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11
51-7-2
63G-6a-2105
67-4-20
0
State Purchasing Reserve Funding
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Ken Ivory
Senate Sponsor: John D. Johnson
LONG TITLE
General Description:
This bill modifies provisions related to state purchasing.
Highlighted Provisions:
This bill:
establishes an administrative fee on state cooperative contracts;
deposits revenue from the administrative fee into a restricted account called the State
Purchasing Reserve Restricted Account (account);
directs the state treasurer to invest money in the account in precious metals; and
authorizes the money in the account to be used for the purpose of offsetting the cost of
procuring goods and services for specified public entities and ensuring continuity in the
public entities' procurement of goods and services, if certain inflation metrics are met.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
51-7-2
Effective
05/06/26
Partially Repealed
07/01/28
, as last amended by Laws of
Utah 2025, First Special Session, Chapter 9
63G-6a-2105
Effective
05/06/26
, as last amended by Laws of Utah 2016, Chapters 348,
355
ENACTS:
67-4-20
Effective
05/06/26
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
51-7-2
is amended to read:
51-7-2
Effective
05/06/26
Partially Repealed
07/01/28
. Exemptions from
chapter.
(1)
Except as provided in Subsection
(2)
, the following funds are exempt from this chapter:
(a)
funds invested in accordance with the participating employees' designation or
direction pursuant to a public employees' deferred compensation plan established and
operated in compliance with Section 457 of the Internal Revenue Code of 1986, as
amended;
(b)
funds of the Utah State Retirement Board;
(c)
funds of the Utah Housing Corporation;
(d)
endowment funds of higher education institutions, including funds of the Higher
Education Student Success Endowment, created in Section
53H-8-402
;
(e)
permanent and other land grant trust funds established pursuant to the Utah Enabling
Act and the Utah Constitution;
(f)
the State Post-Retirement Benefits Trust Fund;
(g)
the funds of the Utah Educational Savings Plan;
(h)
funds of the permanent state trust fund created by and operated under Utah
Constitution, Article XXII, Section 4;
(i)
the funds in the Navajo Trust Fund;
(j)
the funds in the Radioactive Waste Perpetual Care and Maintenance Account;
(k)
the funds in the Employers' Reinsurance Fund;
(l)
the funds in the Uninsured Employers' Fund;
(m)
the Utah State Developmental Center Long-Term Sustainability Fund, created in
Section
26B-1-331
;
(n)
the funds in the Risk Management Fund created in Section
63A-4-201
;
(o)
the Utah fund of funds created in Section
63N-6-401
;
(p)
the funds deposited into the Utah Homes Investment Program from the
Transportation Infrastructure General Fund Support Subfund created in Section
72-2-134
;
(q)
subject to Subsection
67-4-19(2)
, the portion of the funds in the following accounts
invested by the state treasurer in precious metals:
(i)
the State Disaster Recovery Restricted Account, created in Section
53-2a-603
;
(ii)
the General Fund Budget Reserve Account, created in Section
63J-1-312
;
(iii)
the Income Tax Fund Budget Reserve Account, created in Section
63J-1-313
; and
(iv)
the Medicaid Growth Reduction and Budget Stabilization Account, created in
Section
63J-1-315
;
(r)
except as provided in Section
11-13-533
, the funds of a public agency insurance
mutual as that term is defined in Subsection
31A-1-103(7)(a)
;
(s)
the State Sovereignty Fund created in Section
51-13-201
;
and
(t)
the funds in the Opioid Litigation Proceeds Fund, created in Section
51-9-801
.
51-9-801
; and
(u)
the State Purchasing Reserve Restricted Account, created in Section
67-4-20
.
(2)
Except for the funds of the Utah State Retirement Board and the Utah Educational
Savings Plan, the funds described in Subsection
(1)
are not exempt from Subsections
51-7-14(2)
and
(3)
.
(3)
Notwithstanding Title
52, Chapter 4
, Open and Public Meetings Act, a public body that
administers a fund described in Subsection
(1)
may hold a closed meeting to discuss the
sale or purchase of identifiable securities, investment funds, or investment contracts.
(4)
A paper, electronic, or other depiction or record of information relating to investment
activities of a fund described in Subsection
(1)
is not subject to Title
63G, Chapter 2
,
Government Records Access and Management Act.
Section 2. Section
63G-6a-2105
is amended to read:
63G-6a-2105
Effective
05/06/26
. Cooperative procurements -- Contracts with
federal government -- Regional solicitations.
(1)
(a)
The chief procurement officer may, in accordance with the requirements of this
chapter, enter into a cooperative procurement, and a contract that is awarded as a
result of a cooperative procurement, with:
(a)
(i)
another state;
(b)
(ii)
a cooperative purchasing organization;
or
(c)
(iii)
a public entity
inside or outside the state.
; or
(iv)
a government entity outside the state.
(b)
(i)
Except for a contract the chief procurement officer exempts from
administrative fees, the chief procurement officer shall ensure that each contract
resulting from a state cooperative procurement with a public entity includes an
administrative fee equal to 0.5% of the total price the public entity pays for
procurement items under the contract.
(ii)
The fee described in Subsection
(1)(b)(i)
is in addition to any administrative fee
the chief procurement officer includes under the chief procurement officer's
authority described in Subsection
63G-6a-303(2)(b)
.
(iii)
The division shall deposit revenue from the administrative fee described in this
Subsection
(1)(b)
into the State Purchasing Reserve Restricted Account created in
Section
67-4-20
.
(iv)
The provisions of this Subsection
(1)(b)
apply only to contracts for which the
chief procurement officer posts the notice required under Section
63G-6a-112
on
or after July 1, 2026.
(2)
A public entity, nonprofit organization, or, as permitted under federal law, an agency of
the federal government, may obtain a procurement item from a state cooperative contract
or a contract awarded by the chief procurement officer under Subsection
(1)
(1)(a)
,
without signing a participating addendum if the solicitation issued by the chief
procurement officer to obtain the contract includes a statement indicating that the
resulting contract will be issued for the benefit of public entities and, as applicable,
nonprofit organizations and agencies of the federal government.
(3)
Except as provided in Section
63G-6a-506
, or as otherwise provided in this chapter, an
executive branch procurement unit may not obtain a procurement item from a source
other than a state cooperative contract or a contract awarded by the chief procurement
officer under Subsection
(1)
(1)(a)
, if the procurement item is available under a state
cooperative contract or a contract awarded by the chief procurement officer under
Subsection
(1)
(1)(a)
.
(4)
A Utah procurement unit may:
(a)
contract with the federal government without going through a standard procurement
process or an exception to a standard procurement process, described in
Part 8,
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 the provisions of this chapter;
(b)
participate in, sponsor, conduct, or administer a cooperative procurement with
another Utah procurement unit or 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 chapter;
(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
(c)
purchase under, or otherwise participate in, an agreement or contract of a cooperative
purchasing organization, if:
(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
chapter;
(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.
(5)
A procurement unit may not obtain a procurement item under a contract that results
from a cooperative procurement described in Subsection
(4)
, unless the procurement
unit:
(a)
is identified under Subsection
(4)(b)(iii)(B)
or
(4)(c)(iii)(B)
; and
(b)
signs a participating addendum to the contract as required by this section.
(6)
A procurement unit, other than a legislative procurement unit or a judicial procurement
unit, may not obtain a procurement item under a contract held by the United States
General Services Administration, unless, based upon documentation provided by the
procurement unit, the Director of the State Division of Purchasing and General Services
determines in writing that the United States General Services Administration procured
the contract in a manner that substantially complies with the provisions of this chapter.
(7)
(a)
As used in this Subsection
(7)
, "regional solicitation" means a solicitation issued
by the chief procurement officer for the procurement of a procurement item within a
specified geographical region of the state.
(b)
In addition to any other duty or authority under this section, the chief procurement
officer shall:
(i)
after considering board recommendations, develop a plan for issuing regional
solicitations; and
(ii)
after developing a plan, issue regional solicitations for procurement items in
accordance with the plan and this chapter.
(c)
A plan under Subsection
(7)(b)
shall:
(i)
define the proposed regional boundaries for regional solicitations;
(ii)
specify the types of procurement items for which a regional solicitation may be
issued; and
(iii)
identify the regional solicitations that the chief procurement officer plans to issue.
(d)
A regional solicitation shall require that a person responding to the solicitation offer
similar warranties and submit to similar obligations as are standard under other state
cooperative contracts.
(e)
Except as authorized by the chief procurement officer, a procurement item that is
available under a state cooperative contract may not be provided under a contract
pursuant to a regional solicitation until after the expiration of the state cooperative
contract.
Section 3. Section
67-4-20
is enacted to read:
67-4-20
Effective
05/06/26
. State Purchasing Reserve Restricted Account.
(1)
As used in this section, "precious metal" means the same as that term is defined in
Section
61-1-13
.
(2)
There is created within the General Fund a restricted account known as the State
Purchasing Reserve Restricted Account.
(3)
The account is funded by:
(a)
revenue from the fee created in Subsection
63G-6a-2105(1)(b)
; and
(b)
the appreciated value of investments made with the money deposited into the
account.
(4)
(a)
The state treasurer shall invest the money in the account in precious metals.
(b)
The requirements of Subsections
51-7-14(2)
and
(3)
apply to the state treasurer's
investment in precious metals under this section.
(5)
(a)
The Legislature may appropriate money from the account:
(i)
if the Chained Consumer Price Index is at least two standard deviations above the
15 year mean of the Chained Consumer Price Index; and
(ii)
for the purpose of offsetting the cost of procuring goods and services for public
entities and ensuring continuity in public entities' procurement of goods and
services.
(b)
When appropriating money from the account, the Legislature shall make reasonable
efforts in light of the circumstances to ensure the appropriated money benefits each
public entity that participates in a state cooperative procurement.
(6)
When the Legislature appropriates money from the account, the state treasurer shall sell
investments sufficient to effectuate the appropriation.
Section 4.
Effective Date.
This bill takes effect on
May 6, 2026
.
2-2-26 6:30 PM