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First Substitute S.B. 183

Senator Leonard M. Blackham proposes to substitute the following bill:


             1     
UTAH CORRECTIONAL INDUSTRIES BUSINESS PARK

             2     
2000 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Leonard M. Blackham

             5      AN ACT RELATING TO THE DEPARTMENT OF CORRECTIONS AND FACILITIES
             6      CONSTRUCTION AND MANAGEMENT; CREATING A CORRECTIONAL INDUSTRIES
             7      BUSINESS PARK; CREATING A JOINT PLANNING BOARD; ESTABLISHING
             8      PROCEDURES AND REQUIREMENTS FOR LESSEES AT THE PARK; AND PROVIDING
             9      A COORDINATION CLAUSE.
             10      This act affects sections of Utah Code Annotated 1953 as follows:
             11      AMENDS:
             12          63A-5-206, as last amended by Chapters 225 and 285, Laws of Utah 1998
             13          64-13a-3, as last amended by Chapter 92, Laws of Utah 1987
             14          64-13a-6, as last amended by Chapter 13, Laws of Utah 1994
             15      ENACTS:
             16          63A-5-307, Utah Code Annotated 1953
             17          64-13a-15, Utah Code Annotated 1953
             18      Be it enacted by the Legislature of the state of Utah:
             19          Section 1. Section 63A-5-206 is amended to read:
             20           63A-5-206. Construction, alteration, and repair of state facilities -- Powers of
             21      director -- Exceptions -- Expenditure of appropriations.
             22          (1) As used in this section:
             23          (a) "Analysis" means an economic assessment of competing design and maintenance
             24      alternatives, the object of which is to reduce cost and conserve energy.
             25          (b) "Capital developments" means any:


             26          (i) remodeling, site, or utility projects with a total cost of $1,000,000 or more;
             27          (ii) addition of new space that will cost more than $100,000; or
             28          (iii) land acquisition where an appropriation is requested.
             29          (c) "Capital improvements" means any:
             30          (i) remodeling, alteration, repair project with a total cost of less than $1,000,000; or
             31          (ii) site and utility improvement with a total cost of less than $1,000,000.
             32          (d) "Life cycle cost-effective" means the lowest cost of owning and operating a facility
             33      over a 25-year period, including the initial cost, energy costs, operation and maintenance costs,
             34      repair costs, and the costs of energy conservation and renewable energy systems.
             35          (e) "Renewable energy system" means a system designed to use solar, wind, geothermal
             36      power, wood, or other replenishable energy source to heat, cool, or provide electricity to a
             37      building.
             38          (f) "State-owned facilities" means those facilities identified in Section 63A-5-212 .
             39          (2) The director shall prepare or have prepared by private firms or individuals designs,
             40      plans, and specifications for the various buildings and improvements, and other work carried out
             41      by the division.
             42          (3) (a) (i) Except as provided in Subsection (3)(a)(ii) or (3)(a)(iii), and except for facilities
             43      under the jurisdiction of the State Capitol Preservation Board, the director shall recommend the
             44      need for and exercise direct supervision over the design and construction of all alterations, repairs,
             45      and improvements to all existing facilities of the state, its departments, commissions, institutions,
             46      and agencies if the total project construction cost is greater than $100,000.
             47          (ii) The director may:
             48          (A) authorize a department, commission, institution, or agency to control design and
             49      construction of alterations, repairs, and improvements when the total project construction cost is
             50      greater than $100,000 by following the delegation requirements and procedures of Subsection
             51      (3)(c); or
             52          (B) by rule, authorize a particular department, commission, institution, or agency to control
             53      design and construction on projects within a particular dollar range and a particular project type.
             54          (iii) (A) At the request of This is the Place Foundation, the director may authorize the
             55      foundation to control design and construction of alterations, repairs, or improvements to facilities
             56      at This is the Place State Park to be made with funds of the foundation, including grant monies


             57      from the state, or with donated services or materials.
             58          (B) If the foundation controls design and construction as provided in Subsection
             59      (3)(a)(iii)(A), the alterations, repairs, or improvements are subject to plan review and inspection
             60      by Salt Lake City for the purpose of assuring compliance with building codes.
             61          (b) (i) Except for the placement or installation of works of art through Title 9, Chapter 6,
             62      Part 4, Utah Percent-for-Art Act, or as provided in Subsection (3)(b)(ii), and except for facilities
             63      under the jurisdiction of the State Capitol Preservation Board, an existing facility may not be
             64      altered, repaired, or improved on the property of any state institution, department, commission, or
             65      agency if the total project construction cost exceeds $100,000 until the location, design, plans, and
             66      specifications are approved by the director and the officials charged with the administration of the
             67      affairs of the particular department, commission, institution, or agency.
             68          (ii) Alterations, repairs, or improvements to facilities at This is the Place State Park to be
             69      made by This is the Place Foundation with funds of the foundation, including grant monies from
             70      the state, or with donated services or materials, are exempt from Subsection (3)(b)(i).
             71          (c) (i) The director may delegate control over design, construction, and all other aspects
             72      of any project to entities of state government on a project-by-project basis if the state entity
             73      requests that delegation in writing and the State Building Board approves the delegation.
             74          (ii) (A) The director, his designee, or the state entity to whom control has been designated
             75      pursuant to Subsection (5)(c)(i) shall notify in writing the elected representatives of local
             76      government entities directly and substantively affected by any diagnostic, treatment, parole,
             77      probation, or other secured facility project exceeding $250,000, if:
             78          (I) the nature of the project has been significantly altered since prior notification or
             79      approval;
             80          (II) the project would significantly change the nature of the functions presently conducted
             81      at the location;
             82          (III) the project adds 50% or more square feet to the area of the facility; or
             83          (IV) the project is new construction.
             84          (B) At the request of either the state entity or the local government entity, representatives
             85      from the state entity and the affected local entity shall conduct or participate in a local public
             86      hearing or hearings to discuss these issues.
             87          (iii) The state entity to whom control is delegated shall assume fiduciary control over


             88      project finances, shall assume all responsibility for project budgets and expenditures, and shall
             89      receive all funds appropriated for the project, including any contingency funds contained in the
             90      appropriated project budget.
             91          (iv) Delegation of project control does not exempt the state entity from complying with
             92      the codes and guidelines for design and construction adopted by the division and the State Building
             93      Board.
             94          (v) State entities that receive a delegated project may not have access to the building board
             95      contingency funds authorized in Section 63A-5-209 for the delegated project.
             96          (4) (a) The director shall ensure that state-owned facilities, except for facilities under the
             97      control of the State Capitol Preservation Board, are life cycle cost-effective.
             98          (b) The estimated cost of the analysis shall be included in each program budget document
             99      and in the project funding request submitted to the State Building Board, the governor, and the
             100      Legislature.
             101          (c) The final cost estimate shall reflect the most life cycle cost-effective building.
             102          (d) The director, in consultation with the State Building Board and Division of Energy,
             103      shall make rules to implement this subsection by following the procedures and requirements of
             104      Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
             105          (e) The State Building Board may exempt a facility from being life cycle cost-effective
             106      pursuant to rules, after reviewing and concurring with a written request and justification from the
             107      director.
             108          (5) (a) Except as provided in Subsection (5)(c) or (5)(d), and except for facilities
             109      constructed on property under the jurisdiction of the State Capitol Preservation Board, the director
             110      shall recommend the need for and exercise direct supervision over the design and construction of
             111      all new facilities of the state, its departments, commissions, institutions, and agencies if the total
             112      project construction cost is in excess of $100,000.
             113          (b) (i) Except for the placement or installation of works of art under Title 9, Chapter 6,
             114      Part 4, Utah Percent-for-Art Act, or as provided in Subsection (5)(b)(ii), (5)(b)(iii), S [ or ] s
             114a      (5)(b)(iv) , S OR (5)(b)(v), s
             115      and except for facilities constructed on property under the jurisdiction of the State Capitol
             116      Preservation Board, a new facility may not be constructed on the property of any state department,
             117      commission, institution, or agency if the total project construction cost of the facility, regardless
             118      of the funding source, exceeds $100,000, until the construction of the facility has been approved


             119      by the Legislature in an Appropriations Act or by other specific legislation, and the location,
             120      design, plans, and specifications are approved by the director and the official charged with the
             121      administration of the affairs of the particular department, commission, institution, or agency.
             122          (ii) Facilities to be built with nonstate funds and owned and occupied by nonstate entities
             123      within research park areas are exempt from this Subsection (5)(b).
             124          (iii) Facilities to be built for the Utah National Guard for which the funding for
             125      construction, operations, and maintenance are derived totally from the United States Government
             126      are exempt from the requirement of obtaining legislative approval required by this Subsection
             127      (5)(b).
             128          (iv) New facilities to be built at This is the Place State Park by This is the Place
             129      Foundation with funds of the foundation, including grant monies from the state, or with donated
             130      services or materials, are exempt from Subsection (5)(b)(i).
             131          (v) Facilities to be built at the UCI Business Park, as defined in Section 64-13a-3 , are
             132      exempt from Subsection (5)(b) if the facility:
             133          (A) is to be built with funds not provided by the state; and
             134          (B) is to be developed under a land lease.
             135          (c) (i) The director may delegate control over design, construction, and all other aspects
             136      of any project to entities of state government on a project-by-project basis if the state entity
             137      requests that delegation in writing and the State Building Board approves the delegation.
             138          (ii) The state entity to whom control is delegated shall assume fiduciary control over
             139      project finances, shall assume all responsibility for project budgets and expenditures, and shall
             140      receive all funds appropriated for the project, including any contingency funds contained in the
             141      appropriated project budget.
             142          (iii) Delegation of project control does not exempt the state entity from complying with
             143      the codes and guidelines for design and construction adopted by the division and the State Building
             144      Board.
             145          (iv) State entities that receive a delegated project may not have access to the building board
             146      contingency funds authorized in Section 63A-5-209 for the delegated project.
             147          (d) (i) At the request of This is the Place Foundation, the director may authorize the
             148      foundation to control design and construction of any new facility at This is the Place State Park
             149      to be built with funds of the foundation, including grant monies from the state, or with donated


             150      services or materials.
             151          (ii) If the foundation controls design and construction as provided in Subsection (5)(d)(i),
             152      the new facility is subject to plan review and inspection by Salt Lake City for the purpose of
             153      assuring compliance with building codes.
             154          (6) The director may expend appropriations for statewide projects from funds provided by
             155      the Legislature for those specific purposes and within guidelines established by the State Building
             156      Board.
             157          (7) (a) The director, with the approval of the Office of Legislative Fiscal Analyst, shall
             158      develop standard forms to present capital development and capital improvement cost summary
             159      data.
             160          (b) The director shall:
             161          (i) within 30 days after the completion of each capital development project, submit cost
             162      summary data for the project on the standard form to the Office of Legislative Fiscal Analyst; and
             163          (ii) upon request, submit cost summary data for a capital improvement project to the Office
             164      of Legislative Fiscal Analyst on the standard form.
             165          (8) Notwithstanding the requirements of Title 63, Chapter 38, Budgetary Procedures Act,
             166      the director may:
             167          (a) accelerate the design of projects funded by any appropriation act passed by the
             168      Legislature in its annual general session;
             169          (b) use any unencumbered existing account balances to fund that design work; and
             170          (c) reimburse those account balances from the amount funded for those projects when the
             171      appropriation act funding the project becomes effective.
             172          Section 2. Section 63A-5-307 is enacted to read:
             173          63A-5-307. Leasing of Utah Correctional Industries Business Park -- Joint Planning
             174      Board.
             175          (1) As used in this section:
             176          (a) "Compliance agency" has the same definition as in Section 58-56-3 .
             177          (b) "DCI" means the Division of Correctional Industries, created under Subsection
             178      64-13a-4 (a).
             179          (c) "Division" means the Division of Facilities Construction and Management.
             180          (d) "Joint Planning Board" means the planning board created in Subsection (7).


             181          (e) "Lessee" means any entity that leases property in the UCI Business Park, other than the
             182      state or an agency of the state.
             183          (f) "UCI" means the Utah Correctional Industries Program which is operated by the DCI.
             184          (g) "UCI Business Park" or "park" means the property owned by the state, consisting of
             185      approximately 120 acres that lie west of the prison complex in Draper and south of the Bangerter
             186      Highway.
             187          (2) The division may lease property in the UCI Business Park to a lessee if the following
             188      conditions are satisfactorily met:
             189          (a) the DCI has certified that the lease will result in the employment of offenders as
             190      provided in Section 64-13a-15 ;
             191          (b) the Department of Corrections has not raised security objections regarding the lease;
             192          (c) DCI has approved the business terms of the lease;
             193          (d) the lease provides appropriate consideration to the state based on the value of the
             194      property leased; and
             195          (e) the division has obtained approval as required by the Joint Planning Board.
             196          (3) The division shall ensure that the lease:
             197          (a) protects the state from liability;
             198          (b) places responsibility for any adverse environmental impact on the lessee;
             199          (c) prohibits the manufacture or storage of significant quantities of hazardous materials
             200      on the leased premises;
             201          (d) requires the lessee to assume responsibility for any taxes or fees associated with its use
             202      of the property and improvements on the property;
             203          (e) establishes terms regarding the condition in which the lessee shall leave the property
             204      upon termination of the lease; and
             205          (f) provides that any improvements acquired or constructed upon the premises during the
             206      term of the lease revert to and become the property of the state upon the expiration or termination
             207      of the lease, including any extensions or renewals of the lease.
             208          (4) Proceeds derived from the lease of property at the UCI Business Park shall be
             209      deposited in the Utah Correctional Industries Enterprise Fund created in Section 51-5-4 .
             210          (5) The designs, plans, and specifications of any proposed improvements by a lessee are
             211      subject to review and approval by the division, DCI, and the Joint Planning Board.


             212          (6) (a) The use of the UCI Business Park and the use of any improvements constructed on
             213      the park property by any lessee is subject to:
             214          (i) development and planning approval and fees as required by the Joint Planning Board;
             215      and
             216          (ii) the business licensing requirements of Draper City, Utah.
             217          (b) A use approved by the Joint Planning Board is considered to be a permitted use in the
             218      park for purposes of business licensing.
             219          (c) The use of the UCI Business Park and any improvements constructed on the park
             220      property by the state or any agency of the state is not subject to the zoning authority of municipal
             221      government as provided in Section 10-9-105 . However, regarding improvements constructed on
             222      park property by the state or any state agency, the division and DCI shall consider comments from
             223      local governmental entities that are or may be affected by the use of the property.
             224          (7) (a) The division and DCI shall enter into a cooperative agreement with Draper City for
             225      the formation of an administrative body known as the Joint Planning Board. The board shall be
             226      composed of five members, who serve at the pleasure of the appointing entity. The members are:
             227          (i) one who is appointed by the director of the division;
             228          (ii) one who is appointed by the executive director of the Department of Corrections;
             229          (iii) two who are appointed by the governing body of Draper City; and
             230          (iv) one who is appointed by the h [ governor ] SALT LAKE COUNTY LEGISLATIVE BODY h .
             231          (b) The purpose of the Joint Planning Board is to develop and enforce reasonable
             232      regulations regarding the use by lessees of the land within the UCI Business Park, except that the
             233      use of the land within the park by the state or any agency of the state is not subject to the Joint
             234      Planning Board or its regulations.
             235          (c) The cooperative agreement under Subsection (7)(a) shall include:
             236          (i) an acknowledgment that the waste sorting and transfer facility authorized under Section
             237      63B-6-502 is an approved use in the UCI Business Park;
             238          (ii) provisions for the adoption and enforcement of reasonable land use regulations by the
             239      Joint Planning Board to ensure that a lessee's use of land within the park is compatible with uses
             240      of land within Draper City that are located in the near vicinity of the park;
             241          (iii) authorization for the Community Development Department of Draper City to conduct
             242      an initial review and to make recommendations to the Joint Planning Board regarding applications


             243      for development in the park by lessees;
             244          (iv) appointment of Draper City as the compliance agency for purposes of enforcement of
             245      building codes as required and adopted by the Uniform Building Codes Commission created under
             246      Section 58-56-5 ;
             247          (v) a requirement that:
             248          (A) lessees within the park pay fees to Draper City or other entities that provide services
             249      or infrastructure to the lessees; and
             250          (B) the fees shall be applied by Draper City or the other entities imposing the fees in a
             251      manner consistent with other businesses located in Draper City; and
             252          (vi) a definition of the legal boundaries of the UCI Business Park.
             253          Section 3. Section 64-13a-3 is amended to read:
             254           64-13a-3. Definitions.
             255          As used in this chapter:
             256          [(2)] (1) "Board" means the Advisory Board of Utah Correctional Industries.
             257          [(1)] (2) "Division" means the Division of Correctional Industries.
             258          (3) "Lessee" means any entity that leases property in the UCI Business Park, other than the
             259      state or an agency of the state.
             260          (4) "UCI" Business Park" means the real property owned by the state and consisting of
             261      approximately 120 acres that lie west of the state prison complex in Draper and south of the
             262      Bangerter Highway.
             263          Section 4. Section 64-13a-6 is amended to read:
             264           64-13a-6. Board powers and duties.
             265          The board has the following powers and duties:
             266          (1) advise which enterprises should be conducted in the correctional facilities, and the
             267      volume, kind, and place of enterprises, as to eliminate unnecessary inmate idleness at all facilities
             268      and to provide diversified work activities which will serve as a means of enhancing vocational
             269      skills;
             270          (2) advise whether any enterprise should be established, expanded, diminished, or
             271      discontinued;
             272          (3) advise as to the establishment of policy with respect to the conduct of all enterprises;
             273          (4) advise the prices at which all services and products provided, manufactured, produced,


             274      or harvested by enterprises shall be furnished;
             275          (5) consult regularly with state agencies and local public entities in order to develop new
             276      enterprise products, adopt existing enterprise products, and establish new service functions to meet
             277      their needs;
             278          (6) act as liaison with private industry, organized labor, the Legislature, and the general
             279      public;
             280          (7) obtain and provide technical assistance for enterprise programs;
             281          (8) recommend to the division the adoption of rules necessary to carry out the provisions
             282      of this chapter;
             283          (9) review and monitor an annual budget for all enterprises that includes a projected profit
             284      analysis, sales forecast, and anticipated year-end financial forecast;
             285          (10) advise on the development and management of the UCI Business Park, including the
             286      types of businesses that should be solicited;
             287          [(10)] (11) assist in the process of inmate occupational placement upon release from
             288      confinement by coordination with the Board of Pardons and Parole, correctional institutions, and
             289      field operations; and
             290          [(11)] (12) prepare an annual report to the governor and the Legislature that contains:
             291          (a) a detailed financial statement for each enterprise in each facility;
             292          (b) a detailed financial statement of the fund;
             293          (c) reasons for establishing or terminating enterprises;
             294          (d) a summary of plans to develop additional enterprises;
             295          (e) the number of inmates employed in each enterprise;
             296          (f) the number of inmates available for work at each facility; and
             297          (g) any further information requested by the governor or the Legislature.
             298          Section 5. Section 64-13a-15 is enacted to read:
             299          64-13a-15. Administration of the UCI Business Park.
             300          In cooperation with the Division of Facilities Construction and Management, and subject
             301      to Section 63A-5-307 , the division shall:
             302          (1) establish, maintain, and operate the UCI Business Park for the primary purpose of
             303      providing training and employment opportunities for offenders by lessees;
             304          (2) establish guidelines for the employment of offenders by lessees;


             305          (3) solicit lessees who will provide training and employment opportunities to offenders;
             306          (4) enter into agreements for the operation and maintenance of the UCI Business Park; and
             307          (5) establish requirements to provide for the security of offenders receiving training and
             308      employment.
             309          Section 6. Coordination clause.
             310          If this bill and H.B. 292, Capital Projects Approval and Administration, both pass, it is the
             311      intent of the Legislature that the amendments in Section 63A-5-206 of this bill, S.B. 183, be
             312      replaced with the following amendments to Sections 63A-5-104 and 63A-5-206 as amended by
             313      HB 292:
             314      1.     Page 6, Line 164
             315          House Floor Amendments
             316          2-21-2000:                After "(3)(d)" delete "and" and insert ","
             317                              After "(e)," insert "and (f),"
             318      2.    Page 6, Line 182 S h s
             319          House Floor Amendments
             320          2-21-2000:                After Line 182 S h s insert:
             321                              "(f) Legislative approval is not required for capital
             322                              development projects built at the UCI Business Park,
             323                              as defined in Section 63A-5-307 , if the facility:
             324                              (i) is to be built with funds that are not provided by
             325                              the state; and
             326                              (ii) is to be developed under a land lease."
             327      3.    Page 14, Line 404:            After "construction;" delete "or"
             328      4.    Page 14, Line 406:            After "Program" delete "." and insert "; or"
             329      5.    Page 14, Line 406:            After Line 406, insert:
             330                              "(e) is for facilities to be built at the UCI Business
             331                              Park, as defined in Section 63A-5-307, if the facility:
             332                              (i) is to be built with funds that are not provided by
             333                              the state; and
             334                              (ii) is to be developed under a land lease."
             335      6.    Page 15, Line 455:            After "(4);" delete "or"


             336      7.    Page 15, Line 457:            After "(5)(a)" delete "." and insert "; or"
             337      8.    Page 15, Line 457:            After Line 457 insert:
             338                              "(vi) the entity designated in Section 63A-5-307 for
             339                              projects under Subsection (3)(e)."


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