02-11 12:06 H.B. 484
1
State Purchasing Reserve Funding
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Ken Ivory
Senate Sponsor:
2
3
LONG TITLE
4
General Description:
5
This bill modifies provisions related to state purchasing.
6
Highlighted Provisions:
7
This bill:
8
▸ establishes an administrative fee on state cooperative contracts that the division awards on
9
behalf of an executive branch procurement unit;
10
▸ deposits revenue from the administrative fee into a restricted account called the State
11
Purchasing Reserve Restricted Account (account);
12
▸ directs the state treasurer to invest money in the account in precious metals; and
13
▸ authorizes the money in the account to be used for the purpose of offsetting the cost of
14
procuring goods and services for state entities and ensuring continuity in the state's
15
procurement of goods and services, if certain inflation metrics are met.
16
Money Appropriated in this Bill:
17
None
18
Other Special Clauses:
19
None
20
Utah Code Sections Affected:
21
AMENDS:
22
51-7-2, as last amended by Laws of Utah 2024, Chapters 418, 492 and 510
23
63G-6a-2105, as last amended by Laws of Utah 2016, Chapters 348, 355
24
ENACTS:
25
67-4-20, Utah Code Annotated 1953
26
27
Be it enacted by the Legislature of the state of Utah:
28
Section 1. Section 51-7-2 is amended to read:
29
51-7-2 . Exemptions from chapter.
30
(1) Except as provided in Subsection (2), the following funds are exempt from this chapter:
H.B. 484 H.B. 484 02-11 12:06
31
(a) funds invested in accordance with the participating employees' designation or
32
direction pursuant to a public employees' deferred compensation plan established and
33
operated in compliance with Section 457 of the Internal Revenue Code of 1986, as
34
amended;
35
(b) funds of the Utah State Retirement Board;
36
(c) funds of the Utah Housing Corporation;
37
(d) endowment funds of higher education institutions, including funds of the Higher
38
Education Student Success Endowment, created in Section 53B-7-802;
39
(e) permanent and other land grant trust funds established pursuant to the Utah Enabling
40
Act and the Utah Constitution;
41
(f) the State Post-Retirement Benefits Trust Fund;
42
(g) the funds of the Utah Educational Savings Plan;
43 (h) funds of the permanent state trust fund created by and operated under Utah
44
Constitution, Article XXII, Section 4;
45
(i) the funds in the Navajo Trust Fund;
46
(j) the funds in the Radioactive Waste Perpetual Care and Maintenance Account;
47
(k) the funds in the Employers' Reinsurance Fund;
48
(l) the funds in the Uninsured Employers' Fund;
49
(m) the Utah State Developmental Center Long-Term Sustainability Fund, created in
50
Section 26B-1-331;
51
(n) the funds in the Risk Management Fund created in Section 63A-4-201;
52
(o) the Utah fund of funds created in Section 63N-6-401;
53
(p) the funds deposited into the Utah Homes Investment Program from the
54
Transportation Infrastructure General Fund Support Subfund created in Section
55
72-2-134;[ and]
56
(q) subject to Subsection 67-4-19(2), the portion of the funds in the following accounts
57
invested by the state treasurer in precious metals:
58
(i) the State Disaster Recovery Restricted Account, created in Section 53-2a-603;
59
(ii) the General Fund Budget Reserve Account, created in Section 63J-1-312;
60
(iii) the Income Tax Fund Budget Reserve Account, created in Section 63J-1-313; and
61
(iv) the Medicaid Growth Reduction and Budget Stabilization Account, created in
62
Section [63J-1-315.] 63J-1-315; and
63
(r) the State Purchasing Reserve Restricted Account created in Section 67-4-20.
64
(2) Except for the funds of the Utah State Retirement Board and the Utah Educational
- 2 - 02-11 12:06 H.B. 484
65
Savings Plan, the funds described in Subsection (1) are not exempt from Subsections
66
51-7-14(2) and (3).
67
(3) Notwithstanding Title 52, Chapter 4, Open and Public Meetings Act, a public body that
68
administers a fund described in Subsection (1) may hold a closed meeting to discuss the
69
sale or purchase of identifiable securities, investment funds, or investment contracts.
70
(4) A paper, electronic, or other depiction or record of information relating to investment
71
activities of a fund described in Subsection (1) is not subject to Title 63G, Chapter 2,
72
Government Records Access and Management Act.
73
Section 2. Section 63G-6a-2105 is amended to read:
74
63G-6a-2105 . Cooperative procurements -- Contracts with federal government
75
-- Regional solicitations.
76
(1)(a) The chief procurement officer may, in accordance with the requirements of this
77
chapter, enter into a cooperative procurement, and a contract that is awarded as a
78
result of a cooperative procurement, with:
79
[(a)] (i) another state;
80
[(b)] (ii) a cooperative purchasing organization; or
81
[(c)] (iii) a public entity inside or outside the state.
82
(b)(i) Except for contracts the chief procurement officer exempts from administrative
83
fees, the chief procurement officer shall ensure that each state cooperative contract
84
that the division awards on behalf of an executive branch procurement unit
85
includes an administrative fee equal to 1% of the total price the executive branch
86
procurement unit pays for procurement items under the contract.
87
(ii) The division shall deposit revenue from the administrative fee described in this
88
Subsection (1)(b) into the State Purchasing Reserve Restricted Account created in
89
Section 67-4-20.
90
(2) A public entity, nonprofit organization, or, as permitted under federal law, an agency of
91
the federal government, may obtain a procurement item from a state cooperative contract
92
or a contract awarded by the chief procurement officer under Subsection (1), without
93
signing a participating addendum if the solicitation issued by the chief procurement
94
officer to obtain the contract includes a statement indicating that the resulting contract
95
will be issued for the benefit of public entities and, as applicable, nonprofit
96
organizations and agencies of the federal government.
97
(3) Except as provided in Section 63G-6a-506, or as otherwise provided in this chapter, an
98
executive branch procurement unit may not obtain a procurement item from a source
- 3 - H.B. 484 02-11 12:06
99
other than a state cooperative contract or a contract awarded by the chief procurement
100
officer under Subsection [(1)] (1)(a), if the procurement item is available under a state
101
cooperative contract or a contract awarded by the chief procurement officer under
102
Subsection [(1)] (1)(a).
103
(4) A Utah procurement unit may:
104
(a) contract with the federal government without going through a standard procurement
105
process or an exception to a standard procurement process, described in Part 8,
106
Exceptions to Procurement Requirements, if the procurement item obtained under the
107
contract is provided:
108
(i) directly by the federal government and not by a person contracting with the
109
federal government; or
110
(ii) by a person under contract with the federal government that obtained the contract
111
in a manner that substantially complies with the provisions of this chapter;
112
(b) participate in, sponsor, conduct, or administer a cooperative procurement with
113
another Utah procurement unit or another public entity in Utah, if:
114
(i) each party unit involved in the cooperative procurement enters into an agreement
115
describing the rights and duties of each party;
116
(ii) the procurement is conducted, and the contract awarded, in accordance with the
117
requirements of this chapter;
118
(iii) the solicitation:
119
(A) clearly indicates that the procurement is a cooperative procurement; and
120
(B) identifies each party that may purchase under the resulting contract; and
121
(iv) each party involved in the cooperative procurement signs a participating
122
addendum describing its rights and obligations in relation to the resulting contract;
123
or
124
(c) purchase under, or otherwise participate in, an agreement or contract of a cooperative
125
purchasing organization, if:
126
(i) each party involved in the cooperative procurement enters into an agreement
127
describing the rights and duties of each party;
128
(ii) the procurement was conducted in accordance with the requirements of this
129
chapter;
130
(iii) the solicitation:
131
(A) clearly indicates that the procurement is a cooperative procurement; and
132
(B) identifies each party that may purchase under the resulting contract; and
- 4 - 02-11 12:06 H.B. 484
133
(iv) each party involved in the cooperative procurement signs a participating
134
addendum describing its rights and obligations in relation to the resulting contract.
135
(5) A procurement unit may not obtain a procurement item under a contract that results
136
from a cooperative procurement described in Subsection (4), unless the procurement
137
unit:
138
(a) is identified under Subsection (4)(b)(iii)(B) or (4)(c)(iii)(B); and
139
(b) signs a participating addendum to the contract as required by this section.
140
(6) A procurement unit, other than a legislative procurement unit or a judicial procurement
141
unit, may not obtain a procurement item under a contract held by the United States
142
General Services Administration, unless, based upon documentation provided by the
143
procurement unit, the Director of the State Division of Purchasing and General Services
144
determines in writing that the United States General Services Administration procured
145
the contract in a manner that substantially complies with the provisions of this chapter.
146
(7)(a) As used in this Subsection (7), "regional solicitation" means a solicitation issued
147
by the chief procurement officer for the procurement of a procurement item within a
148
specified geographical region of the state.
149
(b) In addition to any other duty or authority under this section, the chief procurement
150
officer shall:
151
(i) after considering board recommendations, develop a plan for issuing regional
152
solicitations; and
153
(ii) after developing a plan, issue regional solicitations for procurement items in
154
accordance with the plan and this chapter.
155
(c) A plan under Subsection (7)(b) shall:
156
(i) define the proposed regional boundaries for regional solicitations;
157
(ii) specify the types of procurement items for which a regional solicitation may be
158
issued; and
159
(iii) identify the regional solicitations that the chief procurement officer plans to issue.
160
(d) A regional solicitation shall require that a person responding to the solicitation offer
161
similar warranties and submit to similar obligations as are standard under other state
162
cooperative contracts.
163
(e) Except as authorized by the chief procurement officer, a procurement item that is
164
available under a state cooperative contract may not be provided under a contract
165
pursuant to a regional solicitation until after the expiration of the state cooperative
166
contract.
- 5 - H.B. 484 02-11 12:06
167
Section 3. Section 67-4-20 is enacted to read:
168
67-4-20 . State Purchasing Reserve Restricted Account.
169
(1) As used in this section, "precious metal" means the same as that term is defined in
170
Section 61-1-13.
171
(2) There is created within the General Fund a restricted account known as the State
172
Purchasing Reserve Restricted Account.
173
(3) The account is funded by:
174
(a) revenue from the fee created in Subsection 63G-6a-2105(1)(b); and
175
(b) the appreciated value of investments made with the money deposited into the
176
account.
177
(4)(a) The state treasurer shall invest the money in the account in precious metals.
178
(b) The requirements of Subsections 51-7-14(2) and (3) apply to the state treasurer's
179
investment in precious metals under this section.
180
(5) The Legislature may appropriate money from the account:
181
(a) if the Chained Consumer Price Index is at least two standard deviations above the 15
182
year mean of the Chained Consumer Price Index; and
183
(b) for the purpose of offsetting the cost of procuring goods and services for state
184
entities and ensuring continuity in the state's procurement of goods and services.
185
(6) When the Legislature appropriates money from the account, the state treasurer shall sell
186
investments sufficient to effectuate the appropriation.
187
Section 4. Effective Date.
188
This bill takes effect on May 7, 2025.
- 6 -