Utah 2025 Regular Session

Utah House Bill HB0012 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Enrolled Copy H.B. 12
	1	+	02-05 20:11 4th Sub. (Green) H.B. 12
	2	+	Michael K. McKell proposes the following substitute bill:
2	3		1
3	4		Division of Purchasing and General Services Amendments
4	5		2025 GENERAL SESSION
5	6		STATE OF UTAH
6	7		Chief Sponsor: Val L. Peterson
7	8		Senate Sponsor: Michael K. McKell
8	9		2
9	10
10	11		3
11	12		LONG TITLE
12	13		4
13	14		General Description:
14	15		5
15	16		This bill modifies the Utah Procurement Code.
16	17		6
17	18		Highlighted Provisions:
18	19		7
19	20		This bill:
20	21		8
21	22		▸ defines a term;
22	23		9
23	24		▸ eliminates the limiting option of the Purchasing from Persons with Disabilities Advisory
24	25		10
25	26		Board (PPDAB) to form an association to assist the PPDAB with its functions;
26	27		11
27	28		▸ authorizes the PPDAB to contract with a person to assist the PPDAB with its functions;
28	29		12
29	30		▸ codifies that awarding a contract to a vendor is not the creation of a contract with the
30	31		13
31	32		vendor;
32	33		14
33	34		▸ prohibits the inclusion of certain contractual provisions in a procurement contract, with
34	35		15
35	36		exceptions;
36	37		16
37	38		▸ codifies that the state and a procurement unit may not be held liable for certain types of
38	39		17
39	40		damages; and
40	41		18
41	42		▸ makes technical and conforming changes.
42	43		19
43	44		Money Appropriated in this Bill:
44	45		20
45	46		None
46	47		21
47	48		Other Special Clauses:
48	49		22
49	50		None
50	51		23
51	52		Utah Code Sections Affected:
52	53		24
53	54		AMENDS:
54	55		25
55	56		63G-6a-103, as last amended by Laws of Utah 2024, Chapters 291, 408 and 438
56	57		26
57	58		63G-6a-109, as last amended by Laws of Utah 2022, Chapter 421
58	59		27
59		-	63G-6a-303, as last amended by Laws of Utah 2023, Chapter 43 ~~H.B. 12 Enrolled Copy~~
	60	+	63G-6a-303, as last amended by Laws of Utah 2023, Chapter 43
60	61		28
61	62		63G-6a-506, as last amended by Laws of Utah 2021, Chapter 344
	63	+	4th Sub. H.B. 12 4th Sub. (Green) H.B. 12 02-05 20:11
62	64		29
63	65		63G-6a-805, as last amended by Laws of Utah 2016, Chapter 271
64	66		30
65	67		63G-6a-1203, as last amended by Laws of Utah 2015, Chapter 218
66	68		31
67	69		ENACTS:
68	70		32
69	71		63G-6a-1201.5, Utah Code Annotated 1953
70	72		33
71	73
72	74		34
73	75		Be it enacted by the Legislature of the state of Utah:
74	76		35
75	77		Section 1. Section 63G-6a-103 is amended to read:
76	78		36
77	79		63G-6a-103 . Definitions.
78	80		37
79	81		As used in this chapter:
80	82		38
81	83		(1) "Approved vendor" means a person who has been approved for inclusion on an
82	84		39
83	85		approved vendor list through the approved vendor list process.
84	86		40
85	87		(2) "Approved vendor list" means a list of approved vendors established under Section
86	88		41
87	89		63G-6a-507.
88	90		42
89	91		(3) "Approved vendor list process" means the procurement process described in Section
90	92		43
91	93		63G-6a-507.
92	94		44
93	95		(4)(a) "Award" means, in relation to a contract, a procurement unit's selection of a
94	96		45
95	97		vendor to supply a procurement item after the procurement unit engages in:
96	98		46
97	99		(i) a standard procurement process; or
98	100		47
99	101		(ii) an exception to a standard procurement process under Part 8, Exceptions to
100	102		48
101	103		Procurement Requirements.
102	104		49
103	105		(b) "Award" does not mean, in relation to a contract, a procurement unit's offer or
104	106		50
105	107		acceptance of any terms or conditions related to the procurement unit's acquisition or
106	108		51
107	109		receipt of the procurement item.
108	110		52
109	111		[(4)] (5) "Bidder" means a person who submits a bid or price quote in response to an
110	112		53
111	113		invitation for bids.
112	114		54
113	115		[(5)] (6) "Bidding process" means the procurement process described in Part 6, Bidding.
114	116		55
115	117		[(6)] (7) "Board" means the Utah State Procurement Policy Board, created in Section
116	118		56
117	119		63G-6a-202.
118	120		57
119	121		[(7)] (8) "Change directive" means a written order signed by the procurement officer that
120	122		58
121	123		directs the contractor to suspend work or make changes, as authorized by contract,
122	124		59
123	125		without the consent of the contractor.
124	126		60
125	127		[(8)] (9) "Change order" means a written alteration in specifications, delivery point, rate of
126	128		61
127	129		delivery, period of performance, price, quantity, or other provisions of a contract, upon
128		-	- 2 - Enrolled Copy H.B. 12
129	130		62
130	131		mutual agreement of the parties to the contract.
	132	+	- 2 - 02-05 20:11 4th Sub. (Green) H.B. 12
131	133		63
132	134		[(9)] (10) "Chief procurement officer" means the individual appointed under Section
133	135		64
134	136		63A-2-102.
135	137		65
136	138		[(10)] (11) "Conducting procurement unit" means a procurement unit that conducts all
137	139		66
138	140		aspects of a procurement:
139	141		67
140	142		(a) except:
141	143		68
142	144		(i) reviewing a solicitation to verify that it is in proper form; and
143	145		69
144	146		(ii) causing the publication of a notice of a solicitation; and
145	147		70
146	148		(b) including:
147	149		71
148	150		(i) preparing any solicitation document;
149	151		72
150	152		(ii) appointing an evaluation committee;
151	153		73
152	154		(iii) conducting the evaluation process, except the process relating to scores
153	155		74
154	156		calculated for costs of proposals;
155	157		75
156	158		(iv) selecting and recommending the person to be awarded a contract;
157	159		76
158	160		(v) negotiating the terms and conditions of a contract, subject to the issuing
159	161		77
160	162		procurement unit's approval; and
161	163		78
162	164		(vi) contract administration.
163	165		79
164	166		[(11)] (12) "Conservation district" means the same as that term is defined in Section
165	167		80
166	168		17D-3-102.
167	169		81
168	170		[(12)] (13) "Construction project":
169	171		82
170	172		(a) means a project for the construction, renovation, alteration, improvement, or repair of
171	173		83
172	174		a public facility on real property, including all services, labor, supplies, and materials
173	175		84
174	176		for the project; and
175	177		85
176	178		(b) does not include services and supplies for the routine, day-to-day operation, repair,
177	179		86
178	180		or maintenance of an existing public facility.
179	181		87
180	182		[(13)] (14) "Construction manager/general contractor":
181	183		88
182	184		(a) means a contractor who enters into a contract:
183	185		89
184	186		(i) for the management of a construction project; and
185	187		90
186	188		(ii) that allows the contractor to subcontract for additional labor and materials that are
187	189		91
188	190		not included in the contractor's cost proposal submitted at the time of the
189	191		92
190	192		procurement of the contractor's services; and
191	193		93
192	194		(b) does not include a contractor whose only subcontract work not included in the
193	195		94
194	196		contractor's cost proposal submitted as part of the procurement of the contractor's
195	197		95
196	198		services is to meet subcontracted portions of change orders approved within the
197		-	- 3 - H.B. 12 Enrolled Copy
198	199		96
199	200		scope of the project.
	201	+	- 3 - 4th Sub. (Green) H.B. 12 02-05 20:11
200	202		97
201	203		[(14)] (15) "Construction subcontractor":
202	204		98
203	205		(a) means a person under contract with a contractor or another subcontractor to provide
204	206		99
205	207		services or labor for the design or construction of a construction project;
206	208		100
207	209		(b) includes a general contractor or specialty contractor licensed or exempt from
208	210		101
209	211		licensing under Title 58, Chapter 55, Utah Construction Trades Licensing Act; and
210	212		102
211	213		(c) does not include a supplier who provides only materials, equipment, or supplies to a
212	214		103
213	215		contractor or subcontractor for a construction project.
214	216		104
215	217		[(15)] (16) "Contract" means an agreement for a procurement.
216	218		105
217	219		[(16)] (17) "Contract administration" means all functions, duties, and responsibilities
218	220		106
219	221		associated with managing, overseeing, and carrying out a contract between a
220	222		107
221	223		procurement unit and a contractor, including:
222	224		108
223	225		(a) implementing the contract;
224	226		109
225	227		(b) ensuring compliance with the contract terms and conditions by the conducting
226	228		110
227	229		procurement unit and the contractor;
228	230		111
229	231		(c) executing change orders;
230	232		112
231	233		(d) processing contract amendments;
232	234		113
233	235		(e) resolving, to the extent practicable, contract disputes;
234	236		114
235	237		(f) curing contract errors and deficiencies;
236	238		115
237	239		(g) terminating a contract;
238	240		116
239	241		(h) measuring or evaluating completed work and contractor performance;
240	242		117
241	243		(i) computing payments under the contract; and
242	244		118
243	245		(j) closing out a contract.
244	246		119
245	247		[(17)] (18) "Contractor" means a person who is awarded a contract with a procurement unit.
246	248		120
247	249		[(18)] (19) "Cooperative procurement" means procurement conducted by, or on behalf of:
248	250		121
249	251		(a) more than one procurement unit; or
250	252		122
251	253		(b) a procurement unit and a cooperative purchasing organization.
252	254		123
253	255		[(19)] (20) "Cooperative purchasing organization" means an organization, association, or
254	256		124
255	257		alliance of purchasers established to combine purchasing power in order to obtain the
256	258		125
257	259		best value for the purchasers by engaging in procurements in accordance with Section
258	260		126
259	261		63G-6a-2105.
260	262		127
261	263		[(20)] (21) "Cost-plus-a-percentage-of-cost contract" means a contract under which the
262	264		128
263	265		contractor is paid a percentage of the total actual expenses or costs in addition to the
264	266		129
265	267		contractor's actual expenses or costs.
266		-	- 4 - Enrolled Copy H.B. 12
267	268		130
268	269		[(21)] (22) "Cost-reimbursement contract" means a contract under which a contractor is
	270	+	- 4 - 02-05 20:11 4th Sub. (Green) H.B. 12
269	271		131
270	272		reimbursed for costs which are allowed and allocated in accordance with the contract
271	273		132
272	274		terms and the provisions of this chapter, and a fee, if any.
273	275		133
274	276		[(22)] (23) "Days" means calendar days, unless expressly provided otherwise.
275	277		134
276	278		[(23)] (24) "Definite quantity contract" means a fixed price contract that provides for a
277	279		135
278	280		specified amount of supplies over a specified period, with deliveries scheduled
279	281		136
280	282		according to a specified schedule.
281	283		137
282	284		[(24)] (25) "Design professional" means:
283	285		138
284	286		(a) an individual licensed as an architect under Title 58, Chapter 3a, Architects
285	287		139
286	288		Licensing Act;
287	289		140
288	290		(b) an individual licensed as a professional engineer or professional land surveyor under
289	291		141
290	292		Title 58, Chapter 22, Professional Engineers and Professional Land Surveyors
291	293		142
292	294		Licensing Act;
293	295		143
294	296		(c) an individual licensed under Title 58, Chapter 53, Landscape Architects Licensing
295	297		144
296	298		Act, to engage in the practice of landscape architecture, as defined in Section
297	299		145
298	300		58-53-102; or
299	301		146
300	302		(d) an individual certified as a commercial interior designer under Title 58, Chapter 86,
301	303		147
302	304		State Certification of Commercial Interior Designers Act.
303	305		148
304	306		[(25)] (26) "Design professional procurement process" means the procurement process
305	307		149
306	308		described in Part 15, Design Professional Services.
307	309		150
308	310		[(26)] (27) "Design professional services" means:
309	311		151
310	312		(a) professional services within the scope of the practice of architecture as defined in
311	313		152
312	314		Section 58-3a-102;
313	315		153
314	316		(b) professional engineering as defined in Section 58-22-102;
315	317		154
316	318		(c) master planning and programming services;
317	319		155
318	320		(d) professional services within the scope of the practice of landscape architecture, as
319	321		156
320	322		defined in Section 58-53-102; or
321	323		157
322	324		(e) services within the scope of the practice of commercial interior design, as defined in
323	325		158
324	326		Section 58-86-102.
325	327		159
326	328		[(27)] (28) "Design-build" means the procurement of design professional services and
327	329		160
328	330		construction by the use of a single contract.
329	331		161
330	332		[(28)] (29) "Division" means the Division of Purchasing and General Services, created in
331	333		162
332	334		Section 63A-2-101.
333	335		163
334	336		[(29)] (30) "Educational procurement unit" means:
335		-	- 5 - H.B. 12 Enrolled Copy
336	337		164
337	338		(a) a school district;
	339	+	- 5 - 4th Sub. (Green) H.B. 12 02-05 20:11
338	340		165
339	341		(b) a public school, including a local school board or a charter school;
340	342		166
341	343		(c) the Utah Schools for the Deaf and the Blind;
342	344		167
343	345		(d) the Utah Education and Telehealth Network;
344	346		168
345	347		(e) an institution of higher education of the state described in Section 53B-1-102; or
346	348		169
347	349		(f) the State Board of Education.
348	350		170
349	351		[(30)] (31) "Established catalogue price" means the price included in a catalogue, price list,
350	352		171
351	353		schedule, or other form that:
352	354		172
353	355		(a) is regularly maintained by a manufacturer or contractor;
354	356		173
355	357		(b) is published or otherwise available for inspection by customers; and
356	358		174
357	359		(c) states prices at which sales are currently or were last made to a significant number of
358	360		175
359	361		any category of buyers or buyers constituting the general buying public for the
360	362		176
361	363		supplies or services involved.
362	364		177
363	365		[(31)] (32)(a) "Executive branch procurement unit" means a department, division, office,
364	366		178
365	367		bureau, agency, or other organization within the state executive branch.
366	368		179
367	369		(b) "Executive branch procurement unit" does not include the Colorado River Authority
368	370		180
369	371		of Utah as provided in Section 63M-14-210.
370	372		181
371	373		[(32)] (33) "Facilities division" means the Division of Facilities Construction and
372	374		182
373	375		Management, created in Section 63A-5b-301.
374	376		183
375	377		[(33)] (34) "Fixed price contract" means a contract that provides a price, for each
376	378		184
377	379		procurement item obtained under the contract, that is not subject to adjustment except to
378	380		185
379	381		the extent that:
380	382		186
381	383		(a) the contract provides, under circumstances specified in the contract, for an
382	384		187
383	385		adjustment in price that is not based on cost to the contractor; or
384	386		188
385	387		(b) an adjustment is required by law.
386	388		189
387	389		[(34)] (35) "Fixed price contract with price adjustment" means a fixed price contract that
388	390		190
389	391		provides for an upward or downward revision of price, precisely described in the
390	392		191
391	393		contract, that:
392	394		192
393	395		(a) is based on the consumer price index or another commercially acceptable index,
394	396		193
395	397		source, or formula; and
396	398		194
397	399		(b) is not based on a percentage of the cost to the contractor.
398	400		195
399	401		[(35)] (36) "Grant" means an expenditure of public funds or other assistance, or an
400	402		196
401	403		agreement to expend public funds or other assistance, for a public purpose authorized by
402	404		197
403	405		law, without acquiring a procurement item in exchange.
404		-	- 6 - Enrolled Copy H.B. 12
405	406		198
406	407		[(36)] (37) "Human services procurement item" means a procurement item used to provide
	408	+	- 6 - 02-05 20:11 4th Sub. (Green) H.B. 12
407	409		199
408	410		services or support to a child, youth, adult, or family.
409	411		200
410	412		[(37)] (38) "Immaterial error":
411	413		201
412	414		(a) means an irregularity or abnormality that is:
413	415		202
414	416		(i) a matter of form that does not affect substance; or
415	417		203
416	418		(ii) an inconsequential variation from a requirement of a solicitation that has no, little,
417	419		204
418	420		or a trivial effect on the procurement process and that is not prejudicial to other
419	421		205
420	422		vendors; and
421	423		206
422	424		(b) includes:
423	425		207
424	426		(i) a missing signature, missing acknowledgment of an addendum, or missing copy of
425	427		208
426	428		a professional license, bond, or insurance certificate;
427	429		209
428	430		(ii) a typographical error;
429	431		210
430	432		(iii) an error resulting from an inaccuracy or omission in the solicitation; and
431	433		211
432	434		(iv) any other error that the procurement official reasonably considers to be
433	435		212
434	436		immaterial.
435	437		213
436	438		[(38)] (39) "Indefinite quantity contract" means a fixed price contract that:
437	439		214
438	440		(a) is for an indefinite amount of procurement items to be supplied as ordered by a
439	441		215
440	442		procurement unit; and
441	443		216
442	444		(b)(i) does not require a minimum purchase amount; or
443	445		217
444	446		(ii) provides a maximum purchase limit.
445	447		218
446	448		[(39)] (40) "Independent procurement unit" means:
447	449		219
448	450		(a)(i) a legislative procurement unit;
449	451		220
450	452		(ii) a judicial branch procurement unit;
451	453		221
452	454		(iii) an educational procurement unit;
453	455		222
454	456		(iv) a local [government] governmental procurement unit;
455	457		223
456	458		(v) a conservation district;
457	459		224
458	460		(vi) a local building authority;
459	461		225
460	462		(vii) a special district;
461	463		226
462	464		(viii) a public corporation;
463	465		227
464	466		(ix) a special service district; or
465	467		228
466	468		(x) the Utah Communications Authority, established in Section 63H-7a-201;
467	469		229
468	470		(b) the facilities division, but only to the extent of the procurement authority provided
469	471		230
470	472		under Title 63A, Chapter 5b, Administration of State Facilities;
471	473		231
472	474		(c) the attorney general, but only to the extent of the procurement authority provided
473		-	- 7 - H.B. 12 Enrolled Copy
474	475		232
475	476		under Title 67, Chapter 5, Attorney General;
	477	+	- 7 - 4th Sub. (Green) H.B. 12 02-05 20:11
476	478		233
477	479		(d) the Department of Transportation, but only to the extent of the procurement authority
478	480		234
479	481		provided under Title 72, Transportation Code;
480	482		235
481	483		(e) the Department of Health and Human Services, but only for the procurement of a
482	484		236
483	485		human services procurement item; or
484	486		237
485	487		(f) any other executive branch department, division, office, or entity that has statutory
486	488		238
487	489		procurement authority outside this chapter, but only to the extent of that statutory
488	490		239
489	491		procurement authority.
490	492		240
491	493		[(40)] (41)(a) "Interlocal entity" means a separate political subdivision created under
492	494		241
493	495		Title 11, Chapter 13, Interlocal Cooperation Act.
494	496		242
495	497		(b) "Interlocal entity" does not include a project entity.
496	498		243
497	499		[(41)] (42) "Invitation for bids":
498	500		244
499	501		(a) means a document used to solicit:
500	502		245
501	503		(i) bids to provide a procurement item to a procurement unit; or
502	504		246
503	505		(ii) quotes for a price of a procurement item to be provided to a procurement unit; and
504	506		247
505	507		(b) includes all documents attached to or incorporated by reference in a document
506	508		248
507	509		described in Subsection [(41)(a)] (42)(a).
508	510		249
509	511		[(42)] (43) "Issuing procurement unit" means a procurement unit that:
510	512		250
511	513		(a) reviews a solicitation to verify that it is in proper form;
512	514		251
513	515		(b) causes the notice of a solicitation to be published; and
514	516		252
515	517		(c) negotiates and approves the terms and conditions of a contract.
516	518		253
517	519		[(43)] (44) "Judicial procurement unit" means:
518	520		254
519	521		(a) the Utah Supreme Court;
520	522		255
521	523		(b) the Utah Court of Appeals;
522	524		256
523	525		(c) the Judicial Council;
524	526		257
525	527		(d) a state judicial district; or
526	528		258
527	529		(e) an office, committee, subcommittee, or other organization within the state judicial
528	530		259
529	531		branch.
530	532		260
531	533		[(44)] (45) "Labor hour contract" is a contract under which:
532	534		261
533	535		(a) the supplies and materials are not provided by, or through, the contractor; and
534	536		262
535	537		(b) the contractor is paid a fixed rate that includes the cost of labor, overhead, and profit
536	538		263
537	539		for a specified number of labor hours or days.
538	540		264
539	541		[(45)] (46) "Legislative procurement unit" means:
540	542		265
541	543		(a) the Legislature;
542		-	- 8 - Enrolled Copy H.B. 12
543	544		266
544	545		(b) the Senate;
	546	+	- 8 - 02-05 20:11 4th Sub. (Green) H.B. 12
545	547		267
546	548		(c) the House of Representatives;
547	549		268
548	550		(d) a staff office of the Legislature, the Senate, or the House of Representatives; or
549	551		269
550	552		(e) a committee, subcommittee, commission, or other organization:
551	553		270
552	554		(i) within the state legislative branch; or
553	555		271
554	556		(ii)(A) that is created by statute to advise or make recommendations to the
555	557		272
556	558		Legislature;
557	559		273
558	560		(B) the membership of which includes legislators; and
559	561		274
560	562		(C) for which the Office of Legislative Research and General Counsel provides
561	563		275
562	564		staff support.
563	565		276
564	566		[(46)] (47) "Local building authority" means the same as that term is defined in Section
565	567		277
566	568		17D-2-102.
567	569		278
568	570		[(47)] (48) "Local government procurement unit" means:
569	571		279
570	572		(a) a county, municipality, interlocal entity, or project entity, and each office of the
571	573		280
572	574		county, municipality, interlocal entity, or project entity, unless:
573	575		281
574	576		(i) the county or municipality adopts a procurement code by ordinance;
575	577		282
576	578		(ii) the interlocal entity adopts procurement rules or policies as provided in
577	579		283
578	580		Subsection 11-13-226(2); or
579	581		284
580	582		(iii) the project entity adopts a procurement code through the process described in
581	583		285
582	584		Section 11-13-316;
583	585		286
584	586		(b)(i) a county or municipality that has adopted this entire chapter by ordinance, and
585	587		287
586	588		each office or agency of that county or municipality; and
587	589		288
588	590		(ii) a project entity that has adopted this entire chapter through the process described
589	591		289
590	592		in Subsection 11-13-316; or
591	593		290
592	594		(c) a county, municipality, or project entity, and each office of the county, municipality,
593	595		291
594	596		or project entity that has adopted a portion of this chapter to the extent that:
595	597		292
596	598		(i) a term in the ordinance is used in the adopted chapter; or
597	599		293
598	600		(ii) a term in the ordinance is used in the language a project entity adopts in its
599	601		294
600	602		procurement code through the process described in Section 11-13-316.
601	603		295
602	604		[(48)] (49) "Multiple award contracts" means the award of a contract for an indefinite
603	605		296
604	606		quantity of a procurement item to more than one person.
605	607		297
606	608		[(49)] (50) "Multiyear contract" means a contract that extends beyond a one-year period,
607	609		298
608	610		including a contract that permits renewal of the contract, without competition, beyond
609	611		299
610	612		the first year of the contract.
611		-	- 9 - H.B. 12 Enrolled Copy
612	613		300
613	614		[(50)] (51) "Municipality" means a city or town.
	615	+	- 9 - 4th Sub. (Green) H.B. 12 02-05 20:11
614	616		301
615	617		[(51)] (52) "Nonadopting local government procurement unit" means:
616	618		302
617	619		(a) a county or municipality that has not adopted Part 16, Protests, Part 17, Procurement
618	620		303
619	621		Appeals Board, Part 18, Appeals to Court and Court Proceedings, and Part 19,
620	622		304
621	623		General Provisions Related to Protest or Appeal; and
622	624		305
623	625		(b) each office or agency of a county or municipality described in Subsection [(51)(a)]
624	626		306
625	627		(52)(a).
626	628		307
627	629		[(52)] (53) "Offeror" means a person who submits a proposal in response to a request for
628	630		308
629	631		proposals.
630	632		309
631	633		[(53)] (54) "Preferred bidder" means a bidder that is entitled to receive a reciprocal
632	634		310
633	635		preference under the requirements of this chapter.
634	636		311
635	637		[(54)] (55) "Procure" means to acquire a procurement item through a procurement.
636	638		312
637	639		[(55)] (56) "Procurement" means the acquisition of a procurement item through an
638	640		313
639	641		expenditure of public funds, or an agreement to expend public funds, including an
640	642		314
641	643		acquisition through a public-private partnership.
642	644		315
643	645		[(56)] (57) "Procurement item" means an item of personal property, a technology, a service,
644	646		316
645	647		or a construction project.
646	648		317
647	649		[(57)] (58) "Procurement official" means:
648	650		318
649	651		(a) for a procurement unit other than an independent procurement unit, the chief
650	652		319
651	653		procurement officer;
652	654		320
653	655		(b) for a legislative procurement unit, the individual, individuals, or body designated in a
654	656		321
655	657		policy adopted by the Legislative Management Committee;
656	658		322
657	659		(c) for a judicial procurement unit, the Judicial Council or an individual or body
658	660		323
659	661		designated by the Judicial Council by rule;
660	662		324
661	663		(d) for a local government procurement unit:
662	664		325
663	665		(i) the legislative body of the local government procurement unit; or
664	666		326
665	667		(ii) an individual or body designated by the local government procurement unit;
666	668		327
667	669		(e) for a special district, the board of trustees of the special district or the board of
668	670		328
669	671		trustees' designee;
670	672		329
671	673		(f) for a special service district, the governing body of the special service district or the
672	674		330
673	675		governing body's designee;
674	676		331
675	677		(g) for a local building authority, the board of directors of the local building authority or
676	678		332
677	679		the board of directors' designee;
678	680		333
679	681		(h) for a conservation district, the board of supervisors of the conservation district or the
680		-	- 10 - Enrolled Copy H.B. 12
681	682		334
682	683		board of supervisors' designee;
	684	+	- 10 - 02-05 20:11 4th Sub. (Green) H.B. 12
683	685		335
684	686		(i) for a public corporation, the board of directors of the public corporation or the board
685	687		336
686	688		of directors' designee;
687	689		337
688	690		(j) for a school district or any school or entity within a school district, the board of the
689	691		338
690	692		school district or the board's designee;
691	693		339
692	694		(k) for a charter school, the individual or body with executive authority over the charter
693	695		340
694	696		school or the designee of the individual or body;
695	697		341
696	698		(l) for an institution of higher education described in Section 53B-2-101, the president of
697	699		342
698	700		the institution of higher education or the president's designee;
699	701		343
700	702		(m) for the State Board of Education, the State Board of Education or the State Board of
701	703		344
702	704		Education's designee;
703	705		345
704	706		(n) for the Utah Board of Higher Education, the Commissioner of Higher Education or
705	707		346
706	708		the designee of the Commissioner of Higher Education;
707	709		347
708	710		(o) for the Utah Communications Authority, established in Section 63H-7a-201, the
709	711		348
710	712		executive director of the Utah Communications Authority or the executive director's
711	713		349
712	714		designee; or
713	715		350
714	716		(p)(i) for the facilities division, and only to the extent of procurement activities of the
715	717		351
716	718		facilities division as an independent procurement unit under the procurement
717	719		352
718	720		authority provided under Title 63A, Chapter 5b, Administration of State Facilities,
719	721		353
720	722		the director of the facilities division or the director's designee;
721	723		354
722	724		(ii) for the attorney general, and only to the extent of procurement activities of the
723	725		355
724	726		attorney general as an independent procurement unit under the procurement
725	727		356
726	728		authority provided under Title 67, Chapter 5, Attorney General, the attorney
727	729		357
728	730		general or the attorney general's designee;
729	731		358
730	732		(iii) for the Department of Transportation created in Section 72-1-201, and only to
731	733		359
732	734		the extent of procurement activities of the Department of Transportation as an
733	735		360
734	736		independent procurement unit under the procurement authority provided under
735	737		361
736	738		Title 72, Transportation Code, the executive director of the Department of
737	739		362
738	740		Transportation or the executive director's designee;
739	741		363
740	742		(iv) for the Department of Health and Human Services, and only to the extent of the
741	743		364
742	744		procurement activities of the Department of Health and Human Services as an
743	745		365
744	746		independent procurement unit, the executive director of the Department of Health
745	747		366
746	748		and Human Services or the executive director's designee; or
747	749		367
748	750		(v) for any other executive branch department, division, office, or entity that has
749		-	- 11 - H.B. 12 Enrolled Copy
750	751		368
751	752		statutory procurement authority outside this chapter, and only to the extent of the
	753	+	- 11 - 4th Sub. (Green) H.B. 12 02-05 20:11
752	754		369
753	755		procurement activities of the department, division, office, or entity as an
754	756		370
755	757		independent procurement unit under the procurement authority provided outside
756	758		371
757	759		this chapter for the department, division, office, or entity, the chief executive
758	760		372
759	761		officer of the department, division, office, or entity or the chief executive officer's
760	762		373
761	763		designee.
762	764		374
763	765		[(58)] (59) "Procurement unit"means:
764	766		375
765	767		(a) a legislative procurement unit;
766	768		376
767	769		(b) an executive branch procurement unit;
768	770		377
769	771		(c) a judicial procurement unit;
770	772		378
771	773		(d) an educational procurement unit;
772	774		379
773	775		(e) the Utah Communications Authority, established in Section 63H-7a-201;
774	776		380
775	777		(f) a local government procurement unit;
776	778		381
777	779		(g) a special district;
778	780		382
779	781		(h) a special service district;
780	782		383
781	783		(i) a local building authority;
782	784		384
783	785		(j) a conservation district; or
784	786		385
785	787		(k) a public corporation.
786	788		386
787	789		[(59)] (60) "Professional service" means labor, effort, or work that requires specialized
788	790		387
789	791		knowledge, expertise, and discretion, including labor, effort, or work in the field of:
790	792		388
791	793		(a) accounting;
792	794		389
793	795		(b) administrative law judge service;
794	796		390
795	797		(c) architecture;
796	798		391
797	799		(d) construction design and management;
798	800		392
799	801		(e) engineering;
800	802		393
801	803		(f) financial services;
802	804		394
803	805		(g) information technology;
804	806		395
805	807		(h) the law;
806	808		396
807	809		(i) medicine;
808	810		397
809	811		(j) psychiatry; or
810	812		398
811	813		(k) underwriting.
812	814		399
813	815		[(60)] (61) "Project entity" means the same as that term is defined in Section 11-13-103.
814	816		400
815	817		[(61)] (62) "Protest officer" means:
816	818		401
817	819		(a) for the division or an independent procurement unit:
818		-	- 12 - Enrolled Copy H.B. 12
819	820		402
820	821		(i) the procurement official;
	822	+	- 12 - 02-05 20:11 4th Sub. (Green) H.B. 12
821	823		403
822	824		(ii) the procurement official's designee who is an employee of the procurement unit;
823	825		404
824	826		or
825	827		405
826	828		(iii) a person designated by rule made by the rulemaking authority; or
827	829		406
828	830		(b) for a procurement unit other than an independent procurement unit, the chief
829	831		407
830	832		procurement officer or the chief procurement officer's designee who is an employee
831	833		408
832	834		of the division .
833	835		409
834	836		[(62)] (63) "Public corporation" means the same as that term is defined in Section 63E-1-102.
835	837		410
836	838		[(63)] (64) "Public entity" means the state or any other [government] governmental entity
837	839		411
838	840		within the state that expends public funds.
839	841		412
840	842		[(64)] (65) "Public facility" means a building, structure, infrastructure, improvement, or
841	843		413
842	844		other facility of a public entity.
843	845		414
844	846		[(65)] (66) "Public funds" means money, regardless of its source, including from the federal
845	847		415
846	848		government, that is owned or held by a procurement unit.
847	849		416
848	850		[(66)] (67) "Public transit district" means a public transit district organized under Title 17B,
849	851		417
850	852		Chapter 2a, Part 8, Public Transit District Act.
851	853		418
852	854		[(67)] (68) "Public-private partnership" means an arrangement or agreement, occurring on
853	855		419
854	856		or after January 1, 2017, between a procurement unit and one or more contractors to
855	857		420
856	858		provide for a public need through the development or operation of a project in which the
857	859		421
858	860		contractor or contractors share with the procurement unit the responsibility or risk of
859	861		422
860	862		developing, owning, maintaining, financing, or operating the project.
861	863		423
862	864		[(68)] (69) "Qualified vendor" means a vendor who:
863	865		424
864	866		(a) is responsible; and
865	867		425
866	868		(b) submits a responsive statement of qualifications under Section 63G-6a-410 that
867	869		426
868	870		meets the minimum mandatory requirements, evaluation criteria, and any applicable
869	871		427
870	872		score thresholds set forth in the request for statement of qualifications.
871	873		428
872	874		[(69)] (70) "Real property" means land and any building, fixture, improvement,
873	875		429
874	876		appurtenance, structure, or other development that is permanently affixed to land.
875	877		430
876	878		[(70)] (71) "Request for information" means a nonbinding process through which a
877	879		431
878	880		procurement unit requests information relating to a procurement item.
879	881		432
880	882		[(71)] (72) "Request for proposals" means a document used to solicit proposals to provide a
881	883		433
882	884		procurement item to a procurement unit, including all other documents that are attached
883	885		434
884	886		to that document or incorporated in that document by reference.
885	887		435
886	888		[(72)] (73) "Request for proposals process" means the procurement process described in Part
887		-	- 13 - H.B. 12 Enrolled Copy
888	889		436
889	890		7, Request for Proposals.
	891	+	- 13 - 4th Sub. (Green) H.B. 12 02-05 20:11
890	892		437
891	893		[(73)] (74) "Request for statement of qualifications" means a document used to solicit
892	894		438
893	895		information about the qualifications of a person interested in responding to a potential
894	896		439
895	897		procurement, including all other documents attached to that document or incorporated in
896	898		440
897	899		that document by reference.
898	900		441
899	901		[(74)] (75) "Requirements contract" means a contract:
900	902		442
901	903		(a) under which a contractor agrees to provide a procurement unit's entire requirements
902	904		443
903	905		for certain procurement items at prices specified in the contract during the contract
904	906		444
905	907		period; and
906	908		445
907	909		(b) that:
908	910		446
909	911		(i) does not require a minimum purchase amount; or
910	912		447
911	913		(ii) provides a maximum purchase limit.
912	914		448
913	915		[(75)] (76) "Responsible" means being capable, in all respects, of:
914	916		449
915	917		(a) meeting all the requirements of a solicitation; and
916	918		450
917	919		(b) fully performing all the requirements of the contract resulting from the solicitation,
918	920		451
919	921		including being financially solvent with sufficient financial resources to perform the
920	922		452
921	923		contract.
922	924		453
923	925		[(76)] (77) "Responsive" means conforming in all material respects to the requirements of a
924	926		454
925	927		solicitation.
926	928		455
927	929		[(77)] (78) "Rule" includes a policy or regulation adopted by the rulemaking authority, if
928	930		456
929	931		adopting a policy or regulation is the method the rulemaking authority uses to adopt
930	932		457
931	933		provisions that govern the applicable procurement unit.
932	934		458
933	935		[(78)] (79) "Rulemaking authority" means:
934	936		459
935	937		(a) for a legislative procurement unit, the Legislative Management Committee;
936	938		460
937	939		(b) for a judicial procurement unit, the Judicial Council;
938	940		461
939	941		(c)(i) only to the extent of the procurement authority expressly granted to the
940	942		462
941	943		procurement unit by statute:
942	944		463
943	945		(A) for the facilities division, the facilities division;
944	946		464
945	947		(B) for the Office of the Attorney General, the attorney general;
946	948		465
947	949		(C) for the Department of Transportation created in Section 72-1-201, the
948	950		466
949	951		executive director of the Department of Transportation;
950	952		467
951	953		(D) for the Department of Health and Human Services, the executive director of
952	954		468
953	955		the Department of Health and Human Services; and
954	956		469
955	957		(E) for any other executive branch department, division, office, or entity that has
956		-	- 14 - Enrolled Copy H.B. 12
957	958		470
958	959		statutory procurement authority outside this chapter, the governing authority of
	960	+	- 14 - 02-05 20:11 4th Sub. (Green) H.B. 12
959	961		471
960	962		the department, division, office, or entity; and
961	963		472
962	964		(ii) for each other executive branch procurement unit, the board;
963	965		473
964	966		(d) for a local government procurement unit:
965	967		474
966	968		(i) the governing body of the local government unit; or
967	969		475
968	970		(ii) an individual or body designated by the local government procurement unit;
969	971		476
970	972		(e) for a school district or a public school, the board, except to the extent of a school
971	973		477
972	974		district's own nonadministrative rules that do not conflict with the provisions of this
973	975		478
974	976		chapter;
975	977		479
976	978		(f) for a state institution of higher education, the Utah Board of Higher Education;
977	979		480
978	980		(g) for the State Board of Education or the Utah Schools for the Deaf and the Blind, the
979	981		481
980	982		State Board of Education;
981	983		482
982	984		(h) for a public transit district, the chief executive of the public transit district;
983	985		483
984	986		(i) for a special district other than a public transit district or for a special service district,
985	987		484
986	988		the board, except to the extent that the board of trustees of the special district or the
987	989		485
988	990		governing body of the special service district makes its own rules:
989	991		486
990	992		(i) with respect to a subject addressed by board rules; or
991	993		487
992	994		(ii) that are in addition to board rules;
993	995		488
994	996		(j) for the Utah Educational Savings Plan, created in Section 53B-8a-103, the Utah
995	997		489
996	998		Board of Higher Education;
997	999		490
998	1000		(k) for the School and Institutional Trust Lands Administration, created in Section
999	1001		491
1000	1002		53C-1-201, the School and Institutional Trust Lands Board of Trustees;
1001	1003		492
1002	1004		(l) for the School and Institutional Trust Fund Office, created in Section 53D-1-201, the
1003	1005		493
1004	1006		School and Institutional Trust Fund Board of Trustees;
1005	1007		494
1006	1008		(m) for the Utah Communications Authority, established in Section 63H-7a-201, the
1007	1009		495
1008	1010		Utah Communications Authority board, created in Section 63H-7a-203; or
1009	1011		496
1010	1012		(n) for any other procurement unit, the board.
1011	1013		497
1012	1014		[(79)] (80) "Service":
1013	1015		498
1014	1016		(a) means labor, effort, or work to produce a result that is beneficial to a procurement
1015	1017		499
1016	1018		unit;
1017	1019		500
1018	1020		(b) includes a professional service; and
1019	1021		501
1020	1022		(c) does not include labor, effort, or work provided under an employment agreement or a
1021	1023		502
1022	1024		collective bargaining agreement.
1023	1025		503
1024	1026		[(80)] (81) "Small purchase process" means the procurement process described in Section
1025		-	- 15 - H.B. 12 Enrolled Copy
1026	1027		504
1027	1028		63G-6a-506.
	1029	+	- 15 - 4th Sub. (Green) H.B. 12 02-05 20:11
1028	1030		505
1029	1031		[(81)] (82) "Sole source contract" means a contract resulting from a sole source procurement.
1030	1032		506
1031	1033		[(82)] (83) "Sole source procurement" means a procurement without competition pursuant to
1032	1034		507
1033	1035		a determination under Subsection 63G-6a-802(1)(a) that there is only one source for the
1034	1036		508
1035	1037		procurement item.
1036	1038		509
1037	1039		[(83)] (84) "Solicitation" means an invitation for bids, request for proposals, or request for
1038	1040		510
1039	1041		statement of qualifications.
1040	1042		511
1041	1043		[(84)] (85) "Solicitation response" means:
1042	1044		512
1043	1045		(a) a bid submitted in response to an invitation for bids;
1044	1046		513
1045	1047		(b) a proposal submitted in response to a request for proposals; or
1046	1048		514
1047	1049		(c) a statement of qualifications submitted in response to a request for statement of
1048	1050		515
1049	1051		qualifications.
1050	1052		516
1051	1053		[(85)] (86) "Special district" means the same as that term is defined in Section 17B-1-102.
1052	1054		517
1053	1055		[(86)] (87) "Special service district" means the same as that term is defined in Section
1054	1056		518
1055	1057		17D-1-102.
1056	1058		519
1057	1059		[(87)] (88) "Specification" means any description of the physical or functional
1058	1060		520
1059	1061		characteristics or of the nature of a procurement item included in an invitation for bids
1060	1062		521
1061	1063		or a request for proposals, or otherwise specified or agreed to by a procurement unit,
1062	1064		522
1063	1065		including a description of:
1064	1066		523
1065	1067		(a) a requirement for inspecting or testing a procurement item; or
1066	1068		524
1067	1069		(b) preparing a procurement item for delivery.
1068	1070		525
1069	1071		[(88)] (89) "Standard procurement process" means:
1070	1072		526
1071	1073		(a) the bidding process;
1072	1074		527
1073	1075		(b) the request for proposals process;
1074	1076		528
1075	1077		(c) the approved vendor list process;
1076	1078		529
1077	1079		(d) the small purchase process; or
1078	1080		530
1079	1081		(e) the design professional procurement process.
1080	1082		531
1081	1083		[(89)] (90) "State cooperative contract" means a contract awarded by the division for and in
1082	1084		532
1083	1085		behalf of all public entities.
1084	1086		533
1085	1087		[(90)] (91) "Statement of qualifications" means a written statement submitted to a
1086	1088		534
1087	1089		procurement unit in response to a request for statement of qualifications.
1088	1090		535
1089	1091		[(91)] (92) "Subcontractor":
1090	1092		536
1091	1093		(a) means a person under contract to perform part of a contractual obligation under the
1092	1094		537
1093	1095		control of the contractor, whether the person's contract is with the contractor directly
1094		-	- 16 - Enrolled Copy H.B. 12
1095	1096		538
1096	1097		or with another person who is under contract to perform part of a contractual
	1098	+	- 16 - 02-05 20:11 4th Sub. (Green) H.B. 12
1097	1099		539
1098	1100		obligation under the control of the contractor; and
1099	1101		540
1100	1102		(b) includes a supplier, distributor, or other vendor that furnishes supplies or services to
1101	1103		541
1102	1104		a contractor.
1103	1105		542
1104	1106		[(92)] (93) "Technology" means the same as "information technology," as defined in Section
1105	1107		543
1106	1108		63A-16-102.
1107	1109		544
1108	1110		[(93)] (94) "Tie bid" means that the lowest responsive bids of responsible bidders are
1109	1111		545
1110	1112		identical in price.
1111	1113		546
1112	1114		[(94)] (95) "Time and materials contract" means a contract under which the contractor is
1113	1115		547
1114	1116		paid:
1115	1117		548
1116	1118		(a) the actual cost of direct labor at specified hourly rates;
1117	1119		549
1118	1120		(b) the actual cost of materials and equipment usage; and
1119	1121		550
1120	1122		(c) an additional amount, expressly described in the contract, to cover overhead and
1121	1123		551
1122	1124		profit, that is not based on a percentage of the cost to the contractor.
1123	1125		552
1124	1126		[(95)] (96) "Transitional costs":
1125	1127		553
1126	1128		(a) means the costs of changing:
1127	1129		554
1128	1130		(i) from an existing provider of a procurement item to another provider of that
1129	1131		555
1130	1132		procurement item; or
1131	1133		556
1132	1134		(ii) from an existing type of procurement item to another type;
1133	1135		557
1134	1136		(b) includes:
1135	1137		558
1136	1138		(i) training costs;
1137	1139		559
1138	1140		(ii) conversion costs;
1139	1141		560
1140	1142		(iii) compatibility costs;
1141	1143		561
1142	1144		(iv) costs associated with system downtime;
1143	1145		562
1144	1146		(v) disruption of service costs;
1145	1147		563
1146	1148		(vi) staff time necessary to implement the change;
1147	1149		564
1148	1150		(vii) installation costs; and
1149	1151		565
1150	1152		(viii) ancillary software, hardware, equipment, or construction costs; and
1151	1153		566
1152	1154		(c) does not include:
1153	1155		567
1154	1156		(i) the costs of preparing for or engaging in a procurement process; or
1155	1157		568
1156	1158		(ii) contract negotiation or drafting costs.
1157	1159		569
1158	1160		[(96)] (97) "Vendor":
1159	1161		570
1160	1162		(a) means a person who is seeking to enter into a contract with a procurement unit to
1161	1163		571
1162	1164		provide a procurement item; and
1163		-	- 17 - H.B. 12 Enrolled Copy
1164	1165		572
1165	1166		(b) includes:
	1167	+	- 17 - 4th Sub. (Green) H.B. 12 02-05 20:11
1166	1168		573
1167	1169		(i) a bidder;
1168	1170		574
1169	1171		(ii) an offeror;
1170	1172		575
1171	1173		(iii) an approved vendor;
1172	1174		576
1173	1175		(iv) a design professional; and
1174	1176		577
1175	1177		(v) a person who submits an unsolicited proposal under Section 63G-6a-712.
1176	1178		578
1177	1179		Section 2. Section 63G-6a-109 is amended to read:
1178	1180		579
1179	1181		63G-6a-109 . Issuing procurement unit and conducting procurement unit.
1180	1182		580
1181	1183		(1) With respect to a procurement by an executive branch procurement unit, except for a
1182	1184		581
1183	1185		procurement by an executive branch procurement unit that, under Subsection [
1184	1186		582
1185	1187		63G-6a-103(38)(b), (c), (d), or (e)] 63G-6a-103(40)(b), (c), (d), or (e), is designated as an
1186	1188		583
1187	1189		independent procurement unit:
1188	1190		584
1189	1191		(a) the division is the issuing procurement unit; and
1190	1192		585
1191	1193		(b) the executive branch procurement unit is the conducting procurement unit and is
1192	1194		586
1193	1195		responsible to ensure that the procurement is conducted in compliance with this
1194	1196		587
1195	1197		chapter.
1196	1198		588
1197	1199		(2) With respect to a procurement by any other procurement unit, the procurement unit is
1198	1200		589
1199	1201		both the issuing procurement unit and the conducting procurement unit.
1200	1202		590
1201	1203		(3) A conducting procurement unit is responsible for contract administration.
1202	1204		591
1203	1205		Section 3. Section 63G-6a-303 is amended to read:
1204	1206		592
1205	1207		63G-6a-303 . Role, duties, and authority of chief procurement officer.
1206	1208		593
1207	1209		(1) The chief procurement officer:
1208	1210		594
1209	1211		(a) is the director of the division;
1210	1212		595
1211	1213		(b) serves as the central procurement officer of the state;
1212	1214		596
1213	1215		(c) serves as a voting member of the board; and
1214	1216		597
1215	1217		(d) serves as the protest officer for a protest relating to a procurement of an executive
1216	1218		598
1217	1219		branch procurement, except an executive branch procurement unit designated under
1218	1220		599
1219	1221		Subsection [63G-6a-103(38)(b), (c), (d), or (e)] 63G-6a-103(40)(b), (c), (d), or (e) as
1220	1222		600
1221	1223		an independent procurement unit, or a state cooperative contract procurement, unless
1222	1224		601
1223	1225		the chief procurement officer designates another to serve as protest officer, as
1224	1226		602
1225	1227		authorized in this chapter.
1226	1228		603
1227	1229		(2) Except as otherwise provided in this chapter, the chief procurement officer shall:
1228	1230		604
1229	1231		(a) develop procurement policies and procedures supporting ethical procurement
1230	1232		605
1231		-	practices, fair and open competition among vendors, and transparency within the
1232		-	- 18 - Enrolled Copy H.B. 12
	1233	+	practices, fair and open competition among vendors, and transparency within the state
1233	1234		606
1234		-	state's procurement process;
	1235	+	's procurement process;
	1236	+	- 18 - 02-05 20:11 4th Sub. (Green) H.B. 12
1235	1237		607
1236	1238		(b) administer the state's cooperative purchasing program, including state cooperative
1237	1239		608
1238	1240		contracts and associated administrative fees;
1239	1241		609
1240	1242		(c) enter into an agreement with a public entity for services provided by the division, if
1241	1243		610
1242	1244		the agreement is in the best interest of the state;
1243	1245		611
1244	1246		(d) ensure the division's compliance with any applicable law, rule, or policy, including a
1245	1247		612
1246	1248		law, rule, or policy applicable to the division's role as an issuing procurement unit or
1247	1249		613
1248	1250		conducting procurement unit, or as the state's central procurement organization;
1249	1251		614
1250	1252		(e) manage the division's electronic procurement system;
1251	1253		615
1252	1254		(f) oversee the recruitment, training, career development, certification requirements, and
1253	1255		616
1254	1256		performance evaluation of the division's procurement personnel;
1255	1257		617
1256	1258		(g) make procurement training available to procurement units and persons who do
1257	1259		618
1258	1260		business with procurement units;
1259	1261		619
1260	1262		(h) provide exemplary customer service and continually improve the division's
1261	1263		620
1262	1264		procurement operations;
1263	1265		621
1264	1266		(i) exercise all other authority, fulfill all other duties and responsibilities, and perform all
1265	1267		622
1266	1268		other functions authorized under this chapter; and
1267	1269		623
1268	1270		(j) ensure that any training described in this Subsection (2) complies with Chapter 22,
1269	1271		624
1270	1272		State Training and Certification Requirements.
1271	1273		625
1272	1274		(3) With respect to a procurement or contract over which the chief procurement officer has
1273	1275		626
1274	1276		authority under this chapter, the chief procurement officer, except as otherwise provided
1275	1277		627
1276	1278		in this chapter:
1277	1279		628
1278	1280		(a) shall:
1279	1281		629
1280	1282		(i) manage and supervise a procurement to ensure to the extent practicable that
1281	1283		630
1282	1284		taxpayers receive the best value;
1283	1285		631
1284	1286		(ii) prepare and issue standard specifications for procurement items;
1285	1287		632
1286	1288		(iii) review contracts, coordinate contract compliance, conduct contract audits, and
1287	1289		633
1288	1290		approve change orders;
1289	1291		634
1290	1292		(iv) in accordance with Section 63G-6a-109.5, coordinate with the Division of
1291	1293		635
1292	1294		Technology Services, created in Section 63A-16-103, with respect to the
1293	1295		636
1294	1296		procurement of information technology services by an executive branch
1295	1297		637
1296	1298		procurement unit;
1297	1299		638
1298	1300		(v) correct, amend, or cancel a procurement at any stage of the procurement process
1299	1301		639
1300	1302		if the procurement is out of compliance with this chapter or a board rule;
1301		-	- 19 - H.B. 12 Enrolled Copy
1302	1303		640
1303	1304		(vi) after consultation with the attorney general's office, correct, amend, or cancel a
	1305	+	- 19 - 4th Sub. (Green) H.B. 12 02-05 20:11
1304	1306		641
1305	1307		contract at any time during the term of the contract if:
1306	1308		642
1307	1309		(A) the contract is out of compliance with this chapter or a board rule; and
1308	1310		643
1309	1311		(B) the chief procurement officer determines that correcting, amending, or
1310	1312		644
1311	1313		canceling the contract is in the best interest of the state; and
1312	1314		645
1313	1315		(vii) make a reasonable attempt to resolve a contract dispute, in coordination with the
1314	1316		646
1315	1317		attorney general's office; and
1316	1318		647
1317	1319		(b) may:
1318	1320		648
1319	1321		(i) delegate limited purchasing authority to a state agency, with appropriate oversight
1320	1322		649
1321	1323		and control to ensure compliance with this chapter;
1322	1324		650
1323	1325		(ii) delegate duties and authority to an employee of the division, as the chief
1324	1326		651
1325	1327		procurement officer considers appropriate;
1326	1328		652
1327	1329		(iii) negotiate and settle contract overcharges, undercharges, and claims, in
1328	1330		653
1329	1331		accordance with the law and after consultation with the attorney general's office;
1330	1332		654
1331	1333		(iv) authorize a procurement unit to make a procurement pursuant to a regional
1332	1334		655
1333	1335		solicitation, as defined in Subsection 63G-6a-2105(7), even if the procurement
1334	1336		656
1335	1337		item is also offered under a state cooperative contract, if the chief procurement
1336	1338		657
1337	1339		officer determines that the procurement pursuant to a regional solicitation is in the
1338	1340		658
1339	1341		best interest of the acquiring procurement unit; and
1340	1342		659
1341	1343		(v) remove an individual from the procurement process or contract administration for:
1342	1344		660
1343	1345		(A) having a conflict of interest or the appearance of a conflict of interest with a
1344	1346		661
1345	1347		person responding to a solicitation or with a contractor;
1346	1348		662
1347	1349		(B) having a bias or the appearance of bias for or against a person responding to a
1348	1350		663
1349	1351		solicitation or for or against a contractor;
1350	1352		664
1351	1353		(C) making an inconsistent or unexplainable score for a solicitation response;
1352	1354		665
1353	1355		(D) having inappropriate contact or communication with a person responding to a
1354	1356		666
1355	1357		solicitation;
1356	1358		667
1357	1359		(E) socializing inappropriately with a person responding to a solicitation or with a
1358	1360		668
1359	1361		contractor;
1360	1362		669
1361	1363		(F) engaging in any other action or having any other association that causes the
1362	1364		670
1363	1365		chief procurement officer to conclude that the individual cannot fairly evaluate
1364	1366		671
1365	1367		a solicitation response or administer a contract; or
1366	1368		672
1367	1369		(G) any other violation of a law, rule, or policy.
1368	1370		673
1369	1371		(4) The chief procurement officer may not delegate to an individual outside the division the
1370		-	- 20 - Enrolled Copy H.B. 12
1371	1372		674
1372	1373		chief procurement officer's authority over a procurement described in Subsection
	1374	+	- 20 - 02-05 20:11 4th Sub. (Green) H.B. 12
1373	1375		675
1374	1376		(3)(a)(iv).
1375	1377		676
1376	1378		(5) The chief procurement officer has final authority to determine whether an executive
1377	1379		677
1378	1380		branch procurement unit's anticipated expenditure of public funds, anticipated agreement
1379	1381		678
1380	1382		to expend public funds, or provision of a benefit constitutes a procurement that is subject
1381	1383		679
1382	1384		to this chapter.
1383	1385		680
1384	1386		(6) Except as otherwise provided in this chapter, the chief procurement officer shall review,
1385	1387		681
1386	1388		monitor, and audit the procurement activities and delegated procurement authority of an
1387	1389		682
1388	1390		executive branch procurement unit, except to the extent that an executive branch
1389	1391		683
1390	1392		procurement unit is designated under Subsection [63G-6a-103(38)(b), (c), (d), or (e)]
1391	1393		684
1392	1394		63G-6a-103(40)(b), (c), (d), or (e) as an independent procurement unit, to ensure
1393	1395		685
1394	1396		compliance with this chapter, rules made by the applicable rulemaking authority, and
1395	1397		686
1396	1398		division policies.
1397	1399		687
1398	1400		Section 4. Section 63G-6a-506 is amended to read:
1399	1401		688
1400	1402		63G-6a-506 . Small purchases.
1401	1403		689
1402	1404		(1) As used in this section:
1403	1405		690
1404	1406		(a) "Annual cumulative threshold" means the maximum total annual amount, established
1405	1407		691
1406	1408		by the rulemaking authority under Subsection (2), that a procurement unit may
1407	1409		692
1408	1410		expend to obtain procurement items from the same source under this section.
1409	1411		693
1410	1412		(b) "Individual procurement item threshold" means the maximum amount, established
1411	1413		694
1412	1414		by the rulemaking authority under Subsection (2), for which a procurement unit may
1413	1415		695
1414	1416		purchase a procurement item under this section.
1415	1417		696
1416	1418		(c) "Single procurement aggregate threshold" means the maximum total amount,
1417	1419		697
1418	1420		established by the rulemaking authority under Subsection (2), that a procurement unit
1419	1421		698
1420	1422		may expend to obtain multiple procurement items from one source at one time under
1421	1423		699
1422	1424		this section.
1423	1425		700
1424	1426		(2)(a) The rulemaking authority may make rules governing small purchases of any
1425	1427		701
1426	1428		procurement item, including construction, job order contracting, design professional
1427	1429		702
1428	1430		services, other professional services, information technology, and goods.
1429	1431		703
1430	1432		(b) Rules under Subsection (2)(a) may include provisions:
1431	1433		704
1432	1434		(i) establishing expenditure thresholds, including:
1433	1435		705
1434	1436		(A) an annual cumulative threshold;
1435	1437		706
1436	1438		(B) an individual procurement item threshold; and
1437	1439		707
1438	1440		(C) a single procurement aggregate threshold;
1439		-	- 21 - H.B. 12 Enrolled Copy
1440	1441		708
1441	1442		(ii) establishing procurement requirements relating to the thresholds described in
	1443	+	- 21 - 4th Sub. (Green) H.B. 12 02-05 20:11
1442	1444		709
1443	1445		Subsection (2)(b)(i); and
1444	1446		710
1445	1447		(iii) providing for the use of electronic, telephone, or written quotes.
1446	1448		711
1447	1449		(c) If a procurement unit obtains administrative law judge service through a small
1448	1450		712
1449	1451		purchase standard procurement process, rules made under Subsection (2)(a) shall
1450	1452		713
1451	1453		provide that the process for the procurement of administrative law judge service
1452	1454		714
1453	1455		include an evaluation committee described in Subsection 63G-6a-116(3).
1454	1456		715
1455	1457		(3) Expenditures made under this section by a procurement unit may not exceed a threshold
1456	1458		716
1457	1459		established by the rulemaking authority, unless the procurement official gives written
1458	1460		717
1459	1461		authorization to exceed the threshold that includes the reasons for exceeding the
1460	1462		718
1461	1463		threshold.
1462	1464		719
1463	1465		(4) Except as provided in Subsection (5), an executive branch procurement unit may not
1464	1466		720
1465	1467		obtain a procurement item through a small purchase standard procurement process if the
1466	1468		721
1467	1469		procurement item may be obtained through a state cooperative contract or a contract
1468	1470		722
1469	1471		awarded by the chief procurement officer under Subsection 63G-6a-2105(1).
1470	1472		723
1471	1473		(5) Subsection (4) does not apply if:
1472	1474		724
1473	1475		(a) the procurement item is obtained for an unanticipated, urgent, or emergency
1474	1476		725
1475	1477		condition, including:
1476	1478		726
1477	1479		(i) an item needed to avoid stopping a public construction project;
1478	1480		727
1479	1481		(ii) an immediate repair to a facility or equipment; or
1480	1482		728
1481	1483		(iii) another emergency condition; or
1482	1484		729
1483	1485		(b) the chief procurement officer or the procurement official of a procurement unit that
1484	1486		730
1485	1487		is an executive branch procurement unit with independent procurement authority:
1486	1488		731
1487	1489		(i) determines in writing that it is in the best interest of the procurement unit to obtain
1488	1490		732
1489	1491		an individual procurement item outside of the state contract, comparing:
1490	1492		733
1491	1493		(A) the contract terms and conditions applicable to the procurement item under the
1492	1494		734
1493	1495		state contract with the contract terms and conditions applicable to the
1494	1496		735
1495	1497		procurement item if the procurement item is obtained outside of the state
1496	1498		736
1497	1499		contract;
1498	1500		737
1499		-	(B) the maintenance and service applicable to the procurement item under the
	1501	+	(B) the maintenance and service applicable to the procurement item under the state
1500	1502		738
1501		-	~~state~~ contract with the maintenance and service applicable to the procurement
	1503	+	contract with the maintenance and service applicable to the procurement item if
1502	1504		739
1503		-	~~item if~~ the procurement item is obtained outside of the state contract;
	1505	+	the procurement item is obtained outside of the state contract;
1504	1506		740
1505	1507		(C) the warranties applicable to the procurement item under the state contract with
1506	1508		741
1507	1509		the warranties applicable to the procurement item if the procurement item is
1508		-	- 22 - Enrolled Copy H.B. 12
1509	1510		742
1510	1511		obtained outside of the state contract;
	1512	+	- 22 - 02-05 20:11 4th Sub. (Green) H.B. 12
1511	1513		743
1512	1514		(D) the quality of the procurement item under the state contract with the quality of
1513	1515		744
1514	1516		the procurement item if the procurement item is obtained outside of the state
1515	1517		745
1516	1518		contract; and
1517	1519		746
1518	1520		(E) the ability of the vendor under the state contract to match the quoted cost of
1519	1521		747
1520	1522		the procurement item if the procurement item is obtained outside of the state
1521	1523		748
1522	1524		contract;
1523	1525		749
1524	1526		(ii) for a procurement item that, if defective in its manufacture, installation, or
1525	1527		750
1526	1528		performance, may result in serious physical injury, death, or substantial property
1527	1529		751
1528	1530		damage, determines in writing that the terms and conditions, relating to liability
1529	1531		752
1530	1532		for injury, death, or property damage, available from the source other than the
1531	1533		753
1532	1534		contractor who holds the state contract, are similar to, or better than, the terms and
1533	1535		754
1534	1536		conditions available under the state contract; and
1535	1537		755
1536	1538		(iii) grants an exception, in writing, to the requirement described in Subsection (4).
1537	1539		756
1538	1540		(6) Except as otherwise expressly provided in this section, a procurement unit:
1539	1541		757
1540	1542		(a) may not use the small purchase standard procurement process described in this
1541	1543		758
1542	1544		section for ongoing, continuous, and regularly scheduled procurements that exceed
1543	1545		759
1544	1546		the annual cumulative threshold; and
1545	1547		760
1546	1548		(b) shall make its ongoing, continuous, and regularly scheduled procurements that
1547	1549		761
1548	1550		exceed the annual cumulative threshold through a contract awarded through another
1549	1551		762
1550	1552		standard procurement process described in this chapter or an applicable exception to
1551	1553		763
1552	1554		another standard procurement process, described in Part 8, Exceptions to
1553	1555		764
1554	1556		Procurement Requirements.
1555	1557		765
1556	1558		(7) This section does not prohibit regularly scheduled payments for a procurement item
1557	1559		766
1558	1560		obtained under another provision of this chapter.
1559	1561		767
1560	1562		(8)(a) It is unlawful for a person knowingly to divide a single procurement into multiple
1561	1563		768
1562	1564		smaller procurements, including by dividing an invoice or purchase order into
1563	1565		769
1564	1566		multiple invoices or purchase orders, if:
1565	1567		770
1566	1568		(i) the single procurement would not have qualified as a small purchase under this
1567	1569		771
1568	1570		section;
1569	1571		772
1570	1572		(ii) one or more of the multiple smaller procurements qualify as a small purchase
1571	1573		773
1572	1574		under this section; and
1573	1575		774
1574	1576		(iii) the division is done with the intent to:
1575	1577		775
1576	1578		(A) avoid having to use a standard procurement process, other than the small
1577		-	- 23 - H.B. 12 Enrolled Copy
1578	1579		776
1579	1580		purchase process, that the person would otherwise be required to use for the
	1581	+	- 23 - 4th Sub. (Green) H.B. 12 02-05 20:11
1580	1582		777
1581	1583		single procurement; or
1582	1584		778
1583	1585		(B) make one or more of the multiple smaller procurements fall below a small
1584	1586		779
1585	1587		purchase expenditure threshold established by rule under Subsection (2)(b) that
1586	1588		780
1587	1589		the single procurement would not have fallen below without the division.
1588	1590		781
1589	1591		(b) A violation of Subsection (8)(a) is subject to penalties as provided in Subsection
1590	1592		782
1591	1593		63G-6a-2404.3(2).
1592	1594		783
1593	1595		(9) The Division of Finance within the Department of Government Operations may conduct
1594	1596		784
1595	1597		an audit of an executive branch procurement unit to verify compliance with the
1596	1598		785
1597	1599		requirements of this section.
1598	1600		786
1599	1601		(10) An executive branch procurement unit may not make a small purchase after January 1,
1600	1602		787
1601	1603		2014, unless the chief procurement officer certifies that the person responsible for
1602	1604		788
1603	1605		procurements in the procurement unit has satisfactorily completed training on this
1604	1606		789
1605	1607		section and the rules made under this section.
1606	1608		790
1607	1609		Section 5. Section 63G-6a-805 is amended to read:
1608	1610		791
1609	1611		63G-6a-805 . Purchase from community rehabilitation programs.
1610	1612		792
1611	1613		(1) As used in this section:
1612	1614		793
1613	1615		(a) "Advisory board" means the Purchasing from Persons with Disabilities Advisory
1614	1616		794
1615	1617		Board created under this section.
1616	1618		795
1617	1619		[(b) "Central not-for-profit association" means a group of experts designated by the
1618	1620		796
1619	1621		advisory board to do the following, under guidelines established by the advisory
1620	1622		797
1621	1623		board:]
1622	1624		798
1623	1625		[(i) assist the advisory board with its functions; and]
1624	1626		799
1625	1627		[(ii) facilitate the implementation of advisory board policies.]
1626	1628		800
1627	1629		[(c)] (b)(i) "Community rehabilitation program" means a program that is operated
1628	1630		801
1629	1631		primarily for the purpose of the employment and training of persons with a
1630	1632		802
1631	1633		disability by a government agency or qualified nonprofit organization which is an
1632	1634		803
1633	1635		income tax exempt organization under 26 U.S.C. Sec. 501(c)(3) of the Internal
1634	1636		804
1635	1637		Revenue Code.
1636	1638		805
1637	1639		(ii) A community rehabilitation program:
1638	1640		806
1639	1641		(A) maintains an employment ratio of at least 75% of the program employees
1640	1642		807
1641	1643		under the procurement contract in question have severe disabilities;
1642	1644		808
1643	1645		(B)(I) complies with any applicable occupational health and safety standards
1644	1646		809
1645	1647		prescribed by the United States Department of Labor; or
1646		-	- 24 - Enrolled Copy H.B. 12
1647	1648		810
1648	1649		(II) is a supported employment program approved by the Utah State Office of
	1650	+	- 24 - 02-05 20:11 4th Sub. (Green) H.B. 12
1649	1651		811
1650	1652		Rehabilitation created in Section 35A-1-202;
1651	1653		812
1652	1654		(C) has its principal place of business in Utah;
1653	1655		813
1654	1656		(D) produces [any] a good provided under this section in Utah; and
1655	1657		814
1656	1658		(E) provides [any] a service that is provided by individuals with a majority of
1657	1659		815
1658	1660		whom domiciled in Utah.
1659	1661		816
1660	1662		[(d)] (c) "Person with a disability" means a person with [any] a disability as defined by
1661	1663		817
1662	1664		and covered under the Americans with Disabilities Act of 1990, 42 U.S.C. 12102.
1663	1665		818
1664	1666		(2) There is created within the division the Purchasing from Persons with Disabilities
1665	1667		819
1666	1668		Advisory Board.
1667	1669		820
1668	1670		(3) The advisory board shall consist of three members, as follows:
1669	1671		821
1670	1672		(a) the director of the division or the director's designee;
1671	1673		822
1672	1674		(b) the director of the Utah State Office of Rehabilitation or the director's designee; and
1673	1675		823
1674	1676		(c) a representative of the private business community who shall be appointed to a
1675	1677		824
1676	1678		three-year term by the governor with the advice and consent of the Senate.
1677	1679		825
1678	1680		(4)(a) The advisory board shall meet, as needed, to facilitate [the procurement of goods
1679	1681		826
1680	1682		and services from community rehabilitation programs by a procurement unit under
1681	1683		827
1682	1684		this chapter by:] a procurement unit's procurement of a good or service under this
1683	1685		828
1684	1686		chapter from a community rehabilitation program.
1685	1687		829
1686	1688		(b) The advisory board shall:
1687	1689		830
1688	1690		[(a)] (i) [identifying goods and services that are available from community
1689	1691		831
1690	1692		rehabilitation programs] identify the good or service that is available from a
1691	1693		832
1692	1694		community rehabilitation program in accordance with the requirements of
1693	1695		833
1694	1696		Subsection (7);
1695	1697		834
1696	1698		[(b)] (ii) [approving prices] approve a price in accordance with Subsection (7)(c) for [
1697	1699		835
1698	1700		goods and services that are identified under Subsection (4)(a)] the good or service
1699	1701		836
1700	1702		that the advisory board identifies under Subsection (4)(b)(i);
1701	1703		837
1702	1704		[(c)] (iii) [developing, maintaining, and approving a preferred procurement contract
1703	1705		838
1704	1706		list of goods and services identified and priced under Subsections (4)(a) and (b)]
1705	1707		839
1706	1708		develop, maintain, and approve a preferred procurement contract list of the goods
1707	1709		840
1708	1710		and services that the advisory board identifies and prices under Subsections
1709	1711		841
1710	1712		(4)(b)(i) and (ii);
1711	1713		842
1712	1714		[(d)] (iv) [reviewing bids received by a community rehabilitation program] review a
1713	1715		843
1714	1716		community rehabilitation program's bid; and
1715		-	- 25 - H.B. 12 Enrolled Copy
1716	1717		844
1717	1718		[(e)] (v) [awarding and renewing ] award and renew specified contracts for set contract
	1719	+	- 25 - 4th Sub. (Green) H.B. 12 02-05 20:11
1718	1720		845
1719	1721		times, without competitive bidding, for [the] a procurement unit's purchase of [
1720	1722		846
1721	1723		goods and services] a good or service under Subsection (7).
1722	1724		847
1723	1725		(5) The provisions of Subsections (4) and (7)(a) are an exception to the procurement
1724	1726		848
1725	1727		provisions under this chapter.
1726	1728		849
1727	1729		(6)(a) The advisory board may [designate a central not-for-profit association, appoint its
1728	1730		850
1729	1731		members, and establish guidelines for its duties] enter into an agreement with a person
1730	1732		851
1731	1733		to provide administrative support to the advisory board.
1732	1734		852
1733	1735		[(b) The designated central not-for-profit association serves at the pleasure of the
1734	1736		853
1735	1737		advisory board. The central not-for-profit association or its individual members may
1736	1738		854
1737	1739		be removed by the advisory board at any time by a majority vote of the advisory
1738	1740		855
1739	1741		board.]
1740	1742		856
1741	1743		[(c)] (b) Subject to the advisory board guidelines and discretion, [a designated central
1742	1744		857
1743	1745		not-for-profit association may be assigned to perform the following duties] a person
1744	1746		858
1745	1747		described in Subsection (6)(a) shall:
1746	1748		859
1747	1749		(i) identify [qualified] a community rehabilitation [programs] program and the [goods
1748	1750		860
1749	1751		and services that they provide or have] good or service that the community
1750	1752		861
1751	1753		rehabilitation program provides or has the potential to provide;
1752	1754		862
1753	1755		(ii) [help ensure that goods and services are] help ensure that a community
1754	1756		863
1755	1757		rehabilitation program's good or service is provided at reasonable quality and
1756	1758		864
1757	1759		delivery levels;
1758	1760		865
1759	1761		(iii) recommend pricing for [goods and services] a community rehabilitation
1760	1762		866
1761	1763		program's good or service;
1762	1764		867
1763	1765		(iv) under the advisory board's discretion:
1764	1766		868
1765	1767		(A) review [bids and recommend the award of contracts under the advisory
1766	1768		869
1767	1769		board's direction] a community rehabilitation program's bid; and
1768	1770		870
1769	1771		(B) recommend to the advisory board that a procurement unit award a contract to
1770	1772		871
1771	1773		a community rehabilitation program;
1772	1774		872
1773	1775		(v) collect and report program data to the advisory board and [to ]the division; and
1774	1776		873
1775	1777		(vi) [other duties specified by the advisory board] perform other duties that the
1776	1778		874
1777	1779		advisory board specifies.
1778	1780		875
1779	1781		(7) Except as provided under Subsection (9), notwithstanding any provision of this chapter
1780	1782		876
1781	1783		to the contrary, [each] a procurement unit shall purchase [goods and services produced
1782	1784		877
1783	1785		by a community rehabilitation program] a community rehabilitation program's good or
1784		-	- 26 - Enrolled Copy H.B. 12
1785	1786		878
1786	1787		service using the preferred procurement contract list approved under Subsection [(4)(c)]
	1788	+	- 26 - 02-05 20:11 4th Sub. (Green) H.B. 12
1787	1789		879
1788	1790		(4)(b)(iii) if:
1789	1791		880
1790	1792		(a) [the good or service offered for sale by a community rehabilitation program] the
1791	1793		881
1792	1794		community rehabilitation program's good or service reasonably conforms to the
1793	1795		882
1794	1796		needs and specifications of the procurement unit;
1795	1797		883
1796	1798		(b) the community rehabilitation program can supply the good or service within a
1797	1799		884
1798	1800		reasonable time; and
1799	1801		885
1800	1802		(c) the price of the good or service is reasonably competitive with the cost of procuring
1801	1803		886
1802	1804		the good or service from another source.
1803	1805		887
1804	1806		(8) [Each ] A community rehabilitation program:
1805	1807		888
1806	1808		(a) may submit a bid to the advisory board at any time and not necessarily in response to
1807	1809		889
1808	1810		an invitation for bids; and
1809	1811		890
1810	1812		(b) shall certify on [any bid it] the bid that the community rehabilitation program submits
1811	1813		891
1812	1814		to the advisory board or to a procurement unit under this section that [it] the
1813	1815		892
1814	1816		community rehabilitation program is claiming a preference under this section.
1815	1817		893
1816	1818		(9) During a fiscal year, the requirement for a procurement unit to purchase [goods and
1817	1819		894
1818	1820		services produced by a community rehabilitation program] a good or service that a
1819	1821		895
1820	1822		community rehabilitation program produces under the preferred procurement list under
1821	1823		896
1822	1824		Subsection (7) does not apply if the division determines that the total amount of
1823	1825		897
1824	1826		procurement contracts with community rehabilitation programs has reached $5 million
1825	1827		898
1826	1828		for that fiscal year.
1827	1829		899
1828	1830		(10) In the case of conflict between a purchase under this section and a purchase under
1829	1831		900
1830	1832		Section 63G-6a-804, this section prevails.
1831	1833		901
1832	1834		Section 6. Section 63G-6a-1201.5 is enacted to read:
1833	1835		902
1834	1836		63G-6a-1201.5 . Award of contract -- Effect.
1835	1837		903
1836	1838		An award of a procurement contract under this chapter:
1837	1839		904
1838	1840		(1) is not an offer or an acceptance of a bid, proposal, estimate, quote, or an offer; and
1839	1841		905
1840	1842		(2) does not create a contract.
1841	1843		906
1842	1844		Section 7. Section 63G-6a-1203 is amended to read:
1843	1845		907
1844	1846		63G-6a-1203 . Void and unenforceable provisions of a contract -- Exemptions --
1845	1847		908
1846	1848		Limitation of liability and damages.
1847	1849		909
1848	1850		[(1) A contract, including an amendment to an existing contract, entered into under this
1849	1851		910
1850	1852		chapter may not require that a design professional indemnify another from liability
1851	1853		911
1852	1854		claims that arise out of the design professional's services, unless the liability claim arises
1853		-	- 27 - H.B. 12 Enrolled Copy
1854	1855		912
1855	1856		from the design professional's negligent act, wrongful act, error or omission, or other
	1857	+	- 27 - 4th Sub. (Green) H.B. 12 02-05 20:11
1856	1858		913
1857	1859		liability imposed by law.]
1858	1860		914
1859	1861		[(2) Subsection (1) may not be waived by contract.]
1860	1862		915
1861	1863		[(3) Notwithstanding Subsections (1) and (2), a design professional may be required to
1862	1864		916
1863	1865		indemnify a person for whom the design professional has direct or indirect control or
1864	1866		917
1865	1867		responsibility.]
1866	1868		918
1867	1869		(1) As used in this section, "governmental entity" means the same as that term is defined in
1868	1870		919
1869	1871		Section 63G-7-102.
1870	1872		920
1871	1873		(2) This section does not apply to:
1872	1874		921
1873	1875		(a) a procurement contract that becomes operative or enforceable before the effective
1874	1876		922
1875	1877		date of this section; or
1876	1878		923
1877	1879		(b) the extension or renewal of a contract described in Subsection (2)(a).
1878	1880		924
1879	1881		(3)(a) Except as provided under Subsections (5) and (6), a provision of a procurement
1880	1882		925
1881	1883		contract described in Subsection (4), including a provision incorporated into the
1882	1884		926
1883	1885		contract by reference, is void and unenforceable.
1884	1886		927
1885	1887		(b) Notwithstanding any provision of a procurement contract that is void and
1886	1888		928
1887	1889		unenforceable under Subsection (3)(a), the remaining provisions of the contract are
1888	1890		929
1889	1891		severable, valid, and enforceable to the fullest extent provided under Utah law.
1890	1892		930
1891	1893		(4) A provision is void and unenforceable under Subsection (3)(a) if the provision:
1892	1894		931
1893	1895		(a) restricts the state's or a procurement unit's protection under Chapter 7, Governmental
1894	1896		932
1895		-	Immunity Act of Utah, from suit, liability, judgment, or obligation, including an
	1897	+	Immunity Act of Utah from suit, liability, judgment, or obligation, including an
1896	1898		933
1897	1899		obligation to respond to or defend against any claim;
1898	1900		934
1899	1901		(b) requires a governmental entity to indemnify, defend, or hold harmless another person;
1900	1902		935
1901	1903		(c) restricts a governmental entity's ability to seek relief in state court;
1902	1904		936
1903	1905		(d) subjects a governmental entity to binding arbitration or other form of dispute
1904	1906		937
1905	1907		resolution outside the courts;
1906	1908		938
1907	1909		(e) disallows the procurement unit from having legal counsel and representation from:
1908	1910		939
1909	1911		(i) legal counsel that the procurement unit chooses;
1910	1912		940
1911	1913		(ii) the attorney general; or
1912	1914		941
1913	1915		(iii) legal counsel chosen by a person that has a contractual obligation to indemnify,
1914	1916		942
1915	1917		defend, or hold harmless the state or a procurement unit, subject to the written
1916	1918		943
1917	1919		consent of the state or the procurement unit;
1918	1920		944
1919	1921		(f) subject to Subsection (5):
1920	1922		945
1921	1923		(i) subjects a procurement contract or a party to the contract to the laws of any
1922		-	- 28 - Enrolled Copy H.B. 12
1923	1924		946
1924	1925		jurisdiction other than Utah; or
	1926	+	- 28 - 02-05 20:11 4th Sub. (Green) H.B. 12
1925	1927		947
1926	1928		(ii) requires the parties to resolve a dispute in a jurisdiction or venue other than Utah;
1927	1929		948
1928	1930		(g) restricts a governmental entity from making disclosures of information, as required
1929	1931		949
1930	1932		by law or for any legitimate governmental purpose;
1931	1933		950
1932	1934		(h) allows a vendor to unilaterally modify any part of the procurement contract,
1933	1935		951
1934	1936		including any provision to which the contract contemplates giving legal effect upon
1935	1937		952
1936	1938		the vendor providing notice to the procurement unit of the modification or of the
1937	1939		953
1938	1940		created legal effect; and
1939	1941		954
1940	1942		(i) subject to Subsection (6):
1941	1943		955
1942	1944		(i) requires a governmental entity to maintain insurance coverage beyond the types
1943	1945		956
1944	1946		and limits required by the state risk manager appointed under Section 63A-4-101.5,
1945	1947		957
1946	1948		or to name an additional insured under that coverage;
1947	1949		958
1948	1950		(ii) allows a vendor to automatically renew a procurement contract or that creates a
1949	1951		959
1950	1952		contractual term in violation of the terms permitted under Section 63G-6a-1204; or
1951	1953		960
1952	1954		(iii) limits the liability of a vendor or any third-party for bodily injury, death, or
1953	1955		961
1954	1956		damage to tangible property caused by the negligence or willful misconduct of a
1955	1957		962
1956	1958		vendor, a third-party, or the vendor's or third-party's employees or agents.
1957	1959		963
1958	1960		(5) The assistant attorney general or authorized legal counsel for the procurement unit that
1959	1961		964
1960	1962		will sign a procurement contract may, via a signed, express, written authorization made
1961	1963		965
1962	1964		prior to the formation of the contract, exempt the contract from a provision described in
1963	1965		966
1964	1966		Subsection (4)(f), if the assistant attorney general or authorized legal counsel determines
1965	1967		967
1966	1968		that an exemption is necessary to promote the best interests of the state or the
1967	1969		968
1968	1970		procurement unit due to:
1969	1971		969
1970	1972		(a) the relative disproportionate bargaining positions of the contracting parties;
1971	1973		970
1972	1974		(b) market conditions; or
1973	1975		971
1974	1976		(c) other unique circumstances identified and described in the authorization.
1975	1977		972
1976	1978		(6) The procurement official for a procurement unit seeking to enter into a procurement
1977	1979		973
1978	1980		contract may, via a signed, express, written authorization made prior to the formation of
1979	1981		974
1980	1982		the contract, exempt the contract from a provision described in Subsection (4)(i), if the
1981	1983		975
1982	1984		contract indicates the procurement unit's intent to include the provision, with explicit
1983	1985		976
1984	1986		reference to this section.
1985	1987		977
1986	1988		(7) Notwithstanding any provision of a procurement contract to the contrary, under no
1987	1989		978
1988	1990		circumstance may the state or a procurement unit be held liable for any special,
1989	1991		979
1990	1992		incidental, indirect, or consequential damages arising from or relating to a procurement
1991		-	- 29 - H.B. 12 Enrolled Copy
1992	1993		980
1993	1994		contract.
	1995	+	- 29 - 4th Sub. (Green) H.B. 12 02-05 20:11
1994	1996		981
1995	1997		Section 8. Effective date.
1996	1998		982
1997	1999		This bill takes effect on May 7, 2025.
1998	2000		- 30 -