Bill Summary – FastDemocracy

LEGISLATIVE GENERAL COUNSEL                                                S.B. 97
Approved for Filing: C.R. Gilbert 6                                rd
                                                                         3 Sub. (Ivory)
          6 02-28-24 3:26 PM 6
                  Representative James A. Dunnigan proposes the following substitute bill:
                         OPERATIONS OF STATE GOVERNMENT
                                         2024 GENERAL SESSION
                                             STATE OF UTAH
                                 Chief Sponsor: Lincoln Fillmore
                                House Sponsor: James A. Dunnigan
 6
 LONG TITLE
 General Description:
         This bill modifies and repeals provisions related to government operations.
 Highlighted Provisions:
         This bill:
         < modifies or repeals provisions related to legislative process that are intended for
 incorporation into legislative rules;
         < gives the Legislative Management Committee the authority to reappoint an
 individual as the legislative auditor general, the legislative fiscal analyst, the
 director of the Office of Legislative Research and General Counsel, or the
 legislative general counsel;
         < changes the membership of the Research and General Counsel Subcommittee, and
 the Budget Subcommittee;
         < modifies the duties of the Subcommittee on Oversight;                                 3 rdSub. S.B. 97
         < repeals the statewide elected official summit;
         < addresses the State Capitol Preservation Board's, the governor's, and the
 Legislature's authority over areas on capitol hill; and
         < updates inconsistent terminology.
 Money Appropriated in this Bill:
     *SB0097S03*
      3rd Sub. (Ivory) S.B. 97                                               02-28-24 3:26 PM
       None
 Other Special Clauses:
       This bill provides a special effective date.
 Utah Code Sections Affected:
 AMENDS:
       17B-2a-818.5, as last amended by Laws of Utah 2023, Chapter 327
       19-1-206, as last amended by Laws of Utah 2023, Chapter 327
       26A-1-108, as last amended by Laws of Utah 2022, Chapter 39
       26A-1-114, as last amended by Laws of Utah 2023, Chapters 90, 327
       26B-1-309, as renumbered and amended by Laws of Utah 2023, Chapter 305
       26B-3-909, as renumbered and amended by Laws of Utah 2023, Chapter 306
       32B-4-102, as last amended by Laws of Utah 2016, Chapter 245
       32B-4-415, as last amended by Laws of Utah 2022, Chapter 447
       36-2-2, as last amended by Laws of Utah 2010, Chapter 133
       36-11-102, as last amended by Laws of Utah 2023, Chapter 16
       36-12-1, as last amended by Laws of Utah 2000, Chapter 104
       36-12-6, as last amended by Laws of Utah 2016, Chapter 403
       36-12-7, as last amended by Laws of Utah 2022, Chapter 222
       36-12-8, as last amended by Laws of Utah 2016, Chapter 403
       36-12-8.1, as last amended by Laws of Utah 2018, Chapter 254
       36-12-9.5, as enacted by Laws of Utah 2014, Chapter 167
       36-12-19, as last amended by Laws of Utah 1989, Chapter 174
       41-6a-1401, as last amended by Laws of Utah 2016, Chapter 245
       49-11-406, as last amended by Laws of Utah 2021, Chapters 64, 282, 344, and 382
       53-1-102, as last amended by Laws of Utah 2021, Chapters 349, 360
       53-1-109, as last amended by Laws of Utah 2005, Chapter 2
       53-8-105, as last amended by Laws of Utah 2023, Chapter 432
       53D-2-203, as enacted by Laws of Utah 2018, Chapter 448
       55-5-6, as last amended by Laws of Utah 2001, Chapter 9
       63A-5b-102, as last amended by Laws of Utah 2022, Chapter 421
       63A-5b-303 (Superseded 07/01/24), as last amended by Laws of Utah 2023, Chapter
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 329
        63A-5b-303 (Effective 07/01/24), as last amended by Laws of Utah 2023, Chapters
 329, 394
        63A-5b-607, as last amended by Laws of Utah 2023, Chapter 329
        63G-1-503 (Effective 03/09/24), as enacted by Laws of Utah 2023, Chapter 451
        63G-1-702, as enacted by Laws of Utah 2013, Chapter 90
        63J-1-602.2 (Superseded 07/01/24), as last amended by Laws of Utah 2023, Chapters
 33, 34, 134, 139, 180, 212, 246, 330, 345, 354, and 534
        63J-1-602.2 (Effective 07/01/24), as last amended by Laws of Utah 2023, Chapters 33,
 34, 134, 139, 180, 212, 246, 310, 330, 345, 354, and 534
        72-6-107.5, as last amended by Laws of Utah 2023, Chapter 330
        79-2-404, as last amended by Laws of Utah 2023, Chapter 330
 ENACTS:
        63O-1-101, Utah Code Annotated 1953
        63O-1-201, Utah Code Annotated 1953
        63O-1-202, Utah Code Annotated 1953
        63O-1-203, Utah Code Annotated 1953
        63O-1-204, Utah Code Annotated 1953
        63O-1-205, Utah Code Annotated 1953
        63O-1-206, Utah Code Annotated 1953
        63O-1-301, Utah Code Annotated 1953
        63O-1-302, Utah Code Annotated 1953
        63O-1-303, Utah Code Annotated 1953
 RENUMBERS AND AMENDS:
        63O-2-101, (Renumbered from 63C-9-102, as last amended by Laws of Utah 2006,
 Chapter 256)
        63O-2-201, (Renumbered from 63C-9-201, as last amended by Laws of Utah 2006,
 Chapter 256)
        63O-2-202, (Renumbered from 63C-9-202, as last amended by Laws of Utah 2014,
 Chapter 387)
        63O-2-301, (Renumbered from 63C-9-301, as last amended by Laws of Utah 2023,
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 Chapter 160)
        63O-2-401, (Renumbered from 63C-9-401, as last amended by Laws of Utah 2006,
 Chapter 256)
        63O-2-402, (Renumbered from 63C-9-402, as last amended by Laws of Utah 2015,
 Chapter 314)
        63O-2-403, (Renumbered from 63C-9-403, as last amended by Laws of Utah 2023,
 Chapter 329)
        63O-2-501, (Renumbered from 63C-9-501, as last amended by Laws of Utah 2023,
 Chapter 534)
        63O-2-601, (Renumbered from 63C-9-601, as last amended by Laws of Utah 2023,
 Chapter 160)
        63O-2-602, (Renumbered from 63C-9-602, as enacted by Laws of Utah 1998, Chapter
 285)
 REPEALS:
        36-2-1, as last amended by Laws of Utah 2015, Chapter 71
        36-5-1, as last amended by Laws of Utah 2015, Chapter 314
        36-12-2, as last amended by Laws of Utah 1998, Chapter 226
        36-12-3, as last amended by Laws of Utah 2002, Chapter 39
        36-12-4, as last amended by Laws of Utah 1988, Chapter 6
        36-12-5, as last amended by Laws of Utah 2013, Chapter 177
        36-21-1, as last amended by Laws of Utah 2020, Chapter 365
        36-34-101, as enacted by Laws of Utah 2023, Chapter 207
        63C-9-101, as enacted by Laws of Utah 1998, Chapter 285
        67-1-16, as enacted by Laws of Utah 2008, Chapter 10
112
 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 17B-2a-818.5 is amended to read:
        17B-2a-818.5. Contracting powers of public transit districts -- Health insurance
 coverage.
        (1) As used in this section:
        (a) "Aggregate" means the sum of all contracts, change orders, and modifications
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 related to a single project.
         (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
         (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
 "operative" who:
         (i) works at least 30 hours per calendar week; and
         (ii) meets employer eligibility waiting requirements for health care insurance, which
 may not exceed the first day of the calendar month following 60 days after the day on which
 the individual is hired.
         (d) "Health benefit plan" means:
         (i) the same as that term is defined in Section 31A-1-301; or
         (ii) an employee welfare benefit plan:
         (A) established under the Employee Retirement Income Security Act of 1974, 29
 U.S.C. Sec. 1001 et seq.;
         (B) for an employer with 100 or more employees; and
         (C) in which the employer establishes a self-funded or partially self-funded group
 health plan to provide medical care for the employer's employees and dependents of the
 employees.
         (e) "Qualified health coverage" means the same as that term is defined in Section
 26B-3-909.
         (f) "Subcontractor" means the same as that term is defined in Section 63A-5b-605.
         (g) "Third party administrator" or "administrator" means the same as that term is
 defined in Section 31A-1-301.
         (2) Except as provided in Subsection (3), the requirements of this section apply to:
         (a) a contractor of a design or construction contract entered into by the public transit
 district on or after July 1, 2009, if the prime contract is in an aggregate amount equal to or
 greater than $2,000,000; and
         (b) a subcontractor of a contractor of a design or construction contract entered into by
 the public transit district on or after July 1, 2009, if the subcontract is in an aggregate amount
 equal to or greater than $1,000,000.
         (3) The requirements of this section do not apply to a contractor or subcontractor
 described in Subsection (2) if:
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         (a) the application of this section jeopardizes the receipt of federal funds;
         (b) the contract is a sole source contract; or
         (c) the contract is an emergency procurement.
         (4) A person that intentionally uses change orders, contract modifications, or multiple
 contracts to circumvent the requirements of this section is guilty of an infraction.
         (5) (a) A contractor subject to the requirements of this section shall demonstrate to the
 public transit district that the contractor has and will maintain an offer of qualified health
 coverage for the contractor's employees and the employee's dependents during the duration of
 the contract by submitting to the public transit district a written statement that:
         (i) the contractor offers qualified health coverage that complies with Section
 26B-3-909;
         (ii) is from:
         (A) an actuary selected by the contractor or the contractor's insurer;
         (B) an underwriter who is responsible for developing the employer group's premium
 rates; or
         (C) if the contractor provides a health benefit plan described in Subsection (1)(d)(ii),
 an actuary or underwriter selected by a third party administrator; and
         (iii) was created within one year before the day on which the statement is submitted.
         (b) (i) A contractor that provides a health benefit plan described in Subsection (1)(d)(ii)
 shall provide the actuary or underwriter selected by an administrator, as described in
 Subsection (5)(a)(ii)(C), sufficient information to determine whether the contractor's
 contribution to the health benefit plan and the actuarial value of the health benefit plan meet the
 requirements of qualified health coverage.
         (ii) A contractor may not make a change to the contractor's contribution to the health
 benefit plan, unless the contractor provides notice to:
         (A) the actuary or underwriter selected by an administrator as described in Subsection
 (5)(a)(ii)(C), for the actuary or underwriter to update the written statement described in
 Subsection (5)(a) in compliance with this section; and
         (B) the public transit district.
         (c) A contractor that is subject to the requirements of this section shall:
         (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
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 is subject to the requirements of this section shall obtain and maintain an offer of qualified
 health coverage for the subcontractor's employees and the employees' dependents during the
 duration of the subcontract; and
        (ii) obtain from a subcontractor that is subject to the requirements of this section a
 written statement that:
        (A) the subcontractor offers qualified health coverage that complies with Section
 26B-3-909;
        (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, an
 underwriter who is responsible for developing the employer group's premium rates, or if the
 subcontractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or
 underwriter selected by an administrator; and
        (C) was created within one year before the day on which the contractor obtains the
 statement.
        (d) (i) (A) A contractor that fails to maintain an offer of qualified health coverage as
 described in Subsection (5)(a) during the duration of the contract is subject to penalties in
 accordance with an ordinance adopted by the public transit district under Subsection (6).
        (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
 and maintain an offer of qualified health coverage described in Subsection (5)(c)(i).
        (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
 coverage described in Subsection (5)(c)(i) during the duration of the subcontract is subject to
 penalties in accordance with an ordinance adopted by the public transit district under
 Subsection (6).
        (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
 an offer of qualified health coverage described in Subsection (5)(a).
        (6) The public transit district shall adopt ordinances:
        (a) in coordination with:
        (i) the Department of Environmental Quality in accordance with Section 19-1-206;
        (ii) the Department of Natural Resources in accordance with Section 79-2-404;
        (iii) the Division of Facilities Construction and Management in accordance with
 Section 63A-5b-607;
        (iv) the State Capitol Preservation Board in accordance with Section [63C-9-403]
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 63O-2-403; and
         (v) the Department of Transportation in accordance with Section 72-6-107.5; and
         (b) that establish:
         (i) the requirements and procedures a contractor and a subcontractor shall follow to
 demonstrate compliance with this section, including:
         (A) that a contractor or subcontractor's compliance with this section is subject to an
 audit by the public transit district or the Office of the Legislative Auditor General;
         (B) that a contractor that is subject to the requirements of this section shall obtain a
 written statement described in Subsection (5)(a); and
         (C) that a subcontractor that is subject to the requirements of this section shall obtain a
 written statement described in Subsection (5)(c)(ii);
         (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
 violates the provisions of this section, which may include:
         (A) a three-month suspension of the contractor or subcontractor from entering into
 future contracts with the public transit district upon the first violation;
         (B) a six-month suspension of the contractor or subcontractor from entering into future
 contracts with the public transit district upon the second violation;
         (C) an action for debarment of the contractor or subcontractor in accordance with
 Section 63G-6a-904 upon the third or subsequent violation; and
         (D) monetary penalties which may not exceed 50% of the amount necessary to
 purchase qualified health coverage for employees and dependents of employees of the
 contractor or subcontractor who were not offered qualified health coverage during the duration
 of the contract; and
         (iii) a website on which the district shall post the commercially equivalent benchmark,
 for the qualified health coverage identified in Subsection (1)(e), that is provided by the
 Department of Health and Human Services, in accordance with Subsection 26B-3-909(2).
         (7) (a) (i) In addition to the penalties imposed under Subsection (6)(b)(ii), a contractor
 or subcontractor who intentionally violates the provisions of this section is liable to the
 employee for health care costs that would have been covered by qualified health coverage.
         (ii) An employer has an affirmative defense to a cause of action under Subsection
 (7)(a)(i) if:
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         (A) the employer relied in good faith on a written statement described in Subsectio