Utah Admin. Code R17 — Governor

R354 Colorado River Authority of Utah

R354-1 General Procurement Provisions

Utah Admin. Code R354-1-101 Title

This policy is adopted by the Colorado River Authority of Utah ("CRAU") and is known as the "General Procurement Provisions."

History

KEY: Colorado, procurement, process
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-1-102 Purpose of Policy

The underlying purposes of theis Procurement Procedure under Rules R354-1 through R354-15 are:

(1) to comply with the Subsection 63M-14-206(1) requirement that the CRAU adopt a " Procurement procedure substantially similar to Title 1, Chapter 6a, Utah Procurement Code" while recognizing that:

(a) it is not "an executive branch Procurement unit" and "is not subject to" to the state Procurement code;

(b) the CRAU will not be involved in construction of facilities or infrastructure projects and consequently, many of the state law provisions are inapplicable; and

(c) the Executive Director has independent power under Section 63M-14-402 to employ consultants, professionals, and legal counsel with the consent of the attorney general;

(2) to ensure transparency in the Procurement process;

(3) to ensure the fair and equitable treatment of persons who participate in the Procurement process;

(4) to provide increased economy in Procurement activities; and

(5) to foster effective broad-based competition within the free enterprise system.

History

KEY: Colorado, procurement, process
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-1-103 Definitions

As used in this title:

(1) "Authority" means the Colorado River

(2) "Bidder" means a person who submits a bid or price quote in response to an Invitation for Bids

(3) "Bidding Process" means the Procurement process described in this the Procurement Procedure under Section R354- 1-102.

(4) "Contract" means an agreement for a Procurement.

(5) "Contract Administration" means any function, duty, and responsibility associated with managing, overseeing, and carrying out a Contract between the CRAU and a Contractor, including:

(a) implementing the Contract;

(b) ensuring compliance with the Contract terms and conditions by the CRAU and the Contractor;

(d) resolving, to the extent practicable, Contract disputes;

(e) curing Contract errors and deficiencies;

(f) terminating a Contract;

(g) measuring or evaluating completed work and Contractor performance;

(h) computing payments under the Contract; and

(i) closing out a Contract.

(6) "Contractor" means a person who is awarded a Contract with the CRAU.

(7) "Cooperative Procurement" means a Procurement made pursuant to R354-14.

(8) "Days" means calendar days, unless expressly provided otherwise.

(9) "Definite Quantity Contract" means a Fixed Price Contract that provides for a specified amount of supplies over a specified period, with deliveries scheduled according to a specified schedule.

(10) "Executive Director" means the executive director of the CRAU.

(11) "Fixed Price Contract" means a Contract that provides a price, for each Procurement Item obtained under the Contract, that is not subject to adjustment except to the extent that:

(a) the Contract provides, under circumstances specified in the Contract, for an adjustment in price that is not based on cost to the Contractor; or

(b) an adjustment is required by law.

(12) "Fixed Price Contract with Price Adjustment" means a Fixed Price Contract that provides for an upward or downward revision of price, precisely described in the Contract, that:

(a) is based on the consumer price index or another commercially acceptable index, source, or formula; and

(b) is not based on a percentage of the cost to the Contractor.

(13) "Grant" means an expenditure of Public Funds or other assistance, or an agreement to expend Public Funds or other assistance, for a public purpose authorized by law, without acquiring a Procurement Item in exchange.

(14) "Immaterial Error":

(a) means an irregularity or abnormality that is:

(i) a matter of form that does not affect substance; or

(ii) an inconsequential variation from a requirement of a Solicitation that has no, little, or a trivial effect on the Procurement process and that is not prejudicial to other Vendors; and

(b) includes:

(i) a missing signature, missing acknowledgment of an addendum, or missing copy of a professional license, bond, or insurance certificate;

(ii) a typographical error;

(iii) an error resulting from an inaccuracy or omission in the Solicitation; and

(iv) any other error that the Procurement Official reasonably considers to be immaterial.

(15) "Indefinite Quantity Contract" means a Fixed Price Contract that:

(a) is for an indefinite amount of Procurement Items to be supplied as ordered by the CRAU; and

(b) does not require a minimum purchase amount; or

(i) provides a maximum purchase limit.

(16) "Invitation for Bids":

(a) means a document used to solicit:

(i) bids to provide a Procurement Item to the CRAU; or

(ii) quotes for a price of a Procurement Item to be provided to the CRAU; and

(b) includes any document attached to or incorporated by reference in a document described in Subsection (16)(a).

(17) "Multiple Award Contract" means the award of a Contract for an Indefinite Quantity of a Procurement Item to more than one person.

(18) "Multiyear Contract" means a Contract that extends beyond a one- year period, including a Contract that permits renewal of the Contract, without competition, beyond the first year of the Contract.

(19) "Offeror" means a person who submits a proposal in response to a Request for Proposals.

(20) "Procurement" means the acquisition of a Procurement Item through an expenditure of Public Funds, or an agreement to expend Public Funds.

(21) "Procurement Item" means an item of personal property, a Technology, or a service.

(22) "Procurement Official" means the Executive Director or the Executive Director's designee.

(23) "Professional Service" means labor, effort, or work that requires specialized knowledge, expertise, and discretion, including labor, effort, or work in the field of:

(a) accounting;

(b) financial services;

(d) the law; or

(e) underwriting.

(24) "Public Funds" means money, regardless of its source, including from the federal government, that is owned or held by the CRAU.

(25) "Request for Proposals" means a document used to solicit proposals to provide a Procurement Item to the CRAU, including any other document that is attached to that document or incorporated in that document by reference.

(26) "Request for Proposals Process" means the Procurement process described in R354, Request for Proposals.

(27) "Requirements Contract" means a Contract under which a Contractor agrees to provide the CRAU's entire requirements for certain Procurement Items at prices specified in the Contract during the Contract period; and that:

(a) does not require a minimum purchase amount; or

(b) provides a maximum purchase limit.

(28) "Responsible" means being capable, in any respect, of:

(a) meeting each requirement of a Solicitation; and

(b) fully performing all the requirements of the Contract resulting from the Solicitation, including being financially solvent with sufficient financial resources to perform the Contract.

(29) "Responsive" means conforming in each material respect to the requirements of a Solicitation.

(30) "Service":

(a) means labor, effort, or work to produce a result that is beneficial to the CRAU;

(b) includes a Professional Service; and

(31) "Small Purchase Process" means the Procurement process described in Rule R354-2.

(32) "Sole Source Contract" means a Contract resulting from a Sole Source Procurement.

(33) "Sole Source Procurement" means a Procurement without competition pursuant to a determination that there is only one source for the Procurement Item.

(34) "Solicitation" means an Invitation for Bids or Request for Proposals.

(35) "Solicitation Response" means:

(a) a bid submitted in response to an Invitation for Bids; or

(b) a proposal submitted in response to a Request for Proposals.

(36) "Specification" means any description of the physical or functional characteristics or of the nature of a Procurement Item included in an Invitation for Bids or a Request for Proposals, or otherwise specified or agreed to by the CRAU, including a description of:

(a) a requirement for inspecting or testing a Procurement Item; or

(b) preparing a Procurement Item for delivery.

(37) "Standard Procurement Process" means:

(a) the Bidding Process;

(b) the Request for Proposals Process;

(d) the Professional Services Procurement process.

(38) "Subcontractor":

(a) means a person under Contract to perform part of a contractual obligation under the control of the Contractor, whether the person's Contract is with the Contractor directly or with another person who is under Contract to perform part of a contractual obligation under the control of the Contractor; and

(b) includes a supplier, distributor, or other Vendor that furnishes supplies or services to a Contractor.

(39) "Technology" means the same as "information technology," as defined in Section 63A-16-102.

(40) "Tie Bid" means that the lowest Responsive bids of Responsible Bidders are identical in price.

(41) "Time and Materials Contract" means a Contract under which the Contractor is paid:

(a) the actual cost of direct labor at specified hourly rates;

(b) the actual cost of materials and equipment usage; and

(c) an additional amount, expressly described in the Contract, to cover overhead and profit, that is not based on a percentage of the cost to the Contractor.

(42) "Transitional Costs":

(a) means the costs of changing:

(i) from an existing provider of a Procurement Item to another provider of that Procurement Item; or

(ii) from an existing type of Procurement Item to another type;

(b) includes:

(i) training costs;

(ii) conversion costs;

(iii) compatibility costs;

(iv) costs associated with system downtime;

(v) disruption of service costs;

(vi) staff time necessary to implement the change;

(vii) installation costs; and

(viii) ancillary software, hardware, equipment, or construction costs; and

(i) the costs of preparing for or engaging in a Procurement process; or

(ii) Contract negotiation or drafting costs.

(43) "Vendor":

(a) means a person who is seeking to enter into a Contract with the CRAU to provide a Procurement Item; and

(b) includes:

(i) a Bidder; and

(ii) an Offeror.

History

KEY: Colorado, procurement, process
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-1-104 Purpose of Specifications

(1) Each Specification shall seek to promote the overall economy and best use for the purposes intended and encourage competition in satisfying the needs of the CRAU and may not be unduly restrictive.

(2) The requirements of this rule regarding the purposes and non-restrictiveness of Specifications shall apply to each Specification, including those prepared by Professional Service providers and drafters for public Contracts.

History

KEY: Colorado, procurement, process
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-1-105 Required Public Notice

(1) When the CRAU issues a Solicitation, it shall post notice of the Solicitation:

(a) at least seven days before the day of the deadline for submission of a Solicitation Response; and

(b)(i) on the main website for the CRAU; or

(ii) on a state website that is owned, managed by, or provided under Contract with the state for posting a public Procurement notice.

(2) The Procurement Official may reduce the seven-day period described in Subsection (1) if the Procurement Official signs a written statement that:

(a) states that a shorter time is needed; and

(b) determines that competition from multiple sources may be obtained within the shorter period.

(3)(a) It is the responsibility of a person seeking information provided by a notice published under this section to seek out, find, and respond to the notice.

(b) As a courtesy and to promote competition, the CRAU may provide but is not required to provide individual notice.

History

KEY: Colorado, procurement, process
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-1-106 Price Based on Established Terms

When the CRAU is acquiring a Procurement Item it may establish the price of the Procurement Item based on a price list, rate schedule, or price catalog:

(1) submitted by a Vendor and accepted by CRAU; or

(2) mandated by the CRAU or a federal agency.

History

KEY: Colorado, procurement, process
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-1-107 Correcting an Immaterial Error in a Solicitation Response

(1) The Procurement Official may allow a Vendor to correct an Immaterial Error in a Responsive Solicitation Response as provided in this section.

(2)(a) The CRAU that allows a Vendor to correct an Immaterial Error in a Responsive Solicitation Response shall:

(i) require the Vendor to submit the correction in writing; and

(ii) establish a deadline by which the Vendor is required to correct the Immaterial Error.

(b) The CRAU may not allow a Vendor to correct an Immaterial Error in a Responsive Solicitation Response after the deadline established under Subsection (2)(a).

History

KEY: Colorado, procurement, process
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-1-108 Clarifying Information in a Solicitation Response

(1) The Procurement Official may at any time make a written request to a Vendor to:

(a) clarify information contained in a Responsive Solicitation Response; or

(b) provide additional information that the Procurement Official determines the Procurement Official needs to determine whether the Vendor is Responsible.

(2)(a) The Procurement Official that requests a Vendor to clarify or provide additional information under this section shall establish a deadline by which the Vendor is required to submit the clarifying or additional information.

(b) The CRAU may not allow a Vendor to submit clarifying or additional information after the deadline established under Subsection (2)(a).

History

KEY: Colorado, procurement, process
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-1-109 Sale of Previously Purchased Procurement Items -- Limitations

(1) As used in this section:

(a) "Buyback purchaser" means a person who buys a Procurement Item from the CRAU to which the person previously sold the Procurement Item.

(b) "Excess repurchase amount" means the difference between:

(i) the amount a buyback purchaser pays to the CRAU to purchase a Procurement Item that the buyback purchaser previously sold to the CRAU; and

(ii) the amount the CRAU paid to the buyback purchaser to purchase the Procurement Item.

(2) The CRAU that sells a Procurement Item to a buyback purchaser for an amount that exceeds the amount the CRAU paid for the Procurement Item:

(a) shall require the buyback purchaser to pay cash for the Procurement Item;

(b) may not accept the excess repurchase amount in the form of a credit, discount, or other incentive on a future purchase that the CRAU makes from the buyback purchaser; and

(c) may not use the excess repurchase amount to acquire an additional Procurement Item from the person who paid the excess repurchase amount.

History

KEY: Colorado, procurement, process
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-1-110 Cancelling a Solicitation

(1) The CRAU may cancel a Solicitation if the Procurement Official determines that cancellation is in the best interests of the CRAU.

(2) If the CRAU cancels a Solicitation:

(a) the Procurement Official shall explain in writing the reasons for the cancellation; and

(b) the CRAU shall make the written explanation described in Subsection (2)(a) available to the public for a period of one year after the cancellation.

History

KEY: Colorado, procurement, process
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-1-111 Rejecting a Solicitation Response

(1) The CRAU may reject a Solicitation Response if:

(a) the Solicitation Response:

(i) is not Responsive;

(ii) violates a requirement of the Solicitation; or is not submitted before the deadline specified in the Solicitation;

(b) the Vendor who submitted the Solicitation Response:

(i) is not Responsible;

(ii) is in violation of a provision of this Procurement Procedure;

(iii) has had a previous Contract with the CRAU cancelled;

(iv) has engaged in unethical conduct;

(v) is subject to an outstanding tax lien; or

(vi) fails to sign a Contract awarded because of the Solicitation Response within:

(A) 90 days after the Contract award if the Solicitation does not specify a deadline for the signing of the Contract; or

(B) the time specified in the Solicitation if the Solicitation specifies a deadline for the signing of the Contract; or

(c) after the Vendor submits a Solicitation Response there is a change in the Vendor's circumstances that, if known at the time the Solicitation Response was submitted, would have caused the CRAU to reject the Solicitation Response.

(2) When the Procurement Official rejects a Solicitation Response under Subsection (1), the Procurement Official shall provide the Vendor who submitted the rejected Solicitation Response a written statement of the reasons for the rejection.

History

KEY: Colorado, procurement, process
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

R354-2 Small and Professional Services

Utah Admin. Code R354-2-101 Title

This rule is known as "Small and Professional Services."

History

KEY: Colorado, small, professional
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-2-102 Small and Professional Service Definitions

(1) Terms used in this rule are defined in Section R354-1-102, with the addition of:

(a) "Annual cumulative threshold" means the maximum total annual amount, established under Subsection (2), that the CRAU may expend to obtain Procurement Items from the same source under this rule.

(b) "Individual Procurement threshold" means the maximum amount, established under Subsection (2), for which the CRAU may purchase a Procurement Item under this rule.

(c) "Single Procurement aggregate threshold" means the maximum total amount, established under Subsection (2), that the CRAU may expend to obtain multiple Procurement Items from one source at one time under this rule.

(d) "Small Purchase" means a purchase of any Procurement Item under this rule other than a Professional Services purchase.

(2)(a) The Small Purchase Annual Cumulative Threshold is $200,000, the Individual Procurement Threshold is $50,000, and the Single Procurement Aggregate Threshold is $100,000.

(b) Small Purchases made under this rule may not exceed a threshold, unless the Procurement Official gives written authorization to exceed the threshold that includes the reasons for exceeding the threshold.

History

KEY: Colorado, small, professional
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-2-103 Small and Professional Service Procurement

(1) The Procurement Official may procure a Small Purchase or a Professional Purchase without a formal Solicitation but nothing herein prohibits the Procurement Official from choosing to go through a formal Solicitation.

(2) For a Professional Purchase, the Procurement Official shall negotiate Contracts:

(a) based on demonstrated competence and qualification for the Professional Service required; and

(b) at fair and reasonable prices.

History

KEY: Colorado, small, professional
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-2-104 Division Prohibited

(1) Except as otherwise expressly provided in this rule, the Procurement Official:

(a) may not use the Small Purchase Procurement Process, described in this rule, for ongoing, continuous, and regularly scheduled Procurements that exceed the Annual Cumulative Threshold; and

(b) shall make its ongoing, continuous, and regularly scheduled Procurements that exceed the Annual Cumulative Threshold through a Contract awarded through another Standard Procurement Process or an applicable exception to another Standard Procurement Process, described in this Procurement Procedure.

(2) This rule does not prohibit regularly scheduled payments for a Procurement Item obtained under another provision of this Procurement Procedure.

(3)(a) It is prohibited for the Procurement Official to divide a single Procurement into multiple smaller Procurements, including by dividing an invoice or purchase order into multiple invoices or purchase orders, if:

(i) the single Procurement would not have qualified as a Small Purchase under this rule;

(ii) one or more of the multiple smaller Procurements qualify as a Small Purchase under this rule; and

(iii) the division is done with the intent to:

(A) avoid having to use a Standard Procurement Process, other than the Small Purchase Process, that the person would otherwise be required to use for the single Procurement; or

(B) make one or more of the multiple smaller Procurements fall below a Small Purchase expenditure threshold under this rule that the single Procurement would not have fallen below without the division.

(b) A violation of Subsection (3)(a) is subject to penalties as provided in Subsection R354-15-104(4).

History

KEY: Colorado, small, professional
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

R354-3 Bidding

Utah Admin. Code R354-3-101 Title

This rule is known as "Bidding.

History

KEY: Colorado, Bidding Process
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-3-102 Contracts Awarded by Bidding

The Procurement Official may award a Contract for a Procurement Item through this Bidding Process.

History

KEY: Colorado, Bidding Process
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-3-103 Invitation for Bids -- Requirements -- Publication

(1) If the CRAU intends to award a Contract for a Procurement Item using the CRAU Bidding Process shall issue an Invitation for Bids.

(2) The CRAU shall include in an Invitation for Bids:

(a) a description of the Procurement Item that the CRAU seeks;

(b) instructions for submitting a bid, including the deadline for submitting a bid;

(d) information about the time and manner of opening bids; and

(e) terms and conditions that the CRAU intends to include in a Contract resulting from the Bidding Process.

(3) The CRAU shall publish an Invitation for Bids as determined by the Procurement Official.

History

KEY: Colorado, Bidding Process
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-3-104 Processing of Bids -Changes to Bids Not Allowed

(1) The CRAU:

(a) shall accept bids as provided in the Invitation for Bids; and

(b) may not open a bid until after the deadline for submitting bids.

(2) A person who submits a bid may not, after the deadline for submitting bids, make a change to the bid if the change is prejudicial to:

(a) the interest of the CRAU; or

(b) fair competition.

History

KEY: Colorado, Bidding Process
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-3-105 Evaluation of bids- Award Cancellation

(1) The CRAU that conducts a Procurement using a Bidding Process shall evaluate bids:

(a) using the objective criteria described in the Invitation for Bids; and

(b) to achieve the greatest long-term value to the CRAU.

(2) Criteria not described in the Invitation for Bids may not be used to evaluate a bid.

(3) After evaluating bids, the CRAU shall:

(a)(i) award a Contract as soon as practicable to the Responsible Bidder who submits the lowest Responsive bid; and

(ii) publish the name and bid amount of the Bidder to whom the Contract is awarded; or

(b)(i) cancel the Invitation for Bids without awarding a Contract; and

(ii) publish a notice of the cancellation that includes an explanation of the reasons for cancelling the Invitation for Bids.

History

KEY: Colorado, Bidding Process
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-3-106 Tie Bids

The CRAU shall resolve a Tie Bid in a fair manner, as determined in writing by the Procurement Official.

History

KEY: Colorado, Bidding Process
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

R354-4 Request for Proposals

Utah Admin. Code R354-4-101 Title

This rule is known as "Request for Proposals."

History

KEY: Colorado, request, proposal
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-4-102 Contracts Awarded by Request for Proposals

The CRAU may award a Contract for a Procurement Item through this Request for Proposals Process in accordance with the rules.

History

KEY: Colorado, request, proposal
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-4-103 Request for Proposals Requirements - Publication of Request

(1) In awarding a contract for a procurement item using the request for proposal the CRAU shall isse a Contract for a Procurement Item using the Request for Proposals Process shall issue a Request for Proposals.

(2) The CRAU shall include in a Request for Proposals:

(a) a description of the Procurement Item that the CRAU seeks;

(b) instructions for submitting a proposal, including the deadline for submitting a proposal;

(c) the objective criteria including, if applicable, cost, and subjective criteria that the CRAU will use to evaluate proposals;

(d) information about the time and manner of opening proposals; and

(e) terms and conditions that the CRAU intends to include in a Contract resulting from the Request for Proposals Process.

(3) The CRAU shall publish a Request for Proposals as determined by the Procurement Official in accordance R354-1- 105.

History

KEY: Colorado, request, proposal
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-4-104 Processing of Proposals- Changes to Proposals Not Allowed

(1) The CRAU:

(a) shall accept proposals as provided in the Request for Proposals;

(b) may not open a proposal until after the deadline for submitting proposals; and

(2) A person who submits a proposal may not, after the deadline for submitting proposals, make a change to the proposal if the change is prejudicial to:

(a) the interest of the CRAU; or

(b) fair competition.

History

KEY: Colorado, request, proposal
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-4-105 Limited Addenda to Requests for Proposals

After the deadline for submitting proposals, the CRAU may, at the discretion of the Procurement Official, issue a Request for Proposals addendum that has limited application only to Offerors that have submitted proposals, if the addendum does not change the Request for Proposals in a way that, in the opinion of the Procurement Official, would likely have affected the number of proposals submitted in response to the Request for Proposals had the addendum been included in the original Request for Proposals.

History

KEY: Colorado, request, proposal
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-4-106 Discussions with a Person who Submits a Proposal

(1) The CRAU may have discussions with an Offeror to obtain a more complete understanding of whether the Offeror is Responsible, or the Offeror's proposal is Responsive.

(2) The CRAU may reject a proposal following discussions under Subsection (1) if the CRAU determines that the offeror is not responsible or the proposal is not responsive.

History

KEY: Colorado, request, proposal
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-4-107 Evaluation Committee -- Evaluation of Proposals

(1) The Procurement Official shall appoint an evaluation committee of at least three members to evaluate proposals received in response to a Request for Proposals issued by the CRAU.

(2) The evaluation committee shall evaluate proposals in accordance with the process described in the Request for Proposals.

(3) To determine which proposal provides the best value to the CRAU, the evaluation committee shall evaluate each Responsible Offeror's Responsive proposal that has not been disqualified from consideration under the provisions of this R354-4- 103, using the evaluation criteria described in the Request for Proposals.

(4) Criteria not described in the Request for Proposals may not be used to evaluate a proposal.

(5) The Procurement Official shall:

(a) appoint evaluation committee members who have at least a general familiarity with or basic understanding of:

(i) the technical requirements relating to the type of Procurement Item that is the subject of the Procurement; or

(ii) the need that the Procurement Item is intended to address; and

(b) ensure that the evaluation committee and each individual participating in the evaluation committee process:

(i) does not have a conflict of interest with any of the Offerors;

(ii) can fairly evaluate each proposal;

(iii) does not contact or communicate with an Offeror concerning the Procurement outside the official evaluation committee process; and

(iv) conducts or participates in the evaluation in a manner that ensures a fair and competitive process and avoids the appearance of impropriety.

(6) The CRAU may authorize an evaluation committee to receive assistance from an expert or consultant to better understand a technical issue involved in the Procurement.

(7)(a) Except as provided in Subsection (7)(b), an evaluation committee member is prohibited from knowing or having access to information relating to the cost of a proposal until after the evaluation committee submits its recommendation to the CRAU based on the scores of any criteria other than cost.

(b) A Procurement Official may waive the prohibition of Subsection (7)(a) by signing a written statement indicating why waiving the prohibition is in the best interests of the CRAU.

(8) An evaluation committee may not change its final recommended scores after the evaluation committee has submitted those scores to the CRAU.

(9)(a) The deliberations and other proceedings of an evaluation committee may be held in private.

(b) If the evaluation committee is a public body, as defined in Section 52-4-103, the evaluation committee shall comply with Section 52-4-205 in closing a meeting for its deliberations and other proceedings.

(10)(a) At the conclusion of the evaluation process, an evaluation committee shall prepare and submit to the CRAU a written statement that:

(i) recommends a proposal for an award of a Contract, if the evaluation committee decides to recommend a proposal;

(ii) contains the score awarded to the recommended proposal based on the criteria stated in the Request for Proposals; and

(iii) explains how the recommended proposal provides the best value to the CRAU.

(b) The CRAU is not required to comply with Subsection (10)(a) for a Contract with a construction manager or general contractor if the Contract is awarded based solely on:

(i) the qualifications of the construction manager or general contractor; and

(ii) the management fee to be paid to the construction manager or general contractor.

History

KEY: Colorado, request, proposal
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-4-108 Best and Final Offers

(1) The best and final offer process described in this section:

(a) may be used only in a Request for Proposals Process, whether the Request for Proposals Process is used independently or after the establishment of an approved Vendor list through the approved Vendor list process; and

(b) may not be used in any other Standard Procurement Process, whether the other Standard Procurement Process is used independently or after the establishment of an approved Vendor list through the approved Vendor list process.

(2) Subject to Subsection (3), a conducting Procurement unit may request best and final offers from Responsible Offerors:

(a) only with the approval of the Procurement Official; and

(b) if:

(i) no single proposal adequately addresses any the Specifications stated in the Request for Proposals;

(ii) any proposals are unclear or deficient in one or more respects;

(iii) any cost proposals exceed the identified budget or the CRAU's available funding; or

(iv) two or more proposals receive an identical evaluation score that is the highest score.

(3) A conducting Procurement unit may request a best and final offer from, and a best and final offer may be submitted to the conducting Procurement unit by, only a Responsible Offeror that has submitted a Responsive proposal that meets the minimum mandatory criteria stated in the Request for Proposals required to be considered in the stage of the Procurement process at which best and final offers are being requested.

(4) The best and final offer process may not be used to change:

(a) a determination that an Offeror is not Responsible to a determination that the Offeror is Responsible; or

(b) a determination that a proposal is not Responsive to a determination that the proposal is Responsive.

(5)(a) This Subsection (5) applies if a request for best and final offers is issued because any cost proposal exceeds the identified budget or the CRAU's available funding.

(b)(i) The conducting Procurement unit may, in the request for best and final offers:

(A) specify the scope of work reductions the CRAU is making to generate proposals that are within the identified budget or the CRAU's available funding; or

(B) invite Offerors submitting best and final offers to specify the scope of work reductions being made so that the reduced cost proposal is within the identified budget or the CRAU's available funding.

(ii) The conducting Procurement unit is not required to accept a scope of work reduction that an Offeror has specified in the Offeror's best and final offer.

(c) A best and final offer submitted with a reduced cost proposal shall include an itemized list identifying specific reductions in the Offeror's proposed scope of work that correspond to the Offeror's reduced cost proposal.

(d) A reduction in the scope of work may not:

(i) eliminate a component identified in the Request for Proposals as a minimum mandatory requirement; or

(ii) alter the nature of the original Request for Proposals to the extent that a Request for Proposals for the reduced scope of work would have likely attracted a significantly different set of Offerors submitting proposals in response to the Request for Proposals.

(6) If a request for best and final offers is issued because two or more proposals received an identical evaluation score that is the highest score:

(a) the request may be issued only to Offerors who submitted a proposal receiving the highest score; and

(b) an Offeror submitting a best and final offer may revise:

(i) the technical aspects of the Offeror's proposal;

(ii) the Offeror's cost proposal, as provided in Subsection (5); or

(iii) both the technical aspects of the Offeror's proposal and, as provided in Subsection (5), the Offeror's cost proposal.

(7) In a request for best and final offers, the conducting Procurement unit shall:

(a) clearly specify:

(i) the issues that the CRAU requests the Offerors to address in their best and final offers; and

(ii) how best and final offers will be evaluated and scored in accordance with Section R354-4-108;

(b) establish a deadline for an Offeror to submit a best and final offer; and

(c) if applicable, establish a schedule and procedure for conducting discussions with Offerors concerning the best and final offers.

(8) In conducting a best and final offer process under this section, a conducting Procurement unit shall:

(a) maintain confidential the information the CRAU receives from an Offeror, including any cost information, until a Contract has been awarded or the Request for Proposals cancelled;

(b) ensure that each Offeror receives fair and equal treatment; and

(c) safeguard the integrity of the scope of the original Request for Proposals, except as specifically provided otherwise in this section.

(9) In a best and final offer, an Offeror:

(a) may address only the issues described in the request for best and final offers; and

(b) may not correct a material error or deficiency in the Offeror's proposal or address any issue not described in the request for best and final offers.

(10) If an Offeror fails to submit a best and final offer, the conducting Procurement unit shall treat the Offeror's original proposal as the Offeror's best and final offer.

(11) After the deadline for submitting best and final offers has passed, the evaluation committee shall evaluate the best and final offers submitted using the criteria described in the Request for Proposals.

(12) An Offeror may not make and a conducting Procurement unit may not consider a best and final offer that the conducting Procurement unit has not requested under this section.

(13) To implement the best and final offer process described in this section, a rulemaking authority may make rules consistent with this section and the other provisions of this rule.

History

KEY: Colorado, request, proposal
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

R354-5 Procurement Requirements

Utah Admin. Code R354-5-101 Title

This rule is known as "Procurement Requirements."

History

KEY: Colorado, procurement requirements
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-5-102 Award of Contract Without Engaging in a Standard Procurement Process -Notice Duty to Negotiate Contract Terms in Best Interest of Procurement Unit

(1) The CRAU may award a Contract for a Procurement Item without engaging in a Standard Procurement Process if the Procurement Official determines in writing that:

(a) there is only one source for the Procurement Item;

(b)(i) Transitional Costs are a significant consideration in selecting a Procurement Item; and

(ii) the results of a cost-benefit analysis demonstrate that Transitional Costs are unreasonable or cost-prohibitive, and that the award of a Contract without engaging in a Standard Procurement Process is in the best interest of the CRAU;

(2)(a) Subject to Subsection (2)(b), the Procurement Officer shall cause a publication of notice of the Procurement if the cost of the Procurement exceeds $50,000.

(b) Publication of the notice described in this Subsection (2)(b) is not required for:

(i) the Procurement of public utility services pursuant to a Sole Source Contract; or

(ii) other Procurements under this section for which an applicable rule provides that notice is not required.

(3) A Procurement Official who awards a Contract under this section shall negotiate with the Contractor to ensure that the terms of the Contract, including price and delivery, are in the best interest of the CRAU.

History

KEY: Colorado, procurement requirements
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-5-103 Extension of a Contract Without Engaging in a Standard Procurement Process

The Procurement Official may extend an existing Contract without engaging in a Standard Procurement Process:

(1) for a period not to exceed 120 days, if:

(a) an extension of the Contract is necessary to:

(i) avoid a lapse in a critical government service; or

(ii) to mitigate a circumstance that is likely to have a negative impact on public health, safety, welfare, or property; and

(b)(i)(A) the CRAU is engaged in a Standard Procurement Process for a Procurement Item that is the subject of the Contract being extended; and

(B) the Standard Procurement Process is delayed due to an unintentional error;

(ii) a change in an industry standard requires one or more significant changes to Specifications for the Procurement Item; or

(iii) an extension is necessary:

(A) to prevent the loss of federal funds;

(B) to mitigate the effects of a delay of a state or federal appropriation;

(C) to enable the CRAU to continue to receive a Procurement Item during a delay in the implementation of a Contract awarded pursuant to a Procurement that has already been conducted; or

(D) to enable the CRAU to continue to receive a Procurement Item during a period of time during which negotiations with a Vendor under a new Contract for the Procurement Item are being conducted;

(2) for the period of a protest, appeal, or court action, if the protest, appeal, or court action is the reason for delaying the award of a new Contract; or

(3) for a period exceeding 120 days, if, after consulting with the attorney general or the CRAU's attorney, the Procurement Official determines in writing that the Contract extension does not violate state or federal antitrust laws and is consistent with the purpose of ensuring the fair and equitable treatment of any person who deals with the Procurement system.

History

KEY: Colorado, procurement requirements
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-5-104 Emergency Procurement

(1) As used in this section, "natural disaster" means an event where:

(a) one or more of the following has caused widespread damage:

(i) an explosion;

(ii) fire;

(iii) a flood;

(iv) a storm;

(v) a tornado;

(vi) winds;

(vii) an earthquake;

(viii) lightning; or

(ix) other adverse weather event; and

(b) the president of the United States has declared an emergency or major disaster in the state, or the governor has declared a state of emergency under Title 53, Chapter 2a, Part 2, Disaster Response and Recovery Act.

(2) Notwithstanding any other provision of this R354-5 and subject to Subsection (4), a Procurement Official may authorize the CRAU to engage in an emergency Procurement without using a Standard Procurement Process if the Procurement is necessary to:

(a) avoid a lapse in a critical government service;

(b) mitigate a circumstance that is likely to have a negative impact on public health, safety, welfare, or property, including a natural disaster; or

(3) The CRAU conducting an emergency Procurement under Subsection (2) shall:

(a) ensure that the Procurement is made with as much competition as reasonably practicable while:

(i) avoiding a lapse in a critical government service;

(ii) avoiding harm, or a risk of harm, to the public health, safety, welfare, or property; or

(iii) protecting the legal interests of a public entity; and

(b) make the following publicly available on the CRAU's website within 14 days of the emergency Procurement:

(i) a written document describing the specific emergency that necessitated the emergency Procurement;

(ii) the name of the highest ranking government official that approved the emergency Procurement; and

(iii) each written Contract related to the emergency Procurement.

(4)(a) Except as provided in Subsections (4)(b), (5), and (6), the term of a Contract entered into for an emergency Procurement under this section may be no longer than 30 days.

(b) The term of a Contract entered into for an emergency Procurement under this section related to a natural disaster may be no longer than 60 days.

(5)(a) Subject to Subsection (5)(b), the requirements described in Subsection (4) do not apply to an emergency Procurement for legal services.

(b) A person hired through an emergency Procurement to provide legal services may not, under the Contract entered through the emergency Procurement, hire or otherwise provide remuneration to a consultant for services related to any topic that is not directly related to the legal services for which the person was hired.

(6) The requirements described in Subsection (4) do not apply to an emergency Procurement by the Department of Human Services related to the:

(a) placement of a client with a residential service provider; or

(b) provision of medical services for a client.

History

KEY: Colorado, procurement requirements
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

R354-6 Cancellations, Rejections, and Debarment

Utah Admin. Code R354-6-101 Title

This rule is known as "Cancellations, Rejections, and Debarment."

History

KEY: cancellations, debarment, rejections
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R3541-6-102 Cancellation and Rejection of Bids and Proposals

(1) An issuing Procurement unit may cancel an Invitation for Bids, a Request for Proposals, or other Solicitation or reject any bids or proposal responses, in whole or in part, as may be specified in the Solicitation, when it is in the best interests of the CRAU in accordance with the rules of the rulemaking authority.

(2) The reasons for a cancellation or rejection described in Subsection (1) shall be made part of the Contract file.

History

KEY: cancellations, debarment, rejections
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-6-103 Determination of Non-responsibility

(1) A determination of non-responsibility of a person made by an issuing Procurement unit shall be made in writing, in accordance with the rules of the rulemaking authority.

(2) A person's unreasonable failure to promptly supply information in connection with an inquiry with respect to responsibility may be grounds for a determination of non-responsibility with respect to the person.

(3) Subject to Title 63G 1, Chapter 2, Government Records Access and Management Act, information furnished by a person pursuant to this section may not be disclosed outside of the CRAU without the person's prior written consent.

History

KEY: cancellations, debarment, rejections
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-6-104 Debarment or Suspension from Consideration for Award of Contracts - Process - Causes for Debarment Judicial Review

(1)(a) Subject to Subsection (1)(b), a Procurement Official may:

(i) debar a person for cause from consideration for award of contracts for a period not to exceed three years; or

(ii) suspend a person from consideration for award of contracts if there is cause to believe that the person has engaged in any activity that might lead to debarment.

(b) Before debarring or suspending a person under Subsection (1)(a) a Procurement Official shall:

(i) consult with:

(A) the CRAU's Board Chair and Executive Director; and

(B) the attorney general or approved outside counsel;

(ii) give the person at least 10 days' prior written notice of:

(A) the reasons for which debarment or suspension is being considered; and

(B) the hearing under Subsection (1)(b)(iii); and

(iii) hold an informal hearing in accordance with Subsection (1)(c).

(c)(i) At an informal hearing under Subsection (1)(b)(iii), a Procurement Official may:

(A) subpoena witnesses and compel their attendance at the hearing;

(B) subpoena documents for production at the hearing;

(D) obtain testimony from experts, the person who is the subject of the proposed debarment or suspension, representatives of the CRAU, or others to assist the Procurement Official to decide on the proposed debarment or suspension.

(ii) The Rules of Evidence do not apply to an informal hearing under Subsection (1)(b)(iii).

(iii) A Procurement Official shall:

(A) record a hearing under Subsection (1)(b)(iii); and

(B) preserve any records and other evidence relied upon in reaching a decision until the decision becomes final.

(iv) The holding of an informal hearing under Subsection (1)(b)(iii) or the issuing of a decision under Subsection (1)(c)(v) does not affect a person's right to later question or challenge the jurisdiction of the Procurement Official to hold a hearing or issue a decision.

(v) The Procurement Official shall:

(A) promptly issue a written decision regarding a proposed debarment or suspension, unless the matter is settled by mutual agreement; and

(B) mail, email, or otherwise immediately furnish a copy of the decision to the person who is the subject of the decision.

(vi) A written decision under Subsection (1)(c)(v) shall:

(A) state the reasons for the debarment or suspension, if debarment or suspension is ordered; and

(B) inform the person who is debarred or suspended of the right to judicial review as provided in this chapter.

(vii) A decision of debarment or suspension is final and conclusive unless the decision is overturned by a court under Subsection (4).

(2) A suspension under this section may not be for a period exceeding three months, unless an indictment has been issued for an offense which would be a cause for debarment under Subsection (3), in which case the suspension shall, at the request of the attorney general or approved outside counsel, remain in effect until after the trial of the suspended person.

(3) The causes for debarment include the following:

(a) conviction of a criminal offense as an incident to obtaining or attempting to obtain a public or private Contract or subcontract or in the performance of a public or private Contract or subcontract;

(b) conviction under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or any other offense indicating a lack of business integrity or business honesty which currently, seriously, and directly affects responsibility as a Contractor for the CRAU;

(d) failure without good cause to perform in accordance with the terms of the Contract;

(e) a violation of this rule; or

(f) any other cause that the Procurement Official determines to be so serious and compelling as to affect responsibility as a Contractor for the CRAU, including debarment by another governmental entity.

(4)(a) A person who is debarred or suspended under this section may seek judicial review of the debarment or suspension by filing a petition for judicial review in district court.

(b) A petition under Subsection (4)(a):

(i) is a complaint governed by the Utah Rules of Civil Procedure;

(ii) shall name the CRAU as respondent;

(iii) shall be accompanied by a copy of the written decision as to which judicial review is sought; and

(iv) is barred unless filed in district court within 30 days after the date of the issuance of the written decision of suspension or debarment under Subsection (1)(c)(v).

(d) A district court shall, without a jury, determine each question of fact and law, including any constitutional issue, presented in the pleadings.

(5) The CRAU may consider a cause for debarment under Subsection (3) as the basis for determining that a person responding to a Solicitation is not Responsible:

(a) independent of any effort or proceeding under this section to debar or suspend the person; and

(b) even if the CRAU does not choose to seek debarment or suspension.

History

KEY: cancellations, debarment, rejections
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-6-105 Quote, Bid, Offer, or Contract Prohibited by Persons with Outstanding Tax Lien-Exceptions - Rejection of Quote, Bid, or Offer

(1) Except as provided in Subsection (2), a person with an outstanding tax lien in the state may not:

(a) submit a quote, bid, or offer to the CRAU; or

(b) Contract to provide a Procurement Item to the CRAU.

(2) Subsection (1) does not apply to the extent that the Procurement Official determines it is in the public interest to grant an exception to the requirements of Subsection (1) for a particular quote, bid, offer, or Contract specified by the Procurement Official.

(3) The CRAU may reject a quote, bid, or offer submitted in violation of Subsection (1).

History

KEY: cancellations, debarment, rejections
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

R354-7 Preferences

Utah Admin. Code R354-7-101 Title

This rule is known as "Preferences."

History

KEY: Colorado, preferences
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-7-102 Reciprocal Preference for Providers of State Products

(1)(a) The CRAU shall, for each Procurement, give a reciprocal preference to those Bidders offering Procurement Items that are produced, manufactured, mined, grown, or performed in Utah over those Bidders offering Procurement Items that are produced, manufactured, mined, grown, or performed in any state that gives or requires a preference to Procurement Items that are produced, manufactured, mined, grown, or performed in that state.

(b) The amount of reciprocal preference shall be equal to the amount of the preference applied by the other state for that Procurement Item.

(c) To receive a reciprocal preference under this section, the Bidder shall certify on the bid that the Procurement Items offered are produced, manufactured, mined, grown, or performed in Utah.

(d) The reciprocal preference is waived in the certification described in Subsection (1)(c) does not appear on the bid.

(2)(a) If the Responsible Bidder submitting the lowest Responsive bid offers Procurement Items that are produced, manufactured, mined, grown, or performed in a state that gives or requires a preference, and if another Responsible Bidder has submitted a Responsive bid offering Procurement Items that are produced, manufactured, mined, grown, or performed in Utah, and with the benefit of the reciprocal preference, the bid of the other Bidder is equal to or less than the original lowest bid, the issuing Procurement unit shall:

(i) give notice to the Bidder offering Procurement Items that are produced, manufactured, mined, grown, or performed in Utah that the Bidder qualifies as a preferred Bidder; and

(ii) make the purchase from the preferred Bidder if the Bidder agrees, in writing, to meet the low bid within 72 hours after notification that the Bidder is a preferred Bidder.

(b) The issuing Procurement unit shall include the exact price submitted by the lowest Bidder in the notice the issuing Procurement unit submits to the preferred Bidder.

(c) The issuing Procurement unit may not enter into a Contract with any other Bidder for the purchase until 72 hours have elapsed after notification to the preferred Bidder.

(3)(a) If there is more than one preferred Bidder, the issuing Procurement unit shall award the Contract to the willing preferred Bidder who was the lowest preferred Bidder originally.

(b) If there were two or more equally low preferred Bidders, the issuing Procurement unit shall comply with the rules of the rulemaking authority to determine which Bidder should be awarded the Contract.

(4) The provisions of this section do not apply if application of this section might jeopardize the receipt of federal funds.

History

KEY: Colorado, preferences
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-7-103 Exception for Federally Funded Contracts

This rule does not apply to the extent it conflicts with federal requirements relating to a Procurement that involves the expenditure of federal assistance, federal Contract funds, or federal financial participation funds.

History

KEY: Colorado, preferences
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

R354-8 Contracts and Change Orders

Utah Admin. Code R354-8-101 Title

This rule is known as "Contracts and Change Orders."

History

KEY: contracts, change orders
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-8-102 Standard Contract Clauses Encouraged

The Procurement Official is encouraged to establish standard Contract clauses to assist the CRAU and to help Contractors and potential Contractors to understand applicable requirements.

History

KEY: contracts, change orders
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-8-103 Multiyear Contracts

(1) Except as provided in Subsection (7), the CRAU may enter into a Multiyear Contract resulting from a Standard Procurement Process, if:

(a) the Procurement Official determines, in the discretion of the Procurement Official, that entering into a Multiyear Contract is in the best interest of the CRAU; and

(b) the Invitation for Bids or Request for Proposals:

(i) states the term of the Contract, including any possible renewals of the Contract;

(ii) states the conditions for renewal of the Contract; and

(iii) includes the provisions of Subsections (3) through (5) that are applicable to the Contract.

(2) In making the determination described in Subsection (1)(a), the Procurement Official shall consider whether entering into a Multiyear Contract will:

(a) result in significant savings to the CRAU, including:

(i) reduction of the administrative burden in procuring, negotiating, or administering contracts;

(ii) continuity in operations of the CRAU; or

(iii) the ability to obtain a volume or term discount;

(b) encourage participation by a person who might not otherwise be willing or able to compete for a shorter term Contract; or

(c) provide an incentive for a Bidder or Offeror to improve productivity through capital investment or better Technology.

(3)(a) The determination described in Subsection (1)(a) is discretionary and is not required to be in writing or otherwise recorded.

(b) Except as provided in Subsections (4) and (5), notwithstanding any provision of an Invitation for Bids, a Request for Proposals, or a Contract to the contrary, a Multiyear Contract, including a Contract that was awarded outside of an Invitation for Bids or Request for Proposals Process, may not continue or be renewed for any year after the first year of the Multiyear Contract if adequate funds are not appropriated or otherwise available to continue or renew the Contract.

(4) A Multiyear Contract that is funded solely by federal funds may be continued or renewed for any year after the first year of the Multiyear Contract if:

(a) adequate funds to continue or renew the Contract have not been, but are expected to be appropriated by, and received from, the federal government;

(b) continuation or renewal of the Contract before the money is appropriated or received is permitted by the federal government; and

(c) the Contract states that it may be cancelled or suspended, without penalty, if the anticipated federal funds are not appropriated or received.

(5) A Multiyear Contract that is funded in part by federal funds may be continued or renewed for any year after the first year of the Multiyear Contract if:

(a) the portion of the Contract that is to be funded by funds of a public entity are appropriated;

(b) adequate federal funds to continue or renew the Contract have not been, but are expected to be, appropriated by, and received from, the federal government;

(c) continuation or renewal of the Contract before the federal money is appropriated or received is permitted by the federal government; and

(d) the Contract states that it may be cancelled or suspended, without penalty, if the anticipated federal funds are not appropriated or received.

(6) The CRAU may not continue or renew a Multiyear Contract after the end of the Multiyear Contract term or the renewal periods described in the Contract, unless the CRAU engages in a new Standard Procurement Process or complies with an exception, described in this R354-8, to using a Standard Procurement Process.

(7) A Multiyear Contract, including any renewal periods, may not exceed a period of five years, unless:

(a) the Procurement Official determines, in writing, that:

(i) a longer period is necessary to obtain the Procurement Item;

(ii) a longer period is customary for industry standards; or

(iii) a longer period is in the best interest of the CRAU; and

(b) the written determination described in Subsection (7)(a) is included in the file relating to the Procurement.

History

KEY: contracts, change orders
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-8-104 Multiple Award Contracts

(1)(a) Through a Standard Procurement Process, the CRAU may enter into Multiple Award Contracts with multiple persons.

(b) The Procurement Officer may adopt policies, consistent with this section, regulating the use of Multiple Award Contracts.

(2) Multiple award contracts may be in the CRAU's best interest if award to two or more Bidders or Offerors for similar Procurement Items is needed or desired for adequate delivery, service, availability, or product compatibility.

(3) The CRAU that enters into Multiple Award Contracts under this section shall:

(a) exercise care to protect and promote competition among Bidders or Offerors when seeking to enter into Multiple Award Contracts;

(b) name any eligible users of the Multiple Award Contracts in the Invitation for Bids or Request for Proposals; and

(c) if the CRAU anticipates entering into Multiple Award Contracts before issuing the Invitation for Bids or Request for Proposals, state in the Invitation for Bids or Request for Proposals that the CRAU may enter into Multiple Award Contracts at the end of the Procurement process.

(4) If the CRAU enters into Multiple Award Contracts under this section it shall:

(a) obtain, under the Multiple Award Contracts, any of its normal, recurring requirements for the Procurement Items that are the subject of the contracts until the contracts terminate; and

(b) reserve the right to obtain the Procurement Items described in Subsection (4)(a) separately from the contracts if:

(i) there is a need to obtain a quantity of the Procurement Items that exceeds the amount specified in the contracts; or

(ii) the Procurement Official makes a written finding that the Procurement Items available under the Contract will not effectively or efficiently meet a nonrecurring special need of the CRAU.

History

KEY: contracts, change orders
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-8-105 Regulation of Contract Types -- Permitted and Prohibited Contract Types

(1) Except as otherwise provided in this section, the CRAU may use any type of Contract that will promote the best interests of the CRAU.

(2) A Procurement Official may not use a type of Contract, other than a firm Fixed Price Contract, unless the Procurement Official makes a written determination that:

(a) the proposed Contractor's accounting system will permit timely development of any necessary cost data in the form required by the specific Contract type contemplated;

(b) the proposed Contractor's accounting system is adequate to allocate costs in accordance with generally accepted accounting principles; and

(c) the use of a specified type of Contract, other than a firm Fixed Price Contract, is in the best interest of the CRAU, taking into consideration the following criteria:

(i) the type and complexity of the Procurement Item;

(ii) the difficulty of estimating performance costs at the time the Contract is entered into, due to factors that may include:

(A) the difficulty of determining definitive Specifications;

(B) the difficulty of determining the risks, to the Contractor, that are inherent in the nature of the work to be performed; or

(iii) the administrative costs to the CRAU and the Contractor;

(iv) the degree to which the CRAU is required to provide technical coordination during performance of the Contract;

(v) the impact that the choice of Contract type may have upon the level of competition for award of the Contract;

(vi) the stability of material prices, commodity prices, and wage rates in the applicable market;

(vii) the impact of the Contract type on the level of urgency related to obtaining the Procurement Item;

(viii) the impact of any applicable governmental regulation relating to the Contract; and

(ix) other criteria that the Procurement Official determines may relate to determining the Contract type that is in the best interest of the CRAU.

(4) Contract types that are subject to the provisions of this section and policies made under this section may be used by the CRAU include the following:

(a) a Fixed Price Contract;

(b) a Fixed Price Contract with Price Adjustment;

(d) a labor hour Contract;

(e) a Definite Quantity Contract;

(f) an Indefinite Quantity Contract;

(g) a Requirements Contract; or

(h) a Contract based on a rate table in accordance with industry standards.

(5) The CRAU may not enter into a cost-plus-percentage-of-cost Contract, unless:

(a) use of a cost-plus-percentage-of-cost Contract is approved by the Procurement Official;

(b) it is standard practice in the industry to obtain the Procurement Item through a cost-plus-percentage-of-cost Contract; and

(6) The CRAU may not enter into a cost-reimbursement Contract, unless the Procurement Official makes a written determination that:

(a)(i) a cost-reimbursement Contract is likely to cost less than any other type of permitted Contract; or

(ii) it is impracticable to obtain the Procurement Item under any other type of permitted Contract; and

(b) the proposed Contractor's accounting system:

(i) will timely develop the cost data in the form necessary for the CRAU to timely and accurately make payments under the Contract; and

(ii) will allocate costs in accordance with generally accepted accounting principles.

History

KEY: contracts, change orders
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-8-106 Rules to Determine Allowable Incurred Costs -- Required Information

(1)(a) The Procurement Officer may, by policy, establish the cost principles to be included in a cost-reimbursement Contract to determine incurred costs to calculate a reimbursement.

(b) The cost principles established by rule under Subsection (1)(a) may be modified, by Contract, if the Procurement Official approves the modification.

(2) Except as provided in Subsection (5), a person who seeks to be, or is, a party in a cost-based Contract with the CRAU shall:

(a) submit cost or pricing data relating to determining the cost or pricing amount; and

(b) certify that, to the best of the Contractor's knowledge and belief, the cost or pricing data submitted is accurate and complete as of the date specified by the CRAU.

(3) The Procurement Official shall ensure that the date specified under Subsection (2)(b) is before:

(a) the pricing of any Contract awarded by a Standard Procurement Process or pursuant to a Sole Source Procurement, if the total Contract price is expected to exceed $100,000; or

(b) the pricing of any change order that is expected to exceed 20% of the original Contract amount.

(4) A Contract or change order that requires a certification described in Subsection (2) shall include a provision that the price to the CRAU, including profit or fee, shall be adjusted to exclude any significant sums by which the CRAU finds that the price was increased because the Contractor provided cost or pricing data that was inaccurate, incomplete, or not current as of the date specified by the Procurement Official.

(5) The CRAU is not required to comply with Subsection (2) if:

(a) the Contract price is based on adequate price competition;

(b) the Contract price is based on established catalogue prices or market prices;

(d) the Procurement states, in writing:

(i) that, in accordance with a policy established by the Procurement Officer, the requirements of Subsection (2) may be waived; and

(ii) the reasons for the waiver.

History

KEY: contracts, change orders
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-8-107 Auditing of Books of Contractor or Subcontractor

(1) A Procurement Official or an audit entity under Contract with the CRAU may audit the books and records of a Contractor or Subcontractor.

(2) An audit under Subsection (1):

(a) is limited to the books and records that relate to the applicable Contract or subcontract; and

(b) may occur only at a reasonable time and place.

(3) A Contractor shall maintain any books and records relating to a Contract for six years after the day on which the Contractor receives the final payment under the Contract, or until any audit initiated under this section within the six-year period have been completed, whichever is later.

(4) A Subcontractor shall maintain any books and records relating to a subcontract for six years after the day on which the Subcontractor receives the final payment under the subcontract, or until any audits initiated under this section within the six- year period have been completed, whichever is later.

History

KEY: contracts, change orders
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-8-108 Change in Contract Price

(1) As used in this section, "Contract Price":

(a) means the price under an existing Contract between the CRAU and a Contractor; and

(b) does not include a proposed price or cost contained in a Solicitation Response or any other bid, proposal, or offer submitted by a person other than the Contractor under the existing Contract.

(2) A Contractor may:

(a) increase the Contract Price only in accordance with the terms of the Contract; and

(b) subject to Subsection (3), lower the Contract Price at any time during the time a Contract is in effect.

(3) A Contractor under a Multiple Award Contract resulting from a Bidding Process may not lower the Contract Price unless the Contractor's Solicitation Response that led to the Contract award was the lowest price Solicitation Response.

History

KEY: contracts, change orders
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-8-109 Installment Payments - Contract Prepayments

(1) A Contract entered into by the CRAU may provide for installment payments, including interest charges, over a period of time, if the Procurement Official makes a written finding that:

(a) the use of installment payments are in the interest of the CRAU;

(b) installment payments are not used as a method of avoiding budgetary constraints;

(d) any aspects of the installment payments required in the Contract are in accordance with the requirements of law; and

(e) for a Contract awarded through an Invitation for Bids or a Request for Proposals, the Invitation for Bids or Request for Proposals indicates that installment payments are required or permitted.

(2)(a) The CRAU may not pay for a Procurement Item before the CRAU receives the Procurement Item, unless the Procurement Official determines that it is necessary or beneficial for the CRAU to pay for the Procurement Item before the CRAU receives the Procurement Item.

(b) A Procurement Official's determination under Subsection (2)(a) shall be in writing, unless:

(i) the rulemaking authority has adopted a rule describing one or more circumstances under which a written determination is not necessary; and

(ii) the Procurement Official's determination is under one of those circumstances.

(3) Circumstances where prepayment may be necessary for, or beneficial to, the CRAU include:

(a) when it is customary in the industry to prepay for the Procurement Item;

(b) if the CRAU will receive an identifiable benefit by prepaying, including reduced costs, additional Procurement Items, early delivery, better service, or better Contract terms; or

(4) The Procurement Officer may adopt policies governing prepayments.

(5) A prepaid expenditure shall be supported by documentation indicating:

(a) the amount of the prepayment;

(b) the prepayment schedule;

(d) the remedies for a Contractor's noncompliance with requirements relating to the provision of the Procurement Items; and

(e) any other terms and conditions relating to the payments and the Procurement Items.

(6) The Procurement Official or the Procurement Official's designee may require a performance bond, of up to 100% of the prepayment amount, from the person to whom the prepayments are made.

History

KEY: contracts, change orders
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-8-110 Leases

(1) As used in this section, "lease" means for the CRAU to lease or lease-purchase a Procurement Item from a person.

(2) This section does not apply to the lease of real property.

(3) The CRAU may not lease a Procurement Item unless the CRAU complies with the requirements of this section.

(4) The CRAU may lease a Procurement Item if:

(a) the Procurement Official determines that it is in the best interest of the CRAU to lease the Procurement Item, after the Procurement Official:

(i) investigates alternative means of obtaining the Procurement Item; and

(ii) considers the costs and benefits of the alternative means of obtaining the Procurement Item;

(b) any conditions for renewal and cost are included in the lease;

(c) the lease is awarded through a Standard Procurement Process, or an exception to a Standard Procurement Process described in Rule R354-5.

(d) for a Standard Procurement Process, the Invitation for Bids, Request for Proposals, or request for quotes states:

(i) that the CRAU is seeking, or willing to consider, a lease; and

(ii) for a lease-purchase, that the CRAU is seeking, or willing to consider, a lease-purchase;

(iii) the lease is not used to avoid competition; and

(e) the lease complies with any other provision of law or rule applicable to the lease.

History

KEY: contracts, change orders
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-8-111 Contract Provisions for Incentives, Damages, and Penalties

The CRAU may include in a Contract terms that provide for:

(1) incentives, including bonuses;

(2) payment of damages, including liquidated damages; or

(3) penalties.

History

KEY: contracts, change orders
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

R354-9 Protests

Utah Admin. Code R354-9-101 Title

This rule is known as "Protests."

History

KEY: protests, resolutions
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-9-102 Definitions

As used in this rule:

(1) "Constructive knowledge":

(a) means knowledge or information that a Protestor would have if the Protestor had exercised reasonable care or diligence, regardless of whether the Protestor has the knowledge or information; and

(b) includes knowledge of:

(i) applicable provisions of this Procurement Procedure and other law;

(ii) instructions, criteria, deadlines, and requirements contained in the Solicitation or in other documents made available to persons interested in the Solicitation or provided in a mandatory pre- Solicitation meeting;

(iii) relevant facts and evidence supporting the protest or leading the Protestor to contend that the Protestor has been aggrieved in connection with a Procurement;

(iv) communications or actions, pertaining to the Procurement, of any persons within the Protestor's organization or under the supervision of the Protestor; and

(v) any other applicable information discoverable by the exercise of reasonable care or diligence.

(2) "Hearing" means a proceeding in which evidence, which may include oral testimony, or argument relevant to a protest is presented to a Procurement Official in connection with the Procurement Official's determination of an issue of fact or law or both.

(3) "Protest Appeal Record" means:

(a) a copy of the Procurement Official's written decision;

(b) any documentation and other evidence the Procurement Official relied upon in reaching the Procurement Official's decision;

(d) a copy of the Protestor's written protest; and

(e) any documentation and other evidence submitted by the Protestor supporting the protest or the Protestor's claim of standing.

(4) "Protestor" means a person who files a protest under this part.

(5) "Standing" means to have suffered an injury or harm or to be about to suffer imminent injury or harm, if:

(a) the cause of the injury or harm is:

(i) an infringement of the Protestor's own right and not the right of another person who is not a party to the Procurement;

(ii) reasonably connected to the CRAU's conduct; and

(iii) the sole reason the Protestor is not considered, or is no longer considered, for an award of a Contract under the Procurement that is the subject of the protest;

(b) a decision on the protest in favor of the Protestor:

(i) is likely to redress the injury or harm; and

(ii) would give the Protestor a reasonable likelihood of being awarded a Contract; and

(c) the Protestor has the legal authority to file the protest on behalf of the actual or prospective Bidder or Offeror or prospective contractor involved in the Procurement that is the subject of the protest.

History

KEY: protests, resolutions
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-9-103 Protest -- Time for Filing -- Basis of Protest -- Authority to Resolve Protest

(1) A protest may be filed with the Procurement Officer by a person who:

(a) has standing; and

(b) is aggrieved in connection with a Procurement or an award of a Contract.

(2)(a) A protest may not be filed after:

(i)(A) the opening of bids, for a protest relating to a Procurement under a Bidding Process; or

(B) the deadline for submitting responses to the Solicitation, for a protest relating to another Standard Procurement Process; or

(ii) the closing of the Procurement stage that is the subject of the protest:

(A) if the protest relates to a multiple-stage Procurement; and

(B) notwithstanding Subsections (2)(a)(i)(A) and (B); or

(b) the day that is seven days after the day on which the person knows or first has constructive knowledge of the facts giving rise to the protest, if:

(i) the Protestor did not know and did not have constructive knowledge of the facts giving rise to the protest before:

(A) the opening of bids, for a protest relating to a Procurement under a Bidding Process;

(B) the deadline for submitting responses to the Solicitation, for a protest relating to another Standard Procurement Process; or

(C) the closing of the Procurement stage that is the subject of the protest, if the protest relates to a multiple-stage Procurement; or

(ii) the protest relates to a Procurement process not described in Subsection (2)(a).

(3) A deadline under Subsection (2) for filing a protest may not be modified.

(4) A Protestor shall include in a protest:

(i) the Protestor's mailing address and email address; and

(ii) a concise statement of the facts and evidence:

(A) leading the Protestor to claim that the Protestor has been aggrieved in connection with a Procurement and providing the grounds for the Protestor's protest; and

(B) supporting the Protestor's claim of standing.

(b) A protest may not be considered unless it contains facts and evidence that, if true, would establish:

(i) a violation of this Procurement Procedure or other applicable law;

(ii) the CRAU's failure to follow a provision of a Solicitation;

(iii) an error made by an evaluation committee or conducting Procurement unit;

(iv) a bias exercised by an evaluation committee or an individual committee member, excluding a bias that is a preference arising during the evaluation process because of how well a Solicitation Response meets criteria in the Solicitation;

(v) a failure to correctly apply or calculate a scoring criterion; or

(vi) that Specifications in a Solicitation are unduly restrictive or unduly anticompetitive.

(5) A protest may not be based on:

(a) the rejection of a Solicitation Response due to a Protestor's failure to attend or participate in a mandatory conference, meeting, or site visit held before the deadline for submitting a Solicitation Response;

(b) a vague or unsubstantiated allegation; or

(i) the CRAU that complied with Section R354-1-105 did not provide individual notice of a Solicitation to the person; or

(ii) the person received late notice of a Solicitation for which notice was provided in accordance with Section R354-1- 105.

(6) A protest may not include a request for:

(a) an explanation of the rationale or scoring of evaluation committee members;

(b) the disclosure of a protected record or protected information in addition to the information provided under the disclosure provisions of this chapter; or

(7) A person who fails to file a protest within the time prescribed in Subsection (2) may not:

(a) protest to the Procurement Official a Solicitation or award of a Contract; or

(b) file an action or appeal challenging a Solicitation or award of a Contract before an appeals panel, a court, or any other forum.

(8) Subject to the applicable requirements of Section 1-10-403, the Procurement Officer may enter into a settlement agreement to resolve a protest.

History

KEY: protests, resolutions
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-9-104 Protest Officer Responsibilities and Authority -- Proceedings on Protest -- Effect of Decision

(1) After a protest is filed, the Procurement Official shall determine whether the protest is timely filed and complies fully with the requirements of Section R354-9-103.

(2) If the Procurement Official determines that the protest is not timely filed or that the protest does not fully comply with Section R354-9-103, the Procurement Official shall dismiss the protest without holding a hearing.

(3) If the Procurement Official determines that the protest is timely filed and complies fully with Section R354-9-103 the Procurement Official shall:

(a) dismiss the protest without holding a hearing if the Procurement Official determines that the protest alleges facts that, if true, do not provide an adequate basis for the protest;

(b) uphold the protest without holding a hearing if the Procurement Official determines that the undisputed facts of the protest indicate that the protest should be upheld; or

(c) hold a hearing on the protest if there is a genuine issue of material fact or law that needs to be resolved to determine whether the protest should be upheld.

(4)(a) If a hearing is held on a protest, the Procurement Official may:

(i) subpoena witnesses and compel their attendance at the protest hearing;

(ii) subpoena documents for production at the protest hearing;

(iii) obtain additional information; and

(iv) obtain testimony from experts, the person filing the protest, representatives of the CRAU, or others to assist the Procurement Official to decide on the protest.

(b) The Rules of Evidence do not apply to a protest hearing.

(i) who may intervene; and

(ii) the time and manner of intervention.

(d) A Procurement Official shall:

(i) record each hearing held on a protest under this section;

(ii) regardless of whether a hearing on a protest is held under this section, preserve any records and other evidence relied upon in reaching the Procurement Official's written decision until the decision, and any appeal of the decision, becomes final; and

(iii) if the Protestor appeals the Procurement Official's decision, submit the Protest Appeal Record to the Procurement policy board chair within seven days after receiving:

(A) notice that an appeal of the Procurement Official's decision has been filed under Section R354-10-103; or

(B) a request for the Protest Appeal Record from the chair of the Procurement policy board.

(e) A Procurement Official's holding a hearing, considering a protest, or issuing a written decision under this section does not affect a person's right to late question or challenge the Procurement Official's jurisdiction to hold the hearing, consider the protest, or issue the decision.

(5) The deliberations of a Procurement Official may be held in private.

(6)(a) A Procurement Official shall promptly issue a written decision regarding any protest, unless the protest is settled by mutual agreement.

(b) The decision shall:

(i) state the reasons for the action taken;

(ii) inform the Protestor of the right to judicial or administrative review as provided in this chapter; and

(iii) indicate the amount of the security deposit or bond required under Section R354-10-104.

(c) A person who issues a decision under Subsection (6)(a) shall mail, email, or otherwise immediately furnish a copy of the decision to the Protestor.

(7) A decision described in this section is effective until stayed or reversed on appeal, except to the extent provided in Section R354-12-103.

(8)(a) A decision described in Subsection (6)(a) that is issued in relation to the CRAU is final and conclusive unless the Protestor files an appeal under Section R354-10-103.

(b) A decision described in Subsection (6)(a) that is issued in relation to a legislative Procurement unit, a judicial Procurement unit, a nonadopting local government Procurement unit, or a public transit district is final and conclusive unless the Protestor files an appeal under Section R354-11-102.

(9) If the Procurement Official does not issue the written decision regarding a protest within 30 calendar days after the day on which the protest was filed with the Procurement Official, or within a longer period as may be agreed upon by the parties, the Protestor may proceed as if an adverse decision had been received.

(10) A determination under this section by the Procurement Official regarding an issue of fact may not be overturned on appeal unless the decision is arbitrary and capricious or clearly erroneous.

(11) An individual is not precluded from acting and may not be disqualified or required to be recused from acting, as a Procurement Official because the individual also acted in another capacity during the Procurement process, as required or allowed in this rule.

History

KEY: protests, resolutions
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

R354-10 Procurement Appeals Panel

Utah Admin. Code R354-10-101 Title

This rule is known as "Procurement Appeals Panel."

History

KEY: procurement appeals, Colorado
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-10-102 Definitions

As used in this rule:

(1) "Appointing Officer" means:

(a) the chair of the Authority; or

(b) a designee of the chair who is not employed by the CRAU responsible for the Solicitation, Contract award, or other action that is the subject of the Protestor's protest.

(2) "Procurement Appeals Panel" means the Appointing Officer or the panel appointed by the Appointing Officer.

(3) "Protest Appeal Record" means the same as that term is defined in Section R354-9-102.

(4) "Protestor" means the same as that term is defined in Section R354-9-102.

History

KEY: procurement appeals, Colorado
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-10-103 Appointment of Procurement Appeals Panel -- Proceedings

(1)(a) Subject to R354-10-104, a Protestor may appeal to the chair of the Board a protest decision of the Procurement Official that is subject to this rule by filing a written notice of appeal with the chair of the Board within seven days after:

(i) the day on which the written decision described in Section R354-9-104 is:

(A) personally, served on the party or the party's representative; or

(B) emailed or mailed to the address or email address provided by the party under Subsection 1-9-103(4); or

(ii) the day on which the 30-day period described in Subsection R354-9-104(9) ends, if a written decision is not issued before the end of the 30-day period.

(b) A notice of appeal under Subsection (1)(a) shall:

(i) include the address of record and email address of record of the party filing the notice of appeal; and

(ii) be accompanied by a copy of any written protest decision.

(2) A person may not base an appeal of a protest under this section on:

(a) a ground not specified in the person's protest under Section R354-9-103; or

(b) new or additional evidence not considered by the Procurement Official.

(3)(a) A person may not appeal from a protest described in Section R354-9-103, unless:

(i) a decision on the protest has been issued; or

(ii) a decision is not issued, and the 30-day period described in Subsection R354-9-104(9), or a longer period agreed to by the parties, has passed.

(b) The CRAU may not appeal a protest decision or other determination made by the Procurement Official.

(4)(a) Within seven days after the chair of the Board receives a written notice of an appeal under this section, the chair shall submit a written request to the Procurement Official for the Protest Appeal Record.

(b) Within seven days after the chair receives the Protest Appeal Record from the Procurement Official, the Appointing Officer shall, in consultation with the attorney general's office or approved outside counsel:

(i) review the appeal to determine whether the appeal complies with the requirements of Subsections (2), (3), and (4) and Section R354-10-104; and

(ii)(A) dismiss any claim asserted in the appeal, or dismiss the appeal, without holding a hearing if the Appointing Officer determines that the claim or appeal, respectively, fails to comply with any of the requirements listed in Subsection (5)(a)(i); or

(B) conduct an administrative review sitting as the Procurement Appeals Panel or appoint a Procurement Appeals Panel to conduct an administrative review of any claim in the appeal that has not been dismissed under Subsection (5)(a)(ii)(A), if the Appointing Officer determines that one or more claims asserted in the appeal comply with the requirements listed in Subsection (5)(b)(i).

(c) A Procurement Appeals Panel appointed under Subsection (5)(a) shall consist of an odd number of at least three individuals. The Appointing Officer selects the panel members. The members may be:

(i) a member of the Board; or

(ii) a designee of a member appointed under Subsection (5), if the designee is approved by the chair of the Board.

(d) The Appointing Officer shall appoint one of the members of the Procurement Appeals Panel to serve as the coordinator of the panel.

(e) The Appointing Officer may:

(i) appoint the same Procurement Appeals Panel to hear more than one appeal; or

(ii) appoint a separate Procurement Appeals Panel for each appeal.

(f) The Appointing Officer may not appoint a person to a Procurement Appeals Panel if the person is employed by the CRAU responsible for the Solicitation, Contract award, or other action that is the subject of the Protestor's protest.

(g) The Appointing Officer shall, at the time the Procurement Appeals Panel is appointed, provide appeals panel members with a copy of the notice of appeal filed under Subsection (2) and the protest decision record.

(5)(a) A Procurement Appeals Panel described in Subsection (5):

(i) shall conduct an administrative review of the appeal within 30 days after the day on which the Appointing Officer chose to either hear the appealed or, if appoint a panel, 30 days after the Procurement Appeals Panel is appointed, or before a later date that any parties agree upon, unless the appeal is dismissed under Subsection (8)(a); and

(ii)(A) may, as part of the administrative review and at the sole discretion of the Procurement Appeals Panel, conduct an informal hearing, if the Procurement Appeals Panel considers a hearing to be necessary; and

(B) if the Procurement Appeals Panel conducts an informal hearing, shall, at least seven days before the hearing, mail, email, or hand-deliver a written notice of the hearing to the parties to the appeal.

(b) A Procurement Appeals Panel may, during an informal hearing, ask questions and receive responses regarding the appeal and the Protest Appeal Record to assist the Procurement Appeals Panel to understand the basis of the appeal and information contained in the Protest Appeal Record but may not otherwise take any additional evidence or consider any additional ground for the appeal.

(6) A Procurement Appeals Panel shall consider and decide the appeal based solely on:

(a) the notice of appeal and the Protest Appeal Record; and

(b) responses received during an informal hearing if an informal hearing is held and to the extent allowed under Subsection (6)(b).

(7) A Procurement Appeals Panel:

(a) may dismiss an appeal if the appeal does not comply with the requirements of this rule; and

(b) shall uphold the protest decision unless the protest decision is arbitrary and capricious or clearly erroneous.

(8) The Procurement Appeals Panel shall, within seven days after the day on which the Procurement Appeals Panel concludes the administrative review:

(a) issue a written decision on the appeal; and

(b) mail, email, or hand-deliver the written decision on the appeal to the parties to the appeal and to the Procurement Official.

(9)(a) The deliberation of a Procurement Appeals Panel may be held in private.

(b) If the Procurement Appeals Panel is a public body, as defined in Section 52-4-103, the Procurement Appeals Panel shall comply with Section 52-4-205 in closing a meeting for its deliberations.

(10) A Procurement Appeals Panel may continue an administrative review under this section beyond the 30-day period described in Subsection (6)(a)(i) if the Procurement Appeals Panel determines that the continuance is in the interests of justice.

(11) If a Procurement Appeals Panel determines that the decision of the Procurement Official is arbitrary and capricious or clearly erroneous, the Procurement Appeals Panel:

(a) shall remand the matter to the Procurement Official, to cure the problem or render a new decision;

(b) may recommend action that the Procurement Official should take; and

(i) a Contract be awarded to a certain person;

(ii) a Contract or Solicitation be cancelled; or

(iii) any other action be taken other than the action described in Subsection (12)(a).

(12) The Procurement Official may adopt policies relating to the conduct of an appeals proceeding, including rules that provide for:

(a) expedited proceedings; and

(b) electronic participation in the proceedings by panel members and participants.

(13) The Rules of Evidence do not apply to a hearing held by a Procurement Appeals Panel.

(14) Rule R354-13 applies to the records involved in the process described in this section, including the decision issued by a Procurement Appeals Panel.

History

KEY: procurement appeals, Colorado
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-10-104 Requirement to Pay a Security Deposit or Post a Bond -- Exceptions -- Amount -- Forfeiture of Security Deposit or Bond

A person who files a notice of appeal under Section R354-10-103 shall, before the expiration of the time provided under Subsection R354-10-103(1) for filing a notice of appeal, pay a security deposit or post a bond with the office of the Procurement Official.

(1) The amount of a security deposit or bond required under Subsection (1) is:

(a) for an appeal relating to an Invitation for Bids or Request for Proposals and except as provided in Subsection (2)(b)(ii):

(i) $20,000, if the total Contract value is under $500,000;

(ii) $25,000, if the total Contract value is $500,000 or more but less than $1,000,000;

(iii) $50,000, if the total Contract value is $1,000,000 or more but less than $2,000,000;

(iv) $95,000, if the total Contract value is $2,000,000 or more but less than $4,000,000;

(v) $180,000, if the total Contract value is $4,000,000 or more; or

(b) $20,000, for an appeal:

(i) relating to any type of Procurement process other than an Invitation for Bids or Request for Proposals;

(ii) relating to an Invitation for Bids or Request for Proposals, if the estimated total Contract value cannot be determined; or

(iii) of a debarment or suspension.

(2)(a) For an appeal relating to an Invitation for Bids, the estimated total Contract value shall be based on:

(i) the lowest Responsive bid amount for the entire term of the Contract, excluding any renewal period, if the bid opening has occurred;

(ii) the total budget for the Procurement Item for the entire term of the Contract, excluding any renewal period, if bids are based on unit or rate pricing; or

(iii) if the Contract is being rebid, the historical usage and amount spent on the Contract over the life of the Contract.

(b) For an appeal relating to a Request for Proposals, the estimated total Contract value shall be based on:

(i) the lowest cost proposed in a response to a Request for Proposals, considering the entire term of the Contract, excluding any renewal period, if the opening of proposals has occurred;

(ii) the total budget for the Procurement Item over the entire term of the Contract, excluding any renewal period, if opened cost proposals are based on unit or rate pricing; or

(iii) if the Contract is being reissued, the historical usage and amount spent on the Contract over the life of the Contract that is being reissued.

(3) The Procurement Official shall:

(a) retain the security deposit or bond until the protest and any appeal of the protest decision is final;

(b) as it relates to a security deposit:

(i) deposit the security deposit into an interest-bearing account; and

(ii) after any appeal of the protest decision becomes final, return the security deposit and the interest it accrues to the person who paid the security deposit, unless the security deposit is forfeited to the general fund of the CRAU under Subsection (4); and

(i) retain the bond until the protest and any appeal of the protest decision becomes final; and

(ii) after the protest and any appeal of the protest decision becomes final, return the bond to the person who posted the bond, unless the bond is forfeited to the general fund of the CRAU under Subsection (4).

(4) A security deposit that is paid, or a bond that is posted, under this section shall forfeit to the general fund of the CRAU if:

(a) the person who paid the security deposit or posted the bond fails to ultimately prevail on appeal; and

(b) the Procurement Appeals Panel finds that the protest or appeal is frivolous or that its primary purpose is to harass or cause a delay.

History

KEY: procurement appeals, Colorado
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-10-105 Discontinued Appeal with Prejudice, Except as Authorized

After notice of an appeal to the Board is filed under Section R354-10-103, no party may discontinue the appeal without prejudice, except as authorized by the Procurement Appeals Panel appointed for the appeal.

History

KEY: procurement appeals, Colorado
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-10-106 Factual Determination of Procurement Appeals Panel Final and Conclusive

A determination of an issue of fact by a Procurement Appeals Panel may not be overturned on appeal unless the determination is arbitrary and capricious or clearly erroneous.

History

KEY: procurement appeals, Colorado
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

R354-11 Appeals to the Court and Court Proceedings

Utah Admin. Code R354-11-101 Title

This rule is known as "Appeals to the Court and Court Proceedings."

History

KEY: courts, court proceedings
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-11-102 Appeal to Utah Court of Appeals

(1)(a) As provided in this rule:

(i) a person may appeal a dismissal of an appeal by the authority chair under Subsection R354 -10-103(5)(b)(ii)(A);

(ii) a person who receives an adverse decision by a Procurement Appeals Panel may appeal that decision; and

(iii) subject to Subsection (2), the CRAU may appeal an adverse decision by a Procurement Appeals Panel;

(b) A person seeking to appeal a dismissal or decision under Subsection (1)(a) shall file a notice of appeal with the Utah Court of Appeals within seven days after the dismissal or decision.

(2) The CRAU may not appeal the decision of a Procurement Appeals Panel, unless the appeal is:

(a) recommended by the Procurement Official involved; and

(b) the attorney general's office or outside counsel approved by the attorney general.

(3) A person appealing a dismissal, decision, or protest under this section may not base the appeal on a ground not specified in the proceeding from which the appeal is taken.

(4) The Utah Court of Appeals:

(a) shall consider the appeal as an appellate court;

(b) may not hear the matter as a trial de novo; and

(c) may not overturn a finding, dismissal, or decision unless the finding, dismissal, or decision, is arbitrary and capricious or clearly erroneous.

(5) The Utah Court of Appeals is encouraged to:

(a) give an appeal made under this section priority; and

(b) consider the appeal and render a decision in an expeditious manner.

History

KEY: courts, court proceedings
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-12-101 Title

This rule is known as "General Provisions Related to Protests or Appeal."

History

KEY: protests, appeals
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-12-102 Limitation on Challenges -- Compliance with Federal Law

(1) A person may not challenge a Procurement, a Procurement process, the award of a Contract relating to a Procurement, a debarment, or a suspension, in a court, before an administrative officer or body, or in any other forum other than the forum permitted in this Procurement Procedure.

(2) A person who desires to challenge a Procurement, a Procurement process, the award of a Contract relating to a Procurement, a debarment, or a suspension, shall bring the challenge, in accordance with the requirements of this R354.

(3) In hearing a protest or an appeal under this R354 relating to an expenditure of federal assistance, federal Contract funds, or a federal Grant, the person who hears the appeal shall ensure compliance with federal law and regulations relating to the expenditure.

History

KEY: protests, appeals
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-12-103 Effect of Timely Protest or Appeal

The CRAU may not proceed further with a Solicitation or with the award of a Contract:

(1) during the pendency of a timely:

(a) protest under Section R354-9-103;

(b) appeal of a protest under Section R354-10-103; or

(2) until:

(a) Each administrative and judicial remedies are exhausted; or

(b) for a protest under Section R354-9-103, an appeal under Section R354-10-103, an appeal under Section R354-11- 102, or an appeal to a higher court than district court the Procurement Officer, after consultation with the attorney general's office, or approved outside counsel, and the CRAU Chair, makes a written determination that award of the Contract without delay is in the best interest of the CRAU.

History

KEY: protests, appeals
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-12-104 Costs to or Against Protestor

(1) If a protest is sustained administratively or upon administrative or judicial review and the protesting Bidder or Offeror should have been awarded the Contract under the Solicitation but is not, the Protestor is entitled to the following relief as a claim against the CRAU:

(a) the reasonable costs incurred in connection with the Solicitation, including bid preparation and appeal costs; and

(b) any equitable relief determined to be appropriate by the reviewing administrative or judicial body.

(2) If the final determination of a Procurement Appeals Panel or other appellate body does not sustain the protest, the Protestor shall reimburse the CRAU for each expenses that the CRAU incurred in defending the appeal, including personnel costs, attorney fees, other legal costs, the per diem and expenses paid by the CRAU to witnesses or appeals panel members, and any additional expenses incurred by the staff of the CRAU who have provided materials and administrative services to the Procurement Appeals Panel for that case.

(3) Notice of Claim Against a Governmental Entity or a Government Employee, do not apply to actions brought under this Procurement Procedure by an aggrieved party for equitable relief or reasonable costs incurred in preparing or appealing an unsuccessful bid or offer.

History

KEY: protests, appeals
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-12-105 Effect of Prior Determination by Agents of Procurement Unit

In any judicial action under Section R354-11-102, determinations by employees, agents, or other persons appointed by the CRAU shall be final and conclusive only as provided in Sections R354-12-109, R354-9-104, and R354-10-106.

History

KEY: protests, appeals
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-12-106 Effect of Violation Found After Award of Contract

(1) If after award of a Contract it is determined administratively or upon administrative or judicial review that a Procurement or award of a Contract is in violation of law:

(a)(i) if the person awarded the Contract did not act fraudulently or in bad faith:

(A) the Contract may be ratified and affirmed if it is in the best interests of the CRAU; or

(B) the Contract may be terminated; and

(ii) the person awarded the Contract shall be compensated for the actual expenses reasonably incurred under the Contract before the termination, plus a reasonable profit; or

(b) if the person awarded the Contract acted fraudulently or in bad faith:

(i) the Contract may be declared null and void; or

(ii) the Contract may be ratified and affirmed if it is in the best interests of the CRAU, without prejudice to the CRAU's rights to any appropriate damages.

(2) Under no circumstances is a person entitled to consequential damages in relation to a Solicitation or award of a Contract under this Procurement Procedure, including consequential damages for lost profits, loss of business opportunities, or damage to reputation.

History

KEY: protests, appeals
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-12-107 Effect of Violation Found Prior to Award of Contract

If, before award of a Contract, it is determined administratively or upon administrative or judicial review that a Procurement or proposed award of a Contract is in violation of law, the Procurement or proposed award shall be cancelled or revised to comply with the law.

History

KEY: protests, appeals
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-12-108 Interest Rates

In controversies between the CRAU and a Contractor under this Procurement Procedure, interest on amounts ultimately determined to be due to a Contractor or the CRAU are payable at the rate applicable to judgments from the date the claim arose through the date of decision or judgment, whichever is later.

History

KEY: protests, appeals
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-12-109 Determinations Final Except When Arbitrary and Capricious or Clearly Erroneous

The determinations required under the following provisions are final and conclusive unless they are arbitrary and capricious or clearly erroneous:

(1) Section R354-1-107;

(2) Section R354-1-108;

(3) Section R354-4-102;

(4) Section R354-4-107;

(5) Section R354-5-104;

(6) Section R354-6-103;

(7) Subsection R354-8-103(1) or (2);

(8) Subsection R354-8-103(5);

(9) Section R354-8-105; or

History

KEY: protests, appeals
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

R354-13 Records

Utah Admin. Code R354-13-101 Title

This rule is known as "Records."

History

KEY: records retention
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-13-102 Records Retention

(1) Any Procurement records shall be retained and disposed of in accordance with Title 63G, Chapter 2, Government Records Access and Management Act.

(2) Written determinations required by this rule shall be retained in the appropriate official Contract file of:

(a) the division;

(b) except as provided in Subsection (2)(c), the independent Procurement unit; or

(c) for a legislative Procurement unit or a judicial Procurement unit, the person designated by a rule made by the rulemaking authority.

(3) The CRAU shall keep, and make available to the public, upon request, written records of Procurements for which an expenditure of $100 or more is made, for the longer of:

(a) six years;

(b) the time otherwise required by law; or

(4) The written record described in Subsection (3) shall include:

(a) the name of the provider from whom the Procurement was made;

(b) a description of the Procurement Item;

(d) the expenditure made for the Procurement.

History

KEY: records retention
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-13-103 Record of Contracts Made

A Procurement Official shall maintain a record of any Contracts made under Sections R354-2-103, R354-5-102, or R354- 5-103, in accordance Government Records Access and Management Act. The record shall contain each Contractor's name, the amount and type of each Contract, and a listing of the Procurement Items to which the Contract relates.

History

KEY: records retention
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

R354-14 Interaction with Public Sector Entities

Utah Admin. Code R354-14-101 Title

This rule is known as "Interaction with Public Sector Entities."

History

KEY: interaction, public entities
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-14-102 Agreements Between Public Entities

The CRAU may enter into an agreement with one or more other public entities to:

(1) sponsor, conduct, or administer a cooperative agreement for:

(a) the Procurement of a Procurement Item, in accordance with the requirements of Section R354-14-105; or

(b) the disposal of a Procurement Item;

(2) cooperatively use a Procurement Item;

(3) commonly use or share warehousing facilities, capital equipment, and other facilities;

(4) provide personnel, if the receiving public entity pays the public entity providing the personnel the direct and indirect cost of providing the personnel, in accordance with the agreement; or:

(5) purchase from, contribute to, or otherwise participate in a pooled governmental funds to acquiring or sharing information, data, reports, or other services in accordance with the terms of the agreement.

History

KEY: interaction, public entities
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-14-103 Purchases Between Public Entities

(1)(a) The CRAU may purchase a Procurement Item from another public entity.

(b) A purchase under Subsection (1)(a) is not subject to the Procurement requirements of this Procurement Procedure.

(c)(i) Subsection (1)(a) does not authorize the CRAU to obtain a Procurement Item under a Contract of another public entity.

(ii) Subsection (1)(c)(i) does not affect the authority of the CRAU relating to a Cooperative Procurement under Subsection R354-14- 105(1)(b).

(2) The CRAU may publish a schedule of costs or fees for Procurement Items available for purchase by another public entity.

History

KEY: interaction, public entities
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-14-104 No Circumvention

The CRAU may not enter into a Cooperative Procurement agreement to circumventing this Procurement Procedure.

History

KEY: interaction, public entities
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-14-105 Cooperative Procurements Utah State Cooperative Contracts -- Contracts with Federal Government -- Regional Solicitations

(1) The CRAU may purchase a Procurement Item through a Cooperative Procurement by using the State of Utah Cooperative Contracts available for public entities pursuant to Section 63G-6a-2105, without going through a Standard Procurement Process or an exception to a Standard Procurement Process.

(2) The CRAU may:

(a) Contract with the federal government without going through a Standard Procurement Process or an exception to a Standard Procurement Process, described in Rule R354-14-5, Exceptions to Procurement Requirements, if the Procurement Item obtained under the Contract is provided:

(i) directly by the federal government and not by a person contracting with the federal government; or

(ii) by a person under Contract with the federal government that obtained the Contract in a manner that substantially complies with this Procurement Procedure;

(b) participate in, sponsor, conduct, or administer a Cooperative Procurement with another public entity in Utah, if:

(i) each party unit involved in the Cooperative Procurement enters into an agreement describing the rights and duties of each party;

(ii) the Procurement is conducted, and the Contract awarded, in accordance with the requirements of this Procurement Procedure;

(iii) the Solicitation:

(A) clearly indicates that the Procurement is a Cooperative Procurement; and

(B) identifies each party that may purchase under the resulting Contract; and

(iv) each party involved in the Cooperative Procurement signs a participating addendum describing its rights and obligations in relation to the resulting Contract; or

(i) each party involved in the Cooperative Procurement enters into an agreement describing the rights and duties of each party;

(ii) the Procurement was conducted in accordance with the requirements of this Procurement Procedure;

(iii) the Solicitation: clearly indicates that the Procurement is a Cooperative Procurement; and

(A) clearly indicates that the Procurement is a Cooperative Contract;

(B) identifies each party that may purchase under the resulting Contract; and

(iv) each party involved in the Cooperative Procurement signs a participating addendum describing its rights and obligations in relation to the resulting Contract.

(3) The CRAU may not obtain a Procurement Item under a Contract that results from a Cooperative Procurement described in Subsection (1), unless the CRAU:

(a) signs a participating addendum to the Contract as required by this section.

(4) The CRAU may not obtain a Procurement Item under a Contract held by the United States General Services Administration, unless, based upon documentation provided by the CRAU, the Procurement Official determines in writing that the United States General Services Administration procured the Contract in a manner that substantially complies with this Procurement Procedure.

History

KEY: interaction, public entities
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

R354-15 Prohibited Conduct and Penalties

Utah Admin. Code R354-15-101 Prohibited Conduct and Penalities

This rule is known as "Prohibited Conduct and Penalties."

History

KEY: prohibited conduct
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-15-102 Definitions

Terms used in this rule are defined in Section R354-1-102, with the addition of:

(1) "Contract administration professional":

(a) means an individual who:

(i) directly under Contract with the CRAU; or

(ii) employed by a person under Contract with the CRAU; and

(A) has responsibility in: developing a Solicitation or Grant, or conducting the Procurement process; or

(B) supervising or overseeing the administration or management of a Contract or Grant; and

(b) does not include an employee of the CRAU.

(2) "Contribution":

(a) means a voluntary gift or donation of money, service, or anything else of value, to the CRAU for the CRAU's use and not for the primary use of an individual employed by the CRAU; and

(b) includes:

(i) a philanthropic donation;

(ii) admission to a seminar, Vendor fair, charitable event, fundraising event, or similar event that relates to the function of the CRAU;

(iii) the purchase of a booth or other display space at an event sponsored by the CRAU or a group of which the CRAU is a member; and

(iv) the sponsorship of an event that is organized by the CRAU.

(3) "Family member" means a father, mother, husband, wife, son, daughter, sister, brother, uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law, brother-in-law, sister-in-law, son-in- law, or daughter-in-law.

(4) "Governing body" means CRAU Board.

(5) "Gratuity":

(a) means anything of value given:

(i) without anything provided in exchange; or

(ii) in excess of the market value of that which is provided in exchange;

(b) includes:

(i) a gift or favor;

(ii) money;

(iii) a loan at an interest rate below the market rate or with terms that are more advantageous to the borrower than terms offered generally on the market;

(iv) anything of value provided with an award, other than a certificate, plaque, or trophy;

(v) employment;

(vi) admission to an event;

(vii) a meal, lodging, or travel;

(viii) entertainment for which a charge is normally made; and

(ix) a raffle, drawing for a prize, or lottery; and

(i) an item, including a meal in association with a training seminar, that is:

(A) included in a Contract or Grant; or

(B) provided in the proper performance of a requirement of a Contract or Grant;

(ii) an item requested to evaluate properly the award of a Contract or Grant;

(iii) a rebate, coupon, discount, airline travel award, dividend, or other offering included in the price of a Procurement Item;

(iv) a meal provided by an organization or association, including a professional or educational association, an association of Vendors, or an association composed of public agencies or public entities, that does not, as an organization or association, respond to Solicitations;

(v) a product sample submitted to the CRAU to assist the CRAU to evaluate a Solicitation;

(vi) a political campaign contribution;

(vii) an item generally available to the public; or

(viii) anything of value that one public entity provides to another public entity.

(6) "Hospitality gift":

(a) means a token gift of minimal value, including a pen, pencil, stationery, toy, pin, trinket, snack, beverage, or appetizer, given for promotional or hospitality purposes; and

(b) does not include money, a meal, admission to an event for which a charge is normally made, entertainment for which a charge is normally made, travel, or lodging.

(7) "Kickback":

(a) means a negotiated bribe provided in connection with a Procurement or the administration of a Contract or Grant; and

(b) does not include anything listed in Subsection (5)(c).

(8) "Procurement" has the same meaning as defined herein, but also includes the awarding of a Grant.

(9) "Procurement professional":

(a) means an individual who is an employee, and not an independent Contractor, of the CRAU, and who, by title or primary responsibility:

(i) has Procurement decision making authority; and

(ii) is assigned to be engaged in, or is engaged in:

(A) the Procurement process; or

(B) the process of administering a Contract or Grant, including enforcing Contract or Grant compliance, approving Contract or Grant payments, or approving Contract or Grant change orders or amendments; and

(b) excludes:

(i) any individual who, by title or primary responsibility, does not have Procurement decision making authority;

(ii) an individual holding an elective office;

(iii) a member of a governing body;

(iv) a chief assistant or deputy of the chief executive, if the chief executive, chief assistant, or deputy, respectively, has a variety of duties and responsibilities beyond the management of the Procurement process or the Contract or Grant administration process;

History

KEY: prohibited conduct
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-15-103 Applicability

(1) This rule applies to the CRAU.

(2) A Procurement professional is subject to this rule at any time during:

(a) the Procurement process; and

(b) the administration of a Contract or Grant.

(3) A Contract Administration professional is subject to this rule at any time during the period the Contract Administration professional is:

(a) under Contract with the CRAU; and

(b) involved in:

(i) the Procurement process; or

(ii) the administration of a Contract or Grant.

(4) This rule does not apply to:

(a) an individual described in Subsection R354-15-102(9)(b); or

(b) any individual other than a Procurement professional or Contract Administration professional;

(5) The R354 within this section do not affect the applicability or effect of any other ethics, bribery, or other law.

History

KEY: prohibited conduct
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-15-104 Unlawful Conduct - Exceptions - Classification of Offenses

(1)(a) It is prohibited for a person who has or is seeking a Contract with or a Grant from the CRAU knowingly to give, or offer, promise, or pledge to give, a gratuity or kickback to:

(i) the CRAU;

(ii) a Procurement professional or Contract Administration professional; or

(iii) an individual who the person knows is a family member of an individual described in Subsection (1)(a)(ii).

(b) It is not unlawful for a public entity to give, offer, promise, or pledge to give a contribution to another public entity.

(i) giving or offering, promising, or pledging to give a contribution to the CRAU, unless done with the intent to induce the CRAU, in exchange, to:

(A) award a Contract or Grant;

(B) make a Procurement decision; or

(ii) giving or offering, promising, or pledging to give something of value to an organization to which a Procurement professional or Contract Administration professional belongs, unless done with the intent to induce a public entity, in exchange, to:

(A) award a Contract or Grant;

(B) make a Procurement decision; or

(2)(a) It is prohibited for a Procurement professional or Contract Administration professional, or a family member of either, knowingly to receive or accept offer or agree to receive or accept, or ask for a promise or pledge of, a gratuity or kickback.

(b) An individual is not guilty of prohibited conduct under Subsection (2)(a) for receiving or accepting, offering, or agreeing to receive or accept, or asking for a promise or pledge of a contribution on behalf of the CRAU, unless done with the intent that the CRAU, in exchange:

(i) award a Contract or Grant;

(ii) make a Procurement decision; or

(iii) take an action relating to the administration of a Contract or Grant.

(3) Notwithstanding Subsections (1) and (2), it is not prohibited for a person to give or receive, offer to give or receive, or promise or pledge to give or ask for a promise or pledge of, a hospitality gift, if:

(a) the total value of the hospitality gift is less than $10; and

(b) the aggregate value of any hospitality gifts from the person to the recipient in a calendar year is less than $50.

(4) A person who engages in the conduct prohibited under Subsection (1) or (2) may be punished for such conduct, including:

(a) dismissal from employment, cancellation of the Contract to provide Procurement services, or other disciplinary action;

(b) disbarment;

(d) any other civil penalty provided by law.

History

KEY: prohibited conduct
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-15-105 Dividing a Procurement to Avoid Using a Standard Procurement Process

(1) It is prohibited for a person knowingly to divide a single Procurement into multiple smaller Procurements if dividing the single Procurement:

(a) is done with the intent to avoid the use of a Standard Procurement Process that would have otherwise been required if the Procurement had not been divided;

(b) constitutes prohibited conduct under Section R354-2-103; or

(2) A violation of Subsection (1) is subject to Subsection R354-15-104(4).

History

KEY: prohibited conduct
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-15-106 Improper Action Against a Public Officer or Employee Involved in the Procurement Process

(1)(a) It is prohibited for a person knowingly to threaten to make a false allegation against a public officer or employee, or knowingly to threaten to take a menacing or intimidating action against a public officer or employee, with the intent to:

(i) prevent the officer or employee from performing a duty or responsibility that the officer or employee has under this Procurement Procedure;

(ii) influence the officer or employee to award a Contract under this Procurement Procedure to the person or take other action under Procurement Procedure in favor of the person; or

(iii) retaliate against the officer or employee for:

(A) not awarding a Contract under this Procurement Procedure to the person;

(B) issuing a decision or taking an action under this Procurement Procedure that is averse to the person; or

(b) A violation of Subsection (1)(a) subjects the person to suspension or disbarment.

(2)(a) It is prohibited for a person knowingly to make a false allegation against a public officer or employee, or knowingly to take a menacing or intimidating action against a public officer or employee, with the intent to:

(i) prevent the public officer or employee from performing a duty or responsibility that the officer or employee has under this Procurement Procedure;

(ii) influence the officer or employee to award a Contract under this Procurement Procedure to the person or take other action under Procurement Procedure in favor of the person; or

(iii) retaliate against the public officer or employee for:

(A) not awarding a Contract under this Procurement Procedure to the person;

(B) issuing a decision or taking an action under Procurement Procedure that is averse to the person; or

(b) violation of Subsection (2)(a) subjects the person to suspension or disbarment.

History

KEY: prohibited conduct
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-15-107 Discretion to Declare Contract or Grant Void -- Limitations

(1) Subject to Subsection (2), a Contract or Grant to a person who engages in conduct prohibited under R354-15-107 may, in the sole discretion of the Executive Director, declare the Contract or Grant to be void and unenforceable, unless a third party has substantially changed its position in reliance upon the Contract or Grant.

(2) Declaring a Contract or Grant void under Subsection (1) does not affect the obligation of the CRAU to pay for a Contractor's proper performance completed under the Contract or Grant or the value the Contractor provides to the CRAU under the Contract or Grant before the Contract or Grant is declared void.

History

KEY: prohibited conduct
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-15-108 Authority of Conducting Procurement Unit with Respect to an Evaluation Committee

Nothing in this R354-15-108 restricts the CRAU from:

(1) requiring an evaluation committee member to disclose a conflict of interest; or

(2) removing an evaluation committee member for having a conflict of interest.

History

KEY: prohibited conduct
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

Utah Admin. Code R354-15-109 Duty to Report Prohibited Conduct

(1) As used in this R354-15-109, "prohibited conduct" means:

(a) conduct prohibited under this R354-15-109; or

(b) conduct, including bid rigging, improperly steering a Contract to a favored Vendor, exercising undue influence on an individual involved in the Procurement process, or participating in collusion or other anticompetitive practices, prohibited under other applicable law.

(2)(a) A Procurement professional with actual knowledge that a person has engaged in prohibited conduct shall report the person's prohibited conduct to:

(i) the CRAU Chair and Executive Director; and

(ii) the attorney general or approved outside counsel.

(b) An individual not subject to the requirement of Subsection (2)(a) who has actual knowledge that a person has engaged in prohibited conduct may report the person's prohibited conduct to:

(i) the CRAU Chair and Executive Director; or

(ii) the attorney general or approved outside counsel.

(3) A Procurement professional who fails to comply with the requirement of Subsection (2)(a) is subject to any applicable disciplinary action.

History

KEY: prohibited conduct
Date of Last Change: December 28, 2021
Authorizing, and Implemented or Interpreted Law: 63M-14-206

R357 Economic Opportunity

R357-3 Economic Development Tax Increment Financing Rule

Utah Admin. Code R357-3-101 Title

This rule is known as the "Economic Development Tax Increment Financing Rule."

History

KEY: economic development, jobs, tax credit
Date of Last Change: April 14, 2025
Notice of Continuation: November 30, 2023
Authorizing, and Implemented or Interpreted Law: 63N-2-110

Utah Admin. Code R357-3-102 Definitions

In addition to the definitions in Sections 63N-1a-102 and 63N-2-103 the following terms are defined:

(1) "Apportionment" means a reduction in new state revenues in the period being assessed by the percentage of project employee wages against total employee wages.

(2) "Corporate citizenry plan" includes:

(a) applicants plan on how they will be involved with local communities through beneficial acts of charity, which may include: direct service, social entrepreneurship and responsibility, community-engaged learning and research, philanthropy, community organizing and activism or other supportive policies and initiatives which provide a positive environment of wellbeing, growth and learning; and

(b) a commitment to attain at least 20 service hours per high paying job, per year during the incentive, within the state.

(3) "High paying job" includes adjusted wage percentages in counties experiencing economic distress as outlined in Section R357-3-108.

(4) "Leisure and Hospitality Industry" means businesses, as determined by the office, that relate to service-providing industries consisting of:

(a) arts, entertainment, and recreation under NAICS code 71;

(b) accommodation and food services under NAICS code 72; and

(5) "New commercial project" does not include retail operations.

(6) "Retail operations" means a project with a physical location from which the general public may directly purchase merchandise or direct services and does not include distribution centers, the corporate functions associated with retailing, or other activities associated with retailing that may be accomplished from any physical location or that are not dependent on proximity to end consumers for retail sales.

History

KEY: economic development, jobs, tax credit
Date of Last Change: April 14, 2025
Notice of Continuation: November 30, 2023
Authorizing, and Implemented or Interpreted Law: 63N-2-110

Utah Admin. Code R357-3-103 Authority

The office adopts this rule under the authority of Section 63N-2-110.

History

KEY: economic development, jobs, tax credit
Date of Last Change: April 14, 2025
Notice of Continuation: November 30, 2023
Authorizing, and Implemented or Interpreted Law: 63N-2-110

Utah Admin. Code R357-3-104 Application Content

(1) To determine a company's eligibility for an Economic Development Tax Increment Financing Incentive the company shall submit:

(a) financial documents for the prior three years including:

(i) balance sheets;

(ii) income statements; and

(iii) cash flow statements; or

(b) other documentation demonstrating that the company has the ability to finance the project;

(d) workforce data;

(e) corporate citizenry plan;

(f) plan to hire Utah employees;

(g) forecasted new state revenue associated with the new commercial project;

(h) forecasted incremental job creation associated with the new commercial project;

(i) forecasted wages associated with the new commercial project; and

(j) forecasted annual water and electricity use.

(2) To determine a company's eligibility for an Economic Development Tax Increment Financing Incentive the office may review the company's:

(a) incentive offers from other states;

(b) remote work options for the project;

(d) proof of fundraising;

(e) tax filings;

(f) reshoring plans;

(g) project to determine if it is materially within scope of published definitions of one or more targeted industries;

(h) forecasted annual use of water and consumptive use percentage;

(i) forecasted projected annual use of electricity;

(j) other information as determined by GOEO.

(3) GOEO may deny an application for any reason.

(4) Information provided by the business entity is subject to the Government Records Access and Management Act. The business entity has the option to designate whether the information provided is private or protected subject to Sections 63G- 2-302 and 63G-2-305.

History

KEY: economic development, jobs, tax credit
Date of Last Change: April 14, 2025
Notice of Continuation: November 30, 2023
Authorizing, and Implemented or Interpreted Law: 63N-2-110

Utah Admin. Code R357-3-105 Factors to Be Considered in Authorizing an Economic Development Tax Credit Award

(1) The amount and duration of a tax credit award shall be determined on a case-by-case basis. The factors that the office may consider include:

(a) whether the company is projecting positive long-term growth;

(b) whether the company is part of a targeted industry;

(d) the uniqueness of the economic opportunity;

(e) the economic environment when the new commercial project or company applies including;

(i) the job leakage to other counties;

(ii) the relative value of a job; and

(iii) the underemployment rate;

(f) the location of the new commercial project;

(g) the quality of financing the company has received;

(h) comparison to previously incented projects in size, scope, and industry;

(i) service hours completed per high paying job under a prior agreement with the office; and

(j) other factors as reasonably determined by the administrator.

(2) The factors for an award higher than 30% of new state revenues for a project located in a county of the third-class, or a municipality with a population of 10,000 or less located within a county of the second class and that is experiencing economic hardship are:

(a) factors in Subsection R357-3-105(1);

(b) evidence of significant financial support of the local community for the project;

(c)(i) capital expenditures of at least $500,000,000 for the new commercial project;

(ii) the new capital project is in targeted industry as defined by the office; or

(iii) local taxing entities are offering a tax increment agreement of at least 75% and 25 years of property tax rebates;

(d)(i) the new capital project creates at least 2,000 new high-wage jobs; and

(ii) the new capital project is in targeted industry as defined by the office;

(iii) the average wages for the new high paying jobs are at least 300% of the average county wage; or

(iv) local taxing entities are offering a tax increment deal over 75% and 25 years for property tax rebates;

(3) A new commercial project within the leisure and hospitality industry sector, located in a county of the fifth or sixth class may receive an award up to 50% of new state revenues over 20 years if the project:

(a) has capital expenditure of at least $10,000,000;

(b) creates a significant number of new high paying jobs;

(d) is adjacent to a unique, high visitation tourist area; and

(e) location would otherwise be underserved in leisure and hospitality without being provided an incentive.

(4) If the GOEO Board has not approved a project within six months of submission the company must submit an updated application.

(5) The Executive Director after consultation with the GOEO Board may:

(a) approve or deny an application; and

(b) determine terms and conditions of an approved application.

History

KEY: economic development, jobs, tax credit
Date of Last Change: April 14, 2025
Notice of Continuation: November 30, 2023
Authorizing, and Implemented or Interpreted Law: 63N-2-110

Utah Admin. Code R357-3-106 Economic Development Tax Credit Process

(1) Annual tax credits shall be based on incremental taxes paid by the business entity or withheld on behalf of employees of a new commercial project.

(2)(a) GOEO shall propose a tax credit structure based on the factors set forth in this rule in a combination GOEO deems the most effective and beneficial in weighing the benefits of the state, local community, and company.

(b) GOEO shall propose the tax credit terms and structure to the GOEO Board before making a final offer to the business entity.

(3) If the Executive Director approves an Economic Development Tax Credit, GOEO shall provide a tax credit offer letter to a business entity that includes:

(a) the proposed terms of the Economic Development Tax Credit, including the maximum amount of aggregate annual tax credits and the time period over which the tax credits may be claimed;

(b) a statement that the company must demonstrate sufficient growth and supply; and

(4) If the applicant intends to accept the incentive offer, it shall counter-execute the tax credit offer letter.

(5) If the Executive Director denies an application for an Economic Development Tax Credit, GOEO shall provide a letter to the business entity that includes:

(a) notice of the application denial;

(b) reason for denial; and

(c) notice that if the business entity makes changes to the proposed new commercial project, they may reapply for a tax credit.

(6) GOEO shall establish a baseline with the company that consists of the count of full-time employees and state revenue reflective of presence in the state before the GOEO Board approval date. A baseline must be established before awarding a tax credit.

(7) A company with an active contract, who desires a tax credit, must provide an annual report for the incentive year in the format and method as directed by GOEO, with a level of accuracy comparable with information GOEO obtains from the Department of Workforce Services and the Tax Commission, that at a minimum must contain:

(a) a list of individuals in Utah that received compensation at the company or project with their position, start date, termination date, hours paid, wages paid, benefits paid and employer withholding taxes paid or an aggregate list that provides qualification and legislative reporting required for Section 63N-2-106, as determined GOEO;

(b) the requested amount of tax revenue to be rebated from withholding, sales and use, vendor paid sales tax and income tax verified as paid, remitted and receipted to the state; and

(c) a current authorization to disclose from the Utah State Tax Commission from the baseline period to three years after the end date of the contract.

(8) The office may cause an apportionment for the following reasons:

(a) a business entity's project scope is to create or develop a new good or service that is co-located within a current location that is not transparent with other operations, employees and revenue, which would not be included in the calculation of new state revenue;

(b) a business entity has a material amount of employees operating the company's retail business; or

(c) a company adjusts operations that create operations outside the scope of the agreement or boundaries of the economic development zone.

(9) The office may consider sales and use tax paid for capital asset purchases of a business entity within the scope of the agreement up to 50% of the total amount of state tax.

(10) A company who hires employees for the new commercial project through a professional employment organization shall require the professional employment organization to provide the office an employee report under attestation.

(11) The projected employment and salary growth from the latest annual report period may be carried forward to additional periods when the Fiscal Impact Questionnaire omits this information.

(12) A company who does not attain the 20 service hours per high paying job per year may be awarded a tax credit if other statutory or contracted terms are met to the satisfaction of the office.

(13) A company may not enter into a contractual agreement for the Economic Development Tax Credit more than five years after the date of GOEO Board approval, unless written justification is provided by the company and approved by the Executive Director.

(14) The business entity may only claim the tax credit in one of the taxable years listed on the tax certificate.

(15) The tax certificate expires according to the three-year period of limitation in Sections 59-7-505 and 59-7-519.

History

KEY: economic development, jobs, tax credit
Date of Last Change: April 14, 2025
Notice of Continuation: November 30, 2023
Authorizing, and Implemented or Interpreted Law: 63N-2-110

Utah Admin. Code R357-3-107 Modification of Agreement

(1) GOEO may change, or a business entity may request to change, the terms of a tax credit offer or contract as set forth in this section.

(2) Under extraordinary circumstances, a business entity may request substantive modifications to the terms of the tax credit agreement if:

(a) there is a substantial change to new commercial project plan; and

(b) changing the terms of the tax credit would benefit the state.

(3) GOEO and the business entity may make nonsubstantive modifications to the tax credit contract to:

(a) correct clerical errors made in the initial application, the offer, the contract, or the tax credit;

(b) make technical changes that do not alter the tax incentive amount or violate any state or federal law; or

(i) less than 24 months; or

(ii) up to 48 months for unforeseen circumstances, as determined by the office.

(4) Substantive modifications require GOEO Board consultation before the Executive Director's approval or denial.

(5) GOEO shall document and maintain requests and modifications.

(6) When a business entity acquires another company with employees in Utah or if another Utah company acquires a business entity and the office can distinguish between both entities' employees and separate how much new state revenue is generated from the acquiree and acquirer, no changes to the baseline employees or new state revenues will be made.

(7) When a business entity acquires another company with employees in Utah or if another Utah company acquires a business entity and the office cannot separate the acquiree's and acquirer's employees or new state revenue the office shall:

(a) increase the baseline to the lesser of the acquiree's number of full-time positions as determined by the office:

(i) on the GOEO Board approval date; or

(ii) on the acquisition date; and

(b) increase baseline state revenue to the same time period as chosen for baseline jobs.

(8) A company may request to exclude the 2020 EDTIF period. This request must be made before July 1, 2025. If a request is granted the contract must be amended that:

(a) establishes a one-year gap where no incentive is awarded;

(b) delays annual job projections by one year moving forward; and

(9) The office may deny a request to exclude the 2020 EDTIF period for any reason.

History

KEY: economic development, jobs, tax credit
Date of Last Change: April 14, 2025
Notice of Continuation: November 30, 2023
Authorizing, and Implemented or Interpreted Law: 63N-2-110

Utah Admin. Code R357-3-108 High Paying Jobs and Economic Distress

To establish that a county is experiencing economic distress a business entity or county shall submit to the office:

(1) evidence that the county's unemployment rate was at least 5% for the six consecutive months before the application date;

(2) evidence that the county experienced year over year economic decline; and

(3) other evidence as requested by the office.

History

KEY: economic development, jobs, tax credit
Date of Last Change: April 14, 2025
Notice of Continuation: November 30, 2023
Authorizing, and Implemented or Interpreted Law: 63N-2-110

R357-5 Motion Picture Incentive Rule

Utah Admin. Code R357-5-101 Authority

Section 63N-8-104 requires the Office to make rules establishing the standards that a motion picture company and digital media company must meet to qualify for a motion picture incentive and the criteria for determining the amount of the motion picture incentive.

History

KEY: economic development, motion picture, digital media, new state revenue
Date of Last Change: January 28, 2026
Notice of Continuation: February 6, 2026
Authorizing, and Implemented or Interpreted Law: 63N-8-104

Utah Admin. Code R357-5-102 Definitions

The definitions in this rule are in addition to or serve to clarify the definitions found in Section 63N-8-102.

(1) "Above-The-Line" (ATL) means creative talent that are attached to a production as the director, producers, stunt performers, screenwriters, storyboard artists or casting directors.

(2) "Cast" means performers appearing in a particular film with featured or speaking roles.

(3) "Community Film Incentive Program" means a production where a motion picture company has a minimum budget of $100,000 and a maximum budget of under $500,000.

(4) "Crew" means those involved in the production of a film who are not defined as cast, above-the-line or extras.

(5) "Deferred Payment" means, tax credits in amounts over $2,000,000 paid in installments over a specified number of years but not to exceed three years.

(6) "Extras" means an extra or background actor is a performer in a production, who appears in a non-speaking or non- singing capacity, usually in the background.

(7) "Independent Utah CPA" means a Certified Public Accountant holding an active license in the state that is independent of the production and production activities.

(8) "Made-For-Television" means feature length motion pictures specifically made-for-television or streaming platforms.

(9) "Motion Pictures" means a production that is originally intended for commercial distribution and does not include:

(a) news;

(b) commercials;

(d) digital media products;

(e) live sporting events;

(f) live coverage of theatrical or entertainment events; or

(g) programs that solicit funds.

(10) "Principal photography," "Producing" or "Production" means the filming of major and significant portions of a film that involves the lead actors and actresses.

(11) "Rural county" means a county of the third, fourth, fifth, or sixth class.

(12) "Significant Percentage of cast and crew from Utah" means:

(a) For productions that have total budgets of less than $500,000: that at least 85% of the cast and crew are Utah residents excluding extras, above-the-line and three principal cast members;

(b) For productions that have more than $500,000 left in state: that at least 75% of the cast and crew are Utah residents excluding extras, above-the-line and five principal cast members.

(13) "State-approved production" means a production that is:

(a) approved by the Office and ratified by the Utah Board of Tourism Development; and

(b) any of the principal production is produced in the state.

(14) "Total budget for the project" means the total budget for dollars left in state of pre-production, production, and post-production.

(15) "Television series" means a group of episodes of a production released on television or streaming platforms.

(16) "Treatment" means: A written description of the production.

(17) "UFC" means: the Utah Film Commission, a sub-entity of the Utah Governor's Office of Economic Opportunity.

(18) "Utah Resident" means a person who has lived in Utah for at least 183 days even if temporarily outside of Utah for an extended length of time, maintains a permanent home in Utah, and is subject to Utah personal income tax.

History

KEY: economic development, motion picture, digital media, new state revenue
Date of Last Change: January 28, 2026
Notice of Continuation: February 6, 2026
Authorizing, and Implemented or Interpreted Law: 63N-8-104

Utah Admin. Code R357-5-103 Motion Picture Incentive Applications: Procedures and Minimum Requirements for a Motion Picture Company

(1) A motion picture company's application may be approved for a motion picture incentive award only if each of the following requirements are met in addition to those listed throughout Title 63N, Motion Picture Incentives:

(a) the motion picture company is producing any portion of principle photography in Utah;

(b) the motion picture is a state-approved production;

(c) the motion picture company guarantees UFC access to production's behind the scenes footage, interviews and still photography or allow the Office to produce its own;

(d) the motion picture company guarantees the production will display the Utah logo as outlined in the incentive agreement and provide a screenshot of the logo as it appears in the credits;

(e) the motion picture company has obtained financing for 100% of the anticipated dollars left in state for the project, and the applicant provides proof of financing in a form specified in the application documents;

(f) the motion picture company must retain financing as set forth in Subsection (1)(e) for the life of the contract with the state;

(g) the motion picture company intends to report at least $500,000 left in state if applying for a film incentive under Subsection R357-5-5(1) or a maximum of under $500,000 if applying for an incentive under Subsection R357-5-5(2); and

(h) if a production has initiated principal photography before the Office's receipt of a completed application or will not start principal photography for more than 90 days from date of application, the application for incentive may be denied.

(2) The motion picture incentive application may not be construed as a property right and neither the Office nor the Board is required to approve an application.

(3) To receive state approval for an incentive application, a production must, in the state's sole discretion, reflect positively on the image of Utah. In determining whether or not a production reflects positively on the image of the state, the Office and Board may take into consideration:

(a) whether and to what extent the motion picture promotes Utah as a tourist destination;

(b) general standards of decency and respect for the diverse beliefs and values of Utahns; and

(c) any other factors related to the production or the motion picture company that may reasonably affect the image of the state.

(4) The Office and Board may consider the relative merit of applications, and the need to reserve its allocations for future applications.

(a) Factors that contribute to the relative merit include:

(i) the overall strength and viability of the script of the production;

(ii) the industry reputation of the production or motion picture company;

(iii) the record of the motion picture company in matters of safety and responsible filmmaking;

(iv) the existence of any legal action or the likelihood of any legal action in relation to either the production or the motion picture company; and

(v) anticipated:

(A) number of jobs in Utah;

(B) number of production days in Utah;

(D) local cast and crew wages; and

(E) new state revenue that the film contributes in Utah.

(b) Applications shall be made in the form prescribed by the Office, including required attachments or additional information.

(i) Incomplete applications will not be considered received until the application is deemed complete by the UFC.

(ii) A script is required as part of the application.

(iii) A treatment may only be submitted where a script for a project type is not possible, for example when the project is a documentary. The Utah Film Commission will determine in its sole discretion if a treatment can be substituted for a script.

(5) A production company may file more than one application if it has more than one production in the state, but a separate application must be filed for each production.

(6) Applications will be subject to submission deadlines, which will be posted on the Utah Film Commission Website and are available in other formats upon request.

(7) If the applicant fails to submit a completed application before the submission deadline, the application may be considered with the next round of submissions.

(8) Submitting an application does not guarantee approval of a film incentive.

(9) Film incentives are subject to and contingent upon the amount of available funding and tax credit allocation available in the Motion Picture Restricted account.

(10) Lack of state approval may not be construed as prohibiting a production or prohibiting a motion picture company from filming in Utah.

(11) A production's eligibility for an incentive ends upon approval or denial by the Office. A production may reapply, subject to compliance with program statutes and rules.

History

KEY: economic development, motion picture, digital media, new state revenue
Date of Last Change: January 28, 2026
Notice of Continuation: February 6, 2026
Authorizing, and Implemented or Interpreted Law: 63N-8-104

Utah Admin. Code R357-5-104 Motion Picture Incentive Applications: Award for a Motion Picture Production

(1) Upon receipt of a completed application, the Office will align each project into incentive categories as set forth in Section R357-5-105.

(2) In calculating dollars left in the state, the Office may limit the following expenditures:

(a) salary above $500,000 for one individual;

(b) marketing and distributions expenditures;

(c) any value beyond the depreciated amount for capital expenditures, rentals, and any purchases made where the item is used for only a portion of its useful life; and

(d) any per diem value beyond 100% of the current federal rate for the area.

History

KEY: economic development, motion picture, digital media, new state revenue
Date of Last Change: January 28, 2026
Notice of Continuation: February 6, 2026
Authorizing, and Implemented or Interpreted Law: 63N-8-104

Utah Admin. Code R357-5-105 Film Categories and Conditions

(1) Utah Motion Picture Incentive Program.

(a) The Utah Motion Picture Incentive Program will have an incentive cap of 20% of the dollars left in state, unless a higher cap is awarded pursuant to Subsection (1)(c).

(i) Unscripted programs, including reality television and documentaries, qualify for a 10% baseline with a potential increase if additional criteria are met, not to exceed 20%.

(b) Incentives will only be awarded if the motion picture company meets criteria listed in Section R357-5-103.

(i) Motion picture company has at least $1,000,000 in qualified dollars left in state; and

(ii) Significant Percentage of cast and crew from Utah; or

(A) 75% of production days occur in rural county.

(2) Community Film Incentive Program:

(a) will provide a maximum of a 20% post-performance cash rebate or tax credit for dollars left in state;

(b) will only be awarded if the motion picture company meets criteria listed in Section R357-5-103;

(d) awards will be made to motion picture companies based upon the criteria outlined in the application provided by UFC.

(3) For applications made under Subsection (1) or (2), the motion picture company must provide any information and documentation to show measurable outcomes as outlined in the application for any incentive listed in this section.

History

KEY: economic development, motion picture, digital media, new state revenue
Date of Last Change: January 28, 2026
Notice of Continuation: February 6, 2026
Authorizing, and Implemented or Interpreted Law: 63N-8-104

Utah Admin. Code R357-5-106 Funding -- Post-Performance Compliance

A motion picture company may qualify for issuance of either a Post-Performance Refundable Tax Credit or Post- Performance Cash award:

(1) based on the method outlined in their contract; and

(2) the motion picture company adheres to the Agreed-Upon Procedures dated September 9, 2025 posted on the Utah Film Commission Website which is incorporated by reference.

History

KEY: economic development, motion picture, digital media, new state revenue
Date of Last Change: January 28, 2026
Notice of Continuation: February 6, 2026
Authorizing, and Implemented or Interpreted Law: 63N-8-104

Utah Admin. Code R357-5-107 Funding -- Post-Performance Refundable Tax Credit

(1) Post-performance refundable tax credits are non - transferable and can only be issued to the state-approved motion picture that submits the motion picture incentive application and is approved by the Office with advice from the Board.

(2) Post-performance refundable tax credits in amounts over $2,000,000 may be paid in deferred payments over multiple years as authorized by the Office within the approved Board motion for the tax credit.

(a) Deferred payments for tax credits over $2,000,000 are subject to available tax credit allocation as authorized by the Legislature.

(b) Each annual installment of the deferred payment amount shall be outlined in the tax credit agreement.

History

KEY: economic development, motion picture, digital media, new state revenue
Date of Last Change: January 28, 2026
Notice of Continuation: February 6, 2026
Authorizing, and Implemented or Interpreted Law: 63N-8-104

Utah Admin. Code R357-5-108 Request for Incentive Amendment

(1) A motion picture company may request an incentive amendment only under the conditions prescribed by the Office.

(2) Amendments will be reviewed and approved by the UFC on a case by case basis with a written explanation for the approval or denial provided to the applicant.

History

KEY: economic development, motion picture, digital media, new state revenue
Date of Last Change: January 28, 2026
Notice of Continuation: February 6, 2026
Authorizing, and Implemented or Interpreted Law: 63N-8-104

Utah Admin. Code R357-6-1 Purpose

(1) The purpose of this rule is to provide:

(a) the criteria upon which the Governor's Office of Economic Opportunity will determine whether to award tax credits to applicants;

(b) the procedures for documenting the Governor's Office of Economic Opportunity's application of this criteria;

(d) the available tax credits for which applicants may apply.

History

KEY: economic development, life sciences, new state revenue
Date of Last Change: August 24, 2021
Notice of Continuation: October 30, 2025
Authorizing, and Implemented or Interpreted Law: 63N-2-801

Utah Admin. Code R357-6-2 Authority

(1) Section 63N-2-807 requires the office to make rules establishing criteria to prioritize the issuance of tax credits among applicants and to establish procedures for documenting the office's application of the criteria.

History

KEY: economic development, life sciences, new state revenue
Date of Last Change: August 24, 2021
Notice of Continuation: October 30, 2025
Authorizing, and Implemented or Interpreted Law: 63N-2-801

Utah Admin. Code R357-6-3 Definitions

(1) Terms in this rule are used as defined in Section 63N-2-802.

History

KEY: economic development, life sciences, new state revenue
Date of Last Change: August 24, 2021
Notice of Continuation: October 30, 2025
Authorizing, and Implemented or Interpreted Law: 63N-2-801

Utah Admin. Code R357-6-4 Conditions

(1) Applicants shall use the application form provided by the office and follow the procedures and requirements set forth in Section 63N-2-805 for obtaining a tax credit certificate.

(2) Applicants shall submit the application form to the office to be eligible to receive a tax credit, quarterly throughout the fiscal year as set forth in Section 63N-2-808, on or before the following quarterly deadlines:

(a) September 1;

(b) December 1;

(d) June 1.

(3) The office shall review and rank applications based upon a combination of:

(a) the number of new incremental jobs in Utah;

(b) capital investment in the state; or

(4) The office shall keep a record of the review and ranking of applications.

(5) The office, with advice from the board, may enter into an agreement with a business entity authorizing a tax credit if the business entity meets the standards under Subsections R357-6-4(2) and (3) and according to the requirements and procedures set forth in Section 63N-2-809.

(6) A business entity is eligible for an economic development tax credit only if the office has entered into an agreement under Subsection R357-6-4(5) with the business entity.

History

KEY: economic development, life sciences, new state revenue
Date of Last Change: August 24, 2021
Notice of Continuation: October 30, 2025
Authorizing, and Implemented or Interpreted Law: 63N-2-801

Utah Admin. Code R357-6-5 Available Tax Credits

(1) An applicant may seek:

(a) a refundable tax credit for generating state tax revenue; or

(b) a non-refundable tax credit for investment in certain life sciences establishments.

(2) Eligibility shall be determined by:

(a) statutory requirements; and

(b) the criteria listed in Subsection R357-6-4(3).

History

KEY: economic development, life sciences, new state revenue
Date of Last Change: August 24, 2021
Notice of Continuation: October 30, 2025
Authorizing, and Implemented or Interpreted Law: 63N-2-801

R357-13 Hotel Convention Center Incentive

Utah Admin. Code R357-13-1 Purpose

This rule identifies:

(1) procedures by which the Governor's Office of Economic Opportunity may enter into an agreement with a qualified hotel owner for the development of a qualified hotel, and authorize and set conditions for a convention incentive;

(2) minimum criteria for an agreement with a qualified hotel owner;

(3) roles and responsibilities of the independent review committee;

(4) procedures for calculating and paying the convention incentive; and

(5) administrative procedures for the Hotel Impact Mitigation Fund.

History

KEY: hotel convention center incentives, tax credits
Date of Last Change: November 14, 2025
Notice of Continuation: November 28, 2025
Authorizing, and Implemented or Interpreted Law: 63N-2-509

Utah Admin. Code R357-13-2 Authority

Section 63N-2-509 authorizes the Governor's Office of Economic Opportunity to enact rules to carry out its responsibilities under the Act.

History

KEY: hotel convention center incentives, tax credits
Date of Last Change: November 14, 2025
Notice of Continuation: November 28, 2025
Authorizing, and Implemented or Interpreted Law: 63N-2-509

Utah Admin. Code R357-13-3 Definitions

(1) Unless otherwise specifically defined in this rule, Section 63N-2-502 defines the terms used in this rule.

(2) "Appointing entity" means any of the entities responsible for appointing members to the independent review committee under Section 63N-2-504.

(3) "City-wide events" means an event hosted at a convention facility pursuant to a contract by a nonprofit corporation responsible for the promotion of convention business for the use of at least 100,000 gross square feet in the convention center and 1,500 or more guest rooms.

History

KEY: hotel convention center incentives, tax credits
Date of Last Change: November 14, 2025
Notice of Continuation: November 28, 2025
Authorizing, and Implemented or Interpreted Law: 63N-2-509

Utah Admin. Code R357-13-4 Application for Approval of a Qualified Hotel and For Authorization of Incentive

(1) The Office, with the Board's advice and after considering the recommendations of the independent review committee formed in Section 63N-2-504, may enter into an agreement with a qualified hotel owner or host local government:

(a) for the development of a qualified hotel; and

(b) to authorize and set conditions for a convention incentive, to be paid from the convention incentive fund as set forth in Subsection 63B-2-503(5) and under Section 63N-2-505 and this rule.

(2) The initial application to approve the development of a qualified hotel and to authorize and set conditions for an incentive shall include at least the following information:

(a) identify the hotel property and the hotel owner;

(b) a proposal for the convention center hotel, including construction time lines and proposed spending over the life of the project;

(i) the endorsement letter shall include by reference to or attachment of each of the requirements placed on the hotel by the county in relation to the endorsement letter; and

(ii) the endorsement letter shall include by reference to or by attachment the county's expectations regarding compliance with its requirement by the developer or owner, including how compliance with the requirements will be measured and tracked.

(d) details regarding the capital investment expected, which must be at least $200,000,000;

(e) the period for which the qualified hotel owner or host local government expects to request and claim an incentive related to the project, subject to the limitations set forth in the New Convention Facility Development Incentives Act; and

(f) the maximum amount of incentives that the applicant is requesting, subject to the limitations set forth in Section 63N-2-503.

(3) The Office, with advice of the Board and after considering recommendations of the independent review committee established by Section 63G-2-504, shall review the application and materials and determine whether to enter into an agreement with the qualified hotel, and what conditions to place on the award of an incentive.

(a) The Office shall review applications and respond within 60 days;

(b) if more information is requested by the Office or the Board, the applicant will have 15 days to provide the additional information, and the Office's decision will be extended by 30 days;

(c) if the Office declines to approve the project, it shall publish a notice of agency action and state specifically the reasons for declining, and what, if anything the applicant can do to cure the defects;

(d) if the Office approves the project the approval shall include the terms, conditions, contingencies, and requirements related to the convention incentive.

(4) If either the qualified hotel owner or the host local government are aggrieved by the notice of agency action in Subsection R357-13-3(3)(c), the entity may seek review by the Executive Director of the Governor's Office of Economic Opportunity, using the procedures set forth in Section 63G-4-301.

History

KEY: hotel convention center incentives, tax credits
Date of Last Change: November 14, 2025
Notice of Continuation: November 28, 2025
Authorizing, and Implemented or Interpreted Law: 63N-2-509

Utah Admin. Code R357-13-5 Independent Review Committee

The independent review committee may:

(1) make recommendations to the Office regarding appropriate terms and conditions for an agreement with a qualified hotel;

(2) consult with the Office regarding compliance with the;

(a) conditions, contingencies, and requirements related to the convention incentive:

(b) proof of new tax revenue to support an application or claim for a convention incentive; and

(3) specify the maximum dollar amount that the incentive recipient may receive for each application; and

(4) review documentation to ensure that incentives are being used for the purposes set forth in Section 63N-2-513.

History

KEY: hotel convention center incentives, tax credits
Date of Last Change: November 14, 2025
Notice of Continuation: November 28, 2025
Authorizing, and Implemented or Interpreted Law: 63N-2-509

Utah Admin. Code R357-13-6 Procedures for Claiming a Convention Incentive

(1) The applicant for a convention incentive shall be paid in accordance with Section 63N-2-505.

(2) For claims of construction or off-site revenue, each claim shall identify by location, using the nine digit postal code, where the sales and use taxes constituting new tax revenue were paid. For each location identified, the certification shall itemize the amount constituting new tax revenue for each category of sales and use tax identified in Section 63N-2-502.

(3) Once an application and the tax returns referenced in Subsection 63N-2-505(2)(b) are received, the Governor's Office of Economic Opportunity shall have 90 days to review the information and determine whether there is sufficient information to certify the claim for payment.

(4) Any additional information requested by the Office shall be provided within 30 days.

(5) Following review of the information requested and received, the Office shall issue a notice of agency action either approving, modifying, rejecting a claim, or instructing the qualified hotel owner or host local government to resubmit the claim:

(a) timing and amount of payment of an approved claim is subject to the availability of funds in the incentive fund;

(b) if the application is approved and there is sufficient funds in the incentive fund, payments will be made within 30 days of the notice approving the claim; and

(c) an approved amount maybe adjusted for amounts, percentages, or error ratios identified in the report under Subsection (7).

(6) If either the qualified hotel owner or the host local government are aggrieved by the notice of agency action, the entity may seek review by the Executive Director of the Governor's Office of Economic Opportunity, using the procedures set forth in Section 63G-4-301.

(7) The entity claiming a convention incentive shall submit a report from an independent certified public accountant that uses the following procedures:

(a) detail from the applicant's sales and use account for the period being reviewed on a form prescribed by the Office;

(b) testing a sample of transactions from the applicant's sales and use account and verifying the vendor, payment amount and sales and use tax paid; and

History

KEY: hotel convention center incentives, tax credits
Date of Last Change: November 14, 2025
Notice of Continuation: November 28, 2025
Authorizing, and Implemented or Interpreted Law: 63N-2-509

Utah Admin. Code R357-13-7 Incremental Property Tax Revenue

The Office shall define in an agreement with the qualified hotel how and under what circumstances a county in which a qualified hotel is located shall keep incremental property tax revenue during the eligibility period and that provides assurances that incremental property tax revenue may only be used for the purposes set forth in Subsection 63N-2-508(3).

History

KEY: hotel convention center incentives, tax credits
Date of Last Change: November 14, 2025
Notice of Continuation: November 28, 2025
Authorizing, and Implemented or Interpreted Law: 63N-2-509

Utah Admin. Code R357-13-8 Procedures for the Administration of the Hotel Impact Mitigation Fund

(1) Notification of the open mitigation and list of city-wide events for the claim period application period will be posted on the GOEO website.

(2) An applicant who fails to enter into a contract or apply for mitigation during the open application period, in a format and method provided by the Office, will not be eligible for mitigation funds during that year.

(3) For four consecutive years, the Hotel Impact Mitigation Fund will accept applications per Subsection 63N-2- 512(6). An applicant must submit a new claim application each year, and the application must reflect the qualified losses for city-wide events for January 1 st to December 31st of the year claimed.

(4) To be determined eligible for reimbursement from the Hotel Impact Mitigation Fund, an applicant shall demonstrate:

(a) that the applicant is a hotel built in the state before July 1, 2014;

(b) that the hotel has experienced qualified losses as defined in Subsection 63N-2-512(1)(d);

(d) to show qualified losses, the applicant shall:

(i) provide the applicant's total average room-night revenue and number of room nights for city-wide events, by year, between January 1, 2017 and December 31, 2019. The Office shall calculate the annual average room-night revenue and the annual average number of room nights to establish the baseline;

(ii) provide average annual room-night revenue and number of room nights for city-wide events of the claiming year

(iii) attest the information in the application is accurate;

(iv) that the applicant entered into a contract with the Office for the Hotel Impact Mitigation Fund; and

(v) apply during the open application period as set forth in Subsection (1).

(5) If an application for reimbursement by the Hotel Impact Mitigation Fund is denied, the entity may seek review by the Executive Director of the Governor's Office of Economic Opportunity, using the procedures set forth in Section 63G-4-301. Within five business days of receiving notice from the Office that the application has been denied, the applicant must file a review.

History

KEY: hotel convention center incentives, tax credits
Date of Last Change: November 14, 2025
Notice of Continuation: November 28, 2025
Authorizing, and Implemented or Interpreted Law: 63N-2-509

R357-14 Electronic Meetings

Utah Admin. Code R357-14-101 Purpose and Procedure

In accordance with Section 52-4-207, the following shall apply to electronic meetings held by any public body, as defined in Section 52-4-103, within Title 63N, Economic Opportunity Act.

(1)(a) Office staff may establish an electronic meeting; and

(b) a member of a public body may request Office staff to establish an electronic meeting and the Office staff may determine whether such request should be granted.

(2) A quorum of the public body is not required to be present at a single anchor location for an electronic meeting.

(3) A public body member who participates in the electronic meeting remotely shall be included when calculating a quorum if the public body member:

(a) can be visually identified; or

(b) verbally confirms participation.

History

KEY: electronic meetings, open and public meetings
Date of Last Change: February 3, 2023
Notice of Continuation: March 28, 2025
Authorizing, and Implemented or Interpreted Law: 52-4-207

R357-15 Enterprise Zone Tax Credit

Utah Admin. Code R357-15-1 Authority

Subsection 63N-2-213(6) requires the office to make rules establishing the form and content of an application for an enterprise zone tax credit, the documentation required to receive an enterprise zone tax credit, and the administration of the program, including relevant timelines and deadlines.

History

KEY: enterprise zones, tax credits
Date of Last Change: August 7, 2024
Notice of Continuation: October 30, 2025
Authorizing, and Implemented or Interpreted Law: 63N-2-213(6)

Utah Admin. Code R357-15-2 Definitions

In addition to the definitions under Sections 63N-2-202, 59-7-614.10, and 59-10-1037 the following terms are defined:

(1) "Annual investment", "Investment" or "Qualifying investment" means the purchase of most types of tangible property, except land, such as buildings, machinery, vehicles, furniture, and equipment that:

(a) qualifies for depreciation under the Internal Revenue Service's Form 4562; and

(b) is put into service at an operating address of the business entity, that is within an enterprise zone designated by the office for the applicable tax year.

(2) "Baseline" means the highest number of employee positions that existed at the business entity in the previous taxable year.

(3) "Qualified business use vehicle" means an automobile, light truck, heavy truck, van, utility vehicle, boat, recreational vehicle, airplane, or motorcycle.

(4) "New full-time employee position" means a position that has been newly created in addition to the baseline filled by an employee working at least 30 hours per week where the period ends in the tax year for which the credit is claimed.

(5) "Payment documentation" means a:

(a) bank statement;

(b) cleared check;

(d) signed statement from the seller confirming the payer, payee, date paid, and amount paid for cash payments.

(6) "Purchase documentation" means a bill of sale, contract of sale, receipt, invoice, or other documentation which identifies the buyer, seller, purchase price, items purchased, and the date of purchase.

(7) "Residential rental property" means the same as Internal Revenue Service's publication 527.

(8) "Retail trade" means a business entity that collects sales and use tax based on Section 59-12-103.

(9) "Same ownership" means two or more business entities that are owned or partially owned by the same individual or individuals.

(10) "Value-added business entity" means a company that creates a change in the physical state or form of a product in a manner that enhances its value, thus expanding the customer base of the product. Examples include milling wheat into flour or making strawberries into jam.

History

KEY: enterprise zones, tax credits
Date of Last Change: August 7, 2024
Notice of Continuation: October 30, 2025
Authorizing, and Implemented or Interpreted Law: 63N-2-213(6)

Utah Admin. Code R357-15-3 Application Form and Content

(1) An application form will be provided by the office and will contain the following content:

(a) General submission instructions;

(b) Types of tax credits available to be claimed;

(d) Any required deadlines and relevant timelines; and

(e) Any required documents and information necessary for verification and approval of the application.

(2) The application shall be created in an electronic format available to the public at business.utah.gov

History

KEY: enterprise zones, tax credits
Date of Last Change: August 7, 2024
Notice of Continuation: October 30, 2025
Authorizing, and Implemented or Interpreted Law: 63N-2-213(6)

Utah Admin. Code R357-15-4 Required Documentation and Verification Information

(1) To claim any of the tax credits available under Section 63N-2-201 the following basic information must be provided to the office:

(a) business entity's name that is claiming a tax credit on a Utah Tax filing submission;

(b) contact name, email, phone number, mailing address and relevant titles;

(c) the physical operating address where the business entity is located including a screenshot of the address pinpoint within the enterprise zone as found on locate.utah.gov.

(d) the business entity's tax identification number whether a federally provided employer identification number or a Social Security Number; and

(e) information as required under Section R357-15-3.

(2) To qualify for any of the employment tax credits under Subsections 63N-2-213(7)(a) through (d) the following documentation and information is required:

(a) current total of employees at any point during the taxable year and previous taxable including the quarterly total of employees as reported to the Department of Workforce Services;

(b) the number of new full-time employee positions created above the baseline. For each new full-time employee position above the baseline the applicant must provide:

(i) employee name;

(ii) employee wages paid;

(iii) employee hours worked;

(iv) employee Hire date and termination date if applicable;

(v) if applicable, proof of employer-sponsored health insurance program if the employer pays at least 50% of the premium cost;

(vi) if applicable, evidence that the business entity adds value to agricultural commodities through manufacturing or processing, including a list of sample products or processes.

(3) To qualify for the private capital investment tax credit under Subsections 63N-2-213(7)(e) and (f) the following documentation and information is required:

(a) If the private capital investment is for the rehabilitation of a building in an enterprise zone the applicant must provide:

(i) the rehabilitated building's physical address;

(ii) documents showing the current owner such as the deed or mortgage documents;

(iii) the date the building was last occupied;

(iv) a current occupancy permit or certificate;

(v) purchase documentation of rehabilitation expenses totaling the amount the tax credit is calculated from;

(vi) one or more forms of payment documentation validating any rehabilitation expense with an amount claimed equal to or greater than the amount established by the office is paid in entirety; and

(vii) any other documentation requested by the office including a sworn affidavit confirming the rehabilitation costs from the owner of the building if applicant is not the owner of the building.

(b) If the private capital investment is a qualifying investment in plant, equipment, or other depreciable property in an enterprise zone the applicant must provide:

(i) an itemized list of qualified investments being claimed for the credit on a template provided by the office;

(ii) purchase documentation for any investment claimed;

(iii) one or more forms of payment documentation validating an investment with an amount claimed that is equal to or greater than an amount established by the office is paid in entirety; and

(iv) property and real estate investments also require:

(A) a settlement statement; and

(B) property tax notice with building and land values separated from total property value.

(v) qualified business use vehicle and other motor vehicle investments also require business use percentage.

History

KEY: enterprise zones, tax credits
Date of Last Change: August 7, 2024
Notice of Continuation: October 30, 2025
Authorizing, and Implemented or Interpreted Law: 63N-2-213(6)

Utah Admin. Code R357-15-5 Application Review and Authorization Process for an Enterprise Zone Tax Credit

(1) The office shall review submitted applications within a reasonable amount of time and approve or deny the application as follows:

(a) the office shall review tax credits claimed and documentation provided; and

(b) the office may request additional documentation or information if the office determines that further verification is required. Failure to comply with a request for additional documentation may result in a denial of the application.

(2) The office will issue tax credit certificates for tax credits for which an applicant has applied, qualified and been approved by the office. This office may issue a partial approval if only parts of the application are determined to qualify.

(3) The office must provide written notice that includes its reasoning when denying any or a portion of a tax credit application.

(4) If approved in whole or in part, the office shall provide any necessary documents and instructions, approved by the Utah Tax Commission, for claiming the tax credit.

(5)(a) When a business entity is seeking to receive a tax credit for the purchase of a qualified business use vehicle, in conformity with Subsection 63N-2-213(7)(f), the office may not grant a tax credit for the trade in value of a qualified business use vehicle that the business entity traded into the purchase of the vehicle for which the tax credit is being sought;

(b) The amount claimed toward investment in a qualified business use vehicle or a motor vehicle described in Subsection R357-15-4(3)(b)(v) is determined as acquisition cost, less any trade in value in accordance with Subsection R357-15- 5(5), multiplied by the business use percentage.

(6) The trade in value in a purchase may be claimed toward a state tax credit for private capital investment that is qualifying investment in plant, equipment, or other depreciable property when, in the purchase that qualifies as investment by the business entity, there was traded in:

(a) plant, equipment, or other depreciable property that qualifies for depreciation on IRS Form 4562 and is not a qualified business use vehicle and if not previously awarded;

(b) a qualified business use vehicle that was traded in by an individual who is an owner or officer of the applying business entity; or

(7) The office may deny claims of investment for software purchases that are cloud services or software as a service.

(8) The office may deny claims for investment purchased before the three previous taxable years.

(9) The office may deny claims for investments purchased from a business entity with the same ownership.

(10) The office may deny claims if the only connection to an enterprise zone for a business entity is a P.O. Box.

(11) The office may deny claims for investment that was transferred from personal use to business use unless the original investment and personal use occurred within the same taxable year the asset was placed into service by the applying business entity.

(12) The office shall deny claims if a business entity:

(a) produces revenue of 51% or more in retail trade;

(b) is a residential rental property business; or

History

KEY: enterprise zones, tax credits
Date of Last Change: August 7, 2024
Notice of Continuation: October 30, 2025
Authorizing, and Implemented or Interpreted Law: 63N-2-213(6)

Utah Admin. Code R357-15-6 Appeal of Application Denial

A hearing contesting the denial of an application in whole or in part of an enterprise zone tax credit is designated as informal hearings.

History

KEY: enterprise zones, tax credits
Date of Last Change: August 7, 2024
Notice of Continuation: October 30, 2025
Authorizing, and Implemented or Interpreted Law: 63N-2-213(6)

R357-21 Rural Jobs Act

Utah Admin. Code R357-21-1 Purpose

(1) The purpose of this rule is to define and clarify the standards required to apply for and receive a non-refundable tax credit under the Rural Jobs Act.

History

KEY: rural development, rural jobs, tax credit
Date of Last Change: October 27, 2022
Notice of Continuation: November 1, 2022
Authorizing, and Implemented or Interpreted Law: 63N-4-304(4)

Utah Admin. Code R357-21-2 Authority

(1) Rulemaking authority is provided in Subsection 63N-4-304(4).

History

KEY: rural development, rural jobs, tax credit
Date of Last Change: October 27, 2022
Notice of Continuation: November 1, 2022
Authorizing, and Implemented or Interpreted Law: 63N-4-304(4)

Utah Admin. Code R357-21-3 Definitions

The following terms are defined:

(1) "Same day" means applications received on or before 11:59 p.m. on November 1, 2022.

History

KEY: rural development, rural jobs, tax credit
Date of Last Change: October 27, 2022
Notice of Continuation: November 1, 2022
Authorizing, and Implemented or Interpreted Law: 63N-4-304(4)

Utah Admin. Code R357-21-4 Calculation of Time

(1) For the Utah Rural Jobs Act time will be calculated beginning the business day after the initial or triggering event.

(2) If the ending day or due date occurs on a weekend day or a state or federal holiday, the due date shall be 11:59 p.m. on the next business day following the weekend day or holiday.

History

KEY: rural development, rural jobs, tax credit
Date of Last Change: October 27, 2022
Notice of Continuation: November 1, 2022
Authorizing, and Implemented or Interpreted Law: 63N-4-304(4)

Utah Admin. Code R357-21-5 Applications

(1) To qualify applicants shall provide:

(a) at least five individual rural investments of $5,000,000 or less as part of the $50,000,000 total investments in nonpublic companies located in counties with fewer than 50,000 inhabitants; and

(b) the most recent Annual Determination letter from the office documenting the creation of at least 117 jobs from the 2017 Rural Jobs Act, if the applicant was approved during the November 1, 2017 application process.

(2) For any applications received on the same day:

(a) If there is additional investment authority to allocate after considering the applications received on the same day of submissions, then those applications will be considered on a first come first served basis until the total investment authority of $42,000,000 has been allocated, except as outlined in Subsection 63N-4-303(8); and

(b) If there is no additional investment authority to allocate after considering the applications received on the same day of applications, then the applicants who were not considered will be notified of eligibility approval and these applicants will stand in a first come first served basis for any recaptured allocation that may occur during the program, except as outlined in Subsections 63N-4-303(8) and 63N-4-305(4).

(3) Notice of Allocation Approval shall be delivered through electronic mail and be considered received at the time stamp within the electronic mail notice, not when it is read.

(4) If an approved applicant withdraws its request for investment authority after an allocation is made, the amount allocated to the withdrawing applicant will be redistributed to approved applicants that have not yet received the full amount of their requested investment authority on a pro rata basis. If all approved applicants have received the full amount of their requested investment authority, then other eligible applicants may be approved and receive allocations;

(a) approved applicants will be notified of an additional investment authority amount in writing. The applicant will have ten days to either accept the additional investment authority or decline the additional investment authority. Failure to accept in writing will be deemed a declination of additional investment authority;

(b) if the additional investment authority is declined, the amount will be redistributed to the remaining approved applicants that have not received the full amount of their requested investment authority and if none then to other approved applicants; and

(c) timing of issuance of additional investment authority: Any additional amounts received by approved applicants who have already received an allocation of investment authority shall have a new independent timeline from the original allocation amount unless the approved applicant requests to aggregate the timelines as set forth in Subsections R357-21- 5(4)(c)(i), (ii), and (iii):

(i) an applicant receiving additional investment authority may request to have the additional amount aggregated with the initial allocation by making such a request on official letter head to the office and by agreeing to waive the independent timeline of the additional investment authority amount;

(ii) if aggregation of an original allocation amount with an additional investment authority allocation amount may occur without violating the Utah Rural Jobs Act or this rule, the office will approve the request to aggregate the allocations; and

(iii) if the allocations are aggregated, allocations shall be subject to the deadline for the original investment authority allocation.

(5) Once the maximum amount of funding has been allocated, applicants will be notified that there is no other allocation amount available for the fiscal year unless or until an applicant's certification lapses, an applicant withdraws its request, or if funding is recaptured.

(6) A partnership, limited liability company or S-corporation will be considered a claimant and may file the affidavit set forth in Subsection 63N-4-303(2), provided it includes a list of its partners, members, or shareholders and one of its partners, members, or shareholders has state tax liability. No penalty or fine will be assessed on a claimant that fails to make the investment set forth in an affidavit.

History

KEY: rural development, rural jobs, tax credit
Date of Last Change: October 27, 2022
Notice of Continuation: November 1, 2022
Authorizing, and Implemented or Interpreted Law: 63N-4-304(4)

Utah Admin. Code R357-21-6 Annual Fees

(1) Each applicant will be notified of any recalculation of any annual fee at least ten days before each annual reporting date. If no notice of recalculation is received, then the annual fee will be the same amount as it was the previous year and will be due along with the annual report.

History

KEY: rural development, rural jobs, tax credit
Date of Last Change: October 27, 2022
Notice of Continuation: November 1, 2022
Authorizing, and Implemented or Interpreted Law: 63N-4-304(4)

Utah Admin. Code R357-21-7 Full Funded Applicant

(1) A notice of full funding pursuant to Subsection 63N-4-303(7) shall be provided by the applicant on official letterhead of the applicant and follow the format, documentation, and other requirements in Section R357-21-7:

(a) bank statements, credit instruments, and other supporting documentation to show full funding was achieved under the requirements outlined in Subsection 63N-4-303(7); and

(b) any other documentation the office may request.

(2) If the approved applicant does not meet the requirements found in Subsection 63N-4-303(7) or is found to have lacking documentation as described in Subsection R357-21-7(1), the office shall notify the applicant that its investment authority allocation has lapsed by issuing a Notice of Agency Action for Lapsed Allocation.

(3) The applicant will have ten business days to submit to the executive director a challenge to a Notice of Agency Action for Lapsed Allocation:

(4) Any challenge to a Notice of Agency Action for Lapsed Allocation shall provide documentation that the requirements of Subsection 63N-4-303(7) were met within 65 days of notice of approval for investment authority allocation;

(5) The executive director shall issue a final determination within five business days of receipt of such a challenge.

History

KEY: rural development, rural jobs, tax credit
Date of Last Change: October 27, 2022
Notice of Continuation: November 1, 2022
Authorizing, and Implemented or Interpreted Law: 63N-4-304(4)

Utah Admin. Code R357-21-8 Form and Notice for Tax Credits

(1) An approved applicant that has fully funded its investment authority allocation and has provided the evidence required in Subsection 63N-4-303(7) shall notify the office annually of the entities that are eligible to use tax credits as follows:

(a) by submitting the a "Notification of Investment Authority Allocation for Rural Jobs Act Tax Credits" to the office on official letterhead;

(b) each notice shall be accompanied by documentation of the investment made in the fund raised by the approved applicant with respect to the entity claiming a tax credit including investment amount, entity name, and entity federal employer identification number;

(d) for tax credits allowed to a partnership, limited liability company or S-corporation, the notice shall be accompanied by any necessary documentation or agreements to demonstrate how the credits will be used by the partners, members, or shareholders.

(2) Each tax credit certificate shall contain the following contingencies:

(a) certification provision requiring the entity receiving the tax credit to certify:

(i) it is subject to the recapture provisions set forth in Section 63N-4-305; and

(ii) it will not sell the tax credit on the open market;

(b) be available for use annually in accordance with the applicable percentages to the entity receiving the tax credit after receipt and acceptance of the approved applicant's annual report to the office; and

(c) any event of recapture outlined by the Utah Small Business Jobs Act or this rule shall prevent the use of an annual tax credit certificate to the entity receiving the tax credit.

History

KEY: rural development, rural jobs, tax credit
Date of Last Change: October 27, 2022
Notice of Continuation: November 1, 2022
Authorizing, and Implemented or Interpreted Law: 63N-4-304(4)

Utah Admin. Code R357-21-9 Reports

(1) The annual reports required by Section 63N-4-307 shall include information required in statute and must also include, with respect to the first report for any eligible small business:

(a) a baseline of the number of employees at each eligible small business that receives an investment based on a payroll report of the eligible small business;

(b) new state revenue generated by the eligible small business for the previous taxable year of the annual report;

(d) a brief description of the eligible small business including general business activities; how investment funds are being utilized by the eligible small business, and any other information the approved applicant feels relevant.

(e) the amount of funding that the eligible small business has received through Title 63N, Chapter 3, Part 8, State Small Business Credit Initiative Program Fund; and

(f) an authorization to disclose tax information for each eligible small business that accurately reports new state revenue.

(2) New annual jobs shall be calculated on an annual basis by subtracting the baseline number of employees reported in Section R357-21-9 from annual employment level of the eligible small business calculated by averaging the monthly payroll reports of the eligible small business for the applicable year, provided that such average with respect to the initial annual report for an eligible small business shall only include payroll reports for the months following the initial growth investment and shall be multiplied by 50% if such initial growth investment occurs after June 30 of the applicable year. New annual jobs reported may not be less than zero.

(3) Within five days of its investment of 100% of its rural investment authority in growth investments in this state with at least 70% invested in rural counties, the approved applicant must notify the office of milestone achievements on a report that includes:

(a) the name and location of each eligible small business;

(b) the amount invested in each eligible small business; and

(4) An approved applicant may submit the reports on its own forms, but reports must be presented in plain language and simple to navigate.

(5) The office will apply a proration of job creation for each company that received investment from multiple Rural Jobs Act applicants, determined by investment duration for the year and amount.

History

KEY: rural development, rural jobs, tax credit
Date of Last Change: October 27, 2022
Notice of Continuation: November 1, 2022
Authorizing, and Implemented or Interpreted Law: 63N-4-304(4)

Utah Admin. Code R357-21-10 Recapture (Revocation)

(1) If the office determines recapture is necessary pursuant to Section 63N-4-305, the office shall issue a Provisional Notice of Agency Action for Recapture to both the approved applicant and the taxpayer that claimed the tax credit. Such notice shall be delivered to the approved applicant by electronic mail and certified mail, and shall state under Section 63N-4-305 the recapture is sought.

(2) The 90-day cure period provided for in Section 63N-4-305 begins on the day following receipt of the Provisional Notice of Agency Action for Recapture. If the action or omission upon which the recapture is based is cured during the 90 day cure period, the office shall issue a notice of cure to the approved applicant.

(3) If after the 90-day cure period, the action or omission upon which the recapture is based is not cured, the office shall issue a final Notice of Agency Action for Recapture.

The Final Notice of Agency Action for Recapture shall also be sent to the Utah Tax Commission.

(4) To remain 100% invested during the compliance period, if fund losses occur due to an eligible small business' inability to meet their investment obligation, the rural investment company shall satisfy the 100% investment requirements of Subsection 63N-4-305(1) by reinvesting any capital that is recovered. Investment amounts not recovered will not have to be reinvested to satisfy the 100% investment requirements of Subsection 63N-4-305(1).

History

KEY: rural development, rural jobs, tax credit
Date of Last Change: October 27, 2022
Notice of Continuation: November 1, 2022
Authorizing, and Implemented or Interpreted Law: 63N-4-304(4)

Utah Admin. Code R357-21-11 Exit

(1) An approved applicant may exit the program pursuant to requirements outlined in Section 63N-4-309.

(2) The request for exit must be made on official letterhead of the approved applicant and contain the following:

(a) the calculation used to determine the state reimbursement amount;

(b) the aggregate new annual jobs reported in earlier annual reports; and

(i) relevant documentation used to show the present value of each growth investment made by the approved applicant on the day the approved applicant applies for exit from the program. Relevant documentation must show from verifiable sources how the present value of each growth investment is determined and additional documentation may be requested by the office to verify values provided; and

(ii) relevant documentation that shows how any projected increase in an equity holder's federal or state tax liability including penalties and interest, related to the equity holder's ownership, management, or operation of the rural investment company, was determined. This may include actual tax filings of the equity holder whose increase is utilized in the excess return calculation.

History

KEY: rural development, rural jobs, tax credit
Date of Last Change: October 27, 2022
Notice of Continuation: November 1, 2022
Authorizing, and Implemented or Interpreted Law: 63N-4-304(4)

R357-22 Rural Employment Expansion Program

Utah Admin. Code R357-22-101 Title

This rule is known as the "Rural Employment Expansion Program Rule."

History

KEY: rural employment expansion, economic development
Date of Last Change: June 27, 2024
Notice of Continuation: October 6, 2023
Authorizing, and Implemented or Interpreted Law: 63N-4-403(3)(c)

Utah Admin. Code R357-22-102 Definitions

In addition to the terms defined in Section 63N-4-402, the following terms are defined:

(1) "Contract termination date" means 90 days after the expiration of the eligible employment period.

(2) "Eligible employment period" means the eligible hiring period and the following 12 months of continual employment for new, full-time employee positions.

(3) "Eligible hiring period" means the six months starting the date the REDI application was submitted.

(4) "Baseline period" means 12 months leading up to the date the REDI application was submitted.

(5) "Employee report" means a list of employees in a format approved by the office that includes:

(a) time-period of report; and

(b) employee:

(i) names or ID numbers;

(ii) position titles;

(iii) hire dates;

(iv) termination dates;

(v) hours paid;

(vi) wages paid; and

(vii) benefits paid, if applicable.

(6)(a) "New, full-time employee position" means a position that:

(i) is newly created in addition to the number of baseline jobs as defined in Subsection 63N-1a-102(1);

(ii) the annual gross wage or annualized wage of the employment position, not including health care or other paid or unpaid benefits, is at least 100% of the average wage of the county in which the employment position exists;

(iii) is filled:

(A) by a full-time employee as defined in Subsection 63N-1a-102(6); and

(B) within the eligible hiring period; and

(iv) is primarily located within a:

(A) county of the third, fourth, fifth, or sixth class; or

(B) municipality that has a population of 10,000 or less located in a county of the second class.

(b) "New, full-time employee position" does not include independent contractor, commission based, or seasonal positions.

(7) "REDI," Rural Employment Development Incentives, means the same as the Rural Employment Expansion Program.

(8) "Business entity" means the same as the term is defined under Subsection 63N-4-402(1).

History

KEY: rural employment expansion, economic development
Date of Last Change: June 27, 2024
Notice of Continuation: October 6, 2023
Authorizing, and Implemented or Interpreted Law: 63N-4-403(3)(c)

Utah Admin. Code R357-22-103 Authority

This rule is adopted by the office under the authority of Subsection 63N-4-403(3)(c).

History

KEY: rural employment expansion, economic development
Date of Last Change: June 27, 2024
Notice of Continuation: October 6, 2023
Authorizing, and Implemented or Interpreted Law: 63N-4-403(3)(c)

Utah Admin. Code R357-22-104 Form and Content of Application for Rural Employment Expansion Program Participation

(1) The content of the application for a rural employment expansion grant shall, at minimum, include the business entity's:

(a) name;

(b) physical operating address;

(d) email address;

(e) Federal EIN number;

(f) primary NAICS code;

(g) vendor number, if the applicant is a registered vendor with the state;

(h) requested rural employment expansion grant amount; and

(i) forecasted:

(i) number of new, full-time employee positions; and

(ii) wage of new, full-time employee positions.

(2) The following documents shall, at minimum, be included in each application for participation in the program:

(a) a copy of a current, signed W-9 form;

(b) evidence of the business entity's employees during the baseline period such as:

(i) the four most recent Form 33H - Utah Employer Quarterly Wage List and Contribution Reports;

(ii) a copy of an executed professional employee agreement for each employee, as defined in Subsection 31A-40- 102(15); or

(iii) an equivalent form of documentation; and

History

KEY: rural employment expansion, economic development
Date of Last Change: June 27, 2024
Notice of Continuation: October 6, 2023
Authorizing, and Implemented or Interpreted Law: 63N-4-403(3)(c)

Utah Admin. Code R357-22-105 Documentation Required to Demonstrate the Creation of New, Full-Time Employee Positions

(1) The following information and documentation shall, at minimum, be included when a business entity demonstrates the creation of new, full-time employee positions after the position has been filled for 12 months:

(a) number of new, full-time employee positions created;

(b) address of work location if different from the address provided in the business entity's application for REDI Participation;

(d)(i) the two most recent Form 33H - Utah Employer Quarterly Wage List and Contribution Reports;

(ii) a copy of an executed professional employee agreement for each employee, as defined in Subsection 31A-40- 102(15); or

(iii) similar documentation to Form 33H showing the number of employees employed during the preceding 12 months.

(2) A business entity may apply for grant funds after the new, full-time employee positions have been filled for a minimum of six months and the annualized wage is at least 100% of the county's average wage by submitting:

(a) number of new, full-time employee positions created;

(b) address of work location if different from the address provided in the business entity's application for REDI Participation;

(d)(i) two most recent Form 33H - Utah Employer Quarterly Wage List and Contribution Reports;

(ii) a copy of an executed professional employee agreement, as defined in Subsection 31A-40-102(15); or

(iii) similar documentation to Form 33H showing the number of employees employed during the preceding 12 months; and

(e) pay stubs for each new, full-time employee position at the second, fourth, and sixth month of employment.

(3) The office may request additional information to verify the creation and wage of new, full-time employee positions.

History

KEY: rural employment expansion, economic development
Date of Last Change: June 27, 2024
Notice of Continuation: October 6, 2023
Authorizing, and Implemented or Interpreted Law: 63N-4-403(3)(c)

Utah Admin. Code R357-22-106 Documentation Required to Demonstrate the Creation of New Full-Time Positions -- Appeal Process

(1) If the office denies the request for a rural employment expansion grant, the business entity may appeal the denial to the office, in writing, within 20 business days of the denial notice date.

(2) The office shall review and make a final determination of any appeal of a rural employment expansion grant denial within ten business days.

History

KEY: rural employment expansion, economic development
Date of Last Change: June 27, 2024
Notice of Continuation: October 6, 2023
Authorizing, and Implemented or Interpreted Law: 63N-4-403(3)(c)

Utah Admin. Code R357-22-107 Administration of the Rural Employment Expansion Grant

(1) From the date of entering a written agreement, as described in Subsection 63N-4-404(3), the business entity shall have six months to hire an employee to fill any new, full-time employee positions.

(2) The business entity shall provide the documentation required to demonstrate the creation of new, full-time employee positions within 90 days of the completion of all eligible employment periods for the new, full-time employee positions.

(3) The administrator may cause the written agreement to be amended if:

(a) the baseline number of jobs has materially changed; or

(b) the number of new, full-time employee positions is less than the number projected in the original written agreement.

(4) The written agreement, as described in Subsection 63N-4-404(3), will establish the average county wage terms and requirements.

(5) New, full-time employee positions that qualify for a Rural Employment Expansion Grant are not eligible to be considered as new, full-time employee positions for other grant or incentive programs administered by the office.

(6) Business entities that would like to apply for or receive another grant or incentive administered by the office must submit a separate application for each grant or incentive program.

History

KEY: rural employment expansion, economic development
Date of Last Change: June 27, 2024
Notice of Continuation: October 6, 2023
Authorizing, and Implemented or Interpreted Law: 63N-4-403(3)(c)

R357-25 Rural Coworking and Innovation Center Grant Program

Utah Admin. Code R357-25-101 Title

This rule is known as the "Rural Coworking and Innovation Center Grant Program Rule."

History

KEY: rural coworking, economic development, working hubs
Date of Last Change: December 30, 2021
Notice of Continuation: September 10, 2024
Authorizing, and Implemented or Interpreted Law: 63N-4-504(1)

Utah Admin. Code R357-25-102 Definitions

In addition to the definitions in Section 63N-4-502 as defined or used in this rule:

(1) "Matching funds" means any combination of funds, land, buildings, or in-kind work.

(2) "Office" means the Governor's Office of Economic Opportunity.

(3) "Project" means:

(a) construction or renovation of a facility to create a coworking and innovation center;

(b) extending or improving utilities and broadband service connections to a coworking and innovation center; or

History

KEY: rural coworking, economic development, working hubs
Date of Last Change: December 30, 2021
Notice of Continuation: September 10, 2024
Authorizing, and Implemented or Interpreted Law: 63N-4-504(1)

Utah Admin. Code R357-25-103 Authority

(1) Subsection 63N-4-504(1) requires the office to make rules establishing the eligibility and reporting criteria for an entity to receive a grant.

History

KEY: rural coworking, economic development, working hubs
Date of Last Change: December 30, 2021
Notice of Continuation: September 10, 2024
Authorizing, and Implemented or Interpreted Law: 63N-4-504(1)

Utah Admin. Code R357-25-104 Content of Application

(1) The following content shall, at minimum, be included in each entity's application for a grant:

(a) entity name;

(b) contact information including:

(i) entity's physical address;

(ii) telephone number; and

(iii) email address.

(d) copy of a current W-9 form; and

(e) executive summary of the proposed project that clearly establishes the primary activity of the project, including:

(i) how the project will serve underprivileged or underserved communities;

(ii) any constraints that have limited access to financial resources;

(iii) amount of grant funding requested;

(iv) list of each entity associated with the proposed project and its anticipated role;

(v) letters of support from each entity associated with the proposed project;

(vi) matching funds associated with the proposed project;

(vii) timeline of the proposed project; and

(viii) detailed budget of the proposed project, including quotes and bids for proposed project.

(2) In addition to the requirements in Subsection R357-25-104 (1), private companies that apply for grant funding are required to submit:

(a) federal Tax ID;

(b) NAICS Code and Primary Industry;

(d) number of full-time employees;

(e) certificate of Existence from the Utah Division of Corporations;

(f) business license from local county or municipality;

(g) most recent federal and state tax returns as proof of company profitability;

(h) most recent balance sheet and profit and loss statements as proof of solvency; and

(i) GRAMA request for confidentiality form.

History

KEY: rural coworking, economic development, working hubs
Date of Last Change: December 30, 2021
Notice of Continuation: September 10, 2024
Authorizing, and Implemented or Interpreted Law: 63N-4-504(1)

Utah Admin. Code R357-25-105 Application and Approval Procedure

(1) The office will use a scoring system to enable the advisory committee and the office to analyze the awarding of grants and grant amounts. The scoring system will be made available in the instructions to the application and will be based on:

(a) organizational information;

(b) supporting documentation;

(d) project proposal;

(e) scope of work;

(f) budget;

(g) matching funds;

(h) timeline; and

(i) deliverables and outcomes.

(2) Complete and scored applications will be presented to the advisory committee.

(3) A grant may only be awarded if the grant receipt agrees to:

(a) for construction or renovation of a coworking and innovation center, allow use of the center for at least seven years in the rural area where the center is located; or

(b) for extending or improving utilities or broadband service connections to a coworking and innovation center or for purchasing equipment, furniture, or security systems for a coworking and innovation center, allow use of the center for at least five years in the rural area where the center is located.

(4) If, after review of an application provided by an entity the advisory committee determines that the application provides reasonable justification for authorizing a grant and if there are available funds for the grant, the office shall enter into a written agreement with the entity for a term no longer than 18 months.

(5) An entity, without prior written approval from the office, may not performance on the contract until the contract agreement is completely executed.

History

KEY: rural coworking, economic development, working hubs
Date of Last Change: December 30, 2021
Notice of Continuation: September 10, 2024
Authorizing, and Implemented or Interpreted Law: 63N-4-504(1)

Utah Admin. Code R357-25-106 Project Reimbursement

(1) Awarded entities will be required to submit, at minimum, the following documentation upon reimbursement request:

(a) a letter of request on entity letterhead specifying the amount requested and certifying that the project is either up to 50% completed or fully completed and each invoice has been paid. The letter of request shall be signed and the accuracy of the information verified by a company officer;

(b) copies of each invoice and evidence of payment for work on the project;

(c) photo evidence that the project is partially completed or fully completed. Please provide several photos of the coworking and innovation center, the building, expansion, installed and functioning equipment; and

(d) proof of occupancy as issued by the local governing body's inspections department for final reimbursement.

(2) Partial reimbursement payment may be made through the course of the 18 month term of the contract, not to exceed 50% of expenses incurred during the development of the project. A request-for-funds form and itemization sheet will be required to be signed and submitted to receive the initial 50% of funds.

History

KEY: rural coworking, economic development, working hubs
Date of Last Change: December 30, 2021
Notice of Continuation: September 10, 2024
Authorizing, and Implemented or Interpreted Law: 63N-4-504(1)

R357-27 Community Reinvestment Agency Report Rule

Utah Admin. Code R357-27-101 Authority

Subsection 17C-1-603(3)(b) requires the Governor's Office of Economic Opportunity to make rules to establish a fee schedule for administration of the database.

History

KEY: counties, public funds and accounts, reporting
Date of Last Change: September 23, 2024
Notice of Continuation: October 24, 2024
Authorizing, and Implemented or Interpreted Law: 17C-1-603(2)(b)

Utah Admin. Code R357-27-102 Fee Schedule

Reserved.

History

KEY: counties, public funds and accounts, reporting
Date of Last Change: September 23, 2024
Notice of Continuation: October 24, 2024
Authorizing, and Implemented or Interpreted Law: 17C-1-603(2)(b)

R357-29 Rural County Grant Rule

Utah Admin. Code R357-29-101 Title

This rule is known as the "Rural County Grant Rule."

History

KEY: Rural County Grant, economic development
Date of Last Change: July 9, 2026
Notice of Continuation: June 20, 2025
Authorizing, and Implemented or Interpreted Law: 63N-4-802; 63N-4-104

Utah Admin. Code R357-29-102 Definitions

The following terms are defined as follows:

(1) "CEO board" means a County Economic Opportunity Advisory Board as described in Section 63N-4-803.

(2) "GOED" means the Governor's Office of Economic Development.

History

KEY: Rural County Grant, economic development
Date of Last Change: July 9, 2026
Notice of Continuation: June 20, 2025
Authorizing, and Implemented or Interpreted Law: 63N-4-802; 63N-4-104

Utah Admin. Code R357-29-103 Authority

This rule is adopted by the office under the authority of Section 63N-4-802.

History

KEY: Rural County Grant, economic development
Date of Last Change: July 9, 2026
Notice of Continuation: June 20, 2025
Authorizing, and Implemented or Interpreted Law: 63N-4-802; 63N-4-104

Utah Admin. Code R357-29-104 Content of Applications

(1) The following content shall, at a minimum, be included in each application:

(a) name of applying county;

(b) tax ID;

(d) amount of grant funding requested;

(e) responsible contact's:

(i) name;

(ii) full mailing address;

(iii) telephone number; and

(iv) email address;

(f) a scope of work with descriptions of projects and activities for which funds will be used;

(g) a description of expected deliverables and outcomes;

(h) a budget narrative describing proposed fund usage; and

(i) any other information requested by the office.

(2) The following documentation shall, at a minimum, be included in each application for a Rural County Grant:

(a) the entity's W9 form, or the county's state vendor number if the county is currently a state vendor;

(b) a letter of support from the CEO board;

(i) names;

(ii) titles;

(iii) organization each member represents;

(iv) terms of appointments; and

(v) contact information;

(d) a line-item budget describing proposed uses of grant funds; and

(e) if the county uses Rural County Grant funds for any third-party consultant or county employee:

(i) a scope of work describing the projects and activities expected from the consultant or employee;

(ii) a description of expected deliverables and outcomes from the consultant or employee;

(iii) a budget narrative describing proposed fund usage by the consultant or employee;

(iv) a line-item budget describing proposed uses of grant funds for each project with a calculation of the value of each against the consultant's fee or employee's salary;

(v) a copy of the contract or agreement between the county and any consultant or employee for services to be provided;

(vi) contact information of the consultant or employee; and

(vii) any other information requested by the office.

History

KEY: Rural County Grant, economic development
Date of Last Change: July 9, 2026
Notice of Continuation: June 20, 2025
Authorizing, and Implemented or Interpreted Law: 63N-4-802; 63N-4-104

Utah Admin. Code R357-29-105 Grant Administration and Reporting

(1) The application for the Rural County Grant will become available to counties:

(a) on or before July 1; and

(b) after approval of the previous year's annual report.

(2) The application will close:

(a) at the discretion of the office; and

(b) no later than August 1.

(3) Each grant recipient shall submit an annual report for the previous year containing:

(a) a description of the projects for which the grant funding was used or encumbered;

(b) the effectiveness of the award in improving economic development in the county;

(d) an explanation for why funding was not used or encumbered;

(e) where unused funds are being held;

(f) a letter from the CEO board attesting that:

(i) it participated in advising the county's governing body throughout the year;

(ii) it approves of the content submitted in the annual report; and

(iii) it helped prepare the annual report;

(iv) it complied with Title 52, Chapter 4, Open and Public Meetings Act;

(g) minutes from each meeting of the CEO board where the Rural County Grant was discussed; and

(h) any other information requested by the office.

(4) If the county used Rural County Grant funds for any third-party consultant or county employee:

(a) the grant recipient will provide the office with a report from the third-party consultant or county employee;

(i) describing services provided and projects and activities they worked on;

(ii) describing the deliverables and outcomes of their work and services; and

(iii) how much time in approximate hours spent for work and services provided to the county;

(b) the grant recipient will provide a letter reporting the effectiveness of grant funds paid to the third-party consultant or county employee in improving economic development in the county;

(5) Failure to spend or encumber funding from this grant program during the fiscal year for which it was awarded may result in the withholding or denial of future funding.

History

KEY: Rural County Grant, economic development
Date of Last Change: July 9, 2026
Notice of Continuation: June 20, 2025
Authorizing, and Implemented or Interpreted Law: 63N-4-802; 63N-4-104

Utah Admin. Code R357-29-106 Funding Distribution

After GOEO approval of a Rural County Grant the county may receive up to 100% of the total grant amount.

History

KEY: Rural County Grant, economic development
Date of Last Change: July 9, 2026
Notice of Continuation: June 20, 2025
Authorizing, and Implemented or Interpreted Law: 63N-4-802; 63N-4-104

R357-39 Talent Development Grant Rule

Utah Admin. Code R357-39-101 Title

This rule is known as the "Talent Development Grant Rule".

History

KEY: economic development, talent development
Date of Last Change: June 2, 2026
Notice of Continuation: June 11, 2026
Authorizing, and Implemented or Interpreted Law: 63G-3-201(2); 63N-3-112

Utah Admin. Code R357-39-102 Definitions

Terms are defined in Sections 63N-1a-102 and 63N-3-102.

History

KEY: economic development, talent development
Date of Last Change: June 2, 2026
Notice of Continuation: June 11, 2026
Authorizing, and Implemented or Interpreted Law: 63G-3-201(2); 63N-3-112

Utah Admin. Code R357-39-103 Authority

This rule is adopted by the office under the authority of Subsection 63G-3-201(2).

History

KEY: economic development, talent development
Date of Last Change: June 2, 2026
Notice of Continuation: June 11, 2026
Authorizing, and Implemented or Interpreted Law: 63G-3-201(2); 63N-3-112

Utah Admin. Code R357-39-104 Eligibility Criteria

(1) A business representative shall certify that:

(a) the business has a skilled labor gap;

(b) the proposed grant will meet the gap need; and

(2)(a) To qualify a business shall have a substantial or potential presence in Utah, as determined by the office, by weighing:

(i) the total workforce and percentage of business's workforce in Utah;

(ii) the amount of business taxes paid to Utah;

(iii) the relative size of the business;

(iv) whether the business's principal place of business is Utah;

(v) the likelihood that the business will maintain a significant presence in Utah;

(vi) the degree to which the business's activities and operations positively impact Utah's economy;

(vii) the business's registration with the Utah Division of Corporations and Commercial Code as an active, for-profit business entity; and

(viii) the business's license in the appropriate city or county.

History

KEY: economic development, talent development
Date of Last Change: June 2, 2026
Notice of Continuation: June 11, 2026
Authorizing, and Implemented or Interpreted Law: 63G-3-201(2); 63N-3-112

Utah Admin. Code R357-39-105 Proposal and Submission Process

(1) Subject to available funds, the office will accept proposals for talent development grants on an ongoing basis.

(2) The proposal shall include the following:

(a) a detailed description of the hiring and training plan;

(b) forecasted new incremental high paying jobs;

(d) description of skilled labor positions;

(e) description of the potential economic impact on Utah's economy; and

(f) an outlined budget for the plan, including;

(i) a description of any funds already secured for activities related to the program;

(ii) breakdown of costs to complete the plan; and

(iii) an itemized budget that details how the funding will be allocated, tracked, and reported.

(3) If a business fails to provide any requested information GO Utah may deny the application.

History

KEY: economic development, talent development
Date of Last Change: June 2, 2026
Notice of Continuation: June 11, 2026
Authorizing, and Implemented or Interpreted Law: 63G-3-201(2); 63N-3-112

Utah Admin. Code R357-39-106 Method for Selecting Awardees

(1) The office will, according to its discretion and judgment, review the business's proposal by considering:

(a) statewide or regional importance of the industry to Utah's economy;

(b) relative size of the sector, its stability, and growth potential;

(d) the current availability of other sources of funding;

(e) the potential for the industry to develop new jobs and business opportunities in Utah;

(f) likelihood that skilled labor in this sector will result in the creation of a business in Utah or growth of existing Utah business;

(g) number of positions to be trained and filled;

(h) impact on the local economy;

(i) projected time to fill job needs; and

(j) any other factor the office deems relevant.

History

KEY: economic development, talent development
Date of Last Change: June 2, 2026
Notice of Continuation: June 11, 2026
Authorizing, and Implemented or Interpreted Law: 63G-3-201(2); 63N-3-112

Utah Admin. Code R357-39-107 Grant Amount, Award, and Required Contract

(1) The office reserves the right to award funding for any proposal in full or in part, to request additional information, or to reject any or all proposals.

(2) Upon award of a talent development grant, and prior to disbursement of any funds, awardee shall enter into a contract with the office governing the use of talent development grant funding.

(3) Unless addressed in the terms and conditions of the contract between awardee and the office the following provisions shall apply:

(a) talent development grant funding may not be used to provide a primary benefit to any state other than Utah; and

(b) for all other eligibility requirements, awardees must maintain eligibility status until the collaboration is complete, scope of work requirements have been met, final disbursement of funding has been made, and first year reporting has been completed.

History

KEY: economic development, talent development
Date of Last Change: June 2, 2026
Notice of Continuation: June 11, 2026
Authorizing, and Implemented or Interpreted Law: 63G-3-201(2); 63N-3-112

Utah Admin. Code R357-39-108 Contract Modifications

(1) Awardee may request a modification to the terms of a contract.

(2) The office may deny a modification request for any reason.

(3) The office shall have discretion to agree to reasonable, nonsubstantive changes.

(a) Non-substantive changes may include:

(i) changes to timelines within the scope of work;

(ii) corrections to clerical errors in the proposal materials; and

(iii) technical changes to conditions that do not alter the budget, business's eligibility status, or violate any state or federal law.

(4) Substantive changes shall be approved by the office in consultation with the Go Utah Board.

(5) Approved changes shall be made in writing and through an amendment modifying the terms of the contract.

(6) Awardees refusal or failure to sign the contract within 90 days of receipt of the contract constitutes a rejection of the talent development grant and a waiver of any rights and benefits.

History

KEY: economic development, talent development
Date of Last Change: June 2, 2026
Notice of Continuation: June 11, 2026
Authorizing, and Implemented or Interpreted Law: 63G-3-201(2); 63N-3-112

Utah Admin. Code R357-39-109 Funding Distribution

(1) The office shall reimburse the awardee for no more than the total amount specified in the contract.

(2) Payment will only be made for those costs authorized and approved by the office after sufficient documentation is provided in accordance with the terms and conditions provided in the contract.

(3) Misrepresentation to the office or violations of the agreement may result in forfeiture of talent development grant funding, repayment of all or a portion of the funding received, or disqualification from continued funding.

(4) The office reserves the right to audit the use of any talent development grant funding.

History

KEY: economic development, talent development
Date of Last Change: June 2, 2026
Notice of Continuation: June 11, 2026
Authorizing, and Implemented or Interpreted Law: 63G-3-201(2); 63N-3-112

Utah Admin. Code R357-39-110 Reporting and Cooperation Requirements

(1) The awardee shall report to the office and provide documentation evidencing the following metrics for inclusion in the annual report described in section 63N-1a-306:

(a) the number of participants in the program;

(b) the number of participants who have completed training offered by the program;

History

KEY: economic development, talent development
Date of Last Change: June 2, 2026
Notice of Continuation: June 11, 2026
Authorizing, and Implemented or Interpreted Law: 63G-3-201(2); 63N-3-112

R357-42 Redeveloping Matching Grant Rule

Utah Admin. Code R357-42-101 Title

This rule is known as the "Redeveloping Matching Grant Rule."

History

KEY: economic opportunity, high density housing
Date of Last Change: August 7, 2026
Notice of Continuation: August 26, 2026
Authorizing, and Implemented or Interpreted Law: 63G-3-201(2)(d)

Utah Admin. Code R357-42-102 Definitions

The following terms are defined:

(1) "Approve a redevelopment application" means:

(a) entering a development agreement that includes, a minimum, of eight housing units per acre; or

(b) modifying an existing development agreement that:

(i) substantially increases the number of housing units, as determined by the executive director; and

(ii) includes, a minimum, of eight housing units per acre;

(2) "Executive Director" means the executive director of the Governor's Office of Economic Opportunity;

(3) "Per Acre" means that on average the qualifying project has a minimum of eight residential housing units.

(4) "Spend" or "Spent" includes:

(a) money paid directly toward the qualifying project;

(b) fees waived by the land use authority;

(d) funds expended to improve areas immediately adjacent to the qualifying project where such improvements benefit the qualifying project; and

(e) other expenses approved by the executive director.

History

KEY: economic opportunity, high density housing
Date of Last Change: August 7, 2026
Notice of Continuation: August 26, 2026
Authorizing, and Implemented or Interpreted Law: 63G-3-201(2)(d)

Utah Admin. Code R357-42-103 Authority

This rule is adopted by the office under the authority of Subsection 63G-3-201(2) and Appropriation Adjustments, H.B. 3, Item 28, Section 1 (2022).

History

KEY: economic opportunity, high density housing
Date of Last Change: August 7, 2026
Notice of Continuation: August 26, 2026
Authorizing, and Implemented or Interpreted Law: 63G-3-201(2)(d)

Utah Admin. Code R357-42-104 Award and Required Contract

(1) The office reserves the right to award funding for any proposal in full or in part, to request additional information, or to reject any proposal.

(2) Upon award, and before disbursement of funds, awardee shall enter into a contract with the office governing the use of funding.

(3) Awardees must maintain eligibility status until the collaboration is complete, scope of work requirements have been met, final disbursement of funding has been made, and reporting has been completed.

History

KEY: economic opportunity, high density housing
Date of Last Change: August 7, 2026
Notice of Continuation: August 26, 2026
Authorizing, and Implemented or Interpreted Law: 63G-3-201(2)(d)

Utah Admin. Code R357-42-105 Funding Distribution

(1) The office shall reimburse the awardee for no more than the total amount specified in the contract.

(2) Payment will only be made for those costs authorized and approved by the office after sufficient documentation is provided in accordance with the terms and conditions provided in the contract.

(3) Misrepresentation to the office or violations of the agreement may result in forfeiture of program participation, repayment of the funding received, or disqualification from continued funding.

(4) If an awardee does not spend the proposed qualifying project matching funds within the terms of the contract the awardee shall repay the portion of matching funds that were not spent to the office.

(5)(a) Applicants may be awarded for multiple qualifying projects; and

(b) priority will be given to applicants that have not received an award.

(6) The office reserves the right to audit the use of funding.

History

KEY: economic opportunity, high density housing
Date of Last Change: August 7, 2026
Notice of Continuation: August 26, 2026
Authorizing, and Implemented or Interpreted Law: 63G-3-201(2)(d)

Utah Admin. Code R357-42-106 Reporting and Cooperation Requirements

At a minimum a redeveloping matching grant awardee shall report to the office and provide documentation evidencing:

(1) number of:

(a) housing units built; and

(b) acres of qualifying project; and

(2) amount of:

(a) private investment; and

(b) public investment.

History

KEY: economic opportunity, high density housing
Date of Last Change: August 7, 2026
Notice of Continuation: August 26, 2026
Authorizing, and Implemented or Interpreted Law: 63G-3-201(2)(d)

R357-43 Housing and Transit Reinvestment Zone Act Rule

Utah Admin. Code R357-43-1 Purpose

(1) The purpose of this rule is to define and clarify a term relating to the Housing and Transit Reinvestment Zone Act.

History

KEY: housing and transit reinvestment zone, affordable housing
Date of Last Change: October 27, 2022
Authorizing, and Implemented or Interpreted Law: 63N-1a-303

Utah Admin. Code R357-43-2 Authority

(1) Rulemaking authority is provided in Section 63N-1a-303.

History

KEY: housing and transit reinvestment zone, affordable housing
Date of Last Change: October 27, 2022
Authorizing, and Implemented or Interpreted Law: 63N-1a-303

Utah Admin. Code R357-43-3 Definitions

The following term is defined:

(1) "Light Rail or Bus Rapid Transit Station” means an existing or proposed station, stop, or terminal along an existing or proposed light rail or bus rapid transit line and in which the line is included in a metropolitan planning organization's adopted long-range transportation plan.

History

KEY: housing and transit reinvestment zone, affordable housing
Date of Last Change: October 27, 2022
Authorizing, and Implemented or Interpreted Law: 63N-1a-303

R357-44 State Small Business Credit Initiative Program Fund

Utah Admin. Code R357-44-101 Authority

This rule is adopted by the office under the authority of Section 63N-3-802.

History

KEY: small business credit initiative, small business
Date of Last Change: October 27, 2022
Authorizing, and Implemented or Interpreted Law: 63N-3-802

Utah Admin. Code R357-44-102 Definitions

(1) As used in this program:

(a) "USBCI" means the State Small Business Credit Initiative Program Fund;

(b) "Financial institution" means an organization that meets USBCI requirements to participate as a lending institution;

(c)(i) "Annual receipts" means grants made by the federal government and state legislative appropriations;

(ii) "Annual receipts" does not include program income;

(d) "Program income" means fees and interest income generated by participation in the program;

(e) "USBCI Advisory Board" means a Board consisting of members of industry and Go Utah;

(f) "USBCI Loan Review Committee" means an operational Committee, consisting of members of the Go Utah operations team and at least one member from industry; and

(g) "Red-flag" means an occurrence when a loan, borrower, or lender exceeds a threshold or violates a term and is sent to the USBCI Loan Review Committee for review.

History

KEY: small business credit initiative, small business
Date of Last Change: October 27, 2022
Authorizing, and Implemented or Interpreted Law: 63N-3-802

Utah Admin. Code R357-44-103 USBCI Advisory Board

(1) The USBCI Advisory Board may review Quarterly and Annual reports drafted by the Office, ensure program objectives are met, and recommend changes

(2) The USBCI Advisory Board may advise on application processes and procedure of the Fund to ensure program objectives are met and partners are represented.

History

KEY: small business credit initiative, small business
Date of Last Change: October 27, 2022
Authorizing, and Implemented or Interpreted Law: 63N-3-802

Utah Admin. Code R357-44-104 USBCI Loan Review Committee

(1) The USBCI Loan Review Committee may:

(a) evaluate the application and make recommendations to the Office on the size, scope, and participation or loan loss reserve participation amount suitable for the applicant;

(b) advise on application processes, underwriting criteria and procedure of the Fund to ensure that program objectives are met; and

History

KEY: small business credit initiative, small business
Date of Last Change: October 27, 2022
Authorizing, and Implemented or Interpreted Law: 63N-3-802

Utah Admin. Code R357-44-105 Lender Eligibility

(1) To be eligible for participation in the USBCI Capital Access Program, a lender shall:

(a) qualify under federal guidelines;

(b) demonstrate total losses to their portfolio under 10% over the last 12 months; and

(c) demonstrate a reasonable expectation that they will be a responsible steward of public funds and follow both federal and state rules and regulations.

(2) To be eligible for participation in the USBCI Loan Participation Program, a financial institution must:

(a) be a CDFI or revolving loan fund;

(b) demonstrate total losses to their portfolio of under 10% over the last 12 months; and

(d) follow both federal and state rules and regulations.

History

KEY: small business credit initiative, small business
Date of Last Change: October 27, 2022
Authorizing, and Implemented or Interpreted Law: 63N-3-802

Utah Admin. Code R357-44-106 Lender Application Requirements

(1) Applications shall be submitted on forms required by the office and in accordance with the procedures outlined by the Office.

(2) Completed applications shall be placed on the next available Committee agenda for review and recommendation.

History

KEY: small business credit initiative, small business
Date of Last Change: October 27, 2022
Authorizing, and Implemented or Interpreted Law: 63N-3-802

R357-46 Rural Communities Opportunity Grant Rule

Utah Admin. Code R357-46-101 Title

This rule is known as the Rural Communities Opportunity Grant rule.

History

KEY: Rural Community Opportunity Grant, RCOG, economic development
Date of Last Change: December 3, 2025
Authorizing, and Implemented or Interpreted Law: 63N-4-802

Utah Admin. Code R357-46-102 Authority

This rule is adopted by the office under the authority of Section 63N-4-802.

History

KEY: Rural Community Opportunity Grant, RCOG, economic development
Date of Last Change: December 3, 2025
Authorizing, and Implemented or Interpreted Law: 63N-4-802

Utah Admin. Code R357-46-103 Definitions

(1) "Association of governments" means the same as defined under Section 63N-4-801.

(2) "Rural Communities Opportunity Grant" means the same as the additional use of grant money described under Subsection 63N-4-802(4)(b).

(3) "Rural Community" means the same as defined under Section 63N-4-801.

(4) "Competitive Application" means an application that is subject to review, scoring, and comparing against other applications to determine grant awardees against a limited pool of funding.

(5) "County Economic Opportunity Advisory Board" or "CEO Board" means the same as defined under Section 63N- 4-801.

(6) "County of the second class" means the same as defined in Section 17-60-104. A county of the second class is not a rural county.

(7) "County of the third class" means the same as defined in Section 17-60-104.

(8) "County of the fourth class" means the same as defined in Section 17-60-104.

(9) "County of the fifth class" means the same as defined in Section 17-60-104.

(10) "County of the sixth class" means the same as defined in Section 17-60-104.

(11) "Municipality of the third class" means the same as defined in Section 10-2-301.

(12) "Municipality of the fourth class" means the same as defined in Section 10-2-301.

(13) "Municipality of the fifth class" means the same as defined in Section 10-2-301.

(14) "Town" means the same as defined in Section 10-2-301.

History

KEY: Rural Community Opportunity Grant, RCOG, economic development
Date of Last Change: December 3, 2025
Authorizing, and Implemented or Interpreted Law: 63N-4-802

Utah Admin. Code R357-46-104 Content of Application and Approval Process

(1) The following content shall, at a minimum, be included in each application for a Rural Communities Opportunity Grant:

(a) name of applying community;

(b) tax ID;

(d) amount of grant funding requested;

(e) responsible contacts':

(i) name;

(ii) full mailing address;

(iii) telephone number; and

(iv) email address;

(f) a scope of work describing the projects and activities the funds will be used for;

(g) a description of expected deliverables and outcomes;

(h) a description of matching funds:

(i) provided by any one or combination of:

(A) a community reinvestment agency;

(B) a redevelopment agency;

(D) a private sector entity;

(E) a nonprofit entity;

(F) a federal matching grant;

(G) county or municipality general fund match; and

(H) any other funding source approved by the office; and

(ii) totaling at least:

(A) a 10% match for a county of the sixth class;

(B) a 20% match for a county of the fifth class;

(D) a 40% match for a county of the third class;

(E) a 10% match for a town in any rural county classification and in a county of the second class;

(F) a 20% match for a municipality of the fifth class in any rural county classification and in a county of the second class;

(G) a 30% match for a municipality of the fourth class in any rural county classification and in a county of the second class;

(H) a 40% match for a municipality of the third class in any rural county classification and in a county of the second class; and

(I) a 40% match for an association of governments; and

(j) any other information requested by the office.

(2) The following documentation shall, at a minimum, be included in each application for a Rural Communities Opportunity Grant:

(a)(i) the entity's W9 form; or

(ii) the county's state vendor number if the county is currently a state vendor;

(b) budget describing proposed uses of grant funds;

(i) key stakeholders;

(ii) project participants;

(iii) local governments;

(iv)(A) the CEO Board for rural counties;

(B) the planning and zoning commission or municipal economic opportunity advisory board or commission for rural municipalities; or

(v) any other entity receiving sub-grant funding from Rural Communities Opportunity Grant funds; and

(d) any other documentation requested by the office.

(3) Associations of governments must also submit letters of support from each of its member counties indicating their support of the application.

(4) The office may choose not to fund applicants who have not complied with the reporting requirements for all previous years the community received a Rural County Grant or Rural Communities Opportunity Grant.

History

KEY: Rural Community Opportunity Grant, RCOG, economic development
Date of Last Change: December 3, 2025
Authorizing, and Implemented or Interpreted Law: 63N-4-802

Utah Admin. Code R357-46-105 Funding Distribution and Reporting

(1) After GOEO approval of a Rural Communities Opportunity Grant:

(a) no more than 90% of grant funds will be disbursed to a community after:

(i) application approval;

(ii) a contract between the community and the state is entered; and

(iii) the community invoices the office for the funds; and

(b) the remaining funds may be disbursed to a community upon submission of a final report including satisfactory evidence of benchmark achievements toward completion of economic development projects and activities recorded in the grant contract.

(2) The maximum amount of funding a rural community or an association of governments can receive through this grant is $600,000.

(3) Each grant recipient shall submit an annual report containing:

(a) a description of the project, or projects, for which the grant funding is being used or encumbered;

(b) the effectiveness of the award in improving economic development in the community;

(d) a letter from the CEO board or equivalent attesting that:

(i) it is participating in advising the rural community or an association of governments ' governing body throughout the year;

(ii) it approves of the content submitted in the annual report;

(iii) it helped prepare the annual report; and

(iv) minutes from each meeting of the CEO board where the Rural Communities Opportunity Grant was discussed; and

(e) any other information requested by the office.

(4) Grant recipients shall submit a final report and reimbursement request by the contract termination date including:

(a) a description of the completed project;

(b) a report on whether the recipient met the goals and benchmarks detailed in the contract;

(i) it participated in advising the county's governing body throughout the year;

(ii) it approves of the content submitted in the annual report; and

(iii) it helped prepare the annual report;

(d) an invoice for the outstanding amount of awarded funding; and

(e) any other information requested by the office.

History

KEY: Rural Community Opportunity Grant, RCOG, economic development
Date of Last Change: December 3, 2025
Authorizing, and Implemented or Interpreted Law: 63N-4-802

Utah Admin. Code R357-46-106 CEO Board Equivalents

(1) Rural municipalities shall use a functioning planning and zoning commission or an organized municipal economic opportunity advisory board or commission to fulfill the same advisory requirements of a CEO board.

(2) Associations of governments shall use their Governing Board to fulfill the same advisory requirements of a CEO board.

History

KEY: Rural Community Opportunity Grant, RCOG, economic development
Date of Last Change: December 3, 2025
Authorizing, and Implemented or Interpreted Law: 63N-4-802

R357-47 Economic Assistance Grant Rule

Utah Admin. Code R357-47-101 Title

This rule is known as the Economic Assistance Grant rule.

History

KEY: Economic Assistance Grant, EAG, economic development
Date of Last Change: September 24, 2024
Authorizing, and Implemented or Interpreted Law: 63N-3-10

Utah Admin. Code R357-47-102 Authority

This rule is adopted by the office under the authority of Subsection 63N-3-1002(5).

History

KEY: Economic Assistance Grant, EAG, economic development
Date of Last Change: September 24, 2024
Authorizing, and Implemented or Interpreted Law: 63N-3-10

Utah Admin. Code R357-47-103 Definitions

(1) "Business entity" means the same as defined in Subsection 63N-3-1001(1).

(2) "Business entity" includes:

(a) industry associations;

(b) chambers of commerce;

(d) private trade schools; and

(e) private educational institutions.

(3) "Community development" includes:

(a) collective action to generate solutions for common problems; and

(b) building local capacity to become self-reliant, self-determined, and prepared for the future.

(4) "Matching funds" means the portion of project costs not paid by grant funds under this program.

(5) "Targeted industry" means the same as defined in Subsection 63N-3-1101(3).

(6) "Infrastructure project" means a project that improves the facilities and systems necessary for the economy and firms to function, and contributes to the advancement and growth of businesses.

History

KEY: Economic Assistance Grant, EAG, economic development
Date of Last Change: September 24, 2024
Authorizing, and Implemented or Interpreted Law: 63N-3-10

Utah Admin. Code R357-47-104 Content of Application

(1) The following content shall be included in each application for an Economic Assistance Grant:

(a) name of applying Business Entity;

(b) tax ID;

(d) responsible contacts':

(i) name;

(ii) full mailing address;

(iii) telephone number; and

(iv) email address;

(e) a description of the project and the activities the funds will be used for;

(f) a description of expected deliverables and outcomes;

(g) a description of matching funds, if any:

(h) provided by any one or combination of:

(A) a private sector entity;

(B) a nonprofit entity;

(D) any other funding source approved by the office; and

(i) any other information requested by the office.

( 2) The following documentation shall be included in each application for an Economic Assistance Grant:

( a) the entity's W9 form;

(b) budget describing proposed uses of grant funds;

(d) any other documentation requested by the office.

History

KEY: Economic Assistance Grant, EAG, economic development
Date of Last Change: September 24, 2024
Authorizing, and Implemented or Interpreted Law: 63N-3-10

Utah Admin. Code R357-47-105 Business Eligibility and Approved Funding Uses

(1) Business entities must meet the following prerequisites to be eligible for funding under this program:

(a) active registration with the Utah Division of Corporations and Commercial Code;

(b) have a physical location in the Utah; and

(2) The expenses for which a recipient may use the grant include:

(a) to purchase equipment;

(b) offer specialized programming or training;

(d) any other one-time use approved by the office.

History

KEY: Economic Assistance Grant, EAG, economic development
Date of Last Change: September 24, 2024
Authorizing, and Implemented or Interpreted Law: 63N-3-10

Utah Admin. Code R357-47-106 Evaluation Priorities

(1) The office shall consider each application for grant funding based on its individual merits, regardless of whether the applicant has previously received funding from the office.

(2) The office may prioritize projects that:

(a) demonstrate matching funds;

(b) contribute to job creation and retention;

(d) propose greater marginal benefit in relation to marginal cost; or

(e) address a specific priority, as determined by the office.

( 3) The office may choose not to fund applicants who have not complied with reporting requirements for previous or current contracts with the office in the last three years.

History

KEY: Economic Assistance Grant, EAG, economic development
Date of Last Change: September 24, 2024
Authorizing, and Implemented or Interpreted Law: 63N-3-10

Utah Admin. Code R357-47-107 Funding Distribution and Reporting

(1) The office shall establish a maximum amount for this grant before approving and distributing grant funds.

(2) After GOEO approval of an Economic Assistance Grant application, no more than 90% of grant funds will be disbursed to a business until after:

(a) a contract between the business and the state is executed; and

(b) the business invoices the office for the funds; and

(3) Upon completion of an Economic Assistance Grant project:

(a) the final delivery of funds shall be distributed as reimbursement for dollars spent by the business within the scope of the project; and

(b) the remaining funds will be disbursed following submission and approval of:

(i) an invoice up to the remaining balance of the award amount;

(ii) a final report including:

(A) a description of the completed project;

(B) assurances that all monies paid to the business were used toward completion of the project as outlined in the contract;

(D) the project's success meeting the deliverables and performance measures described in the contract; and

(E) any other information requested by the office.

History

KEY: Economic Assistance Grant, EAG, economic development
Date of Last Change: September 24, 2024
Authorizing, and Implemented or Interpreted Law: 63N-3-10

R357-48 Affordable Housing Infrastructure Grant Rule

Utah Admin. Code R357-48-1 Authority

This rule is adopted under the authority of Subsection 72-2-503(4).

History

KEY: economic development
Date of Last Change: June 2, 2026
Authorizing, and Implemented or Interpreted Law: 63B-34-101; 72-2-501; 72-2-502; 72-2-503; 72-2-504

Utah Admin. Code R357-48-2 Definitions

(1) "Board" means the Affordable Housing Infrastructure Grant Board defined under Section 72-2-503.

(2) "The office" means the Governor's Office of Economic Opportunity.

(3) "Grant applications" means:

(a) the Planning and Design application; and

(b) the Construction application.

(4) "Public Entity" means county, municipality, public housing authority, special service or improvement district, or public transit district.

(5) "UDOT" means the Utah Department of Transportation.

History

KEY: economic development
Date of Last Change: June 2, 2026
Authorizing, and Implemented or Interpreted Law: 63B-34-101; 72-2-501; 72-2-502; 72-2-503; 72-2-504

Utah Admin. Code R357-48-3 Content of Applications

(1) The following may be required in each Planning and Design application:

(a) name of applying public entity;

(b) responsible contact's:

(i) name;

(ii) full mailing address;

(iii) telephone number; and

(iv) email address;

(d) a scope of work with descriptions of planning and designing for which funds will be used;

(e) a description of expected deliverables and outcomes;

(f) a timeline for completion;

(g) a budget narrative describing proposed fund usage; and

(i) if a grant proposal includes highway infrastructure, the budget must include a minimum matching contribution of the right-of-way needed for the highway improvements;

(h) a line-item budget describing proposed uses of grant funds;

(i) documentation supporting the valuation of the right-of-way contribution, if applicable;

(j) the entity's W9 form, or the public entity's state vendor number if the public entity is currently a state vendor;

(k) a letter of support from the public entity's governing board or commission; and

(l) any other information requested by the office.

(2) The following may be required in each Construction application:

(a) the amount of grant funding requested;

(b) the entity's W9 form, or the public entity's state vendor number if the public entity is currently a state vendor;

(d) an official invoice from the public entity, invoicing the Governor's Office of Economic Opportunity for the contractually agreed upon amount;

(e) the Affordable Housing Infrastructure Grant Board's letter of approval of the Planning and Design application;

(f) the agreement or contract with UDOT for right-of-way matching contribution confirming acceptance of valuation and property exchange, if applicable;

(g) a scope of work with descriptions of construction for which funds will be used;

(h) letters of support from the public entity's governing board, council, or commission;

(i) maps and visual displays of affected areas;

(j) drafts and rendering of construction plans;

(k) a description of expected deliverables and outcomes;

(l) a timeline for completion;

(m) a budget narrative describing proposed fund usage;

(n) a line-item budget describing proposed uses of grant funds;

(o) an assessment of anticipated risks and how they are to be mitigated;

(p) cost estimates from third-party experts;

(r) a description of expected deliverables and outcomes;

(s) planning and design documents from the Planning and Design application;

(t) the property valuation of matching contribution by property assessor;

(u) any other information requested by the office.

History

KEY: economic development
Date of Last Change: June 2, 2026
Authorizing, and Implemented or Interpreted Law: 63B-34-101; 72-2-501; 72-2-502; 72-2-503; 72-2-504

Utah Admin. Code R357-48-4 Methodology for Selecting Grants

(1) The application for the Affordable Housing Infrastructure Grant will become available to public entities at the discretion of the office.

(2) Grant applications will be submitted in two parts:

(a) The Planning and Design application will be submitted first.

(i) The board will prioritize grant applications in accordance with Subsection 72-2-503(7)(c).

(b) The Construction application must be submitted after the Planning and Design application has been approved by the board.

History

KEY: economic development
Date of Last Change: June 2, 2026
Authorizing, and Implemented or Interpreted Law: 63B-34-101; 72-2-501; 72-2-502; 72-2-503; 72-2-504

Utah Admin. Code R357-48-5 Grant Reporting

Grant recipients shall submit an annual report for the previous year containing a description of the projects for which the grant funding was used or encumbered.

History

KEY: economic development
Date of Last Change: June 2, 2026
Authorizing, and Implemented or Interpreted Law: 63B-34-101; 72-2-501; 72-2-502; 72-2-503; 72-2-504

Utah Admin. Code R357-48-6 Methodology for Awarding Grants

(1) Grant awards will be distributed in three parts:

(a) Upon approval of the Planning and Design application

(b) Upon approval of the Construction application

(2) The amount awarded in each part will be determined by the board.

History

KEY: economic development
Date of Last Change: June 2, 2026
Authorizing, and Implemented or Interpreted Law: 63B-34-101; 72-2-501; 72-2-502; 72-2-503; 72-2-504

Utah Admin. Code R17 — Governor

R354 Colorado River Authority of Utah

R354-1 General Procurement Provisions

Utah Admin. Code R354-1-101 Title

Utah Admin. Code R354-1-102 Purpose of Policy

Utah Admin. Code R354-1-103 Definitions

Utah Admin. Code R354-1-104 Purpose of Specifications

Utah Admin. Code R354-1-105 Required Public Notice

Utah Admin. Code R354-1-106 Price Based on Established Terms

Utah Admin. Code R354-1-107 Correcting an Immaterial Error in a Solicitation Response

Utah Admin. Code R354-1-108 Clarifying Information in a Solicitation Response

Utah Admin. Code R354-1-109 Sale of Previously Purchased Procurement Items -- Limitations

Utah Admin. Code R354-1-110 Cancelling a Solicitation

Utah Admin. Code R354-1-111 Rejecting a Solicitation Response

R354-2 Small and Professional Services

Utah Admin. Code R354-2-101 Title

Utah Admin. Code R354-2-102 Small and Professional Service Definitions

Utah Admin. Code R354-2-103 Small and Professional Service Procurement

Utah Admin. Code R354-2-104 Division Prohibited

R354-3 Bidding

Utah Admin. Code R354-3-101 Title

Utah Admin. Code R354-3-102 Contracts Awarded by Bidding

Utah Admin. Code R354-3-103 Invitation for Bids -- Requirements -- Publication

Utah Admin. Code R354-3-104 Processing of Bids -Changes to Bids Not Allowed

Utah Admin. Code R354-3-105 Evaluation of bids- Award Cancellation

Utah Admin. Code R354-3-106 Tie Bids

R354-4 Request for Proposals

Utah Admin. Code R354-4-101 Title

Utah Admin. Code R354-4-102 Contracts Awarded by Request for Proposals

Utah Admin. Code R354-4-103 Request for Proposals Requirements - Publication of Request

Utah Admin. Code R354-4-104 Processing of Proposals- Changes to Proposals Not Allowed

Utah Admin. Code R354-4-105 Limited Addenda to Requests for Proposals

Utah Admin. Code R354-4-106 Discussions with a Person who Submits a Proposal

Utah Admin. Code R354-4-107 Evaluation Committee -- Evaluation of Proposals

Utah Admin. Code R354-4-108 Best and Final Offers

R354-5 Procurement Requirements

Utah Admin. Code R354-5-101 Title

Utah Admin. Code R354-5-102 Award of Contract Without Engaging in a Standard Procurement Process -Notice Duty to Negotiate Contract Terms in Best Interest of Procurement Unit

Utah Admin. Code R354-5-103 Extension of a Contract Without Engaging in a Standard Procurement Process

Utah Admin. Code R354-5-104 Emergency Procurement

R354-6 Cancellations, Rejections, and Debarment

Utah Admin. Code R354-6-101 Title

Utah Admin. Code R3541-6-102 Cancellation and Rejection of Bids and Proposals

Utah Admin. Code R354-6-103 Determination of Non-responsibility

Utah Admin. Code R354-6-104 Debarment or Suspension from Consideration for Award of Contracts - Process - Causes for Debarment Judicial Review

Utah Admin. Code R354-6-105 Quote, Bid, Offer, or Contract Prohibited by Persons with Outstanding Tax Lien-Exceptions - Rejection of Quote, Bid, or Offer

R354-7 Preferences

Utah Admin. Code R354-7-101 Title

Utah Admin. Code R354-7-102 Reciprocal Preference for Providers of State Products

Utah Admin. Code R354-7-103 Exception for Federally Funded Contracts

R354-8 Contracts and Change Orders

Utah Admin. Code R354-8-101 Title

Utah Admin. Code R354-8-102 Standard Contract Clauses Encouraged

Utah Admin. Code R354-8-103 Multiyear Contracts

Utah Admin. Code R354-8-104 Multiple Award Contracts

Utah Admin. Code R354-8-105 Regulation of Contract Types -- Permitted and Prohibited Contract Types

Utah Admin. Code R354-8-106 Rules to Determine Allowable Incurred Costs -- Required Information

Utah Admin. Code R354-8-107 Auditing of Books of Contractor or Subcontractor

Utah Admin. Code R354-8-108 Change in Contract Price

Utah Admin. Code R354-8-109 Installment Payments - Contract Prepayments

Utah Admin. Code R354-8-110 Leases

Utah Admin. Code R354-8-111 Contract Provisions for Incentives, Damages, and Penalties

R354-9 Protests

Utah Admin. Code R354-9-101 Title

Utah Admin. Code R354-9-102 Definitions

Utah Admin. Code R354-9-103 Protest -- Time for Filing -- Basis of Protest -- Authority to Resolve Protest

Utah Admin. Code R354-9-104 Protest Officer Responsibilities and Authority -- Proceedings on Protest -- Effect of Decision

R354-10 Procurement Appeals Panel

Utah Admin. Code R354-10-101 Title

Utah Admin. Code R354-10-102 Definitions

Utah Admin. Code R354-10-103 Appointment of Procurement Appeals Panel -- Proceedings

Utah Admin. Code R354-10-104 Requirement to Pay a Security Deposit or Post a Bond -- Exceptions -- Amount -- Forfeiture of Security Deposit or Bond

Utah Admin. Code R354-10-105 Discontinued Appeal with Prejudice, Except as Authorized

Utah Admin. Code R354-10-106 Factual Determination of Procurement Appeals Panel Final and Conclusive

R354-11 Appeals to the Court and Court Proceedings

Utah Admin. Code R354-11-101 Title

Utah Admin. Code R354-11-102 Appeal to Utah Court of Appeals

R354-12 General Provisions Related to Protests or Appeal

Utah Admin. Code R354-12-101 Title

Utah Admin. Code R354-12-102 Limitation on Challenges -- Compliance with Federal Law