2-Utah Code 63G-6a-1203.pdf

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Attached to
Bus Non-Engine Non-OEM Repairs
Solicitation number
JB27-303 IFB
Issued by
Salt Lake County, Salt Lake City, Utah

About this file

This is a Utah state statutory document (Utah Code 63G-6a-1203) outlining void and unenforceable provisions in procurement contracts for governmental entities, effective May 7, 2025. The statute applies to the Granite School District's procurement of outside services for non-engine school bus repairs, a contract opportunity with a one-year initial term beginning December 1, 2026, and up to four annual renewal options at the District's discretion by mutual agreement. The District anticipates awarding the contract to the lowest responsive and responsible vendor, though it reserves the right to make multiple awards or award by line item if determined to be in the District's best interest. Bidders are requested to be located within 20 miles of zip code 84119.

The statute establishes that certain contract provisions are automatically void and unenforceable, including those that restrict the state's governmental immunity, require indemnification of the governmental entity, subject the entity to binding arbitration or foreign jurisdiction, limit the entity's choice of legal counsel, allow unilateral vendor modifications, or limit vendor liability for negligence or willful misconduct causing bodily injury, death, or property damage. The statute provides limited exemptions for provisions regarding choice of law and jurisdiction (Subsection 4(f)) and insurance requirements (Subsection 4(i)) if authorized in writing by the assistant attorney general or procurement official prior to contract formation. Additionally, the statute prohibits any liability against the state or procurement unit for special, incidental, indirect, or consequential damages arising from the procurement contract.

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Utah Code

Effective 5/7/2025 63G-6a-1203 Void and unenforceable provisions of a contract -- Exemptions -- Limitation of liability and damages.

(1) As used in this section, "governmental entity" means the same as that term is defined in

Section 63G-7-102.

(2) This section does not apply to:

(a) a procurement contract that becomes operative or enforceable before the effective date of this section; or

(b) the extension or renewal of a contract described in Subsection (2)(a).

(3)

(a) Except as provided under Subsections (5) and (6), a provision of a procurement contract described in Subsection (4), including a provision incorporated into the contract by reference, is void and unenforceable.

(b) Notwithstanding any provision of a procurement contract that is void and unenforceable under Subsection (3)(a), the remaining provisions of the contract are severable, valid, and enforceable to the fullest extent provided under Utah law.

(4) A provision is void and unenforceable under Subsection (3)(a) if the provision:

(a) restricts the state's or a procurement unit's protection under Chapter 7, Governmental

Immunity Act of Utah, from suit, liability, judgment, or obligation, including an obligation to respond to or defend against any claim;

(b) requires a governmental entity to indemnify, defend, or hold harmless another person;

(c) restricts a governmental entity's ability to seek relief in state court;

(d) subjects a governmental entity to binding arbitration or other form of dispute resolution outside the courts;

(e) disallows the procurement unit from having legal counsel and representation from:

(i) legal counsel that the procurement unit chooses;

(ii) the attorney general; or

(iii) legal counsel chosen by a person that has a contractual obligation to indemnify, defend, or hold harmless the state or a procurement unit, subject to the written consent of the state or the procurement unit;

(f) subject to Subsection (5):

(i) subjects a procurement contract or a party to the contract to the laws of any jurisdiction other than Utah; or

(ii) requires the parties to resolve a dispute in a jurisdiction or venue other than Utah;

(g) restricts a governmental entity from making disclosures of information, as required by law or for any legitimate governmental purpose;

(h) allows a vendor to unilaterally modify any part of the procurement contract, including any provision to which the contract contemplates giving legal effect upon the vendor providing notice to the procurement unit of the modification or of the created legal effect; and

(i) subject to Subsection (6):

(i) requires a governmental entity to maintain insurance coverage beyond the types and limits required by the state risk manager appointed under Section 63A-4-101.5, or to name an additional insured under that coverage;

(ii) allows a vendor to automatically renew a procurement contract or that creates a contractual term in violation of the terms permitted under Section 63G-6a-1204; or

(iii) limits the liability of a vendor or any third-party for bodily injury, death, or damage to tangible property caused by the negligence or willful misconduct of a vendor, a third-party, or the vendor's or third-party's employees or agents.

Utah Code

(5) The assistant attorney general or authorized legal counsel for the procurement unit that will sign a procurement contract may, via a signed, express, written authorization made prior to the formation of the contract, exempt the contract from a provision described in Subsection (4)(f), if the assistant attorney general or authorized legal counsel determines that an exemption is necessary to promote the best interests of the state or the procurement unit due to:

(a) the relative disproportionate bargaining positions of the contracting parties;

(b) market conditions; or

(c) other unique circumstances identified and described in the authorization.

(6) The procurement official for a procurement unit seeking to enter into a procurement contract may, via a signed, express, written authorization made prior to the formation of the contract, exempt the contract from a provision described in Subsection (4)(i), if the contract indicates the procurement unit's intent to include the provision, with explicit reference to this section.

(7) Notwithstanding any provision of a procurement contract to the contrary, under no circumstance may the state or a procurement unit be held liable for any special, incidental, indirect, or consequential damages arising from or relating to a procurement contract.

Amended by Chapter 69, 2025 General Session

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