12	7
13	13	8LONG TITLE
14	14	9General Description:
15	15	10 This bill addresses procurements by the Department of Health and Human Services
16	16	11(department).
17	17	12Highlighted Provisions:
18	18	13 This bill:
19	19	14 <creates and modifies definitions;
20	20	15 <provides that the department is an independent procurement unit under the Utah
21	21	16Procurement Code for certain human services procurements;
22	22	17 <exempts the department from the Utah Procurement Code for certain medical
23	23	18supply purchases;
24	24	19 <addresses the following for human services procurements:
25	25	20 Cpublic notice;
26	26	21 Cprotest appeals;
27	27	22 Cdirect purchases without solicitation;
28	28	23 Cinvitations for contract awards through an open enrollment, noncompetitive
29	29	24process; and
30	30	25 Cdetermining debarment and suspension;
31	31	26 <authorizes the executive director of the department to appoint a procurement
32	32	27advisory council;
33	33	HB0561 H.B. 561 02-24-23 12:46 PM
34	34	- 2 -
35	35	28 <grants administrative rulemaking authority; and
36	36	29 <makes technical and conforming changes.
37	37	30Money Appropriated in this Bill:
38	38	31 None
39	39	32Other Special Clauses:
40	40	33 None
41	41	34Utah Code Sections Affected:
42	42	35AMENDS:
43	43	36 63G-6a-103, as last amended by Laws of Utah 2022, Chapters 421, 422
44	44	37 63G-6a-107.6, as last amended by Laws of Utah 2021, Chapter 179
45	45	38 63G-6a-107.7, as enacted by Laws of Utah 2020, Chapter 257
46	46	39 63G-6a-1702, as last amended by Laws of Utah 2017, Chapter 348
47	47	40ENACTS:
48	48	41 63G-6a-2501, Utah Code Annotated 1953
49	49	42 63G-6a-2502, Utah Code Annotated 1953
50	50	43 63G-6a-2503, Utah Code Annotated 1953
51	51	44 63G-6a-2504, Utah Code Annotated 1953
52	52	45 63G-6a-2505, Utah Code Annotated 1953
53	53	46 63G-6a-2506, Utah Code Annotated 1953
54	54	47 63G-6a-2507, Utah Code Annotated 1953
55	55	48
56	56	49Be it enacted by the Legislature of the state of Utah:
57	57	50 Section 1. Section 63G-6a-103 is amended to read:
58	58	51 63G-6a-103. Definitions.
59	59	52 As used in this chapter:
60	60	53 (1) "Approved vendor" means a person who has been approved for inclusion on an
61	61	54approved vendor list through the approved vendor list process.
62	62	55 (2) "Approved vendor list" means a list of approved vendors established under Section
63	63	5663G-6a-507.
64	64	57 (3) "Approved vendor list process" means the procurement process described in
65	65	58Section 63G-6a-507. 02-24-23 12:46 PM H.B. 561
66	66	- 3 -
67	67	59 (4) "Bidder" means a person who submits a bid or price quote in response to an
68	68	60invitation for bids.
69	69	61 (5) "Bidding process" means the procurement process described in Part 6, Bidding.
70	70	62 (6) "Board" means the Utah State Procurement Policy Board, created in Section
71	71	6363G-6a-202.
72	72	64 (7) "Change directive" means a written order signed by the procurement officer that
73	73	65directs the contractor to suspend work or make changes, as authorized by contract, without the
74	74	66consent of the contractor.
75	75	67 (8) "Change order" means a written alteration in specifications, delivery point, rate of
76	76	68delivery, period of performance, price, quantity, or other provisions of a contract, upon mutual
77	77	69agreement of the parties to the contract.
78	78	70 (9) "Chief procurement officer" means the individual appointed under Section
79	79	7163A-2-102.
80	80	72 (10) "Conducting procurement unit" means a procurement unit that conducts all
81	81	73aspects of a procurement:
82	82	74 (a) except:
83	83	75 (i) reviewing a solicitation to verify that it is in proper form; and
84	84	76 (ii) causing the publication of a notice of a solicitation; and
85	85	77 (b) including:
86	86	78 (i) preparing any solicitation document;
87	87	79 (ii) appointing an evaluation committee;
88	88	80 (iii) conducting the evaluation process, except the process relating to scores calculated
89	89	81for costs of proposals;
90	90	82 (iv) selecting and recommending the person to be awarded a contract;
91	91	83 (v) negotiating the terms and conditions of a contract, subject to the issuing
92	92	84procurement unit's approval; and
93	93	85 (vi) contract administration.
94	94	86 (11) "Conservation district" means the same as that term is defined in Section
95	95	8717D-3-102.
96	96	88 (12) "Construction project":
97	97	89 (a) means a project for the construction, renovation, alteration, improvement, or repair H.B. 561 02-24-23 12:46 PM
98	98	- 4 -
99	99	90of a public facility on real property, including all services, labor, supplies, and materials for the
100	100	91project; and
101	101	92 (b) does not include services and supplies for the routine, day-to-day operation, repair,
102	102	93or maintenance of an existing public facility.
103	103	94 (13) "Construction manager/general contractor":
104	104	95 (a) means a contractor who enters into a contract:
105	105	96 (i) for the management of a construction project; and
106	106	97 (ii) that allows the contractor to subcontract for additional labor and materials that are
107	107	98not included in the contractor's cost proposal submitted at the time of the procurement of the
108	108	99contractor's services; and
109	109	100 (b) does not include a contractor whose only subcontract work not included in the
110	110	101contractor's cost proposal submitted as part of the procurement of the contractor's services is to
111	111	102meet subcontracted portions of change orders approved within the scope of the project.
112	112	103 (14) "Construction subcontractor":
113	113	104 (a) means a person under contract with a contractor or another subcontractor to provide
114	114	105services or labor for the design or construction of a construction project;
115	115	106 (b) includes a general contractor or specialty contractor licensed or exempt from
116	116	107licensing under Title 58, Chapter 55, Utah Construction Trades Licensing Act; and
117	117	108 (c) does not include a supplier who provides only materials, equipment, or supplies to a
118	118	109contractor or subcontractor for a construction project.
119	119	110 (15) "Contract" means an agreement for a procurement.
120	120	111 (16) "Contract administration" means all functions, duties, and responsibilities
121	121	112associated with managing, overseeing, and carrying out a contract between a procurement unit
122	122	113and a contractor, including:
123	123	114 (a) implementing the contract;
124	124	115 (b) ensuring compliance with the contract terms and conditions by the conducting
125	125	116procurement unit and the contractor;
126	126	117 (c) executing change orders;
127	127	118 (d) processing contract amendments;
128	128	119 (e) resolving, to the extent practicable, contract disputes;
129	129	120 (f) curing contract errors and deficiencies; 02-24-23 12:46 PM H.B. 561
130	130	- 5 -
131	131	121 (g) terminating a contract;
132	132	122 (h) measuring or evaluating completed work and contractor performance;
133	133	123 (i) computing payments under the contract; and
134	134	124 (j) closing out a contract.
135	135	125 (17) "Contractor" means a person who is awarded a contract with a procurement unit.
136	136	126 (18) "Cooperative procurement" means procurement conducted by, or on behalf of:
137	137	127 (a) more than one procurement unit; or
138	138	128 (b) a procurement unit and a cooperative purchasing organization.
139	139	129 (19) "Cooperative purchasing organization" means an organization, association, or
140	140	130alliance of purchasers established to combine purchasing power in order to obtain the best
141	141	131value for the purchasers by engaging in procurements in accordance with Section 63G-6a-2105.
142	142	132 (20) "Cost-plus-a-percentage-of-cost contract" means a contract under which the
143	143	133contractor is paid a percentage of the total actual expenses or costs in addition to the
144	144	134contractor's actual expenses or costs.
145	145	135 (21) "Cost-reimbursement contract" means a contract under which a contractor is
146	146	136reimbursed for costs which are allowed and allocated in accordance with the contract terms and
147	147	137the provisions of this chapter, and a fee, if any.
148	148	138 (22) "Days" means calendar days, unless expressly provided otherwise.
149	149	139 (23) "Definite quantity contract" means a fixed price contract that provides for a
150	150	140specified amount of supplies over a specified period, with deliveries scheduled according to a
151	151	141specified schedule.
152	152	142 (24) "Design professional" means:
153	153	143 (a) an individual licensed as an architect under Title 58, Chapter 3a, Architects
154	154	144Licensing Act;
155	155	145 (b) an individual licensed as a professional engineer or professional land surveyor
156	156	146under Title 58, Chapter 22, Professional Engineers and Professional Land Surveyors Licensing
157	157	147Act; or
158	158	148 (c) an individual certified as a commercial interior designer under Title 58, Chapter 86,
159	159	149State Certification of Commercial Interior Designers Act.
160	160	150 (25) "Design professional procurement process" means the procurement process
161	161	151described in Part 15, Design Professional Services. H.B. 561 02-24-23 12:46 PM
162	162	- 6 -
163	163	152 (26) "Design professional services" means:
164	164	153 (a) professional services within the scope of the practice of architecture as defined in
165	165	154Section 58-3a-102;
166	166	155 (b) professional engineering as defined in Section 58-22-102;
167	167	156 (c) master planning and programming services; or
168	168	157 (d) services within the scope of the practice of commercial interior design, as defined
169	169	158in Section 58-86-102.
170	170	159 (27) "Design-build" means the procurement of design professional services and
171	171	160construction by the use of a single contract.
172	172	161 (28) "Division" means the Division of Purchasing and General Services, created in
173	173	162Section 63A-2-101.
174	174	163 (29) "Educational procurement unit" means:
175	175	164 (a) a school district;
176	176	165 (b) a public school, including a local school board or a charter school;
177	177	166 (c) the Utah Schools for the Deaf and the Blind;
178	178	167 (d) the Utah Education and Telehealth Network;
179	179	168 (e) an institution of higher education of the state described in Section 53B-1-102; or
180	180	169 (f) the State Board of Education.
181	181	170 (30) "Established catalogue price" means the price included in a catalogue, price list,
182	182	171schedule, or other form that:
183	183	172 (a) is regularly maintained by a manufacturer or contractor;
184	184	173 (b) is published or otherwise available for inspection by customers; and
185	185	174 (c) states prices at which sales are currently or were last made to a significant number
186	186	175of any category of buyers or buyers constituting the general buying public for the supplies or
187	187	176services involved.
188	188	177 (31) (a) "Executive branch procurement unit" means a department, division, office,
189	189	178bureau, agency, or other organization within the state executive branch.
190	190	179 (b) "Executive branch procurement unit" does not include the Colorado River
191	191	180Authority of Utah as provided in Section 63M-14-210.
192	192	181 (32) "Facilities division" means the Division of Facilities Construction and
193	193	182Management, created in Section 63A-5b-301. 02-24-23 12:46 PM H.B. 561
194	194	- 7 -
195	195	183 (33) "Fixed price contract" means a contract that provides a price, for each
196	196	184procurement item obtained under the contract, that is not subject to adjustment except to the
197	197	185extent that:
198	198	186 (a) the contract provides, under circumstances specified in the contract, for an
199	199	187adjustment in price that is not based on cost to the contractor; or
200	200	188 (b) an adjustment is required by law.
201	201	189 (34) "Fixed price contract with price adjustment" means a fixed price contract that
202	202	190provides for an upward or downward revision of price, precisely described in the contract, that:
203	203	191 (a) is based on the consumer price index or another commercially acceptable index,
204	204	192source, or formula; and
205	205	193 (b) is not based on a percentage of the cost to the contractor.
206	206	194 (35) "Grant" means an expenditure of public funds or other assistance, or an agreement
207	207	195to expend public funds or other assistance, for a public purpose authorized by law, without
208	208	196acquiring a procurement item in exchange.
209	209	197 (36) "Human services procurement item" means a procurement item used to provide
210	210	198services or support to:
211	211	199 (a) a child, family, or adult at home, school, work, or in the community;
212	212	200 (b) an individual in secure care, as defined in Section 80-1-102; or
213	213	201 (c) an individual at the Utah State Hospital or the Utah State Developmental Center.
214	214	202 [(36)] (37) "Immaterial error":
215	215	203 (a) means an irregularity or abnormality that is:
216	216	204 (i) a matter of form that does not affect substance; or
217	217	205 (ii) an inconsequential variation from a requirement of a solicitation that has no, little,
218	218	206or a trivial effect on the procurement process and that is not prejudicial to other vendors; and
219	219	207 (b) includes:
220	220	208 (i) a missing signature, missing acknowledgment of an addendum, or missing copy of a
221	221	209professional license, bond, or insurance certificate;
222	222	210 (ii) a typographical error;
223	223	211 (iii) an error resulting from an inaccuracy or omission in the solicitation; and
224	224	212 (iv) any other error that the procurement official reasonably considers to be immaterial.
225	225	213 [(37)] (38) "Indefinite quantity contract" means a fixed price contract that: H.B. 561 02-24-23 12:46 PM
226	226	- 8 -
227	227	214 (a) is for an indefinite amount of procurement items to be supplied as ordered by a
228	228	215procurement unit; and
229	229	216 (b) (i) does not require a minimum purchase amount; or
230	230	217 (ii) provides a maximum purchase limit.
231	231	218 [(38)] (39) "Independent procurement unit" means:
232	232	219 (a) (i) a legislative procurement unit;
233	233	220 (ii) a judicial branch procurement unit;
234	234	221 (iii) an educational procurement unit;
235	235	222 (iv) a local government procurement unit;
236	236	223 (v) a conservation district;
237	237	224 (vi) a local building authority;
238	238	225 (vii) a local district;
239	239	226 (viii) a public corporation;
240	240	227 (ix) a special service district; or
241	241	228 (x) the Utah Communications Authority, established in Section 63H-7a-201;
242	242	229 (b) the facilities division, but only to the extent of the procurement authority provided
243	243	230under Title 63A, Chapter 5b, Administration of State Facilities;
244	244	231 (c) the attorney general, but only to the extent of the procurement authority provided
245	245	232under Title 67, Chapter 5, Attorney General;
246	246	233 (d) the Department of Transportation, but only to the extent of the procurement
247	247	234authority provided under Title 72, Transportation Code; [or]
248	248	235 (e) the Department of Health and Human Services, but only for a human services
249	249	236procurement item; or
250	250	237 [(e)] (f) any other executive branch department, division, office, or entity that has
251	251	238statutory procurement authority outside this chapter, but only to the extent of that statutory
252	252	239procurement authority.
253	253	240 [(39)] (40) "Invitation for bids":
254	254	241 (a) means a document used to solicit:
255	255	242 (i) bids to provide a procurement item to a procurement unit; or
256	256	243 (ii) quotes for a price of a procurement item to be provided to a procurement unit; and
257	257	244 (b) includes all documents attached to or incorporated by reference in a document 02-24-23 12:46 PM H.B. 561
258	258	- 9 -
259	259	245described in Subsection [(39)(a).] (40)(a).
260	260	246 [(40)] (41) "Issuing procurement unit" means a procurement unit that:
261	261	247 (a) reviews a solicitation to verify that it is in proper form;
262	262	248 (b) causes the notice of a solicitation to be published; and
263	263	249 (c) negotiates and approves the terms and conditions of a contract.
264	264	250 [(41)] (42) "Judicial procurement unit" means:
265	265	251 (a) the Utah Supreme Court;
266	266	252 (b) the Utah Court of Appeals;
267	267	253 (c) the Judicial Council;
268	268	254 (d) a state judicial district; or
269	269	255 (e) an office, committee, subcommittee, or other organization within the state judicial
270	270	256branch.
271	271	257 [(42)] (43) "Labor hour contract" is a contract under which:
272	272	258 (a) the supplies and materials are not provided by, or through, the contractor; and
273	273	259 (b) the contractor is paid a fixed rate that includes the cost of labor, overhead, and
274	274	260profit for a specified number of labor hours or days.
275	275	261 [(43)] (44) "Legislative procurement unit" means:
276	276	262 (a) the Legislature;
277	277	263 (b) the Senate;
278	278	264 (c) the House of Representatives;
279	279	265 (d) a staff office of the Legislature, the Senate, or the House of Representatives; or
280	280	266 (e) a committee, subcommittee, commission, or other organization:
281	281	267 (i) within the state legislative branch; or
282	282	268 (ii) (A) that is created by statute to advise or make recommendations to the Legislature;
283	283	269 (B) the membership of which includes legislators; and
284	284	270 (C) for which the Office of Legislative Research and General Counsel provides staff
285	285	271support.
286	286	272 [(44)] (45) "Local building authority" means the same as that term is defined in Section
287	287	27317D-2-102.
288	288	274 [(45)] (46) "Local district" means the same as that term is defined in Section
289	289	27517B-1-102. H.B. 561 02-24-23 12:46 PM
290	290	- 10 -
291	291	276 [(46)] (47) "Local government procurement unit" means:
292	292	277 (a) a county, municipality, or project entity, and each office of the county, municipality,
293	293	278or project entity, unless:
294	294	279 (i) the county or municipality adopts a procurement code by ordinance; or
295	295	280 (ii) the project entity adopts a procurement code through the process described in
296	296	281Section 11-13-316;
297	297	282 (b) (i) a county or municipality that has adopted this entire chapter by ordinance, and
298	298	283each office or agency of that county or municipality; and
299	299	284 (ii) a project entity that has adopted this entire chapter through the process described in
300	300	285Subsection 11-13-316; or
301	301	286 (c) a county, municipality, or project entity, and each office of the county, municipality,
302	302	287or project entity that has adopted a portion of this chapter to the extent that:
303	303	288 (i) a term in the ordinance is used in the adopted chapter; or
304	304	289 (ii) a term in the ordinance is used in the language a project entity adopts in its
305	305	290procurement code through the process described in Section 11-13-316.
306	306	291 [(47)] (48) "Multiple award contracts" means the award of a contract for an indefinite
307	307	292quantity of a procurement item to more than one person.
308	308	293 [(48)] (49) "Multiyear contract" means a contract that extends beyond a one-year
309	309	294period, including a contract that permits renewal of the contract, without competition, beyond
310	310	295the first year of the contract.
311	311	296 [(49)] (50) "Municipality" means a city, town, or metro township.
312	312	297 [(50)] (51) "Nonadopting local government procurement unit" means:
313	313	298 (a) a county or municipality that has not adopted Part 16, Protests, Part 17,
314	314	299Procurement Appeals Board, Part 18, Appeals to Court and Court Proceedings, and Part 19,
315	315	300General Provisions Related to Protest or Appeal; and
316	316	301 (b) each office or agency of a county or municipality described in Subsection [(50)(a).]
317	317	302(51)(a).
318	318	303 [(51)] (52) "Offeror" means a person who submits a proposal in response to a request
319	319	304for proposals.
320	320	305 [(52)] (53) "Preferred bidder" means a bidder that is entitled to receive a reciprocal
321	321	306preference under the requirements of this chapter. 02-24-23 12:46 PM H.B. 561
322	322	- 11 -
323	323	307 [(53)] (54) "Procure" means to acquire a procurement item through a procurement.
324	324	308 [(54)] (55) "Procurement" means the acquisition of a procurement item through an
325	325	309expenditure of public funds, or an agreement to expend public funds, including an acquisition
326	326	310through a public-private partnership.
327	327	311 [(55)] (56) "Procurement item" means an item of personal property, a technology, a
328	328	312service, or a construction project.
329	329	313 [(56)] (57) "Procurement official" means:
330	330	314 (a) for a procurement unit other than an independent procurement unit, the chief
331	331	315procurement officer;
332	332	316 (b) for a legislative procurement unit, the individual, individuals, or body designated in
333	333	317a policy adopted by the Legislative Management Committee;
334	334	318 (c) for a judicial procurement unit, the Judicial Council or an individual or body
335	335	319designated by the Judicial Council by rule;
336	336	320 (d) for a local government procurement unit:
337	337	321 (i) the legislative body of the local government procurement unit; or
338	338	322 (ii) an individual or body designated by the local government procurement unit;
339	339	323 (e) for a local district, the board of trustees of the local district or the board of trustees'
340	340	324designee;
341	341	325 (f) for a special service district, the governing body of the special service district or the
342	342	326governing body's designee;
343	343	327 (g) for a local building authority, the board of directors of the local building authority
344	344	328or the board of directors' designee;
345	345	329 (h) for a conservation district, the board of supervisors of the conservation district or
346	346	330the board of supervisors' designee;
347	347	331 (i) for a public corporation, the board of directors of the public corporation or the board
348	348	332of directors' designee;
349	349	333 (j) for a school district or any school or entity within a school district, the board of the
350	350	334school district or the board's designee;
351	351	335 (k) for a charter school, the individual or body with executive authority over the charter
352	352	336school or the designee of the individual or body;
353	353	337 (l) for an institution of higher education described in Section 53B-2-101, the president H.B. 561 02-24-23 12:46 PM
354	354	- 12 -
355	355	338of the institution of higher education or the president's designee;
356	356	339 (m) for the State Board of Education, the State Board of Education or the State Board
357	357	340of Education's designee;
358	358	341 (n) for the Utah Board of Higher Education, the Commissioner of Higher Education or
359	359	342the designee of the Commissioner of Higher Education;
360	360	343 (o) for the Utah Communications Authority, established in Section 63H-7a-201, the
361	361	344executive director of the Utah Communications Authority or the executive director's designee;
362	362	345or
363	363	346 (p) (i) for the facilities division, and only to the extent of procurement activities of the
364	364	347facilities division as an independent procurement unit under the procurement authority
365	365	348provided under Title 63A, Chapter 5b, Administration of State Facilities, the director of the
366	366	349facilities division or the director's designee;
367	367	350 (ii) for the attorney general, and only to the extent of procurement activities of the
368	368	351attorney general as an independent procurement unit under the procurement authority provided
369	369	352under Title 67, Chapter 5, Attorney General, the attorney general or the attorney general's
370	370	353designee;
371	371	354 (iii) for the Department of Transportation created in Section 72-1-201, and only to the
372	372	355extent of procurement activities of the Department of Transportation as an independent
373	373	356procurement unit under the procurement authority provided under Title 72, Transportation
374	374	357Code, the executive director of the Department of Transportation or the executive director's
375	375	358designee; [or]
376	376	359 (iv) for the Department of Health and Human Services, and only to the extent of the
377	377	360procurement activities of the Department of Health and Human Services as an independent
378	378	361procurement unit, the executive director of the Department of Health and Human Services or
379	379	362the executive director's designee; or
380	380	363 [(iv)] (v) for any other executive branch department, division, office, or entity that has
381	381	364statutory procurement authority outside this chapter, and only to the extent of the procurement
382	382	365activities of the department, division, office, or entity as an independent procurement unit
383	383	366under the procurement authority provided outside this chapter for the department, division,
384	384	367office, or entity, the chief executive officer of the department, division, office, or entity or the
385	385	368chief executive officer's designee. 02-24-23 12:46 PM H.B. 561
386	386	- 13 -
387	387	369 [(57)] (58) "Procurement unit":
388	388	370 (a) means:
389	389	371 (i) a legislative procurement unit;
390	390	372 (ii) an executive branch procurement unit;
391	391	373 (iii) a judicial procurement unit;
392	392	374 (iv) an educational procurement unit;
393	393	375 (v) the Utah Communications Authority, established in Section 63H-7a-201;
394	394	376 (vi) a local government procurement unit;
395	395	377 (vii) a local district;
396	396	378 (viii) a special service district;
397	397	379 (ix) a local building authority;
398	398	380 (x) a conservation district; and
399	399	381 (xi) a public corporation; and
400	400	382 (b) except for a project entity, to the extent that a project entity is subject to this chapter
401	401	383as described in Section 11-13-316, does not include a political subdivision created under Title
402	402	38411, Chapter 13, Interlocal Cooperation Act.
403	403	385 [(58)] (59) "Professional service" means labor, effort, or work that requires specialized
404	404	386knowledge, expertise, and discretion, including labor, effort, or work in the field of:
405	405	387 (a) accounting;
406	406	388 (b) administrative law judge service;
407	407	389 (c) architecture;
408	408	390 (d) construction design and management;
409	409	391 (e) engineering;
410	410	392 (f) financial services;
411	411	393 (g) information technology;
412	412	394 (h) the law;
413	413	395 (i) medicine;
414	414	396 (j) psychiatry; or
415	415	397 (k) underwriting.
416	416	398 [(59)] (60) "Protest officer" means:
417	417	399 (a) for the division or an independent procurement unit: H.B. 561 02-24-23 12:46 PM
418	418	- 14 -
419	419	400 (i) the procurement official;
420	420	401 (ii) the procurement official's designee who is an employee of the procurement unit; or
421	421	402 (iii) a person designated by rule made by the rulemaking authority; or
422	422	403 (b) for a procurement unit other than an independent procurement unit, the chief
423	423	404procurement officer or the chief procurement officer's designee who is an employee of the
424	424	405division .
425	425	406 [(60)] (61) "Public corporation" means the same as that term is defined in Section
426	426	40763E-1-102.
427	427	408 [(61)] (62) "Project entity" means the same as that term is defined in Section
428	428	40911-13-103.
429	429	410 [(62)] (63) "Public entity" means the state or any other government entity within the
430	430	411state that expends public funds.
431	431	412 [(63)] (64) "Public facility" means a building, structure, infrastructure, improvement,
432	432	413or other facility of a public entity.
433	433	414 [(64)] (65) "Public funds" means money, regardless of its source, including from the
434	434	415federal government, that is owned or held by a procurement unit.
435	435	416 [(65)] (66) "Public transit district" means a public transit district organized under Title
436	436	41717B, Chapter 2a, Part 8, Public Transit District Act.
437	437	418 [(66)] (67) "Public-private partnership" means an arrangement or agreement, occurring
438	438	419on or after January 1, 2017, between a procurement unit and one or more contractors to provide
439	439	420for a public need through the development or operation of a project in which the contractor or
440	440	421contractors share with the procurement unit the responsibility or risk of developing, owning,
441	441	422maintaining, financing, or operating the project.
442	442	423 [(67)] (68) "Qualified vendor" means a vendor who:
443	443	424 (a) is responsible; and
444	444	425 (b) submits a responsive statement of qualifications under Section 63G-6a-410 that
445	445	426meets the minimum mandatory requirements, evaluation criteria, and any applicable score
446	446	427thresholds set forth in the request for statement of qualifications.
447	447	428 [(68)] (69) "Real property" means land and any building, fixture, improvement,
448	448	429appurtenance, structure, or other development that is permanently affixed to land.
449	449	430 [(69)] (70) "Request for information" means a nonbinding process through which a 02-24-23 12:46 PM H.B. 561
450	450	- 15 -
451	451	431procurement unit requests information relating to a procurement item.
452	452	432 [(70)] (71) "Request for proposals" means a document used to solicit proposals to
453	453	433provide a procurement item to a procurement unit, including all other documents that are
454	454	434attached to that document or incorporated in that document by reference.
455	455	435 [(71)] (72) "Request for proposals process" means the procurement process described
456	456	436in Part 7, Request for Proposals.
457	457	437 [(72)] (73) "Request for statement of qualifications" means a document used to solicit
458	458	438information about the qualifications of a person interested in responding to a potential
459	459	439procurement, including all other documents attached to that document or incorporated in that
460	460	440document by reference.
461	461	441 [(73)] (74) "Requirements contract" means a contract:
462	462	442 (a) under which a contractor agrees to provide a procurement unit's entire requirements
463	463	443for certain procurement items at prices specified in the contract during the contract period; and
464	464	444 (b) that:
465	465	445 (i) does not require a minimum purchase amount; or
466	466	446 (ii) provides a maximum purchase limit.
467	467	447 [(74)] (75) "Responsible" means being capable, in all respects, of:
468	468	448 (a) meeting all the requirements of a solicitation; and
469	469	449 (b) fully performing all the requirements of the contract resulting from the solicitation,
470	470	450including being financially solvent with sufficient financial resources to perform the contract.
471	471	451 [(75)] (76) "Responsive" means conforming in all material respects to the requirements
472	472	452of a solicitation.
473	473	453 [(76)] (77) "Rule" includes a policy or regulation adopted by the rulemaking authority,
474	474	454if adopting a policy or regulation is the method the rulemaking authority uses to adopt
475	475	455provisions that govern the applicable procurement unit.
476	476	456 [(77)] (78) "Rulemaking authority" means:
477	477	457 (a) for a legislative procurement unit, the Legislative Management Committee;
478	478	458 (b) for a judicial procurement unit, the Judicial Council;
479	479	459 (c) (i) only to the extent of the procurement authority expressly granted to the
480	480	460procurement unit by statute:
481	481	461 (A) for the facilities division, the facilities division; H.B. 561 02-24-23 12:46 PM
482	482	- 16 -
483	483	462 (B) for the Office of the Attorney General, the attorney general;
484	484	463 (C) for the Department of Transportation created in Section 72-1-201, the executive
485	485	464director of the Department of Transportation; [and]
486	486	465 (D) for the Department of Health and Human Services, the executive director of the
487	487	466Department of Health and Human Services; and
488	488	467 [(D)] (E) for any other executive branch department, division, office, or entity that has
489	489	468statutory procurement authority outside this chapter, the governing authority of the department,
490	490	469division, office, or entity; and
491	491	470 (ii) for each other executive branch procurement unit, the board;
492	492	471 (d) for a local government procurement unit:
493	493	472 (i) the governing body of the local government unit; or
494	494	473 (ii) an individual or body designated by the local government procurement unit;
495	495	474 (e) for a school district or a public school, the board, except to the extent of a school
496	496	475district's own nonadministrative rules that do not conflict with the provisions of this chapter;
497	497	476 (f) for a state institution of higher education, the Utah Board of Higher Education;
498	498	477 (g) for the State Board of Education or the Utah Schools for the Deaf and the Blind, the
499	499	478State Board of Education;
500	500	479 (h) for a public transit district, the chief executive of the public transit district;
501	501	480 (i) for a local district other than a public transit district or for a special service district,
502	502	481the board, except to the extent that the board of trustees of the local district or the governing
503	503	482body of the special service district makes its own rules:
504	504	483 (i) with respect to a subject addressed by board rules; or
505	505	484 (ii) that are in addition to board rules;
506	506	485 (j) for the Utah Educational Savings Plan, created in Section 53B-8a-103, the Utah
507	507	486Board of Higher Education;
508	508	487 (k) for the School and Institutional Trust Lands Administration, created in Section
509	509	48853C-1-201, the School and Institutional Trust Lands Board of Trustees;
510	510	489 (l) for the School and Institutional Trust Fund Office, created in Section 53D-1-201,
511	511	490the School and Institutional Trust Fund Board of Trustees;
512	512	491 (m) for the Utah Communications Authority, established in Section 63H-7a-201, the
513	513	492Utah Communications Authority board, created in Section 63H-7a-203; or 02-24-23 12:46 PM H.B. 561
514	514	- 17 -
515	515	493 (n) for any other procurement unit, the board.
516	516	494 [(78)] (79) "Service":
517	517	495 (a) means labor, effort, or work to produce a result that is beneficial to a procurement
518	518	496unit;
519	519	497 (b) includes a professional service; and
520	520	498 (c) does not include labor, effort, or work provided under an employment agreement or
521	521	499a collective bargaining agreement.
522	522	500 [(79)] (80) "Small purchase process" means the procurement process described in
523	523	501Section 63G-6a-506.
524	524	502 [(80)] (81) "Sole source contract" means a contract resulting from a sole source
525	525	503procurement.
526	526	504 [(81)] (82) "Sole source procurement" means a procurement without competition
527	527	505pursuant to a determination under Subsection 63G-6a-802(1)(a) that there is only one source
528	528	506for the procurement item.
529	529	507 [(82)] (83) "Solicitation" means an invitation for bids, request for proposals, or request
530	530	508for statement of qualifications.
531	531	509 [(83)] (84) "Solicitation response" means:
532	532	510 (a) a bid submitted in response to an invitation for bids;
533	533	511 (b) a proposal submitted in response to a request for proposals; or
534	534	512 (c) a statement of qualifications submitted in response to a request for statement of
535	535	513qualifications.
536	536	514 [(84)] (85) "Special service district" means the same as that term is defined in Section
537	537	51517D-1-102.
538	538	516 [(85)] (86) "Specification" means any description of the physical or functional
539	539	517characteristics or of the nature of a procurement item included in an invitation for bids or a
540	540	518request for proposals, or otherwise specified or agreed to by a procurement unit, including a
541	541	519description of:
542	542	520 (a) a requirement for inspecting or testing a procurement item; or
543	543	521 (b) preparing a procurement item for delivery.
544	544	522 [(86)] (87) "Standard procurement process" means:
545	545	523 (a) the bidding process; H.B. 561 02-24-23 12:46 PM
546	546	- 18 -
547	547	524 (b) the request for proposals process;
548	548	525 (c) the approved vendor list process;
549	549	526 (d) the small purchase process; or
550	550	527 (e) the design professional procurement process.
551	551	528 [(87)] (88) "State cooperative contract" means a contract awarded by the division for
552	552	529and in behalf of all public entities.
553	553	530 [(88)] (89) "Statement of qualifications" means a written statement submitted to a
554	554	531procurement unit in response to a request for statement of qualifications.
555	555	532 [(89)] (90) "Subcontractor":
556	556	533 (a) means a person under contract to perform part of a contractual obligation under the
557	557	534control of the contractor, whether the person's contract is with the contractor directly or with
558	558	535another person who is under contract to perform part of a contractual obligation under the
559	559	536control of the contractor; and
560	560	537 (b) includes a supplier, distributor, or other vendor that furnishes supplies or services
561	561	538to a contractor.
562	562	539 [(90)] (91) "Technology" means the same as "information technology," as defined in
563	563	540Section 63A-16-102.
564	564	541 [(91)] (92) "Tie bid" means that the lowest responsive bids of responsible bidders are
565	565	542identical in price.
566	566	543 [(92)] (93) "Time and materials contract" means a contract under which the contractor
567	567	544is paid:
568	568	545 (a) the actual cost of direct labor at specified hourly rates;
569	569	546 (b) the actual cost of materials and equipment usage; and
570	570	547 (c) an additional amount, expressly described in the contract, to cover overhead and
571	571	548profit, that is not based on a percentage of the cost to the contractor.
572	572	549 [(93)] (94) "Transitional costs":
573	573	550 (a) means the costs of changing:
574	574	551 (i) from an existing provider of a procurement item to another provider of that
575	575	552procurement item; or
576	576	553 (ii) from an existing type of procurement item to another type;
577	577	554 (b) includes: 02-24-23 12:46 PM H.B. 561
578	578	- 19 -
579	579	555 (i) training costs;
580	580	556 (ii) conversion costs;
581	581	557 (iii) compatibility costs;
582	582	558 (iv) costs associated with system downtime;
583	583	559 (v) disruption of service costs;
584	584	560 (vi) staff time necessary to implement the change;
585	585	561 (vii) installation costs; and
586	586	562 (viii) ancillary software, hardware, equipment, or construction costs; and
587	587	563 (c) does not include:
588	588	564 (i) the costs of preparing for or engaging in a procurement process; or
589	589	565 (ii) contract negotiation or drafting costs.
590	590	566 [(94)] (95) "Vendor":
591	591	567 (a) means a person who is seeking to enter into a contract with a procurement unit to
592	592	568provide a procurement item; and
593	593	569 (b) includes:
594	594	570 (i) a bidder;
595	595	571 (ii) an offeror;
596	596	572 (iii) an approved vendor;
597	597	573 (iv) a design professional; and
598	598	574 (v) a person who submits an unsolicited proposal under Section 63G-6a-712.
599	599	575 Section 2. Section 63G-6a-107.6 is amended to read:
600	600	576 63G-6a-107.6. Exemptions from chapter.
601	601	577 (1) Except for this Subsection (1), the provisions of this chapter do not apply to:
602	602	578 (a) a public entity's acquisition of a procurement item from another public entity; or
603	603	579 (b) a public entity that is not a procurement unit, including the Colorado River
604	604	580Authority of Utah as provided in Section 63M-14-210.
605	605	581 (2) Unless otherwise provided by statute and except for this Subsection (2), the
606	606	582provisions of this chapter do not apply to the acquisition or disposal of real property or an
607	607	583interest in real property.
608	608	584 (3) Except for this Subsection (3) and Part 24, Unlawful Conduct and Penalties, the
609	609	585provisions of this chapter do not apply to: H.B. 561 02-24-23 12:46 PM
610	610	- 20 -
611	611	586 (a) funds administered under the Percent-for-Art Program of the Utah Percent-for-Art
612	612	587Act;
613	613	588 (b) a grant;
614	614	589 (c) medical supplies or medical equipment, including service agreements for medical
615	615	590equipment, obtained by the University of Utah Hospital or the Department of Health and
616	616	591Human Services through a purchasing consortium if:
617	617	592 (i) the consortium uses a competitive procurement process; and
618	618	593 (ii) the chief administrative officer of the hospital or the Department of Health and
619	619	594Human Services makes a written finding that the prices for purchasing medical supplies and
620	620	595medical equipment through the consortium are competitive with market prices;
621	621	596 (d) the purchase of firefighting supplies or equipment by the Division of Forestry, Fire,
622	622	597and State Lands, created in Section 65A-1-4, through the federal General Services
623	623	598Administration or the National Fire Cache system;
624	624	599 (e) supplies purchased for resale to the public; or
625	625	600 (f) activities related to the management of investments by a public entity granted
626	626	601investment authority by law.
627	627	602 (4) This chapter does not supersede the requirements for retention or withholding of
628	628	603construction proceeds and release of construction proceeds as provided in Section 13-8-5.
629	629	604 (5) Except for this Subsection (5), the provisions of this chapter do not apply to a
630	630	605procurement unit's hiring a mediator, arbitrator, or arbitration panel member to participate in
631	631	606the procurement unit's dispute resolution efforts.
632	632	607 Section 3. Section 63G-6a-107.7 is amended to read:
633	633	608 63G-6a-107.7. Procurement rules.
634	634	609 (1) (a) Subject to Subsection (1)(b), the rulemaking authority for a procurement unit
635	635	610shall make rules relating to the management and control of procurements and procurement
636	636	611procedures by the procurement unit.
637	637	612 (b) Building board rules governing procurement of construction projects, design
638	638	613professional services, and leases apply to the procurement of construction projects, design
639	639	614professional services, and leases of real property, respectively, by the Division of Facilities
640	640	615Construction and Management.
641	641	616 (2) A rulemaking authority may not adopt rules, policies, or regulations that are 02-24-23 12:46 PM H.B. 561
642	642	- 21 -
643	643	617inconsistent with this chapter.
644	644	618 (3) An individual or body that makes rules as required or authorized in this chapter
645	645	619shall make the rules:
646	646	620 (a) in accordance with Chapter 3, Utah Administrative Rulemaking Act, if the
647	647	621individual or body is subject to Chapter 3, Utah Administrative Rulemaking Act; or
648	648	622 (b) in accordance with the established process for making rules or their equivalent, if
649	649	623the individual or body is not subject to Chapter 3, Utah Administrative Rulemaking Act.
650	650	624 (4) The rules of the rulemaking authority for the executive branch procurement unit
651	651	625shall require, for each contract and request for proposals, the inclusion of a clause that requires
652	652	626the issuing procurement unit, for the duration of the contract, to make available contact
653	653	627information of the winning contractor to the Department of Workforce Services in accordance
654	654	628with Section 35A-2-203. This requirement does not preclude a contractor from advertising job
655	655	629openings in other forums throughout the state.
656	656	630 (5) The Department of Transportation may make rules governing the procurement of a
657	657	631highway construction project or highway improvement project.
658	658	632 (6) The rulemaking authority for a public transit district may make rules governing the
659	659	633procurement of a transit construction project or a transit improvement project.
660	660	634 (7) The Department of Health and Human Services may make rules governing the
661	661	635procurement of a human services procurement item.
662	662	636 Section 4. Section 63G-6a-1702 is amended to read:
663	663	637 63G-6a-1702. Appeal to Utah State Procurement Policy Board -- Appointment of
664	664	638procurement appeals panel -- Proceedings.
665	665	639 (1) [This] Except as provided in Section 63G-6a-1702, this part applies to all
666	666	640procurement units other than:
667	667	641 (a) a legislative procurement unit;
668	668	642 (b) a judicial procurement unit;
669	669	643 (c) a nonadopting local government procurement unit; or
670	670	644 (d) a public transit district.
671	671	645 (2) (a) Subject to Section 63G-6a-1703, a protestor may appeal to the board a protest
672	672	646decision of a procurement unit that is subject to this part by filing a written notice of appeal
673	673	647with the chair of the board within seven days after: H.B. 561 02-24-23 12:46 PM
674	674	- 22 -
675	675	648 (i) the day on which the written decision described in Section 63G-6a-1603 is:
676	676	649 (A) personally served on the party or the party's representative; or
677	677	650 (B) emailed or mailed to the address or email address provided by the party under
678	678	651Subsection 63G-6a-1602(4); or
679	679	652 (ii) the day on which the 30-day period described in Subsection 63G-6a-1603(9) ends,
680	680	653if a written decision is not issued before the end of the 30-day period.
681	681	654 (b) A notice of appeal under Subsection (2)(a) shall:
682	682	655 (i) include the address of record and email address of record of the party filing the
683	683	656notice of appeal; and
684	684	657 (ii) be accompanied by a copy of any written protest decision.
685	685	658 (c) The deadline for appealing a protest decision may not be modified.
686	686	659 (3) A person may not base an appeal of a protest under this section on:
687	687	660 (a) a ground not specified in the person's protest under Section 63G-6a-1602; or
688	688	661 (b) new or additional evidence not considered by the protest officer.
689	689	662 (4) (a) A person may not appeal from a protest described in Section 63G-6a-1602,
690	690	663unless:
691	691	664 (i) a decision on the protest has been issued; or
692	692	665 (ii) a decision is not issued and the 30-day period described in Subsection
693	693	66663G-6a-1603(9), or a longer period agreed to by the parties, has passed.
694	694	667 (b) A procurement unit may not appeal a protest decision or other determination made
695	695	668by the procurement unit's protest officer.
696	696	669 (5) (a) Within seven days after the chair of the board receives a written notice of an
697	697	670appeal under this section, the chair shall submit a written request to the protest officer for the
698	698	671protest appeal record.
699	699	672 (b) Within seven days after the chair receives the protest appeal record from the protest
700	700	673officer, the appointing officer shall, in consultation with the attorney general's office:
701	701	674 (i) review the appeal to determine whether the appeal complies with the requirements
702	702	675of Subsections (2), (3), and (4) and Section 63G-6a-1703; and
703	703	676 (ii) (A) dismiss any claim asserted in the appeal, or dismiss the appeal, without holding
704	704	677a hearing if the appointing officer determines that the claim or appeal, respectively, fails to
705	705	678comply with any of the requirements listed in Subsection (5)(b)(i); or 02-24-23 12:46 PM H.B. 561
706	706	- 23 -
707	707	679 (B) appoint a procurement appeals panel to conduct an administrative review of any
708	708	680claim in the appeal that has not been dismissed under Subsection (5)(b)(ii)(A), if the appointing
709	709	681officer determines that one or more claims asserted in the appeal comply with the requirements
710	710	682listed in Subsection (5)(b)(i).
711	711	683 (c) A procurement appeals panel appointed under Subsection (5)(a) shall consist of an
712	712	684odd number of at least three individuals, each of whom is:
713	713	685 (i) a member of the board; or
714	714	686 (ii) a designee of a member appointed under Subsection (5)(c)(i), if the designee is
715	715	687approved by the chair of the board.
716	716	688 (d) The appointing officer shall appoint one of the members of the procurement
717	717	689appeals panel to serve as the coordinator of the panel.
718	718	690 (e) The appointing officer may:
719	719	691 (i) appoint the same procurement appeals panel to hear more than one appeal; or
720	720	692 (ii) appoint a separate procurement appeals panel for each appeal.
721	721	693 (f) The appointing officer may not appoint a person to a procurement appeals panel if
722	722	694the person is employed by the procurement unit responsible for the solicitation, contract award,
723	723	695or other action that is the subject of the protestor's protest.
724	724	696 (g) The appointing officer shall, at the time the procurement appeals panel is
725	725	697appointed, provide appeals panel members with a copy of the notice of appeal filed under
726	726	698Subsection (2) and the protest decision record.
727	727	699 (6) (a) A procurement appeals panel described in Subsection (5):
728	728	700 (i) shall conduct an administrative review of the appeal within 30 days after the day on
729	729	701which the procurement appeals panel is appointed, or before a later date that all parties agree
730	730	702upon, unless the appeal is dismissed under Subsection (8)(a); and
731	731	703 (ii) (A) may, as part of the administrative review and at the sole discretion of the
732	732	704procurement appeals panel, conduct an informal hearing, if the procurement appeals panel
733	733	705considers a hearing to be necessary; and
734	734	706 (B) if the procurement appeals panel conducts an informal hearing, shall, at least seven
735	735	707days before the hearing, mail, email, or hand-deliver a written notice of the hearing to the
736	736	708parties to the appeal.
737	737	709 (b) A procurement appeals panel may, during an informal hearing, ask questions and H.B. 561 02-24-23 12:46 PM
738	738	- 24 -
739	739	710receive responses regarding the appeal and the protest appeal record to assist the procurement
740	740	711appeals panel to understand the basis of the appeal and information contained in the protest
741	741	712appeal record, but may not otherwise take any additional evidence or consider any additional
742	742	713ground for the appeal.
743	743	714 (7) A procurement appeals panel shall consider and decide the appeal based solely on:
744	744	715 (a) the notice of appeal and the protest appeal record; and
745	745	716 (b) responses received during an informal hearing, if an informal hearing is held and to
746	746	717the extent allowed under Subsection (6)(b).
747	747	718 (8) A procurement appeals panel:
748	748	719 (a) may dismiss an appeal if the appeal does not comply with the requirements of this
749	749	720chapter; and
750	750	721 (b) shall uphold the protest decision unless the protest decision is arbitrary and
751	751	722capricious or clearly erroneous.
752	752	723 (9) The procurement appeals panel shall, within seven days after the day on which the
753	753	724procurement appeals panel concludes the administrative review:
754	754	725 (a) issue a written decision on the appeal; and
755	755	726 (b) mail, email, or hand-deliver the written decision on the appeal to the parties to the
756	756	727appeal and to the protest officer.
757	757	728 (10) (a) The deliberations of a procurement appeals panel may be held in private.
758	758	729 (b) If the procurement appeals panel is a public body, as defined in Section 52-4-103,
759	759	730the procurement appeals panel shall comply with Section 52-4-205 in closing a meeting for its
760	760	731deliberations.
761	761	732 (11) A procurement appeals panel may continue an administrative review under this
762	762	733section beyond the 30-day period described in Subsection (6)(a)(i) if the procurement appeals
763	763	734panel determines that the continuance is in the interests of justice.
764	764	735 (12) If a procurement appeals panel determines that the decision of the protest officer is
765	765	736arbitrary and capricious or clearly erroneous, the procurement appeals panel:
766	766	737 (a) shall remand the matter to the protest officer, to cure the problem or render a new
767	767	738decision;
768	768	739 (b) may recommend action that the protest officer should take; and
769	769	740 (c) may not order that: 02-24-23 12:46 PM H.B. 561
770	770	- 25 -
771	771	741 (i) a contract be awarded to a certain person;
772	772	742 (ii) a contract or solicitation be cancelled; or
773	773	743 (iii) any other action be taken other than the action described in Subsection (12)(a).
774	774	744 (13) The board shall make rules relating to the conduct of an appeals proceeding,
775	775	745including rules that provide for:
776	776	746 (a) expedited proceedings; and
777	777	747 (b) electronic participation in the proceedings by panel members and participants.
778	778	748 (14) The Rules of Evidence do not apply to a hearing held by a procurement appeals
779	779	749panel.
780	780	750 (15) Part 20, Records, applies to the records involved in the process described in this
781	781	751section, including the decision issued by a procurement appeals panel.
782	782	752 Section 5. Section 63G-6a-2501 is enacted to read:
783	783	753 Part 25. Human Services Procurements
784	784	754 63G-6a-2501. Definitions.
785	785	755 As used in this part:
786	786	756 (1) "Department" means the Department of Health and Human Services.
787	787	757 (2) "Executive director" means the executive director of the department.
788	788	758 Section 6. Section 63G-6a-2502 is enacted to read:
789	789	759 63G-6a-2502. Procurement advisory council -- Appointment.
790	790	760 The executive director may appoint an advisory council to advise and make
791	791	761recommendations to the department on the procurement of a human services procurement item,
792	792	762including recommendations regarding persons to be debarred or suspended under Section
793	793	76363G-6a-2504.
794	794	764 Section 7. Section 63G-6a-2503 is enacted to read:
795	795	765 63G-6a-2503. Direct purchase procurement process requirements -- Payment
796	796	766information on website.
797	797	767 (1) The department may, without issuing a solicitation, directly purchase from, or
798	798	768contract with, another person for the following human services procurement items:
799	799	769 (a) medical, dental, behavioral, psychological, psychiatric, or substance use evaluation
800	800	770and treatment for an individual;
801	801	771 (b) assistance payments on behalf of an individual that are intended to keep the H.B. 561 02-24-23 12:46 PM
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803	803	772individual out of a higher level of care or prevent or reduce the need for additional department
804	804	773services;
805	805	774 (c) services for which the individual receiving the services has the right to choose the
806	806	775person who provides the services;
807	807	776 (d) services for which the department makes a written determination, made available to
808	808	777the public, that the individual's need to receive services from a particular provider outweigh the
809	809	778public interest in issuing a competitive procurement;
810	810	779 (e) adoption subsidy and maintenance payments;
811	811	780 (f) child placing services for an individual adoption;
812	812	781 (g) death investigation services; or
813	813	782 (h) residential treatment services for an individual after all providers under contract
814	814	783from a competitive procurement are exhausted.
815	815	784 (2) The department shall:
816	816	785 (a) maintain a written record of the name of all persons who provide services under this
817	817	786section; and
818	818	787 (b) annually publish on the department's website the total amount paid to each person
819	819	788under this section during the immediately preceding five-year period.
820	820	789 Section 8. Section 63G-6a-2504 is enacted to read:
821	821	790 63G-6a-2504. Open enrollment procurement process requirements.
822	822	791 (1) The department may contract with another person for a human services
823	823	792procurement item in accordance with the open enrollment invitation process described in this
824	824	793section.
825	825	794 (2) (a) The department may issue an open enrollment invitation for applications to
826	826	795provide the department a human services procurement item that includes:
827	827	796 (i) a description of the human services procurement item the department is seeking to
828	828	797obtain;
829	829	798 (ii) the time period for which the invitation will remain open for applications;
830	830	799 (iii) the requirements for submission of an application;
831	831	800 (iv) the payment rate or a description of the process for determining the payment rate
832	832	801for the human services procurement item;
833	833	802 (v) the requirements a provider is required to meet to be awarded a contract for the 02-24-23 12:46 PM H.B. 561
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835	835	803human service procurement item; and
836	836	804 (vi) the required terms and conditions of a contract if awarded.
837	837	805 (b) The department shall publish the invitation in accordance with the notice
838	838	806requirements for a solicitation described in Section 63G-6a-2506.
839	839	807 (c) The department may:
840	840	808 (i) keep an invitation open for an indeterminate or specified time period;
841	841	809 (ii) close an invitation if the need for additional providers for a human services
842	842	810procurement item no longer exists; or
843	843	811 (iii) reissue an invitation after closing the invitation.
844	844	812 (d) The department may provide technical application assistance to a person applying
845	845	813to an invitation.
846	846	814 (3) (a) Upon receipt of an application to an invitation, the department shall:
847	847	815 (i) review the application to determine compliance with the requirements described in
848	848	816Subsection (2)(a);
849	849	817 (ii) award a contract to a person whose application complies with Subsection (2)(a);
850	850	818and
851	851	819 (iii) reject an application that does not comply with Subsection (2)(a).
852	852	820 (b) If the department closes an invitation, the department may reject an application
853	853	821submitted before the invitation is closed.
854	854	822 (c) The department may allow a person to correct deficiencies in an application during
855	855	823the department's review of the application under Subsection (3)(a).
856	856	824 (4) If a person's application is rejected under Subsection (3):
857	857	825 (a) the department shall notify the person of the rejection in writing; and
858	858	826 (b) the person may not reapply to the same invitation for at least 12 months after the
859	859	827day on which the rejection is issued.
860	860	828 (5) The department shall make rules to establish procedures to ensure the open
861	861	829enrollment invitation process described in this section is administered in an open and fair
862	862	830manner that provides any interested, qualified provider the ability to obtain a contract.
863	863	831 Section 9. Section 63G-6a-2505 is enacted to read:
864	864	832 63G-6a-2505. Debarred or suspension from consideration for award of contract.
865	865	833 (1) The executive director may: H.B. 561 02-24-23 12:46 PM
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867	867	834 (a) debar or suspend a person from consideration for award of contracts for a human
868	868	835services procurement item for any amount of time in accordance with the process described in
869	869	836Subsection 63G-6a-904(1); and
870	870	837 (b) obtain the recommendation of the council before debarring or suspending the
871	871	838person.
872	872	839 (2) The council shall recommend that the executive director debar or suspend a person
873	873	840for award of contracts for a human services procurement item if the person:
874	874	841 (a) is convicted of a criminal offense:
875	875	842 (i) for actions taken to obtain or perform under a public or private contract;
876	876	843 (ii) for embezzlement, fraud, theft, forgery, bribery, falsification or destruction of
877	877	844records, or receiving stolen property; or
878	878	845 (iii) under Title 76, Chapter 10, Part 31, Utah Antitrust Act, or another antitrust law;
879	879	846 (b) fails, without good cause, to perform in accordance with the terms of a contract
880	880	847with the department;
881	881	848 (c) commits two or more violations of department rules made in accordance with Title
882	882	84963G, Chapter 3, Utah Administrative Rulemaking Act;
883	883	850 (d) violates this chapter;
884	884	851 (e) poses a significant risk of harm to department clients or the department;
885	885	852 (f) is barred or suspended from providing services to another governmental agency; or
886	886	853 (g) takes another action that the council determines is fraudulent or substantially affects
887	887	854the person's ability to perform under a contract with the department for a human services
888	888	855procurement item.
889	889	856 Section 10. Section 63G-6a-2506 is enacted to read:
890	890	857 63G-6a-2506. Public notice requirements.
891	891	858 (1) The department may post notice of a solicitation in accordance with Subsection
892	892	85963G-6a-112(1) at least three days before the day of the deadline for submission of a solicitation
893	893	860response.
894	894	861 (2) The department may reduce the three-day period described in Subsection (1) in
895	895	862accordance with Subsection 63G-6a-112(2).
896	896	863 Section 11. Section 63G-6a-2507 is enacted to read:
897	897	864 63G-6a-2507. Human services procurement appeals process. 02-24-23 12:46 PM H.B. 561
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899	899	865 (1) A protester may appeal a protest decision to the department in the same manner a
900	900	866protest may be appealed to the board under Part 17, Procurement Appeals Board.
901	901	867 (2) In conducting an appeal under Subsection (1), the executive director has the same
902	902	868powers and authority as the chair of the board and the appointing officer in an appeal
903	903	869conducted under Part 17, Procurement Appeals Board, including the power to appoint a
904	904	870procurement appeals panel to conduct a review of a claim in the appeal.