UT
Utah House Bill HB0484

Utah 2025 Regular Session

Utah House Bill HB0484 Compare Versions

Only one version of the bill is available at this time.
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11 02-11 12:06 H.B. 484
22 1
33 State Purchasing Reserve Funding
44 2025 GENERAL SESSION
55 STATE OF UTAH
66 Chief Sponsor: Ken Ivory
77 Senate Sponsor:
88 2
99
1010 3
1111 LONG TITLE
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1313 General Description:
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1515 This bill modifies provisions related to state purchasing.
1616 6
1717 Highlighted Provisions:
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1919 This bill:
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2121 ▸ establishes an administrative fee on state cooperative contracts that the division awards on
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2323 behalf of an executive branch procurement unit;
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2525 ▸ deposits revenue from the administrative fee into a restricted account called the State
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2727 Purchasing Reserve Restricted Account (account);
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2929 ▸ directs the state treasurer to invest money in the account in precious metals; and
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3131 ▸ authorizes the money in the account to be used for the purpose of offsetting the cost of
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3333 procuring goods and services for state entities and ensuring continuity in the state's
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3535 procurement of goods and services, if certain inflation metrics are met.
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3737 Money Appropriated in this Bill:
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3939 None
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4141 Other Special Clauses:
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4343 None
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4545 Utah Code Sections Affected:
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4747 AMENDS:
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4949 51-7-2, as last amended by Laws of Utah 2024, Chapters 418, 492 and 510
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5151 63G-6a-2105, as last amended by Laws of Utah 2016, Chapters 348, 355
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5353 ENACTS:
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5555 67-4-20, Utah Code Annotated 1953
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5757
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5959 Be it enacted by the Legislature of the state of Utah:
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6161 Section 1. Section 51-7-2 is amended to read:
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6363 51-7-2 . Exemptions from chapter.
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6565 (1) Except as provided in Subsection (2), the following funds are exempt from this chapter:
6666 H.B. 484 H.B. 484 02-11 12:06
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6868 (a) funds invested in accordance with the participating employees' designation or
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7070 direction pursuant to a public employees' deferred compensation plan established and
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7272 operated in compliance with Section 457 of the Internal Revenue Code of 1986, as
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7474 amended;
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7676 (b) funds of the Utah State Retirement Board;
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7878 (c) funds of the Utah Housing Corporation;
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8080 (d) endowment funds of higher education institutions, including funds of the Higher
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8282 Education Student Success Endowment, created in Section 53B-7-802;
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8484 (e) permanent and other land grant trust funds established pursuant to the Utah Enabling
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8686 Act and the Utah Constitution;
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8888 (f) the State Post-Retirement Benefits Trust Fund;
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9090 (g) the funds of the Utah Educational Savings Plan;
9191 43 (h) funds of the permanent state trust fund created by and operated under Utah
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9393 Constitution, Article XXII, Section 4;
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9595 (i) the funds in the Navajo Trust Fund;
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9797 (j) the funds in the Radioactive Waste Perpetual Care and Maintenance Account;
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9999 (k) the funds in the Employers' Reinsurance Fund;
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101101 (l) the funds in the Uninsured Employers' Fund;
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103103 (m) the Utah State Developmental Center Long-Term Sustainability Fund, created in
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105105 Section 26B-1-331;
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107107 (n) the funds in the Risk Management Fund created in Section 63A-4-201;
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109109 (o) the Utah fund of funds created in Section 63N-6-401;
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111111 (p) the funds deposited into the Utah Homes Investment Program from the
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113113 Transportation Infrastructure General Fund Support Subfund created in Section
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115115 72-2-134;[ and]
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117117 (q) subject to Subsection 67-4-19(2), the portion of the funds in the following accounts
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119119 invested by the state treasurer in precious metals:
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121121 (i) the State Disaster Recovery Restricted Account, created in Section 53-2a-603;
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123123 (ii) the General Fund Budget Reserve Account, created in Section 63J-1-312;
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125125 (iii) the Income Tax Fund Budget Reserve Account, created in Section 63J-1-313; and
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127127 (iv) the Medicaid Growth Reduction and Budget Stabilization Account, created in
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129129 Section [63J-1-315.] 63J-1-315; and
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131131 (r) the State Purchasing Reserve Restricted Account created in Section 67-4-20.
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133133 (2) Except for the funds of the Utah State Retirement Board and the Utah Educational
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136136 Savings Plan, the funds described in Subsection (1) are not exempt from Subsections
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138138 51-7-14(2) and (3).
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140140 (3) Notwithstanding Title 52, Chapter 4, Open and Public Meetings Act, a public body that
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142142 administers a fund described in Subsection (1) may hold a closed meeting to discuss the
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144144 sale or purchase of identifiable securities, investment funds, or investment contracts.
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146146 (4) A paper, electronic, or other depiction or record of information relating to investment
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148148 activities of a fund described in Subsection (1) is not subject to Title 63G, Chapter 2,
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150150 Government Records Access and Management Act.
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152152 Section 2. Section 63G-6a-2105 is amended to read:
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154154 63G-6a-2105 . Cooperative procurements -- Contracts with federal government
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156156 -- Regional solicitations.
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158158 (1)(a) The chief procurement officer may, in accordance with the requirements of this
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160160 chapter, enter into a cooperative procurement, and a contract that is awarded as a
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162162 result of a cooperative procurement, with:
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164164 [(a)] (i) another state;
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166166 [(b)] (ii) a cooperative purchasing organization; or
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168168 [(c)] (iii) a public entity inside or outside the state.
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170170 (b)(i) Except for contracts the chief procurement officer exempts from administrative
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172172 fees, the chief procurement officer shall ensure that each state cooperative contract
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174174 that the division awards on behalf of an executive branch procurement unit
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176176 includes an administrative fee equal to 1% of the total price the executive branch
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178178 procurement unit pays for procurement items under the contract.
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180180 (ii) The division shall deposit revenue from the administrative fee described in this
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182182 Subsection (1)(b) into the State Purchasing Reserve Restricted Account created in
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184184 Section 67-4-20.
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186186 (2) A public entity, nonprofit organization, or, as permitted under federal law, an agency of
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188188 the federal government, may obtain a procurement item from a state cooperative contract
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190190 or a contract awarded by the chief procurement officer under Subsection (1), without
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192192 signing a participating addendum if the solicitation issued by the chief procurement
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194194 officer to obtain the contract includes a statement indicating that the resulting contract
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196196 will be issued for the benefit of public entities and, as applicable, nonprofit
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198198 organizations and agencies of the federal government.
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200200 (3) Except as provided in Section 63G-6a-506, or as otherwise provided in this chapter, an
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202202 executive branch procurement unit may not obtain a procurement item from a source
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205205 other than a state cooperative contract or a contract awarded by the chief procurement
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207207 officer under Subsection [(1)] (1)(a), if the procurement item is available under a state
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209209 cooperative contract or a contract awarded by the chief procurement officer under
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211211 Subsection [(1)] (1)(a).
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213213 (4) A Utah procurement unit may:
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215215 (a) contract with the federal government without going through a standard procurement
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217217 process or an exception to a standard procurement process, described in Part 8,
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219219 Exceptions to Procurement Requirements, if the procurement item obtained under the
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221221 contract is provided:
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223223 (i) directly by the federal government and not by a person contracting with the
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225225 federal government; or
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227227 (ii) by a person under contract with the federal government that obtained the contract
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229229 in a manner that substantially complies with the provisions of this chapter;
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231231 (b) participate in, sponsor, conduct, or administer a cooperative procurement with
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233233 another Utah procurement unit or another public entity in Utah, if:
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235235 (i) each party unit involved in the cooperative procurement enters into an agreement
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237237 describing the rights and duties of each party;
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239239 (ii) the procurement is conducted, and the contract awarded, in accordance with the
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241241 requirements of this chapter;
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243243 (iii) the solicitation:
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245245 (A) clearly indicates that the procurement is a cooperative procurement; and
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247247 (B) identifies each party that may purchase under the resulting contract; and
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249249 (iv) each party involved in the cooperative procurement signs a participating
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251251 addendum describing its rights and obligations in relation to the resulting contract;
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253253 or
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255255 (c) purchase under, or otherwise participate in, an agreement or contract of a cooperative
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257257 purchasing organization, if:
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259259 (i) each party involved in the cooperative procurement enters into an agreement
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261261 describing the rights and duties of each party;
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263263 (ii) the procurement was conducted in accordance with the requirements of this
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265265 chapter;
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267267 (iii) the solicitation:
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269269 (A) clearly indicates that the procurement is a cooperative procurement; and
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271271 (B) identifies each party that may purchase under the resulting contract; and
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274274 (iv) each party involved in the cooperative procurement signs a participating
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276276 addendum describing its rights and obligations in relation to the resulting contract.
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278278 (5) A procurement unit may not obtain a procurement item under a contract that results
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280280 from a cooperative procurement described in Subsection (4), unless the procurement
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282282 unit:
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284284 (a) is identified under Subsection (4)(b)(iii)(B) or (4)(c)(iii)(B); and
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286286 (b) signs a participating addendum to the contract as required by this section.
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288288 (6) A procurement unit, other than a legislative procurement unit or a judicial procurement
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290290 unit, may not obtain a procurement item under a contract held by the United States
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292292 General Services Administration, unless, based upon documentation provided by the
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294294 procurement unit, the Director of the State Division of Purchasing and General Services
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296296 determines in writing that the United States General Services Administration procured
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298298 the contract in a manner that substantially complies with the provisions of this chapter.
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300300 (7)(a) As used in this Subsection (7), "regional solicitation" means a solicitation issued
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302302 by the chief procurement officer for the procurement of a procurement item within a
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304304 specified geographical region of the state.
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306306 (b) In addition to any other duty or authority under this section, the chief procurement
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308308 officer shall:
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310310 (i) after considering board recommendations, develop a plan for issuing regional
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312312 solicitations; and
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314314 (ii) after developing a plan, issue regional solicitations for procurement items in
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316316 accordance with the plan and this chapter.
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318318 (c) A plan under Subsection (7)(b) shall:
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320320 (i) define the proposed regional boundaries for regional solicitations;
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322322 (ii) specify the types of procurement items for which a regional solicitation may be
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324324 issued; and
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326326 (iii) identify the regional solicitations that the chief procurement officer plans to issue.
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328328 (d) A regional solicitation shall require that a person responding to the solicitation offer
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330330 similar warranties and submit to similar obligations as are standard under other state
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332332 cooperative contracts.
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334334 (e) Except as authorized by the chief procurement officer, a procurement item that is
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336336 available under a state cooperative contract may not be provided under a contract
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338338 pursuant to a regional solicitation until after the expiration of the state cooperative
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340340 contract.
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343343 Section 3. Section 67-4-20 is enacted to read:
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345345 67-4-20 . State Purchasing Reserve Restricted Account.
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347347 (1) As used in this section, "precious metal" means the same as that term is defined in
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349349 Section 61-1-13.
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351351 (2) There is created within the General Fund a restricted account known as the State
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353353 Purchasing Reserve Restricted Account.
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355355 (3) The account is funded by:
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357357 (a) revenue from the fee created in Subsection 63G-6a-2105(1)(b); and
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359359 (b) the appreciated value of investments made with the money deposited into the
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361361 account.
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363363 (4)(a) The state treasurer shall invest the money in the account in precious metals.
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365365 (b) The requirements of Subsections 51-7-14(2) and (3) apply to the state treasurer's
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367367 investment in precious metals under this section.
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369369 (5) The Legislature may appropriate money from the account:
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371371 (a) if the Chained Consumer Price Index is at least two standard deviations above the 15
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373373 year mean of the Chained Consumer Price Index; and
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375375 (b) for the purpose of offsetting the cost of procuring goods and services for state
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377377 entities and ensuring continuity in the state's procurement of goods and services.
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379379 (6) When the Legislature appropriates money from the account, the state treasurer shall sell
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381381 investments sufficient to effectuate the appropriation.
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383383 Section 4. Effective Date.
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385385 This bill takes effect on May 7, 2025.
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