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S.B. 27
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PROCUREMENT CODE REQUIREMENTS OF
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HEALTH CARE BENEFITS
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: Ed P. Mayne
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AN ACT RELATING TO STATE AFFAIRS IN GENERAL; REQUIRING A BUSINESS TO
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PROVIDE HEALTH INSURANCE COVERAGE TO EMPLOYEES AS A CONDITION FOR
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CONTRACTING WITH THE STATE UNDER CERTAIN CIRCUMSTANCES; AND MAKING
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TECHNICAL CORRECTIONS.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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63-56-40, as enacted by Chapter 75, Laws of Utah 1980
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63-56-48, as enacted by Chapter 75, Laws of Utah 1980
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ENACTS:
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63-56-20.1, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
63-56-20.1
is enacted to read:
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63-56-20.1. Health insurance requirement.
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(1) As used in this section:
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(a) "Contract" means a contract awarded by sealed bid as required by Section
63-56-20
.
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(b) "Employee" means an "employee," "worker," or "operative" as defined in Section
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34A-2-104
who works at least 20 hours per calendar week.
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(2) To be eligible to contract with a public procurement unit under Section
63-56-20
, a
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business shall provide health insurance coverage to each employee.
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(3) Within ten days of a contract being awarded under Section
63-56-20
, a business shall
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submit documentation of current health insurance coverage for its employees to the public
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procurement unit that awarded the contract.
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(4) The public procurement unit shall terminate a contract it has awarded and may seek
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debarment of the contractor under Section
63-56-48
if the contracting business:
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(a) fails to submit documentation of current health insurance coverage as required by
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Subsection (3); or
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(b) submits documentation of current health insurance coverage when none exists.
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(5) (a) If a business enters into a contract with the public procurement unit that is in effect
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or is expected to be in effect for 60 or more days, the business shall inform the public procurement
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unit if the business fails to provide health insurance coverage to its employees for 30 or more days
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during the term of the contract.
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(b) A public procurement unit that receives notice that a contractor is not providing health
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insurance shall terminate the contract unless:
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(i) termination would materially harm the interests of the public procurement unit; and
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(ii) a comparable business to contract with is not readily available.
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(c) A public procurement unit that receives notice that a contractor is not providing health
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insurance may seek debarment of the contractor under Section
63-56-48
.
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(d) A business may not terminate a contract it has with the public procurement unit
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because the business does not provide health insurance coverage to its employees.
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Section 2.
Section
63-56-40
is amended to read:
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63-56-40. Required contract clauses -- Computation of price adjustments -- Use of
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rules and regulations.
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(1) Rules and regulations shall require for state construction contracts and may permit or
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require for state contracts for supplies and services the inclusion of clauses providing for
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adjustments in prices, time of performance, or other appropriate contract provisions, and covering
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the following subjects:
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(a) the unilateral right of the state to order in writing changes in the work within the scope
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of the contract and changes in the time of performance of the contract that do not alter the scope
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of the contract work;
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(b) variations occurring between estimated quantities of work in a contract and actual
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quantities;
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(c) suspension of work ordered by the state; and
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(d) site conditions differing from those indicated in the construction contract, or ordinarily
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encountered, except that differing site conditions clauses required by the rules and regulations need
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not be included in a construction contract when the contract is negotiated, when the contractor
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provides the site or design, or when the parties have otherwise agreed with respect to the risk of
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differing site conditions.
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(2) Adjustments in price pursuant to clauses promulgated under Subsection (1) shall be
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computed in one or more of the following ways:
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(a) by agreement on a fixed price adjustment before commencement of the pertinent
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performance or as soon thereafter as practicable;
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(b) by unit prices specified in the contract or subsequently agreed upon;
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(c) by the costs attributable to the events or situations under the clauses with adjustment
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of profit or fee, all as specified in the contract or subsequently agreed upon;
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(d) in any other manner as the contracting parties may mutually agree; or
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(e) in the absence of agreement by the parties, by a unilateral determination by the state
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of the costs attributable to the events or situations under the clauses with adjustment of profit or
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fee, all as computed by the state in accordance with applicable sections of the rules and regulations
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issued under Subsection
63-56-28
(1) and subject to the provisions of Part H of this chapter.
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(3) A contractor shall be required to submit cost or pricing data if any adjustment in
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contract price is subject to the provisions of Section
63-56-28
.
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(4) Rules and regulations shall require for state construction contracts and may permit or
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require for state contracts for supplies and services the inclusion of clauses providing for
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appropriate remedies and covering at least the following subjects:
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(a) liquidated damages as appropriate;
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(b) specified excuses for delay or nonperformance;
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(c) termination of the contract for default; and
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(d) termination of the contract in whole or in part for the convenience of the state.
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(5) A contract awarded under Section
63-56-20
shall include the health insurance
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requirement of Section
63-56-20.1
.
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[(5)] (6) The contract clauses promulgated under this section shall be set forth in rules and
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regulations. However, the chief procurement officer or the head of a purchasing agency may
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modify the clauses for inclusion in any particular contract. Any variations shall be supported by
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a written determination that describes the circumstances justifying the variations, and notice of any
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material variation shall be included in the invitation for bids or request for proposals.
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Section 3.
Section
63-56-48
is amended to read:
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63-56-48. Debarment from consideration for award of contracts -- Causes for
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debarment.
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(1) After reasonable notice to the person involved and reasonable opportunity for that
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person to be heard, the chief procurement officer or the head of a purchasing agency, after
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consultation with the using agency and the attorney general, shall have authority to debar a person
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for cause from consideration for award of contracts. The debarment shall not be for a period
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exceeding three years. The same officer, after consultation with the using agency and the attorney
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general, shall have authority to suspend a person from consideration for award of contracts if there
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is probable cause to believe that the person has engaged in any activity which might lead to
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debarment. The suspension shall not be for a period exceeding three months unless an indictment
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has been issued for an offense which would be a cause for debarment under Subsection (2) [of this
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section], in which case the suspension shall, at the request of the attorney general, remain in effect
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until after the trial of the suspended person.
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(2) The causes for debarment include the following:
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(a) conviction of a criminal offense as an incident to obtaining or attempting to obtain a
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public or private contract or subcontract or in the performance of such contract or subcontract;
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(b) conviction under state or federal statutes of embezzlement, theft, forgery, bribery,
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falsification or destruction of records, receiving stolen property, or any other offense indicating a
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lack of business integrity or business honesty which currently, seriously, and directly affects
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responsibility as a state contractor;
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(c) conviction under state or federal antitrust statutes;
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(d) failure without good cause to perform in accordance with the terms of the contract; [or]
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(e) violation of the health insurance requirement of Section
63-56-20.1
; or
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[(e)] (f) any other cause that the chief procurement officer[,] or the head of a purchasing
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agency determines to be so serious and compelling as to affect responsibility as a state contractor,
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including debarment by another governmental entity for any cause listed in rules and regulations.
Legislative Review Note
as of 12-9-99 9:28 AM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.