Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 282 (2016GS)

Sponsor

Rep. Dunnigan, J.

Final action

Governor Signed 3/17/2016

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• amends the types of contracts that trigger a state contractor's employee health insurance requirements;
• amends provisions for a state contractor to demonstrate compliance;
• amends employee health insurance requirements;
• requires the Department of Health to post a benchmark plan for qualified health insurance coverage; and
• makes technical changes.

Every vote on this bill

Bill text

STATE CONTRACTOR EMPLOYEE HEALTH COVERAGE
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: James A. Dunnigan
Senate Sponsor: 
Curtis S. Bramble
LONG TITLE
General Description:
This bill addresses employee health insurance requirements for state contractors.
Highlighted Provisions:
This bill:
▸ amends the types of contracts that trigger a state contractor's employee health
insurance requirements;
▸ amends provisions for a state contractor to demonstrate compliance;
▸ amends employee health insurance requirements;
▸ requires the Department of Health to post a benchmark plan for qualified health
insurance coverage; and
▸ makes technical changes.
Money Appropriated in this Bill:
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 2014, Chapter 425
19-1-206
, as last amended by Laws of Utah 2014, Chapter 425
26-40-115
, as last amended by Laws of Utah 2015, Chapter 107
63A-5-205
, as last amended by Laws of Utah 2014, Chapter 425
63C-9-403
, as last amended by Laws of Utah 2014, Chapter 425
72-6-107.5
, as last amended by Laws of Utah 2014, Chapter 425
79-2-404
, as last amended by Laws of Utah 2014, Chapter 425
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) For purposes of this section:
(a) "Employee" means an "employee," "worker," or "operative" as defined in Section
34A-2-104
 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 from the date of hire.
(b) "Health benefit plan" [
has the same meaning as provided
] 
means the same as that
term is defined
 in Section 
31A-1-301
.
(c) "Qualified health insurance coverage" [
is as
] 
means the same as that term is
 defined
in Section 
26-40-115
.
(d) "Subcontractor" [
has the same meaning provided for
] 
means the same as that term
is defined
 in Section 
63A-5-208
.
(2) (a) Except as provided in Subsection (3), this section applies to a design or
construction contract entered into by the public transit district on or after July 1, 2009, and to a
prime contractor or to a subcontractor in accordance with Subsection (2)(b).
(b) (i) A prime contractor is subject to this section if the prime contract is in the
amount of [
$1,500,000
] 
$2,000,000
 or greater 
at the original execution of the contract
.
(ii) A subcontractor is subject to this section if a subcontract is in the amount of
[
$750,000
] 
$1,000,000
 or greater 
at the original execution of the contract
.
(3) This section does not apply if:
(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) This section does not apply to a change order as defined in Section 
63G-6a-103
,
or a modification to a contract, when the contract does not meet the initial threshold required
by Subsection (2).
(b) A person who intentionally uses change orders or contract modifications to
circumvent the requirements of Subsection (2) is guilty of an infraction.
(5) (a) A contractor subject to Subsection (2) shall demonstrate to the public transit
district that the contractor has and will maintain an offer of qualified health insurance coverage
for the contractor's employees and the employee's dependents during the duration of the
contract.
[
(b) If a subcontractor of the contractor is subject to Subsection (2)(b), the contractor
shall demonstrate to the public transit district that the subcontractor has and will maintain an
offer of qualified health insurance coverage for the subcontractor's employees and the
employee's dependents during the duration of the contract.
]
(b) If a subcontractor of the contractor is subject to Subsection (2)(b), the contractor
shall:
(i) place a requirement in the subcontract that the subcontractor shall obtain and
maintain an offer of qualified health insurance coverage for the subcontractor's employees and
the employees' dependants during the duration of the subcontract; and
(ii) certify to the public transit district that the subcontractor has and will maintain an
offer of qualified health insurance coverage for the subcontractor's employees and the
employees' dependents during the duration of the prime contract.
(c) (i) (A) A contractor who fails to meet the requirements of 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 meet the
requirements of Subsection (5)(b).
(ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) 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 subcontractor is not subject to penalties for the failure of a contractor to meet the
requirements of 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 State Building Board in accordance with Section 
63A-5-205
;
(iv) the State Capitol Preservation Board in accordance with Section 
63C-9-403
; and
(v) the Department of Transportation in accordance with Section 
72-6-107.5
; and
(b) [
which
] 
that
 establish:
(i) the requirements and procedures a contractor shall follow to demonstrate to the
public transit district compliance with this section [
which
] 
that
 shall include:
(A) that a contractor [
will not have to
] 
shall
 demonstrate compliance with Subsection
(5)(a) or (b) [
more than twice in any 12-month period; and
] 
at the time of the execution of each
initial contract described in Subsection (2)(b);
(B) that the contractor's compliance is subject to an audit by the public transit district
or the Office of the Legislative Auditor General; and
[
(B)
] 
(C)
 that the actuarially equivalent determination required for the qualified health
insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
department or division with a written statement of actuarial equivalency
, which is no more than
one year old, regarding the contractor's offer of qualified health coverage
 from [
either: (I) the
Utah Insurance Department; (II)
] an actuary selected by the contractor or the contractor's
insurer[
;
]
,
 or [
(III)
] an underwriter who is responsible for developing the employer group's
premium rates;
(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 insurance coverage for employees and dependents of employees of
the contractor or subcontractor who were not offered qualified health insurance 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 insurance coverage identified in Subsection (1)(c)
, that is provided by
the Department of Health, in accordance with Subsection 
26-40-115
(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 shall be liable to the
employee for health care costs that would have been covered by qualified health insurance
coverage.
(ii) An employer has an affirmative defense to a cause of action under Subsection
(7)(a)(i) if:
(A) the employer relied in good faith on a written statement of actuarial equivalency
provided by an:
(I) actuary; or
(II) underwriter who is responsible for developing the employer group's premium rates;
or
(B) a department or division determines that compliance with this section is not
required under the provisions of Subsection (3) or (4).
(b) An employee has a private right of action only against the employee's employer to
enforce the provisions of this Subsection (7).
(8) Any penalties imposed and collected under this section shall be deposited into the
Medicaid Restricted Account created in Section 
26-18-402
.
(9) The failure of a contractor or subcontractor to provide qualified health insurance
coverage as required by this section:
(a) may not be the basis for a protest or other action from a prospective bidder, offeror,
or contractor under Section 
63G-6a-1603
 or any other provision in Title 63G, Chapter 6a, Utah
Procurement Code; and
(b) may not be used by the procurement entity or a prospective bidder, offeror, or
contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
or construction.
Section 2. Section 
19-1-206
 is amended to read:
19-1-206.
Contracting powers of department -- Health insurance coverage.
(1) For purposes of this section:
(a) "Employee" means an "employee," "worker," or "operative" as defined in Section
34A-2-104
 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 from the date of hire.
(b) "Health benefit plan" [
has the same meaning as provided
] 
means the same as that
term is defined
 in Section 
31A-1-301
.
(c) "Qualified health insurance coverage" [
is as
] 
means the same as that term is
 defined
in Section 
26-40-115
.
(d) "Subcontractor" [
has the same meaning provided for
] 
means the same as that term
is defined
 in Section 
63A-5-208
.
(2) (a) Except as provided in Subsection (3), this section applies to a design or
construction contract entered into by or delegated to the department or a division or board of
the department on or after July 1, 2009, and to a prime contractor or subcontractor in
accordance with Subsection (2)(b).
(b) (i) A prime contractor is subject to this section if the prime contract is in the
amount of [
$1,500,000
] 
$2,000,000
 or greater 
at the original execution of the contract
.
(ii) A subcontractor is subject to this section if a subcontract is in the amount of
[
$750,000
] 
$1,000,000
 or greater 
at the original execution of the contract
.
(3) This section does not apply to contracts entered into by the department or a division
or board of the department if:
(a) the application of this section jeopardizes the receipt of federal funds;
(b) the contract or agreement is between:
(i) the department or a division or board of the department; and
(ii) (A) another agency of the state;
(B) the federal government;
(C) another state;
(D) an interstate agency;
(E) a political subdivision of this state; or
(F) a political subdivision of another state;
(c) the executive director determines that applying the requirements of this section to a
particular contract interferes with the effective response to an immediate health and safety
threat from the environment; or
(d) the contract is:
(i) a sole source contract; or
(ii) an emergency procurement.
(4) (a) This section does not apply to a change order as defined in Section 
63G-6a-103
,
or a modification to a contract, when the contract does not meet the initial threshold required
by Subsection (2).
(b) A person who intentionally uses change orders or contract modifications to
circumvent the requirements of Subsection (2) is guilty of an infraction.
(5) (a) A contractor subject to Subsection (2) shall demonstrate to the executive
director that the contractor has and will maintain an offer of qualified health insurance
coverage for the contractor's employees and the employees' dependents during the duration of
the contract.
[
(b) If a subcontractor of the contractor is subject to Subsection (2), the contractor shall
demonstrate to the executive director that the subcontractor has and will maintain an offer of
qualified health insurance coverage for the subcontractor's employees and the employees'
dependents during the duration of the contract.
]
(b) If a subcontractor of the contractor is subject to Subsection (2), the contractor shall:
(i) place a requirement in the subcontract that the subcontractor shall obtain and
maintain an offer of qualified health insurance coverage for the subcontractor's employees and
the employees' dependants during the duration of the subcontract; and
(ii) certify to the executive director that the subcontractor has and will maintain an
offer of qualified health insurance coverage for the subcontractor's employees and the
employees' dependents during the duration of the prime contract.
(c) (i) (A) A contractor who fails to comply with Subsection (5)(a) during the duration
of the contract is subject to penalties in accordance with administrative rules adopted by the
department under Subsection (6).
(B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
requirements of Subsection (5)(b).
(ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
the duration of the contract is subject to penalties in accordance with administrative rules
adopted by the department under Subsection (6).
(B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
requirements of Subsection (5)(a).
(6) The department shall adopt administrative rules:
(a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(b) in coordination with:
(i) a public transit district in accordance with Section 
17B-2a-818.5
;
(ii) the Department of Natural Resources in accordance with Section 
79-2-404
;
(iii) the State Building Board in accordance with Section 
63A-5-205
;
(iv) the State Capitol Preservation Board in accordance with Section 
63C-9-403
;
(v) the Department of Transportation in accordance with Section 
72-6-107.5
; and
(vi) the Legislature's Administrative Rules Review Committee; and
(c) [
which
] 
that
 establish:
(i) the requirements and procedures a contractor shall follow to demonstrate to the
public transit district compliance with this section that shall include:
(A) that a contractor [
will not have to
] 
shall
 demonstrate compliance with Subsection
(5)(a) or (b) [
more than twice in any 12-month period; and
] 
at the time of the execution of each
initial contract described in Subsection (2)(b);
(B) that the contractor's compliance is subject to an audit by the department or the
Office of the Legislative Auditor General; and
[
(B)
] 
(C)
 that the actuarially equivalent determination required for the qualified health
insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
department or division with a written statement of actuarial equivalency
, which is no more than
one year old, regarding the contractor's offer of qualified health coverage
 from [
either: (I) the
Utah Insurance Department; (II)
] an actuary selected by the contractor or the contractor's
insurer[
;
]
,
 or [
(III)
] an underwriter who is responsible for developing the employer group's
premium rates;
(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 state upon the first violation;
(B) a six-month suspension of the contractor or subcontractor from entering into future
contracts with the state 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) notwithstanding Section 
19-1-303
, monetary penalties which may not exceed 50%
of the amount necessary to purchase qualified health insurance coverage for an employee and
the dependents of an employee of the contractor or subcontractor who was not offered qualified
health insurance coverage during the duration of the contract; and
(iii) a website on which the department shall post the 
commercially equivalent
benchmark
,
 for the qualified health insurance coverage identified in Subsection (1)(c)
, that is
provided by the Department of Health, in accordance with Subsection 
26-40-115
(2)
.
(7) (a) (i) In addition to the penalties imposed under Subsection (6)(c), a contractor or
subcontractor who intentionally violates the provisions of this section shall be liable to the
employee for health care costs that would have been covered by qualified health insurance
coverage.
(ii) An employer has an affirmative defense to a cause of action under Subsection
(7)(a)(i) if:
(A) the employer relied in good faith on a written statement of actuarial equivalency
provided by:
(I) an actuary; or
(II) an underwriter who is responsible for developing the employer group's premium
rates; or
(B) the department determines that compliance with this section is not required under
the provisions of Subsection (3) or (4).
(b) An employee has a private right of action only against the employee's employer to
enforce the provisions of this Subsection (7).
(8) Any penalties imposed and collected under this section shall be deposited into the
Medicaid Restricted Account created in Section 
26-18-402
.
(9) The failure of a contractor or subcontractor to provide qualified health insurance
coverage as required by this section:
(a) may not be the basis for a protest or other action from a prospective bidder, offeror,
or contractor under Section 
63G-6a-1603
 or any other provision in Title 63G, Chapter 6a, Utah
Procurement Code; and
(b) may not be used by the procurement entity or a prospective bidder, offeror, or
contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
or construction.
Section 3. Section 
26-40-115
 is amended to read:
26-40-115.
State contractor -- Employee and dependent health benefit plan
coverage.
(1)
 For purposes of Sections 
17B-2a-818.5
, 
19-1-206
, 
63A-5-205
, 
63C-9-403
,
72-6-107.5
, and 
79-2-404
, "qualified health insurance coverage" means, at the time the contract
is entered into or renewed:
[
(1)
] 
(a)
 a health benefit plan and employer contribution level with a combined
actuarial value at least actuarially equivalent to the combined actuarial value of the benchmark
plan determined by the program under Subsection 
26-40-106
(1), and a contribution level [
of
] 
at
which the employer pays at least
 50% of the premium for the employee and the dependents of
the employee who reside or work in the state[
, in which:
]
; or
[
(a) the employer pays at least 50% of the premium for the employee and the
dependents of the employee who reside or work in the state; and
]
[
(b) for purposes of calculating actuarial equivalency under this Subsection (1)(b):
]
[
(i) rather than the benchmark plan's deductible, and the benchmark plan's
out-of-pocket maximum based on income levels:
]
[
(A) the deductible is $1,000 per individual and $3,000 per family; and
]
[
(B) the out-of-pocket maximum is $3,000 per individual and $9,000 per family;
]
[
(ii) dental coverage is not required; and
]
[
(iii) other than Subsection 
26-40-106
(1), the provisions of Section 
26-40-106
 do not
apply; or
]
[
(2)
] 
(b)
 a federally qualified high deductible health plan that, at a minimum:
[
(a)
] 
(i)
 has a deductible that is [
either
]:
[
(i)
] 
(A)
 the lowest deductible permitted for a federally qualified high deductible health
plan; or
[
(ii)
] 
(B)
 a deductible that is higher than the lowest deductible permitted for a federally
qualified high deductible health plan, but includes an employer contribution to a health savings
account in a dollar amount at least equal to the dollar amount difference between the lowest
deductible permitted for a federally qualified high deductible plan and the deductible for the
employer offered federally qualified high deductible plan;
[
(b)
] 
(ii)
 has an out-of-pocket maximum that does not exceed three times the amount of
the annual deductible; and
[
(c)
] 
(iii) provides that
 the employer pays 60% of the premium for the employee and
the dependents of the employee who work or reside in the state.
(2) The department shall:
(a) on or before July 1, 2016:
(i) determine the commercial equivalent of the benchmark plan described in Subsection
(1)(a); and
(ii) post the commercially equivalent benchmark plan described in Subsection (2)(a)(i)
on the department's website, noting the date posted; and
(b) update the posted commercially equivalent benchmark plan annually and at the
time of any change in the benchmark.
Section 4. Section 
63A-5-205
 is amended to read:
63A-5-205.
Contracting powers of director -- Retainage -- Health insurance
coverage.
(1) As used in this section:
(a) "Capital developments" [
has the same meaning as provided
] 
means the same as that
term is defined
 in Section 
63A-5-104
.
(b) "Capital improvements" [
has the same meaning as provided
] 
means the same as
that term is defined
 in Section 
63A-5-104
.
(c) "Employee" means an "employee," "worker," or "operative" as defined in Section
34A-2-104
 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 from the date of hire.
(d) "Health benefit plan" [
has the same meaning as provided
] 
means the same as that
term is defined
 in Section 
31A-1-301
.
(e) "Qualified health insurance coverage" [
is as
] 
means the same as that term is
 defined
in Section 
26-40-115
.
(f) "Subcontractor" [
has the same meaning provided for
] 
means the same as that term is
defined
 in Section 
63A-5-208
.
(2) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, the director
may:
(a) subject to [
Subsection
] 
Subsections
 (3) 
and (4)
, enter into contracts for any work or
professional services which the division or the State Building Board may do or have done; and
(b) as a condition of any contract for architectural or engineering services, prohibit the
architect or engineer from retaining a sales or agent engineer for the necessary design work.
(3) [
(a)
] Except as provided in Subsection [
(3)(b)
] 
(4)
, this Subsection (3) applies to all
design or construction contracts entered into by the division or the State Building Board on or
after July 1, 2009, and:
[
(i)
] 
(a)
 applies to a prime contractor if the prime contract is in the amount of
[
$1,500,000
] 
$2,000,000
 or greater 
at the original execution of the contract
; and
[
(ii)
] 
(b)
 applies to a subcontractor if the subcontract is in the amount of [
$750,000
]
$1,000,000
 or greater 
at the original execution of the contract
.
[
(b) This
] 
(4)
 Subsection (3) does not apply:
[
(i)
] 
(a)
 if the application of [
this
] Subsection (3) jeopardizes the receipt of federal
funds;
[
(ii)
] 
(b)
 if the contract is a sole source contract;
[
(iii)
] 
(c)
 if the contract is an emergency procurement; or
[
(iv)
] 
(d)
 to a change order as defined in Section 
63G-6a-103
, or a modification to a
contract, when the contract does not meet the threshold required by Subsection (3)[
(a)
].
[
(c)
] 
(5)
 A person who intentionally uses change orders or contract modifications to
circumvent the requirements of Subsection (3)[
(a)
] is guilty of an infraction.
[
(d) (i)
] 
(6) (a)
 A contractor subject to Subsection (3)[
(a)
] shall demonstrate to the
director that the contractor has and will maintain an offer of qualified health insurance
coverage for the contractor's employees and the employees' dependents.
[
(ii) If a subcontractor of the contractor is subject to Subsection (3)(a), the contractor
shall demonstrate to the director that the subcontractor has and will maintain an offer of
qualified health insurance coverage for the subcontractor's employees and the employees'
dependents.
]
(b) If a subcontractor of the contractor is subject to Subsection (3), the contractor shall:
(i) place a requirement in the subcontract that the subcontractor shall obtain and
maintain an offer of qualified health insurance coverage for the subcontractor's employees and
the employees' dependants during the duration of the subcontract; and
(ii) certify to the director that the subcontractor has and will maintain an offer of
qualified health insurance coverage for the subcontractor's employees and the employees'
dependents during the duration of the prime contract.
[
(e)
] 
(c)
 (i) [
(A)
] A contractor who fails to meet the requirements of Subsection
[
(3)(d)(i)
] 
(6)(a)
 during the duration of the contract is subject to penalties in accordance with
administrative rules adopted by the division under Subsection [
(3)(f)
] 
(7)
.
[
(B)
] 
(ii)
 A contractor is not subject to penalties for the failure of a subcontractor to
meet the requirements of Subsection [
(3)(d)(ii)
] 
(6)(b)
.
[
(ii) (A)
] 
(iii)
 A subcontractor who fails to meet the requirements of Subsection
[
(3)(d)(ii)
] 
(6)(b)
 during the duration of the contract is subject to penalties in accordance with
administrative rules adopted by the division under Subsection [
(3)(f)
] 
(7)
.
[
(B)
] 
(iv)
 A subcontractor is not subject to penalties for the failure of a contractor to
meet the requirements of Subsection [
(3)(d)(i)
] 
(6)(a)
.
[
(f)
] 
(7)
 The division shall adopt administrative rules:
[
(i)
] 
(a)
 in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
Act;
[
(ii)
] 
(b)
 in coordination with:
[
(A)
] 
(i)
 the Department of Environmental Quality in accordance with Section
19-1-206
;
[
(B)
] 
(ii)
 the Department of Natural Resources in accordance with Section 
79-2-404
;
[
(C)
] 
(iii)
 a public transit district in accordance with Section 
17B-2a-818.5
;
[
(D)
] 
(iv)
 the State Capitol Preservation Board in accordance with Section 
63C-9-403
;
[
(E)
] 
(v)
 the Department of Transportation in accordance with Section 
72-6-107.5
; and
[
(F)
] 
(vi)
 the Legislature's Administrative Rules Review Committee; and
[
(iii) which
] 
(c) that
 establish:
[
(A)
] 
(i)
 the requirements and procedures a contractor must follow to demonstrate to
the director compliance with [
this Subsection (3) which
] 
Subsections (3) through (10) that
 shall
include:
[
(I)
] 
(A)
 that a contractor [
will not have to
] 
shall
 demonstrate compliance with
Subsection [
(3)(d)(i) or (ii) more than twice in any 12-month period; and
] 
(6)(a) or (b) at the
time of the execution of each initial contract described in Subsection (3);
(B) that the contractor's compliance is subject to an audit by the division or the Office
of the Legislative Auditor General; and
[
(II)
] 
(C)
 that the actuarially equivalent determination required for the qualified health
insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
department or division with a written statement of actuarial equivalency
, which is not more
than one year old, regarding the contractor's offer of qualified health coverage
 from [
either:
(Aa) the Utah Insurance Department; (Bb)
] an actuary selected by the contractor or the
contractor's insurer[
; or (Cc)
]
, or
 an underwriter who is responsible for developing the
employer group's premium rates;
[
(B)
] 
(ii)
 the penalties that may be imposed if a contractor or subcontractor
intentionally violates the provisions of [
this Subsection (3)
] 
Subsections (3) through (10)
,
which may include:
[
(I)
] 
(A)
 a three-month suspension of the contractor or subcontractor from entering into
future contracts with the state upon the first violation;
[
(II)
] 
(B)
 a six-month suspension of the contractor or subcontractor from entering into
future contracts with the state upon the second violation;
[
(III)
] 
(C)
 an action for debarment of the contractor or subcontractor in accordance
with Section 
63G-6a-904
 upon the third or subsequent violation; and
[
(IV)
] 
(D)
 monetary penalties which may not exceed 50% of the amount necessary to
purchase qualified health insurance coverage for an employee and the dependents of an
employee of the contractor or subcontractor who was not offered qualified health insurance
coverage during the duration of the contract; and
[
(C)
] 
(iii)
 a website on which the department shall post the 
commercially equivalent
benchmark
,
 for the qualified health insurance coverage identified in Subsection (1)(e)
, that is
provided by the Department of Health, in accordance with Subsection 
26-40-115
(2)
.
[
(g) (i)
] 
(8) (a)
 In addition to the penalties imposed under Subsection [
(3)(f)(iii)
] 
(7)(c)
,
a contractor or subcontractor who intentionally violates the provisions of this section shall be
liable to the employee for health care costs that would have been covered by qualified health
insurance coverage.
[
(ii)
] 
(b)
 An employer has an affirmative defense to a cause of action under Subsection
[
(3)(g)(i)
] 
(8)(a)
 if:
[
(A)
] 
(i)
 the employer relied in good faith on a written statement of actuarial
equivalency provided by:
[
(I)
] 
(A)
 an actuary; or
[
(II)
] 
(B)
 an underwriter who is responsible for developing the employer group's
premium rates; or
[
(B)
] 
(ii)
 the department determines that compliance with this section is not required
under the provisions of Subsection [
(3)(b)
] 
(4)
.
[
(iii)
] 
(c)
 An employee has a private right of action only against the employee's
employer to enforce the provisions of this Subsection [
(3)(g)
] 
(8)
.
[
(h)
] 
(9)
 Any penalties imposed and collected under this section shall be deposited into
the Medicaid Restricted Account created by Section 
26-18-402
.
[
(i)
] 
(10)
 The failure of a contractor or subcontractor to provide qualified health
insurance coverage as required by this section:
[
(i)
] 
(a)
 may not be the basis for a protest or other action from a prospective bidder,
offeror, or contractor under Section 
63G-6a-1603
 or any other provision in Title 63G, Chapter
6a, Utah Procurement Code; and
[
(ii)
] 
(b)
 may not be used by the procurement entity or a prospective bidder, offeror, or
contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
or construction.
[
(4)
] 
(11)
 The judgment of the director as to the responsibility and qualifications of a
bidder is conclusive, except in case of fraud or bad faith.
[
(5)
] 
(12)
 The division shall make all payments to the contractor for completed work in
accordance with the contract and pay the interest specified in the contract on any payments that
are late.
[
(6)
] 
(13)
 If any payment on a contract with a private contractor to do work for the
division or the State Building Board is retained or withheld, it shall be retained or withheld and
released as provided in Section 
13-8-5
.
Section 5. Section 
63C-9-403
 is amended to read:
63C-9-403.
Contracting power of executive director -- Health insurance coverage.
(1) For purposes of this section:
(a) "Employee" means an "employee," "worker," or "operative" as defined in Section
34A-2-104
 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 of the calendar month following 60 days from the date of hire.
(b) "Health benefit plan" [
has the same meaning as provided
] 
means the same as that
term is defined
 in Section 
31A-1-301
.
(c) "Qualified health insurance coverage" [
is as
] 
means the same as that term is
 defined
in Section 
26-40-115
.
(d) "Subcontractor" [
has the same meaning provided for
] 
means the same as that term
is defined
 in Section 
63A-5-208
.
(2) (a) Except as provided in Subsection (3), this section applies to a design or
construction contract entered into by the board or on behalf of the board on or after July 1,
2009, and to a prime contractor or a subcontractor in accordance with Subsection (2)(b).
(b) (i) A prime contractor is subject to this section if the prime contract is in the
amount of [
$1,500,000
] 
$2,000,000
 or greater 
at the original execution of the contract
.
(ii) A subcontractor is subject to this section if a subcontract is in the amount of
[
$750,000
] 
$1,000,000
 or greater 
at the original execution of the contract
.
(3) This section does not apply if:
(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) This section does not apply to a change order as defined in Section 
63G-6a-103
,
or a modification to a contract, when the contract does not meet the initial threshold required
by Subsection (2).
(b) A person who intentionally uses change orders or contract modifications to
circumvent the requirements of Subsection (2) is guilty of an infraction.
(5) (a) A contractor subject to Subsection (2) shall demonstrate to the executive
director that the contractor has and will maintain an offer of qualified health insurance
coverage for the contractor's employees and the employees' dependents during the duration of
the contract.
[
(b) If a subcontractor of the contractor is subject to Subsection (2)(b), the contractor
shall demonstrate to the executive director that the subcontractor has and will maintain an offer
of qualified health insurance coverage for the subcontractor's employees and the employees'
dependents during the duration of the contract.
]
(b) If a subcontractor of the contractor is subject to Subsection (2)(b), the contractor
shall:
(i) place a requirement in the subcontract that the subcontractor shall obtain and
maintain an offer of qualified health insurance coverage for the subcontractor's employees and
the employees' dependants during the duration of the subcontract; and
(ii) certify to the executive director that the subcontractor has and will maintain an
offer of qualified health insurance coverage for the subcontractor's employees and the
employees' dependents during the duration of the prime contract.
(c) (i) (A) A contractor who fails to meet the requirements of Subsection (5)(a) during
the duration of the contract is subject to penalties in accordance with administrative rules
adopted by the division under Subsection (6).
(B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
requirements of Subsection (5)(b).
(ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
the duration of the contract is subject to penalties in accordance with administrative rules
adopted by the department under Subsection (6).
(B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
requirements of Subsection (5)(a).
(6) The department shall adopt administrative rules:
(a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(b) 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 State Building Board in accordance with Section 
63A-5-205
;
(iv) a public transit district in accordance with Section 
17B-2a-818.5
;
(v) the Department of Transportation in accordance with Section 
72-6-107.5
; and
(vi) the Legislature's Administrative Rules Review Committee; and
(c) [
which
] 
that
 establish:
(i) the requirements and procedures a contractor must follow to demonstrate to the
executive director compliance with this section [
which
] 
that
 shall include:
(A) that a contractor [
will not have to
] 
shall
 demonstrate compliance with Subsection
(5)(a) or (b) [
more than twice in any 12-month period; and
] 
at the time of the execution of each
initial contract described in Subsection (2)(b);
(B) that the contractor's compliance is subject to an audit by the department or the
Office of the Legislative Auditor General; and
[
(B)
] 
(C)
 that the actuarially equivalent determination required for the qualified health
insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
department or division with a written statement of actuarial equivalency
, which is no more than
one year old, regarding the contractor's offer of qualified health coverage
 from [
either: (I) the
Utah Insurance Department; (II)
] an actuary selected by the contractor or the contractor's
insurer[
;
]
,
 or [
(III)
] an underwriter who is responsible for developing the employer group's
premium rates;
(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 state upon the first violation;
(B) a six-month suspension of the contractor or subcontractor from entering into future
contracts with the state 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 insurance coverage for employees and dependents of employees of
the contractor or subcontractor who were not offered qualified health insurance coverage
during the duration of the contract; and
(iii) a website on which the department shall post the 
commercially equivalent
benchmark
,
 for the qualified health insurance coverage identified in Subsection (1)(c)
, that is
provided by the Department of Health, in accordance with Subsection 
26-40-115
(2)
.
(7) (a) (i) In addition to the penalties imposed under Subsection (6)(c), a contractor or
subcontractor who intentionally violates the provisions of this section shall be liable to the
employee for health care costs that would have been covered by qualified health insurance
coverage.
(ii) An employer has an affirmative defense to a cause of action under Subsection
(7)(a)(i) if:
(A) the employer relied in good faith on a written statement of actuarial equivalency
provided by:
(I) an actuary; or
(II) an underwriter who is responsible for developing the employer group's premium
rates; or
(B) the department determines that compliance with this section is not required under
the provisions of Subsection (3) or (4).
(b) An employee has a private right of action only against the employee's employer to
enforce the provisions of this Subsection (7).
(8) Any penalties imposed and collected under this section shall be deposited into the
Medicaid Restricted Account created in Section 
26-18-402
.
(9) The failure of a contractor or subcontractor to provide qualified health insurance
coverage as required by this section:
(a) may not be the basis for a protest or other action from a prospective bidder, offeror,
or contractor under Section 
63G-6a-1603
 or any other provision in Title 63G, Chapter 6a, Utah
Procurement Code; and
(b) may not be used by the procurement entity or a prospective bidder, offeror, or
contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
or construction.
Section 6. Section 
72-6-107.5
 is amended to read:
72-6-107.5.
Construction of improvements of highway -- Contracts -- Health
insurance coverage.
(1) For purposes of this section:
(a) "Employee" means an "employee," "worker," or "operative" as defined in Section
34A-2-104
 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 from the date of hire.
(b) "Health benefit plan" [
has the same meaning as provided
] 
means the same as that
term is defined
 in Section 
31A-1-301
.
(c) "Qualified health insurance coverage" [
is as
] 
means the same as that term is
 defined
in Section 
26-40-115
.
(d) "Subcontractor" [
has the same meaning provided for
] 
means the same as that term
is defined
 in Section 
63A-5-208
.
(2) (a) Except as provided in Subsection (3), this section applies to contracts entered
into by the department on or after July 1, 2009, for construction or design of highways and to a
prime contractor or to a subcontractor in accordance with Subsection (2)(b).
(b) (i) A prime contractor is subject to this section if the prime contract is in the
amount of [
$1,500,000
] 
$2,000,000
 or greater 
at the original execution of the contract
.
(ii) A subcontractor is subject to this section if a subcontract is in the amount of
[
$750,000
] 
$1,000,000
 or greater 
at the original execution of the contract
.
(3) This section does not apply if:
(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) This section does not apply to a change order as defined in Section 
63G-6a-103
,
or a modification to a contract, when the contract does not meet the initial threshold required
by Subsection (2).
(b) A person who intentionally uses change orders or contract modifications to
circumvent the requirements of Subsection (2) is guilty of an infraction.
(5) (a) A contractor subject to Subsection (2) shall demonstrate to the department that
the contractor has and will maintain an offer of qualified health insurance coverage for the
contractor's employees and the employees' dependents during the duration of the contract.
[
(b) If a subcontractor of the contractor is subject to Subsection (2), the contractor shall
demonstrate to the department that the subcontractor has and will maintain an offer of qualified
health insurance coverage for the subcontractor's employees and the employees' dependents
during the duration of the contract.
]
(b) If a subcontractor of the contractor is subject to Subsection (2), the contractor shall:
(i) place a requirement in the subcontract that the subcontractor shall obtain and
maintain an offer of qualified health insurance coverage for the subcontractor's employees and
the employees' dependants during the duration of the subcontract; and
(ii) certify to the department that the subcontractor has and will maintain an offer of
qualified health insurance coverage for the subcontractor's employees and the employees'
dependents during the duration of the prime contract.
(c) (i) (A) A contractor who fails to meet the requirements of Subsection (5)(a) during
the duration of the contract is subject to penalties in accordance with administrative rules
adopted by the department under Subsection (6).
(B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
requirements of Subsection (5)(b).
(ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
the duration of the contract is subject to penalties in accordance with administrative rules
adopted by the department under Subsection (6).
(B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
requirements of Subsection (5)(a).
(6) The department shall adopt administrative rules:
(a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(b) 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 State Building Board in accordance with Section 
63A-5-205
;
(iv) the State Capitol Preservation Board in accordance with Section 
63C-9-403
;
(v) a public transit district in accordance with Section 
17B-2a-818.5
; and
(vi) the Legislature's Administrative Rules Review Committee; and
(c) [
which
] 
that
 establish:
(i) the requirements and procedures a contractor must follow to demonstrate to the
department compliance with this section [
which
] 
that
 shall include:
(A) that a contractor [
will not have to
] 
shall
 demonstrate compliance with Subsection
(5)(a) or (b) [
more than twice in any 12-month period; and
] 
at the time of the execution of each
initial contract described in Subsection (2)(b);
(B) that the contractor's compliance is subject to an audit by the department or the
Office of the Legislative Auditor General; and
[
(B)
] 
(C)
 that the actuarially equivalent determination required for qualified health
insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
department or division with a written statement of actuarial equivalency
, which is no more than
one year old, regarding the contractor's offer of qualified health coverage
 from [
either: (I) the
Utah Insurance Department; (II)
] an actuary selected by the contractor or the contractor's
insurer[
;
]
,
 or [
(III)
] an underwriter who is responsible for developing the employer group's
premium rates;
(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 state upon the first violation;
(B) a six-month suspension of the contractor or subcontractor from entering into future
contracts with the state 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 insurance coverage for an employee and a dependent of the employee
of the contractor or subcontractor who was not offered qualified health insurance coverage
during the duration of the contract; and
(iii) a website on which the department shall post the 
commercially equivalent
benchmark
,
 for the qualified health insurance coverage identified in Subsection (1)(c)
, that is
provided by the Department of Health, in accordance with Subsection 
26-40-115
(2)
.
(7) (a) (i) In addition to the penalties imposed under Subsection (6), a contractor or
subcontractor who intentionally violates the provisions of this section shall be liable to the
employee for health care costs that would have been covered by qualified health insurance
coverage.
(ii) An employer has an affirmative defense to a cause of action under Subsection
(7)(a)(i) if:
(A) the employer relied in good faith on a written statement of actuarial equivalency
provided by:
(I) an actuary; or
(II) an underwriter who is responsible for developing the employer group's premium
rates; or
(B) the department determines that compliance with this section is not required under
the provisions of Subsection (3) or (4).
(b) An employee has a private right of action only against the employee's employer to
enforce the provisions of this Subsection (7).
(8) Any penalties imposed and collected under this section shall be deposited into the
Medicaid Restricted Account created in Section 
26-18-402
.
(9) The failure of a contractor or subcontractor to provide qualified health insurance
coverage as required by this section:
(a) may not be the basis for a protest or other action from a prospective bidder, offeror,
or contractor under Section 
63G-6a-1603
 or any other provision in Title 63G, Chapter 6a, Utah
Procurement Code; and
(b) may not be used by the procurement entity or a prospective bidder, offeror, or
contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
or construction.
Section 7. Section 
79-2-404
 is amended to read:
79-2-404.
Contracting powers of department -- Health insurance coverage.
(1) For purposes of this section:
(a) "Employee" means an "employee," "worker," or "operative" as defined in Section
34A-2-104
 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 from the date of hire.
(b) "Health benefit plan" [
has the same meaning as provided
] 
means the same as that
term is defined
 in Section 
31A-1-301
.
(c) "Qualified health insurance coverage" [
is as
] 
means the same as that term is
 defined
in Section 
26-40-115
.
(d) "Subcontractor" [
has the same meaning provided for
] 
means the same as that term
is defined
 in Section 
63A-5-208
.
(2) (a) Except as provided in Subsection (3), this section applies a design or
construction contract entered into by, or delegated to, the department or a division, board, or
council of the department on or after July 1, 2009, and to a prime contractor or to a
subcontractor in accordance with Subsection (2)(b).
(b) (i) A prime contractor is subject to this section if the prime contract is in the
amount of [
$1,500,000
] 
$2,000,000
 or greater 
at the original execution of the contract
.
(ii) A subcontractor is subject to this section if a subcontract is in the amount of
[
$750,000
] 
$1,000,000
 or greater 
at the original execution of the contract
.
(3) This section does not apply to contracts entered into by the department or a
division, board, or council of the department if:
(a) the application of this section jeopardizes the receipt of federal funds;
(b) the contract or agreement is between:
(i) the department or a division, board, or council of the department; and
(ii) (A) another agency of the state;
(B) the federal government;
(C) another state;
(D) an interstate agency;
(E) a political subdivision of this state; or
(F) a political subdivision of another state; or
(c) the contract or agreement is:
(i) for the purpose of disbursing grants or loans authorized by statute;
(ii) a sole source contract; or
(iii) an emergency procurement.
(4) (a) This section does not apply to a change order as defined in Section 
63G-6a-103
,
or a modification to a contract, when the contract does not meet the initial threshold required
by Subsection (2).
(b) A person who intentionally uses change orders or contract modifications to
circumvent the requirements of Subsection (2) is guilty of an infraction.
(5) (a) A contractor subject to Subsection (2)(b)(i) shall demonstrate to the department
that the contractor has and will maintain an offer of qualified health insurance coverage for the
contractor's employees and the employees' dependents during the duration of the contract.
[
(b) If a subcontractor of the contractor is subject to Subsection (2)(b)(ii), the
contractor shall demonstrate to the department that the subcontractor has and will maintain an
offer of qualified health insurance coverage for the subcontractor's employees and the
employees' dependents during the duration of the contract.
]
(b) If a subcontractor of the contractor is subject to Subsection (2)(b), the contractor
shall:
(i) place a requirement in the subcontract that the subcontractor shall obtain and
maintain an offer of qualified health insurance coverage for the subcontractor's employees and
the employees' dependants during the duration of the subcontract; and
(ii) certify to the department that the subcontractor has and will maintain an offer of
qualified health insurance coverage for the subcontractor's employees and the employees'
dependents during the duration of the prime contract.
(c) (i) (A) A contractor who fails to meet the requirements of Subsection (5)(a) during
the duration of the contract is subject to penalties in accordance with administrative rules
adopted by the department under Subsection (6).
(B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
requirements of Subsection (5)(b).
(ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
the duration of the contract is subject to penalties in accordance with administrative rules
adopted by the department under Subsection (6).
(B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
requirements of Subsection (5)(a).
(6) The department shall adopt administrative rules:
(a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(b) in coordination with:
(i) the Department of Environmental Quality in accordance with Section 
19-1-206
;
(ii) a public transit district in accordance with Section 
17B-2a-818.5
;
(iii) the State Building Board in accordance with Section 
63A-5-205
;
(iv) the State Capitol Preservation Board in accordance with Section 
63C-9-403
;
(v) the Department of Transportation in accordance with Section 
72-6-107.5
; and
(vi) the Legislature's Administrative Rules Review Committee; and
(c) [
which
] 
that
 establish:
(i) the requirements and procedures a contractor must follow to demonstrate
compliance with this section to the department [
which
] 
that
 shall include:
(A) that a contractor [
will not have to
] 
shall
 demonstrate compliance with Subsection
(5)(a) or (b) [
more than twice in any 12-month period; and
] 
at the time of the execution of each
initial contract described in Subsection (2)(b);
(B) that the contractor's compliance is subject to an audit by the department or the
Office of the Legislative Auditor General; and
[
(B)
] 
(C)
 that the actuarially equivalent determination required for qualified health
insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
department or division with a written statement of actuarial equivalency
, which is no more than
one year old, regarding the contractor's offer of qualified health coverage
 from [
either: (I) the
Utah Insurance Department; (II)
] an actuary selected by the contractor or the contractor's
insurer[
;
]
,
 or [
(III)
] an underwriter who is responsible for developing the employer group's
premium rates;
(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 state upon the first violation;
(B) a six-month suspension of the contractor or subcontractor from entering into future
contracts with the state 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 insurance coverage for an employee and a dependent of an employee
of the contractor or subcontractor who was not offered qualified health insurance coverage
during the duration of the contract; and
(iii) a website on which the department shall post the 
commercially equivalent
benchmark
,
 for the qualified health insurance coverage identified in Subsection (1)(c)
, 
provided by the Department of Health, in accordance with Subsection 
26-40-115
(2)
.
(7) (a) (i) In addition to the penalties imposed under Subsection (6), a contractor or
subcontractor who intentionally violates the provisions of this section shall be liable to the
employee for health care costs that would have been covered by qualified health insurance
coverage.
(ii) An employer has an affirmative defense to a cause of action under Subsection
(7)(a)(i) if:
(A) the employer relied in good faith on a written statement of actuarial equivalency
provided by:
(I) an actuary; or
(II) an underwriter who is responsible for developing the employer group's premium
rates; or
(B) the department determines that compliance with this section is not required under
the provisions of Subsection (3) or (4).
(b) An employee has a private right of action only against the employee's employer to
enforce the provisions of this Subsection (7).
(8) Any penalties imposed and collected under this section shall be deposited into the
Medicaid Restricted Account created in Section 
26-18-402
.
(9) The failure of a contractor or subcontractor to provide qualified health insurance
coverage as required by this section:
(a) may not be the basis for a protest or other action from a prospective bidder, offeror,
or contractor under Section 
63G-6a-1603
 or any other provision in Title 63G, Chapter 6a, Utah
Procurement Code; and
(b) may not be used by the procurement entity or a prospective bidder, offeror, or
contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
or construction.
Section 8. 
Effective date.
If approved by two-thirds of all the members elected to each house, this bill takes effect
upon approval by the governor, or the day following the constitutional time limit of Utah
Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
the date of veto override.