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S.B. 199

             1     

OUTSOURCING STATE JOBS

             2     
2004 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Leonard M. Blackham

             5     
             6      LONG TITLE
             7      General Description:
             8          This bill enacts provisions related to business development in rural Utah.
             9      Highlighted Provisions:
             10          This bill:
             11          .    provides for a smart site program dedicated to the development of technology-based
             12      industry in rural Utah in which services that might otherwise be performed by state
             13      agencies are outsourced to a smart site enterprise;
             14          .    provides for administration of the program by the Department of Community and
             15      Economic Development; and
             16          .    provides incentives to state agencies that award technology-based contracts to smart
             17      site enterprises.
             18      Monies Appropriated in this Bill:
             19          This bill appropriates:
             20          .    $200,000 from the General Fund.
             21      Other Special Clauses:
             22          This bill takes effect on July 1, 2004.
             23      Utah Code Sections Affected:
             24      ENACTS:
             25          9-2-416, Utah Code Annotated 1953
             26     
             27      Be it enacted by the Legislature of the state of Utah:


             28          Section 1. Section 9-2-416 is enacted to read:
             29          9-2-416. Technology-based service contracts within enterprise zones.
             30          (1) For purposes of this section:
             31          (a) "Smart site enterprise" means a technology-based entity located within an enterprise
             32      zone that is eligible to receive financial support under the department's smart site program.
             33          (b) "Smart site program" means a program of the department dedicated to the
             34      development of technology-based industry in rural Utah in which services that might otherwise
             35      be performed by state agencies are outsourced to a smart site enterprise.
             36          (c) "State agency" means the:
             37          (i) Department of Commerce;
             38          (ii) Department of Workforce Services;
             39          (iii) Department of Transportation;
             40          (iv) Department of Health;
             41          (v) Department of Administrative Services;
             42          (vi) Department of Public Safety;
             43          (vii) Utah State Tax Commission; and
             44          (viii) Department of Community and Economic Development.
             45          (d) "Technology-based contract" means a contract between a state agency and a smart
             46      site enterprise for the smart site enterprise to provide the following services:
             47          (i) software development and computer programming;
             48          (ii) website design;
             49          (iii) systems integration;
             50          (iv) AutoCad/GIS mapping;
             51          (v) help desk support, customer relationship management, and telephone or Internet
             52      surveys;
             53          (vi) computer graphics, animation, or illustration;
             54          (vii) medical billing, coding, transcription, and related medical informatics services;
             55          (viii) data entry, data conversion, and imaging;
             56          (ix) information technology training and e-learning;
             57          (x) network development, management, service, and support;
             58          (xi) telecommunications technologies;


             59          (xii) database development and applications;
             60          (xiii) multimedia and digital technologies, including DVD;
             61          (xiv) technical writing;
             62          (xv) insurance and benefits administration;
             63          (xvi) data warehousing and storage or web hosting;
             64          (xvii) billing services; and
             65          (xviii) information technology consulting.
             66          (2) The department has the following responsibilities for the smart site program
             67      authorized under this section:
             68          (a) to provide market incentives identified in Subsection (4) to eligible state agencies
             69      and provide technical assistance as appropriate;
             70          (b) to administer funding and initiate interagency transfers consistent with the
             71      provisions of this section;
             72          (c) to provide state agencies with a listing of smart site enterprises;
             73          (d) to designate a smart site program director and notify state agencies of the
             74      designation; and
             75          (e) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             76      make rules necessary to administer this section.
             77          (3) A state agency has the following responsibilities if participating in the smart site
             78      program offered under this section:
             79          (a) to enter into a memorandum of understanding with the department indicating the
             80      steps the agency shall take to encourage smart site enterprises to submit bids for
             81      technology-based contracts; and
             82          (b) to submit to the department by no later than July 30 of each fiscal year, an
             83      accounting of all technology-based contracts awarded to smart site enterprises by the agency.
             84          (4) (a) A state agency is eligible for an interagency transfer from the department for up
             85      to 10% of all technology-based contracts awarded to a smart site enterprise under the
             86      department's smart site program.
             87          (b) The department shall determine the amount of the interagency transfer as follows:
             88          (i) if the total number of requests for interagency transfers under the program does not
             89      exceed the legislative appropriation for the fiscal year, each eligible agency shall receive a full


             90      10% transfer; or
             91          (ii) if the total number of requests for interagency transfers under the program exceeds
             92      the appropriation for the fiscal year, the department shall prorate the amount of each transfer
             93      based on the respective percentage of all technology-based contracts submitted to the
             94      department by all eligible state agencies.
             95          (c) Interagency transfers shall occur no later than August 15 of each budget year to
             96      supplement a state agency's budget for the year in which the interagency transfer occurs, to
             97      include the awarding of employee incentives and bonuses for participating in the smart site
             98      program.
             99          Section 2. Appropriation.
             100          (1) There is appropriated $200,000 for fiscal year 2004-05 only, from the General Fund
             101      to the Department of Community and Economic Development for the interagency transfer
             102      referred to in Subsection 9-2-416 (4).
             103          (2) Appropriations to fund this section for fiscal years subsequent to 2004-05 are
             104      subject to the Legislature's general budgetary process and future budget constraints.
             105          Section 3. Effective date.
             106          This bill takes effect on July 1, 2004.




Legislative Review Note
    as of 2-5-04 11:36 AM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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