63G-6a-2405. Discretion to declare contract or grant void — Limitations.
| (1) |
Subject to Subsection (2), the governing body or chief executive officer of a public entity that awards a contract or grant to a person who engages in conduct made unlawful under this part may, in the sole discretion of the governing body or chief executive officer, declare the contract or grant to be void and unenforceable, unless:
Terms Used In Utah Code 63G-6a-2405- Contract: A legal written agreement that becomes binding when signed.
- Contract: means an agreement for a procurement. See Utah Code 63G-6a-103
- Contractor: means a person who is awarded a contract with a procurement unit. See Utah Code 63G-6a-103
- Governing body: means an administrative, advisory, executive, or legislative body of a public entity. See Utah Code 63G-6a-2402
- 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. See Utah Code 63G-6a-103
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: means :Utah Code 68-3-12.5
- Procurement: means the acquisition of a procurement item through an expenditure of public funds, or an agreement to expend public funds, including an acquisition through a public-private partnership. See Utah Code 63G-6a-103
- Public entity: means the state or any other government entity within the state that expends public funds. See Utah Code 63G-6a-103
| (a) |
the contract or grant relates to the issuance of a bond or other obligation and the bond has been issued or obligation incurred; or |
| (b) |
a third party has substantially changed its position in reliance upon the contract or grant. |
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| (2) |
Declaring a contract or grant void under Subsection (1) does not affect the obligation of a procurement unit to pay for a contractor‘s proper performance completed under the contract or grant or the value the contractor provides to the public entity under the contract or grant before the contract or grant is declared void. |
| (3) |
Subsection (1) applies only to a procurement with respect to which:
| (a) |
public notice is provided on or after July 1, 2014, if public notice of the procurement is required; or |
| (b) |
the initial contact between the public entity and the potential contractor, for purposes of the procurement, occurs on or after July 1, 2014, if public notice of the procurement is not required. |
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Enacted by Chapter 196, 2014 General Session
