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7 LONG TITLE
8 General Description:
9 This bill enacts and amends provisions related to capital developments at institutions of
10 higher education and technical colleges.
11 Highlighted Provisions:
12 This bill:
13 ▸ defines terms;
14 ▸ creates the Technical Colleges Capital Projects Fund;
15 ▸ enacts provisions related to the Technical Colleges Capital Projects Fund, including
16 provisions related to:
17 • deposits into the fund;
18 • the use of money in the fund; and
19 • the administration of the fund;
20 ▸ enacts procedures for how a technical college receives legislative approval for a
21 capital development project;
22 ▸ creates the Higher Education Capital Projects Fund;
23 ▸ enacts provisions related to the Higher Education Capital Projects Fund, including
24 provisions related to:
25 • deposits into the fund;
26 • the use of the money in the fund; and
27 • the administration of the fund;
28 ▸ enacts procedures for how an institution of higher education that is part of the Utah
29 System of Higher Education receives legislative approval for a capital development
30 project;
31 ▸ provides rulemaking authority;
32 ▸ exempts certain capital development projects from State Building Board
33 prioritization;
34 ▸ amends provisions related to capital development projects; and
35 ▸ makes technical and conforming changes.
36 Money Appropriated in this Bill:
37 This bill appropriates in fiscal year 2019:
38 ▸ to the Capital Budget - Capital Development Fund:
39 • from the Education Fund, ($20,000,000);
40 ▸ to the Higher Education Capital Projects Fund, as an ongoing appropriation:
41 • from the Education Fund, $20,000,000; and
42 ▸ to the Technical Colleges Capital Projects Fund, as an ongoing appropriation:
43 • from the Education Fund, $9,000,000.
44 Other Special Clauses:
45 This bill provides a special effective date.
46 Utah Code Sections Affected:
47 AMENDS:
48 53B-2a-101, as last amended by Laws of Utah 2017, Chapter 382
49 53B-7-101, as last amended by Laws of Utah 2017, Chapters 365 and 382
50 63A-5-104, as last amended by Laws of Utah 2017, Chapter 355
51 63J-1-602.3, as last amended by Laws of Utah 2017, Chapters 396 and 423
52 ENACTS:
53 53B-2a-116, Utah Code Annotated 1953
54 53B-2a-117, Utah Code Annotated 1953
55 53B-22-201, Utah Code Annotated 1953
56 53B-22-202, Utah Code Annotated 1953
57 53B-22-203, Utah Code Annotated 1953
58 53B-22-204, Utah Code Annotated 1953
59 53B-22-205, Utah Code Annotated 1953
60
61 Be it enacted by the Legislature of the state of Utah:
62 Section 1. Section 53B-2a-101 is amended to read:
63 53B-2a-101. Definitions.
64 As used in this chapter:
65 (1) "Board of trustees" means the Utah System of Technical Colleges Board of
66 Trustees.
67 (2) "Capital developments" means the same as that term is defined in Section
68 63A-5-104.
69 [
70 Colleges commissioner of technical education.
71 [
72 demonstrated through business and industry approved standards and assessments, achieved
73 through participation in a hands-on learning environment, and which is tied to observable,
74 measurable performance objectives.
75 [
76 (5) "Dedicated project" means a capital development project for which state funds from
77 the fund as defined in Section 53B-2a-117 are requested or used.
78 (6) "Nondedicated project" means a capital development project for which state funds
79 from a source other than the fund as defined in Section 53B-2a-117 are requested or used.
80 [
81 (a) a method of instructional delivery that allows for flexible scheduling in response to
82 individual student needs or requirements and demonstrated competency when knowledge and
83 skills have been mastered;
84 (b) students have the flexibility to begin or end study at any time, progress through
85 course material at their own pace, and demonstrate competency when knowledge and skills
86 have been mastered; and
87 (c) if competency is demonstrated in a program of study, a credential, certificate, or
88 diploma may be awarded.
89 (8) "State funds" means the same as that term is defined in Section 63A-5-104.
90 Section 2. Section 53B-2a-116 is enacted to read:
91 53B-2a-116. Capital development projects -- Prioritization -- Legislative approval
92 -- Rulemaking.
93 (1) In accordance with this section, a technical college is required to receive legislative
94 approval in an appropriations act for a capital development project.
95 (2) In accordance with Section 53B-2a-112, a technical college shall submit to the
96 board of trustees a proposal for a funding request for each dedicated project or nondedicated
97 project for which the technical college seeks legislative approval.
98 (3) The board of trustees shall:
99 (a) review each proposal submitted under Subsection (2) to ensure that the proposal
100 complies with Section 53B-2a-112;
101 (b) based on the results of the board of trustees' review under Subsection (3)(a), create:
102 (i) a list of approved dedicated projects, prioritized in accordance with Subsection (4);
103 and
104 (ii) a list of approved nondedicated projects, prioritized in accordance with Subsection
105 (4); and
106 (c) submit the lists described in Subsection (3)(b) to the State Building Board for the
107 State Building Board's:
108 (i) recommendation, for the list described in Subsection (3)(b)(i); or
109 (ii) recommendation and prioritization, for the list described in Subsection (3)(b)(ii).
110 (4) (a) The board of trustees shall prioritize funding requests for capital development
111 projects based on:
112 (i) growth and capacity;
113 (ii) effectiveness and support of critical programs;
114 (iii) cost effectiveness;
115 (iv) building deficiencies and life safety concerns; and
116 (v) alternative funding sources.
117 (b) On or before August 1, 2018, in accordance with Title 63G, Chapter 3, Utah
118 Administrative Rulemaking Act, the board of trustees shall make rules that establish:
119 (i) how the board of trustees will measure each factor described in Subsection (4)(a);
120 and
121 (ii) procedures for prioritizing funding requests for capital development projects.
122 (5) A dedicated project:
123 (a) is subject to the State Building Board's recommendation as described in Section
124 63A-5-104; and
125 (b) is not subject to the State Building Board's prioritization as described in Section
126 63A-5-104.
127 (6) A technical college may request operations and maintenance funds for a capital
128 development project approved under this section.
129 Section 3. Section 53B-2a-117 is enacted to read:
130 53B-2a-117. Technical Colleges Capital Projects Fund -- Use of money in fund --
131 Appropriations to fund.
132 (1) As used in this section, "fund" means the Technical Colleges Capital Projects Fund
133 created in this section.
134 (2) There is created a capital projects fund known as the Technical Colleges Capital
135 Projects Fund.
136 (3) Subject to appropriations, money in the fund shall be used:
137 (a) for dedicated projects approved in accordance with Section 53B-2a-116; or
138 (b) to pay debt service in accordance with Subsection (4).
139 (4) Money in the fund may be used to pay debt service:
140 (a) on a general obligation bond issued for a capital development project in accordance
141 with Title 63B, Chapter 1a, Master General Obligation Bond Act; and
142 (b) if the Legislature approves the use by a vote of two-thirds of all members elected to
143 each house.
144 (5) (a) The fund shall be funded by legislative appropriations.
145 (b) Subject to future budget constraints, the Legislature shall appropriate $9,000,000 of
146 new ongoing money from the Education Fund, the General Fund, or a combination of the
147 Education Fund and the General Fund to the fund annually until the ongoing annual
148 appropriation reaches $36,000,000.
149 (6) The fund shall accrue interest, which shall be deposited into the fund.
150 (7) The Division of Finance shall administer the fund in accordance with this section.
151 Section 4. Section 53B-7-101 is amended to read:
152 53B-7-101. Combined requests for appropriations -- Board review of operating
153 budgets -- Submission of budgets -- Recommendations -- Hearing request --
154 Appropriation formulas -- Allocations -- Dedicated credits -- Financial affairs.
155 (1) As used in this section:
156 (a) (i) "Higher education institution" or "institution" means an institution of higher
157 education listed in Section 53B-1-102.
158 (ii) "Higher education institution" or "institution" does not include:
159 (A) the Utah System of Technical Colleges Board of Trustees; or
160 (B) a technical college.
161 (b) "Research university" means the University of Utah or Utah State University.
162 (2) (a) The board shall recommend a combined appropriation for the operating budgets
163 of higher education institutions for inclusion in a state appropriations act.
164 (b) The board's combined budget recommendation shall include:
165 (i) employee compensation;
166 (ii) mandatory costs, including building operations and maintenance, fuel, and power;
167 (iii) performance funding described in Part 7, Performance Funding;
168 (iv) statewide and institutional priorities, including scholarships, financial aid, and
169 technology infrastructure; and
170 (v) enrollment growth.
171 (c) The board's recommendations shall be available for presentation to the governor
172 and to the Legislature at least 30 days before the convening of the Legislature, and shall include
173 schedules showing the recommended amounts for each institution, including separately funded
174 programs or divisions.
175 (d) The recommended appropriations shall be determined by the board only after it has
176 reviewed the proposed institutional operating budgets, and has consulted with the various
177 institutions and board staff in order to make appropriate adjustments.
178 (3) (a) Institutional operating budgets shall be submitted to the board at least 90 days
179 before the convening of the Legislature in accordance with procedures established by the board.
180 (b) [
181 to capital facilities and land purchases shall be submitted in accordance with procedures
182 prescribed by the State Building Board.
183 (4) (a) The budget recommendations of the board shall be accompanied by full
184 explanations and supporting data.
185 (b) The appropriations recommended by the board shall be made with the dual
186 objective of:
187 (i) justifying for higher [
188 with their needs, and consistent with the financial ability of the state; and
189 (ii) determining an equitable distribution of funds among the respective institutions in
190 accordance with the aims and objectives of the statewide master plan for higher education.
191 (5) (a) The board shall request a hearing with the governor on the recommended
192 appropriations.
193 (b) After the governor delivers his budget message to the Legislature, the board shall
194 request hearings on the recommended appropriations with the appropriate committees of the
195 Legislature.
196 (c) If either the total amount of the state appropriations or its allocation among the
197 institutions as proposed by the Legislature or the Legislature's committees is substantially
198 different from the recommendations of the board, the board may request further hearings with
199 the Legislature or the Legislature's appropriate committees to reconsider both the total amount
200 and the allocation.
201 (6) The board may devise, establish, periodically review, and revise formulas for the
202 board's use and for the use of the governor and the committees of the Legislature in making
203 appropriation recommendations.
204 (7) (a) The board shall recommend to each session of the Legislature the minimum
205 tuitions, resident and nonresident, for each institution which it considers necessary to
206 implement the budget recommendations.
207 (b) The board may fix the tuition, fees, and charges for each institution at levels the
208 board finds necessary to meet budget requirements.
209 (8) Money allocated to each institution by legislative appropriation may be budgeted in
210 accordance with institutional work programs approved by the board, provided that the
211 expenditures funded by appropriations for each institution are kept within the appropriations
212 for the applicable period.
213 (9) The dedicated credits, including revenues derived from tuitions, fees, federal
214 grants, and proceeds from sales received by the institutions [
215 appropriated to the respective institutions [
216 with institutional work programs.
217 (10) An institution [
218 the institution's own payrolls, and handle the institution's own financial affairs under the
219 general supervision of the board.
220 (11) If the Legislature appropriates money in accordance with this section, the money
221 shall be distributed to the board and higher education institutions to fund the items described in
222 Subsection (2)(b).
223 Section 5. Section 53B-22-201 is enacted to read:
224
225 53B-22-201. Definitions.
226 As used in this part:
227 (1) "Capital developments" means the same as that term is defined in Section
228 63A-5-104.
229 (2) "Consumer Price Index" means the Consumer Price Index for All Urban
230 Consumers as published by the Bureau of Labor Statistics of the United States Department of
231 Labor.
232 (3) "Dedicated project" means a capital development project for which state funds from
233 an institution's allocation are requested or used.
234 (4) "Fund" means the Higher Education Capital Projects Fund created in Section
235 53B-22-202.
236 (5) "Institution" means an institution of higher education that is part of the Utah
237 System of Higher Education described in Section 53B-1-102.
238 (6) "Institution's allocation" means the total amount of money in the fund that an
239 institution has been allocated in accordance with Section 53B-22-203.
240 (7) "Nondedicated project" means a capital development project for which state funds
241 from a source other than an institution's allocation are requested or used.
242 (8) "State funds" means the same as that term is defined in Section 63A-5-104.
243 Section 6. Section 53B-22-202 is enacted to read:
244 53B-22-202. Higher Education Capital Projects Fund -- Use of money in fund --
245 Appropriations to fund.
246 (1) There is created a capital projects fund known as the Higher Education Capital
247 Projects Fund.
248 (2) Subject to appropriation, money in the fund shall be used:
249 (a) for dedicated projects approved in accordance with Section 53B-22-204; or
250 (b) to pay debt service in accordance with Subsection (3).
251 (3) Money in the fund may be used to pay debt service:
252 (a) on a general obligation bond issued for a capital development project in accordance
253 with Title 63B, Chapter 1a, Master General Obligation Bond Act; and
254 (b) if the Legislature approves the use by a vote of two-thirds of all members elected to
255 each house.
256 (4) (a) The fund shall be funded by legislative appropriations.
257 (b) Subject to future budget constraints, the Legislature shall appropriate $20,000,000
258 of new ongoing money from the Education Fund, the General Fund, or a combination of the
259 Education Fund and the General Fund to the fund annually until the ongoing annual
260 appropriation reaches $100,000,000.
261 (5) The fund shall accrue interest, which shall be deposited into the fund.
262 (6) The Division of Finance shall administer the fund in accordance with this part.
263 Section 7. Section 53B-22-203 is enacted to read:
264 53B-22-203. Fund money -- Institution allocations.
265 (1) (a) Based on legislative appropriations to the fund, the board shall annually
266 determine how to allocate among all institutions money that has not been previously allocated
267 to an institution.
268 (b) The board shall, in accordance with the rules described in Section 53B-22-205,
269 make the determination described in Subsection (1)(a) based on each institution's:
270 (i) enrollment;
271 (ii) total performance across the metrics described in Section 53B-7-706;
272 (iii) regional growth in student population;
273 (iv) facility age and condition; and
274 (v) adequacy of academic space, including off-campus facilities.
275 (2) On or before May 31 each year, the board shall notify the Division of Finance of
276 the board's determination described in Subsection (1).
277 (3) The Division of Finance shall:
278 (a) maintain within the fund separate accounting for each institution's allocation; and
279 (b) based on the notification described in Subsection (2), add to each institution's
280 allocation the amount of money determined by the board.
281 Section 8. Section 53B-22-204 is enacted to read:
282 53B-22-204. Funding request for capital development project -- Legislative
283 approval -- Board approval.
284 (1) In accordance with this section, an institution is required to receive legislative
285 approval in an appropriations act for a capital development project.
286 (2) An institution shall submit to the board a proposal for a funding request for each
287 dedicated project or nondedicated project for which the institution seeks legislative approval.
288 (3) The board shall:
289 (a) review each proposal submitted under Subsection (2) to ensure the proposal:
290 (i) is cost effective and an efficient use of resources;
291 (ii) is consistent with the institution's mission and master plan; and
292 (iii) fulfills a critical institutional facility need;
293 (b) based on the results of the board's review under Subsection (3)(a), create:
294 (i) a list of approved dedicated projects; and
295 (ii) a list of approved nondedicated projects, prioritized in accordance with Subsection
296 (5); and
297 (c) submit the lists described in Subsection (3)(b) to:
298 (i) the governor;
299 (ii) the Infrastructure and General Government Appropriations Subcommittee;
300 (iii) the Higher Education Appropriations Subcommittee; and
301 (iv) the State Building Board for the State Building Board's:
302 (A) recommendation, for the list described in Subsection (3)(b)(i); or
303 (B) recommendation and prioritization, for the list described in Subsection (3)(b)(ii).
304 (4) A dedicated project:
305 (a) is subject to the State Building Board's recommendation as described in Section
306 63A-5-104; and
307 (b) is not subject to the State Building Board's prioritization as described in Section
308 63A-5-104.
309 (5) Subject to Subsection (6), and in accordance with the rules described in Section
310 53B-22-205, the board shall prioritize institution requests for funding for nondedicated projects
311 based on:
312 (a) capital facility need;
313 (b) utilization of facilities;
314 (c) maintenance and condition of facilities;
315 (d) donations and nonappropriated funding; and
316 (e) any other factor determined by the board under the rules described in Section
317 53B-22-205.
318 (6) (a) Subject to Subsection (6)(b), and in accordance with Subsection (5), the board
319 may annually prioritize:
320 (i) up to three nondedicated projects if the ongoing appropriation to the fund is less
321 than $50,000,000;
322 (ii) up to two nondedicated projects if the ongoing appropriation to the fund is at least
323 $50,000,000 but less than $100,000,000; or
324 (iii) one nondedicated project if the ongoing appropriation to the fund is at least
325 $100,000,000.
326 (b) For each calendar year beginning on or after January 1, 2019, the dollar amounts
327 described in Subsection (6)(a) shall be adjusted by an amount equal to the percentage
328 difference between:
329 (i) the Consumer Price Index for the 2018 calendar year; and
330 (ii) the Consumer Price Index for the previous calendar year.
331 (7) (a) An institution may request operations and maintenance funds for a capital
332 development project approved under this section.
333 (b) In considering a funding request for a capital development project, the Legislature
334 shall consider an institution's request described in Subsection (7)(a).
335 (8) After an institution completes a capital development project, the board shall review
336 the capital development project, including the costs and design of the capital development
337 project.
338 Section 9. Section 53B-22-205 is enacted to read:
339 53B-22-205. Rulemaking.
340 On or before August 1, 2018, in accordance with Title 63G, Chapter 3, Utah
341 Administrative Rulemaking Act, the board shall make rules that establish:
342 (1) how the board will determine the amount of money to allocate to an institution as
343 described in Section 53B-22-203, including, for each factor described in Subsection
344 53B-22-203(1)(b):
345 (a) how the board will measure an institution's fulfillment of the factor; and
346 (b) the relative weight assigned to the factor; and
347 (2) how the board will prioritize institution requests for funding for nondedicated
348 projects as described in Subsection 53B-22-204(5), including:
349 (a) how the board will measure each factor described in Subsection 53B-22-204(5);
350 and
351 (b) procedures for prioritizing the requests.
352 Section 10. Section 63A-5-104 is amended to read:
353 63A-5-104. Definitions -- Capital development and capital improvement process
354 -- Approval requirements -- Limitations on new projects -- Emergencies.
355 (1) As used in this section:
356 (a) (i) "Capital developments" means a:
357 (A) remodeling, site, or utility project with a total cost of $3,500,000 or more;
358 (B) new facility with a construction cost of $500,000 or more; or
359 (C) purchase of real property where an appropriation is requested to fund the purchase.
360 (ii) "Capital developments" does not include a project described in Subsection
361 (1)(b)(iii).
362 (b) "Capital improvements" means:
363 (i) a remodeling, alteration, replacement, or repair project with a total cost of less than
364 $3,500,000;
365 (ii) a site or utility improvement with a total cost of less than $3,500,000;
366 (iii) a utility infrastructure improvement project that:
367 (A) has a total cost of less than $7,000,000;
368 (B) consists of two or more projects that, if done separately, would each cost less than
369 $3,500,000; and
370 (C) the State Building Board determines is more cost effective or feasible to be
371 completed as a single project; or
372 (iv) a new facility with a total construction cost of less than $500,000.
373 (c) (i) "New facility" means the construction of a new building on state property
374 regardless of funding source.
375 (ii) "New facility" includes:
376 (A) an addition to an existing building; and
377 (B) the enclosure of space that was not previously fully enclosed.
378 (iii) "New facility" does not include:
379 (A) the replacement of state-owned space that is demolished or that is otherwise
380 removed from state use, if the total construction cost of the replacement space is less than
381 $3,500,000; or
382 (B) the construction of facilities that do not fully enclose a space.
383 (d) "Replacement cost of existing state facilities and infrastructure" means the
384 replacement cost, as determined by the Division of Risk Management, of state facilities,
385 excluding auxiliary facilities as defined by the State Building Board and the replacement cost
386 of infrastructure as defined by the State Building Board.
387 (e) "State funds" means public money appropriated by the Legislature.
388 (2) (a) [
389 state agencies and in accordance with Subsection (4), submit capital development
390 recommendations and priorities to the Legislature for approval and prioritization.
391 (b) In developing the board's capital development recommendations and priorities, the
392 board shall require each state agency that requests an appropriation for a capital development
393 project to:
394 (i) submit to the board a capital development project request; and
395 (ii) complete and submit to the board a study that demonstrates the feasibility of the
396 capital development project, including:
397 (A) the need for the capital development project;
398 (B) the appropriateness of the scope of the capital development project;
399 (C) any private funding for the capital development project; and
400 (D) the economic and community impacts of the capital development project.
401 (c) The board shall verify the completion and accuracy of a feasibility study that a state
402 agency submits to the board under Subsection (2)(b).
403 (d) The board shall require that an institution of higher education described in Section
404 53B-1-102 that submits a request for a capital development project address whether and how,
405 as a result of the project, the institution will:
406 (i) offer courses or other resources that will help meet demand for jobs, training, and
407 employment in the current market and the projected market for the next five years;
408 (ii) respond to individual skilled and technical job demand over the next 3, 5, and 10
409 years;
410 (iii) respond to industry demands for trained workers;
411 (iv) help meet commitments made by the Governor's Office of Economic
412 Development, including relating to training and incentives;
413 (v) respond to changing needs in the economy; and
414 (vi) based on demographics, respond to demands for on-line or in-class instruction.
415 (e) The board shall give more weight in the board's scoring process to a request that is
416 designated as a higher priority by the State Board of Regents than a request that is designated
417 as a lower priority by the State Board of Regents only when determining the order of
418 prioritization among requests submitted by the State Board of Regents.
419 (f) (i) For a dedicated project as defined in Section 53B-2a-101 or 53B-22-201, the
420 board shall submit recommendations to the Legislature in accordance with this section.
421 (ii) A dedicated project as defined in Section 53B-2a-101 or 53B-22-201 is not subject
422 to prioritization by the State Building Board.
423 (3) (a) Except as provided in Subsections (3)(b), (d), and (e), a capital development
424 project may not be constructed on state property without legislative approval.
425 (b) Legislative approval is not required for a capital development project that consists
426 of the design or construction of a new facility if:
427 (i) the board determines that the requesting state agency has provided adequate
428 assurance that state funds will not be used for the design or construction of the facility;
429 (ii) the state agency provides to the board a written document, signed by the head of the
430 state agency:
431 (A) stating that funding or a revenue stream is in place, or will be in place before the
432 project is completed, to ensure that increased state funding will not be required to cover the
433 cost of operations and maintenance to the resulting facility for immediate or future capital
434 improvements; and
435 (B) detailing the source of the funding that will be used for the cost of operations and
436 maintenance for immediate and future capital improvements to the resulting facility; and
437 (iii) the board determines that the use of the state property is:
438 (A) appropriate and consistent with the master plan for the property; and
439 (B) will not create an adverse impact on the state.
440 (c) (i) The Division of Facilities Construction and Management shall maintain a record
441 of facilities constructed under the exemption provided in Subsection (3)(b).
442 (ii) For facilities constructed under the exemption provided in Subsection (3)(b), a state
443 agency may not request:
444 (A) increased state funds for operations and maintenance; or
445 (B) state capital improvement funding.
446 (d) Legislative approval is not required for:
447 (i) the renovation, remodeling, or retrofitting of an existing facility with nonstate funds
448 that has been approved by the board;
449 (ii) a facility to be built with nonstate funds and owned by nonstate entities within
450 research park areas at the University of Utah and Utah State University;
451 (iii) a facility to be built at This is the Place State Park by This is the Place Foundation
452 with funds of the foundation, including grant money from the state, or with donated services or
453 materials;
454 (iv) a capital project that:
455 (A) is funded by the Uintah Basin Revitalization Fund or the Navajo Revitalization
456 Fund; and
457 (B) does not provide a new facility for a state agency or higher education institution; or
458 (v) a capital project on school and institutional trust lands that is funded by the School
459 and Institutional Trust Lands Administration from the Land Grant Management Fund and that
460 does not fund construction of a new facility for a state agency or higher education institution.
461 (e) (i) Legislative approval is not required for capital development projects to be built
462 for the Department of Transportation:
463 (A) as a result of an exchange of real property under Section 72-5-111; or
464 (B) as a result of a sale or exchange of real property from a maintenance facility if the
465 real property is exchanged for, or the proceeds from the sale of the real property are used for,
466 another maintenance facility, including improvements for a maintenance facility and real
467 property.
468 (ii) When the Department of Transportation approves a sale or exchange under
469 Subsection (3)(e), it shall notify the president of the Senate, the speaker of the House, and the
470 cochairs of the Infrastructure and General Government Appropriations Subcommittee of the
471 Legislature's Joint Appropriation Committee about any new facilities to be built or improved
472 under this exemption.
473 (4) (a) (i) On or before January 15 of each year, the board shall, on behalf of all state
474 agencies, submit a list of anticipated capital improvement requirements to the Legislature for
475 review and approval.
476 (ii) The board shall ensure that the list identifies:
477 (A) a single project that costs more than $1,000,000;
478 (B) multiple projects within a single building or facility that collectively cost more than
479 $1,000,000;
480 (C) a single project that will be constructed over multiple years with a yearly cost of
481 $1,000,000 or more and an aggregate cost of more than $3,500,000;
482 (D) multiple projects within a single building or facility with a yearly cost of
483 $1,000,000 or more and an aggregate cost of more than $3,500,000;
484 (E) a single project previously reported to the Legislature as a capital improvement
485 project under $1,000,000 that, because of an increase in costs or scope of work, will now cost
486 more than $1,000,000;
487 (F) multiple projects within a single building or facility previously reported to the
488 Legislature as a capital improvement project under $1,000,000 that, because of an increase in
489 costs or scope of work, will now cost more than $1,000,000; and
490 (G) projects approved under Subsection (1)(b)(iii).
491 (b) Unless otherwise directed by the Legislature, the board shall prioritize capital
492 improvements from the list submitted to the Legislature up to the level of appropriation made
493 by the Legislature.
494 (c) In prioritizing capital improvements, the board shall consider the results of facility
495 evaluations completed by an architect/engineer as stipulated by the building board's facilities
496 maintenance standards.
497 (d) In prioritizing capital improvements, the board shall allocate at least 80% of the
498 funds that the Legislature appropriates for capital improvements to:
499 (i) projects that address:
500 (A) a structural issue;
501 (B) fire safety;
502 (C) a code violation; or
503 (D) any issue that impacts health and safety;
504 (ii) projects that upgrade:
505 (A) an HVAC system;
506 (B) an electrical system;
507 (C) essential equipment;
508 (D) an essential building component; or
509 (E) infrastructure, including a utility tunnel, water line, gas line, sewer line, roof,
510 parking lot, or road; or
511 (iii) projects that demolish and replace an existing building that is in extensive
512 disrepair and cannot be fixed by repair or maintenance.
513 (e) In prioritizing capital improvements, the board shall allocate no more than 20% of
514 the funds that the Legislature appropriates for capital improvements to:
515 (i) remodeling and aesthetic upgrades to meet state programmatic needs; or
516 (ii) construct an addition to an existing building or facility.
517 (f) The board may require an entity that benefits from a capital improvement project to
518 repay the capital improvement funds from savings that result from the project.
519 (g) The board may provide capital improvement funding to a single project, or to
520 multiple projects within a single building or facility, even if the total cost of the project or
521 multiple projects is $3,500,000 or more, if:
522 (i) the capital improvement project is a project described in Subsection (1)(b)(iii); and
523 (ii) the Legislature has not refused to fund the project with capital improvement funds.
524 (h) In prioritizing and allocating capital improvement funding, the State Building
525 Board shall comply with the requirement in Subsection 63B-23-101(2)(f).
526 (5) The Legislature may authorize:
527 (a) the total square feet to be occupied by each state agency; and
528 (b) the total square feet and total cost of lease space for each agency.
529 (6) If construction of a new building or facility will require an immediate or future
530 increase in state funding for operations and maintenance or for capital improvements, the
531 Legislature may not authorize the new building or facility until the Legislature appropriates
532 funds for:
533 (a) the portion of operations and maintenance, if any, that will require an immediate or
534 future increase in state funding; and
535 (b) the portion of capital improvements, if any, that will require an immediate or future
536 increase in state funding.
537 (7) (a) Except as provided in [
538 Legislature may not fund the design or construction of any new capital development projects,
539 except to complete the funding of projects for which partial funding has been previously
540 provided, until the Legislature has appropriated 1.1% of the replacement cost of existing state
541 facilities and infrastructure to capital improvements.
542 (b) If the Legislature determines that there exists an Education Fund budget deficit or a
543 General Fund budget deficit as those terms are defined in Section 63J-1-312, the Legislature
544 may, in eliminating the deficit, reduce the amount appropriated to capital improvements to
545 0.9% of the replacement cost of state buildings and infrastructure.
546 (c) This Subsection (7) does not apply to a dedicated project as defined in Section
547 53B-2a-101 or 53B-22-201.
548 (8) (a) [
549 fund the design and construction of a new facility in phases over more than one year unless the
550 Legislature approves the funding for both the design and construction by a vote of two-thirds of
551 all the members elected to each house.
552 (ii) This Subsection (8)(a) does not apply to a dedicated project as defined in Section
553 53B-2a-101 or 53B-22-201.
554 (b) An agency is required to receive approval from the board before the agency begins
555 programming for a new facility that requires legislative approval under Subsection (3).
556 (c) The board or an agency may fund the programming of a new facility before the
557 Legislature makes an appropriation for the new facility under Subsection (8)(a).
558 (9) (a) Notwithstanding the requirements of Title 63J, Chapter 1, Budgetary Procedures
559 Act, after the Legislature approves capital development and capital improvement priorities
560 under this section, if an emergency arises that creates an unforseen and critical need for a
561 capital improvement project, the board may reallocate capital improvement funds to address
562 the project.
563 (b) The board shall report any changes the board makes in capital improvement
564 allocations approved by the Legislature to:
565 (i) the Office of Legislative Fiscal Analyst within 30 days of the reallocation; and
566 (ii) the Legislature at its next annual general session.
567 (10) (a) The board may adopt a rule allocating to institutions and agencies their
568 proportionate share of capital improvement funding.
569 (b) The board shall ensure that the rule:
570 (i) reserves funds for the Division of Facilities Construction and Management for
571 emergency projects; and
572 (ii) allows the delegation of projects to some institutions and agencies with the
573 requirement that a report of expenditures will be filed annually with the Division of Facilities
574 Construction and Management and appropriate governing bodies.
575 (11) It is the intent of the Legislature that in funding capital improvement requirements
576 under this section the General Fund be considered as a funding source for at least half of those
577 costs.
578 (12) (a) Subject to Subsection (12)(b), at least 80% of the state funds appropriated for
579 capital improvements shall be used for maintenance or repair of the existing building or
580 facility.
581 (b) The board may modify the requirement described in Subsection (12)(a) if the board
582 determines that a different allocation of capital improvements funds is in the best interest of the
583 state.
584 Section 11. Section 63J-1-602.3 is amended to read:
585 63J-1-602.3. List of nonlapsing funds and accounts -- Title 46 through Title 60.
586 (1) The Utah Law Enforcement Memorial Support Restricted Account created in
587 Section 53-1-120.
588 (2) Funding for the Search and Rescue Financial Assistance Program, as provided in
589 Section 53-2a-1102.
590 (3) Appropriations made to the Division of Emergency Management from the State
591 Disaster Recovery Restricted Account, as provided in Section 53-2a-603.
592 (4) Appropriations made to the Department of Public Safety from the Department of
593 Public Safety Restricted Account, as provided in Section 53-3-106.
594 (5) Appropriations to the Motorcycle Rider Education Program, as provided in Section
595 53-3-905.
596 (6) Appropriations from the Utah Highway Patrol Aero Bureau Restricted Account
597 created in Section 53-8-303.
598 (7) Appropriations from the DNA Specimen Restricted Account created in Section
599 53-10-407.
600 (8) The Canine Body Armor Restricted Account created in Section 53-16-201.
601 (9) The School Readiness Restricted Account created in Section 53A-1b-104.
602 (10) Appropriations to the State Board of Education, as provided in Section
603 53A-17a-105.
604 (11) Money received by the Utah State Office of Rehabilitation for the sale of certain
605 products or services, as provided in Section 35A-13-202.
606 (12) The Technical Colleges Capital Projects Fund created in Section 53B-2a-117.
607 [
608 Regents for teacher preparation programs, as provided in Section 53B-6-104.
609 (14) The Higher Education Capital Projects Fund created in Section 53B-22-202.
610 [
611 Education Council, as provided in Section 53B-24-202.
612 [
613 School Institutional Trust Lands Management Act, as provided under Section 53C-3-202.
614 [
615 Regulatory Restricted Account created in Section 54-5-1.5.
616 [
617 Licensing for violation of unlawful or unprofessional conduct that are used for education and
618 enforcement purposes, as provided in Section 58-17b-505.
619 [
620 Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
621 provided in Section 58-63-103.
622 [
623 in Section 59-9-105.
624 [
625 Section 12. Appropriation.
626 The following sums of money are appropriated for the fiscal year beginning July 1,
627 2018, and ending June 30, 2019. These are additions to amounts previously appropriated for
628 fiscal year 2019. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
629 Act, the Legislature appropriates the following sums of money from the funds or accounts
630 indicated for the use and support of the government of the state of Utah.
631 ITEM 1
632 To Capital Budget - Capital Development Fund
633 From Education Fund ($20,000,000)
634 ITEM 2
635 To Higher Education Capital Projects Fund
636 From Education Fund $20,000,000
637 ITEM 3
638 To Technical Colleges Capital Projects Fund
639 From Education Fund $9,000,000
640 Section 13. Effective date.
641 This bill takes effect on July 1, 2018.