HB 405 — State Purchasing Reserve Funding

02-20HB0405S01 12:00compared 1stwith Sub.HB0405 {Omitted text} shows text that was in HB0405 but was omitted in HB0405S01 inserted text shows text that was not in HB0405 but was inserted into HB0405S01 DISCLAIMER:

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John3 D.LONG TITLE General Description:

Johnson 3 LONG TITLE General Description:

H None B Other Special Clauses:

s4 None t0 HB0405 compared with HB0405S01 Utah Code Sections Affected:

S AMENDS:

u b 51-7-2 (Effective 05/06/26) (Partially Repealed 07/01/28), as last amended by Laws ofHof Utah 2025, First Special Session, Chapter 9 B 63G-6a-2105 (Effective 05/06/26), as last amended by Laws of Utah 2016, Chapters 348,.348, 355 ENACTS:

35567-4-20 4(Effective ENACTS:05/06/26), Utah Code Annotated 1953 Be it enacted by the Legislature of the state of Utah:

5Section 67-4-201. (Effective 05/06/26), Utah Code Annotated 1953 Be it enacted by the Legislature of the state of Utah:

1st Sub.

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405 02-20 12:00 Section 1.

51-7-251-7-2. (Effective 05/06/26) (Partially Repealed 07/01/28).

Exemptions(Effective 05/06/26) (Partially Repealed 07/01/28)Exemptions from chapter.

(a) funds invested in accordance with the participating employees' designation or direction pursuant to a public employees' deferred compensation plan established and operated in compliance with Section 457 of the Internal Revenue Code of 1986, as amended;

- 2 - HB0405 compared with HB0405S01 (n) the funds in the Risk Management Fund created in Section 63A-4-201;

and -(iv) 2the -Medicaid 02-20Growth 12:00Reduction 1stand Sub.Budget Stabilization Account, created in Section 63J-1-315;

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405 (iv) the Medicaid Growth Reduction and Budget Stabilization Account, created in Section 63J-1-315;

63G-6a-210563G-6a-2105. (Effective 05/06/26).

(1)(a)(1) (a) The chief procurement officer may, in accordance with the requirements of this chapter, enter into a cooperative procurement, and a contract that is awarded as a result of a cooperative procurement, with:

- 3 - HB0405 compared with HB0405S01 [(b)] (ii) a cooperative purchasing organization;[ or] [(c)] (iii) a public entity[ inside or outside the state.] ;

(b)(i)(b) (i) Except for a contract the chief procurement officer exempts from administrative fees, the chief procurement officer shall ensure that each contract resulting from a state cooperative procurement with a public entity includes an administrative fee equal to 0.5% of the total price the public entity pays for procurement items under the contract.

(ii) The fee described in Subsection (1)(b)(i) is in addition to any administrative fee the chief procurement officer includes under the chief procurement officer's -authority 3described -in 1stSubsection Sub.63G-6a-303(2)(b).

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405 02-20 12:00 authority described in Subsection 63G-6a-303(2)(b).

(iv){(2)} The provisions of this Subsection (1)(b) apply only to contracts for which the chief procurement officer posts the notice required under Section 63G-6a-112 on or after July 1, 2026.

or - 4 - HB0405 compared with HB0405S01 (ii) by a person under contract with the federal government that obtained the contract in a manner that substantially complies with the provisions of this chapter;

(ii) the procurement is conducted, and the contract awarded, in accordance with the -requirements 4of -this 02-20chapter; 12:00 1st Sub.

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405 requirements of this chapter;

(6) A procurement unit, other than a legislative procurement unit or a judicial procurement unit, may not obtain a procurement item under a contract held by the United States General Services Administration, unless, based upon documentation provided by the procurement unit, the Director of the State Division of Purchasing and General Services determines in writing that the United States - 5 - HB0405 compared with HB0405S01 General Services Administration procured the contract in a manner that substantially complies with the provisions of this chapter.

(7)(a)(7) (a) As used in this Subsection (7), "regional solicitation" means a solicitation issued by the chief procurement officer for the procurement of a procurement item within a specified geographical region of the state.