Utah State Bulletin, January 15, 2012, Vol. 2012, No. 2

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NOTICES OF 120-DAY (EMERGENCY) RULES DAR File No. 35611already provided by the statute. This rule by itself will nothave a fiscal impact on businesses because it merelyreiterates the statutory requirements.THE FULL TEXT OF THIS RULE MAY BE INSPECTED,DURING REGULAR BUSINESS HOURS, AT:CAPITOL PRESERVATION BOARD (STATE)ADMINISTRATIONROOM E110 EAST BUILDING420 N STATE STSALT LAKE CITY, UT 84114-2110or at the Division of Administrative Rules.DIRECT QUESTIONS REGARDING THIS RULE TO:♦ Alan Bachman by phone at 801-538-3105, by FAX at 801-538-3313, or by Internet E-mail at abachman@utah.gov♦ Allyson Gamble by phone at 801-537-9156, by FAX at 801-538-3221, or by Internet E-mail at agamble@utah.gov♦ Chiarina Gleed by phone at 801-538-3240, by FAX at 801-538-3313, or by Internet E-mail at cgleed@utah.govEFFECTIVE: 01/03/2012AUTHORIZED BY: Allyson Gamble, Executive DirectorR131. Capitol Preservation Board (State), Administration.R131-13. Health Reform -- Health Insurance Coverage in StateContracts -- Implementation.R131-13-1. Purpose.The purpose of this rule is to comply with the provisionsof Section 63C-9-403.R131-13-2. Authority.This rule is authorized under Subsection 63C-9-301(3)(a)whereby the Capitol Preservation Board may make rules to govern,administer, and regulate the capitol hill complex, capitol hillfacilities, and capitol hill grounds by following the procedures andrequirements of Title 63G, Chapter 3, Utah AdministrativeRulemaking Act, as well as Section 63C-9-403 that requires thisrule related to health insurance provisions in certain design andconstruction contracts.R131-13-3. Definitions.(1) Except as otherwise stated in this rule, terms used inthis rule are defined in Section 63C-9-403.(2) In addition:(a) "Board" means the Capitol Preservation Boardestablished pursuant to Section 63C-9-201.(b) "Executive Director" means the executive director ofthe Capitol Preservation Board including, unless otherwise stated,the executive director's duly authorized designee.(c) "Employee(s)" [is as defined in Subsection 63C-9-403(1)(a) and includes only those employees that live and work inthe state of Utah along with their dependents. "Employee" forpurposes of this rule, shall not be construed as to be broader thanthe use of the term employee for purposes of state of Utah Workers'Compensation laws along with their dependents.]means an"employee," "worker," or "operative" as defined in Section 34A-2-104 who:(i) works at least 30 hours per calendar week; and(ii) meets employer eligibility waiting requirements forhealth care insurance which may not exceed the first day of thecalendar month following 90 days from the date of hire.(d) "State" means the state of Utah.R131-13-4. Applicability of Rule.(1) Except as provided in Subsection R131-13-4(2)below, R131-13 applies to all design or construction contractsentered into by the Board or the executive director, or on behalf ofthe Board, on or after July 1, 2009, and(a) applies to a prime contractor if the prime contract is inthe amount of $1,500,000 or greater; and(b) applies to a subcontractor if the subcontract, at anytier, is in the amount of $750,000 or greater.(2) Rule R131-13 does not apply if:(a) the application of this Rule R131-13 jeopardizes thereceipt of federal funds;(b) the contract is a sole source contract; or(c) the contract is an emergency procurement.(3) This Rule R131-13 does not apply to a change orderas defined in Section 63G-6-103, or a modification to a contract,when the contract does not meet the initial threshold required bySubsection R131-13-4(1).(4) A person who intentionally uses change orders orcontract modifications to circumvent the requirements ofSubsection R131-13-4(1) is guilty of an infraction.R131-13-5. Contractor to Comply with Section 63C-9-403.All contractors and subcontractors that are subject to therequirements of Section 63C-9-403 shall comply with all therequirements, penalties and liabilities of Section 63C-9-403.R131-13-6. Not Basis for Protest or Suspend, Disrupt, orTerminate Design or Construction.(1) The failure of a contractor or subcontractor to providequalified health insurance coverage as required by this Rule R131-13 or Section 63C-9-403:(a) may not be the basis for a protest or other action froma prospective bidder, offeror, or contractor under Section 63G-6-801or any other provision in Title 63G, Chapter 6, Part 8, Legal andContractual Remedies; and(b) may not be used by the procurement entity or aprospective bidder, offeror, or contractor as a basis for any action orsuit that would suspend, disrupt or terminate the design orconstruction.R131-13-7. Requirements and Procedures a Contractor MustFollow.A contractor, including consultants and designers, mustcomply with the following requirements and procedures in order todemonstrate compliance with Section 63C-9-403.(1) Demonstrating Compliance with Health InsuranceRequirements. The following requirements must be met by acontractor, including consultants, designers and others undercontract with the Board or the executive director that is subject to106 UTAH STATE BULLETIN, January 15, 2012, Vol. 2012, No. 2
DAR File No. 35611NOTICES OF 120-DAY (EMERGENCY) RULESthe requirements of Rule R131-13 no later than the time the contractis entered into or renewed:(a) demonstrate compliance by a written certification tothe executive director that the contractor has and will maintain forthe duration of the contract an offer of qualified health insurancecoverage for the contractor's employees and the employees'dependents; and(b) the contractor shall also provide such writtencertification prior to the execution of the contract, in regard to allsubcontractors, including subconsultants, at any tier that are subjectto the requirements of Rule R131-13.(2) Recertification. The executive director shall have theright to request a recertification by the contractor by submitting awritten request to the contractor, and the contractor shall so complywith the written request within ten working days of receipt of thewritten request; however, in no case may the contractor be requiredto demonstrate such compliance more than twice in any 12-monthperiod.(3) Demonstrating Compliance with ActuariallyEquivalent Determination. The actuarially equivalent determinationrequired by Subsection[s] 63C-9-403(1)(c)[(i) and (iii)] and definedin Section 26-40-115 is met by the contractor if the contractorprovides the executive director with a written statement of actuarialequivalency from either the Utah Insurance Department; an actuaryselected by the contractor; or the contractor's insurer; or anunderwriter who is responsible for developing the employer group'spremium rates.For purposes of this [Subsection]Rule R131-13-7(3),actuarially equivalency is achieved by meeting or exceeding [any ofthe following:(a) As]the requirements of Section 26-40-115 which arealso delineated on the DFCM website athttp://dfcm.utah.gov/downloads/Health%20Insurance%20Benchmark.pdf.[, a health benefit plan and employercontribution level with a combined actuarial value at leastactuarially equivalent to the combined actuarial value of thebenchmark plan determined by the Children's Health InsuranceProgram under Subsection 26-40-106(2)(a), and a contribution levelof 50% of the premium for the employee and the dependents of theemployee who reside or work in the State, in which:(i) The employer pays at least 50% of the premium forthe employee and the dependents of the employee who reside orwork in the State; and(ii) for purposes of calculating actuarial equivalencyunder this Subsection R131-13-7(3)(a):(A) rather than the benchmark plan's deductible, and thebenchmark plan's out-of-pocket maximum based on income levels,the deductible is $750 per individual and $2,250 per family; and theout-of-pocket maximum is $3,000 per individual and $9,000 perfamily;(B) dental coverage is not required; and(C) other than Subsection 26-40-106(2)(a), the provisionsof Section 26-40-106 do not apply; or(b)(i) is a federally qualified high deductible health planthat, at a minimum, has a deductible that is either;(A) the lowest deductible permitted for a federallyqualified high deductible health plan; or(B) a deductible that is higher than the lowest deductiblepermitted for a federally qualified high deductible health plan, butincludes an employer contribution to a health savings account in adollar amount at least equal to the dollar amount difference betweenthe lowest deductible permitted for a federally qualified highdeductible plan and the deductible for the employer offeredfederally qualified high deductible plan;(ii) an out-of pocket maximum that does not exceed threetimes the amount of the annual deductible; and(iii) under which the employer pays 75% of the premiumfor the employee and the dependents of the employee who work orreside in the State.](4) The health insurance must be available upon the firstday of the calendar month following [the initial ]ninety days fromthe date of hire.(5) Architect and Engineer Compliance Process.Architects and engineers that are subject to Rule R131-13 mustdemonstrate compliance with Rule R131-13 in any annualsubmittal. During the procurement process and no later than theexecution of the contract with the architect or engineer, the architector engineer shall confirm that their applicable subcontractors orsubconsultants meet the requirements of Rule R131-13.(6) General (Prime) Contractors Compliance Process.Contractors that are subject to Rule R131-13 must demonstratecompliance with Rule R131-13 for their own firm and anyapplicable subcontractors, in any pre-qualification process that maybe used for the procurement. At the time of execution of thecontract, the contractor shall confirm that their applicablesubcontractors or subconsultants meet the requirements of RuleR131-13.(7) Notwithstanding any prequalification process, anycontract subject to Rule R131-13 shall contain a provision requiringcompliance with Rule R131-13 from the time of execution andthroughout the duration of the contract.(8) Hearing and Penalties.(a) Hearing. Any hearing for any penalty under RuleR131-13 conducted by the Board or executive director shall beconducted in the same manner as any hearing required for asuspension or debarment.(b) Penalties that may be [I]imposed by the Board orExecutive Director. The penalties that may be imposed by theBoard or executive director if a contractor, consultant, subcontractoror subconsultant, at any tier, intentionally violates the provisions ofRule R131-13 may include:(i) a three-month suspension of the contractor orsubcontractor from entering into future contracts with the Stateupon the first violation, regardless of which tier the contractor orsubcontractor is involved with the future design and/or constructioncontract;(ii) a six-month suspension of the contractor orsubcontractor from entering into future contracts with the Stateupon the second violation, regardless of which tier the contractor orsubcontractor is involved with the future design and/or constructioncontract;(iii) an action for debarment of the contractor orsubcontractor in accordance with Section 63G-6-804 upon the thirdor subsequent violation; and(iv) monetary penalties which may not exceed 50% of theamount necessary to purchase qualified health insurance coveragefor an employee and dependents of an employee of the contractor orUTAH STATE BULLETIN, January 15, 2012, Vol. 2012, No. 2 107
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UTAH STATEBULLETINOFFICIAL NOTICES
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TABLE OF CONTENTSTax CommissionAdmi
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SPECIAL NOTICESHealthHealth Care Fi
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RULES INDEXR151-3 Americans With Di
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RULES INDEXR162-2c-204 License Rene
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RULES INDEXR277-115 Copyrighting Ma
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RULES INDEXRehabilitationR280-204 U
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RULES INDEXR315-17 End of Life Auto
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RULES INDEXWomen, Infants and Child
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RULES INDEXR414-3A-2 Definitions 35
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RULES INDEXR590-172-4 Rule 35006 AM
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RULES INDEXLIEUTENANT GOVERNORElect
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RULES INDEXR657-26 Adjudicative Pro
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RULES INDEXR865-13G-17R865-14W-1R86
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RULES INDEXR909-19 Safety Regulatio
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RULES INDEXR986-700-714 CC Payment
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Utah State Bulletin, January 15, 2012, Vol. 2012, No. 2

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