H.B. 3 Enrolled

STATE BUILDINGS - PREVENTIVE MAINTENANCE
1997 GENERAL SESSION
STATE OF UTAH
Sponsor: Gerry A. Adair
AN ACT RELATING TO DIVISION OF FACILITIES CONSTRUCTION AND
MANAGEMENT; MODIFYING THE SCOPE AND APPLICATION OF CERTAIN
PREVENTIVE MAINTENANCE REQUIREMENTS; MODIFYING REPORTING
REQUIREMENTS; MODIFYING PRIORITIZATION CRITERIA; AND MAKING
TECHNICAL CORRECTIONS.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
63-38c-103, as renumbered and amended by Chapters 275 and 279, Laws of Utah 1996
63A-5-103, as last amended by Chapter 54, Laws of Utah 1995
63A-5-204, as last amended by Chapters 79 and 159, Laws of Utah 1996
ENACTS:
63A-5-104, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 63-38c-103 is amended to read:
63-38c-103. Definitions.
As used in this chapter:
(1) (a) "Appropriations" means actual unrestricted capital and operating appropriations
from unrestricted General Fund, Uniform School Fund, and Transportation Fund sources as
presented in the governor's executive budgets.
(b) "Appropriation" includes appropriations that are contingent upon available surpluses
in the General Fund, Uniform School Fund, or Transportation Fund.
(c) "Appropriations" does not mean:
(i) debt service expenditures;
(ii) emergency expenditures;
(iii) expenditures from all other fund or subfund sources presented in the executive

budgets;
(iv) transfers into, or appropriations made to, the Budgetary Reserve Account established
in Section 63-38-2.5;
(v) monies appropriated to fund the total one-time project costs for the construction of
capital developments as defined in [Subsection 63A-5-103(4)] Section 63A-5-104; or
(vi) appropriations made to the Centennial Highway Trust Fund created by Section
63-49-22.
(2) "Base year real per capita appropriations" means the result obtained for the state by
dividing the fiscal year 1985 actual appropriations of the state less debt monies, less $55 million
appropriated for flooding and less $14.2 million appropriated for capital projects in Section 3 of
Chapter 265, Laws of Utah 1985 General Session, by:
(a) the state's July 1, 1983 population; and
(b) the fiscal year 1983 inflation index divided by 100.
(3) "Calendar year" means the time period beginning on January 1 of any given year and
ending on December 31 of the same year.
(4) "Fiscal emergency" means an extraordinary occurrence requiring immediate expenditures
and includes the settlement under Chapter 4, Laws of Utah 1988, Fourth Special Session.
(5) "Fiscal year" means the time period beginning on July 1 of any given year and ending
on June 30 of the subsequent year.
[(15)] (6) "Fiscal year 1985 actual base year appropriations" means fiscal year 1985 actual
capital and operations appropriations from general, uniform school, and transportation fund sources,
less debt monies, less $55 million appropriated for flooding, and less $14.2 million appropriated for
capital projects in Section 3, Chapter 265, Laws of Utah 1985.
[(6)] (7) "Inflation index" means the change in the general price level of goods and services
as measured by the Gross National Product Implicit Price Deflator of the Bureau of Economic
Analysis, U.S. Department of Commerce calculated as provided in Section 63-38c-202.
[(7)] (8) (a) "Maximum allowable appropriations limit" means the appropriations that could
be, or could have been, spent in any given year under the limitations of this chapter.

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(b) "Maximum allowable appropriations limit" does not mean actual appropriations spent
or actual expenditures.
(9) "Most recent fiscal year's inflation index" means the fiscal year inflation index two fiscal
years previous to the fiscal year for which the maximum allowable inflation and population
appropriations limit is being computed under this chapter.
[(14)] (10) "Most recent fiscal year's personal income" means the fiscal year personal income
two fiscal years previous to the fiscal year for which the maximum allowable personal income
appropriations limit is being computed under this chapter.
[(8)] (11) "Most recent fiscal year's population" means the fiscal year population two fiscal
years previous to the fiscal year for which the maximum allowable inflation and population
appropriations limit is being computed under this chapter.
[(13)] (12) "Personal income" means the total personal income of the state as calculated by
the Office of Planning and Budget according to the procedures and requirements of Section
63-38c-202.
[(10)] (13) "Population" means the number of residents of the state as of July 1 of each year
as calculated by the Office of Planning and Budget according to the procedures and requirements
of Section 63-38c-202.
[(11)] (14) "Revenues" means the revenues of the state from every tax, penalty, receipt, and
other monetary exaction and interest connected with it that are recorded as unrestricted revenue of
the General Fund, Uniform School Fund, and Transportation Fund, except as specifically exempted
by this chapter.
[(12)] (15) "Security" means any bond, note, warrant, or other evidence of indebtedness,
whether or not the bond, note, warrant, or other evidence of indebtedness is or constitutes an
"indebtedness" within the meaning of any provision of the constitution or laws of this state.
Section 2. Section 63A-5-103 is amended to read:
63A-5-103. Board -- Powers.
(1) The State Building Board shall:
(a) in cooperation with state institutions, departments, commissions, and agencies, prepare

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a master plan of structures built or contemplated;
(b) submit to the governor and the Legislature a comprehensive five-year building plan for
the state containing the information required by Subsection (2);
(c) amend and keep current the five-year building program for submission to the governor
and subsequent legislatures;
(d) as a part of the long-range plan, recommend to the governor and Legislature any changes
in the law that are necessary to insure an effective, well-coordinated building program for all state
institutions;
(e) make rules necessary to discharge its duties and the duties of the Division of Facilities
Construction and Management by following the procedures and requirements of Title 63, Chapter
46a, Utah Administrative Rulemaking Act;
(f) with support from the Division of Facilities Construction and Management, establish
design criteria, standards, and procedures for the use of state agencies and institutions in the planning
for new state buildings and facilities including life-cycle costing, cost-effectiveness studies, and
other methods and procedures that demonstrate:
(i) the need for the building or facility;
(ii) the effectiveness of its design;
(iii) the efficiency of energy use; and
(iv) the usefulness of the building or facility over its lifetime;
(g) prepare and submit a yearly request to the governor and the Legislature for a designated
amount of square footage by type of space to be leased by the Division of Facilities Construction and
Management in that fiscal year; and
(h) assure the efficient use of all building space.
(2) In order to provide adequate information upon which the State Building Board may make
its recommendation under Subsection (1), any state agency requesting new full-time employees for
the next fiscal year shall report those anticipated requests to the building board at least 90 days
before the annual general session in which the request is made.
(3) (a) The State Building Board shall ensure that the five-year building plan required by

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Subsection (1)(c) includes:
(i) a list that prioritizes construction of new buildings for all structures built or contemplated
based upon each agency's, department's, commission's, and institution's present and future needs;
(ii) information, and space use data for all state-owned and leased facilities;
(iii) substantiating data to support the adequacy of any projected plans;
(iv) a summary of all statewide contingency reserve and project reserve balances as of the
end of the most recent fiscal year; [and]
(v) a list of buildings that have completed a comprehensive facility evaluation by an
architect/engineer or are scheduled to have an evaluation;
(vi) for those buildings that have completed the evaluation, the estimated costs of needed
improvements; and
[(v)] (vii) for projects recommended in the first two years of the five-year building plan:
(A) detailed estimates of the cost of each project;
(B) the estimated cost to operate and maintain the building or facility on an annual basis;
(C) the estimated number of new agency full-time employees expected to be housed in the
building or facility;
(D) the estimated cost of new or expanded programs and personnel expected to be housed
in the building or facility;
(E) the estimated lifespan of the building with associated costs for major component
replacement over the life of the building; and
(F) the estimated cost of any required support facilities.
(b) The State Building Board may make rules prescribing the format for submitting the
information required by this subsection.
[(4) (a) As used in this section, "capital developments" means any:]
[(i) remodeling, site, or utility projects with a total cost of $1,000,000 or more;]
[(ii) addition of new space that will cost more than $100,000; or]
[(iii) land acquisition where an appropriation is requested.]
[(b) The State Building Board, on behalf of all state agencies, commissions, departments,

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and institutions shall submit its capital development recommendations and priorities to the
Legislature for approval and prioritization.]
[(5) (a) As used in this section, "capital improvements" means any:]
[(i) remodeling, alteration, repair project with a total cost of less than $1,000,000; or]
[(ii) site and utility improvement with a total cost of less than $1,000,000.]
[(b) (i) The State Building Board, on behalf of all state agencies, commissions, departments,
and institutions shall by January 15 of each year, submit a list of anticipated capital improvement
requirements to the Legislature for review and approval.]
[(ii) Unless otherwise directed by the Legislature, the building board shall prioritize capital
improvements from the list submitted to the Legislature up to the level of appropriation made by the
Legislature.]
[(6) (a) If, after approval of capital development and capital improvement priorities by the
Legislature under this section, emergencies arise that create unforeseen critical capital improvement
projects, the State Building Board may, notwithstanding the requirements of Title 63, Chapter 38,
Budgetary Procedures Act, reallocate capital improvement funds to address those projects.]
[(b) The board shall report any changes it makes in capital improvement allocations
approved by the Legislature to:]
[(i) the Office of Legislative Fiscal Analyst within 30 days of the reallocation; and]
[(ii) the Legislature at its next annual general session.]
[(7) The Legislature may authorize:]
[(a) the total square feet to be occupied by each state agency; and]
[(b) the total square feet and total cost of lease space for each agency.]
[(8) (a) The Legislature may not fund the design or construction of any new capital
development projects, except to complete the funding of projects for which partial funding has been
previously provided, until the following funding requirement (including supplemental funding) for
capital improvements has been met:]
[(i) for fiscal year 1995, .5% of the replacement cost of existing state buildings;]
[(ii) for fiscal year 1996, .75% of the replacement cost of existing state buildings; and]

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[(iii) for fiscal year 1997 and thereafter, .9% of the replacement cost of existing state
buildings.]
[(b) As used in this subsection, "replacement cost of existing state buildings" means the
replacement cost, as determined by the Division of Risk Management, of state buildings, excluding
auxiliary buildings as defined by the State Building Board.]
[(9) The board may adopt a rule allocating to institutions and agencies their proportionate
share of capital improvement funding. Such a rule should:]
[(a) reserve funds at Division of Facilities Construction and Management for emergency
projects; and]
[(b) allow the delegation of projects to some institutions and agencies with the requirement
that a report of expenditures will be filed annually with the Division of Facilities Construction and
Management and appropriate governing bodies.]
[(10) It is the intent of the Legislature that in funding capital improvement requirements
under this section, that the General Fund be considered as a funding source for at least half of those
costs.]
Section 3. Section 63A-5-104 is enacted to read:
63A-5-104. Capital development and capital improvement process.
(1) As used in this section:
(a) "Capital developments" means any:
(i) remodeling, site, or utility projects with a total cost of $1,000,000 or more;
(ii) addition of new space that will cost more than $100,000; or
(iii) land acquisition where an appropriation is requested.
(b) "Capital improvements" means any:
(i) remodeling, alteration, or repair project with a total cost of less than $1,000,000; or
(ii) site and utility improvement with a total cost of less than $1,000,000.
(c) "Replacement cost of existing state buildings" means the replacement cost, as determined
by the Division of Risk Management, of state buildings, excluding auxiliary buildings as defined by
the State Building Board.

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(2) The State Building Board, on behalf of all state agencies, commissions, departments, and
institutions shall submit its capital development recommendations and priorities to the Legislature
for approval and prioritization.
(3) (a) The State Building Board, on behalf of all state agencies, commissions, departments,
and institutions shall by January 15 of each year, submit a list of anticipated capital improvement
requirements to the Legislature for review and approval.
(b) Unless otherwise directed by the Legislature, the building board shall prioritize capital
improvements from the list submitted to the Legislature up to the level of appropriation made by the
Legislature.
(c) In prioritizing capital improvements, the building board shall consider the results of
facility evaluations completed by an architect/engineer as stipulated by the building board's facilities
maintenance standards.
(4) The Legislature may authorize:
(a) the total square feet to be occupied by each state agency; and
(b) the total square feet and total cost of lease space for each agency.
(5) The Legislature may not fund the design or construction of any new capital development
projects, except to complete the funding of projects for which partial funding has been previously
provided, until the Legislature has appropriated .9% of the replacement cost of existing state
buildings to capital improvements.
(6) (a) If, after approval of capital development and capital improvement priorities by the
Legislature under this section, emergencies arise that create unforeseen critical capital improvement
projects, the State Building Board may, notwithstanding the requirements of Title 63, Chapter 38,
Budgetary Procedures Act, reallocate capital improvement funds to address those projects.
(b) The building board shall report any changes it makes in capital improvement allocations
approved by the Legislature to:
(i) the Office of Legislative Fiscal Analyst within 30 days of the reallocation; and
(ii) the Legislature at its next annual general session.
(7) (a) The State Building Board may adopt a rule allocating to institutions and agencies

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their proportionate share of capital improvement funding.
(b) The building board shall ensure that the rule:
(i) reserves funds for the Division of Facilities Construction and Management for emergency
projects; and
(ii) allows the delegation of projects to some institutions and agencies with the requirement
that a report of expenditures will be filed annually with the Division of Facilities Construction and
Management and appropriate governing bodies.
(8) It is the intent of the Legislature that in funding capital improvement requirements under
this section the General Fund be considered as a funding source for at least half of those costs.
Section 4. Section 63A-5-204 is amended to read:
63A-5-204. Specific powers and duties of director.
(1) The director shall:
(a) recommend rules to the executive director for the use and management of facilities and
grounds owned or occupied by the state for the use of its departments and agencies;
(b) supervise and control the allocation of space, in accordance with legislative directive
through [the] annual appropriations [act] acts or other specific legislation, to the various departments,
commissions, institutions, and agencies in the capitol, the state office building, and all other
buildings or space owned, leased, or rented by or to the state, except as otherwise provided by law;
(c) comply with the procedures and requirements of Title 63A, Chapter 5, Part 3, Division
of Facilities Construction and Management Leasing;
(d) acquire, as authorized by the Legislature through the appropriations act or other specific
legislation, and hold title to, in the name of the division, all real property, buildings, fixtures, or
appurtenances owned by the state or any of its agencies;
(e) recommend to the executive director rules to govern traffic flow and vehicle parking on
roadways and parking lots which surround the capitol and that are a part of Utah State Highway 293;
(f) adopt and use a common seal, of a form and design determined by the director, and of
which courts shall take judicial notice;
(g) file a description and impression of the seal with the Division of Archives;

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(h) collect and maintain all deeds, abstracts of title, and all other documents evidencing title
to or interest in property belonging to the state or any of its departments, except institutions of higher
education and the School and Institutional Trust Lands Administration;
(i) report all properties acquired by the state, except those acquired by institutions of higher
education, to the director of the Division of Finance for inclusion in the state's financial records; and
(j) take all other action necessary for carrying out the purposes of this chapter.
(2) (a) The director shall direct or delegate maintenance and operations, preventive
maintenance, and facilities inspection programs and activities for any department, commission,
institution, or agency, except state institutions of higher [or public] education.
[(b) For functions other than administration, the following agencies are also exempt from
the provisions of Subsection (2):]
[(i) the Department of Transportation;]
[(ii) the School and Institutional Trust Lands Administration;]
[(iii) the Department of Corrections;]
[(iv) the Department of Natural Resources; and]
[(v) the Utah National Guard.]
(b) The director may choose to delegate responsibility for these functions only when the
director determines that:
(i) the department or agency has requested the responsibility;
(ii) the department or agency has the necessary resources and skills to comply with facility
maintenance standards approved by the State Building Board; and
(iii) the delegation would result in net cost savings to the state as a whole.
(c) State institutions of higher education are exempt from Division of Facilities Construction
and Management oversight.
(d) Each state institution of higher education shall comply with the facility maintenance
standards approved by the State Building Board.
(e) Agencies and institutions that are exempt from division oversight shall annually report
their compliance with the facility maintenance standards to the division in the format required by

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the division.
(f) The division shall:
(i) prescribe a standard format for reporting compliance with the facility maintenance
standards;
(ii) report agency and institution compliance or noncompliance with the standards to the
Legislature; and
(iii) conduct periodic audits of exempt agencies and institutions to ensure that they are
complying with the standards.
(3) (a) In making any allocations of space under Subsection (1), the director shall:
(i) conduct studies to determine the actual needs of each department, commission,
institution, or agency; and
(ii) comply with the restrictions contained in Subsection (3).
(b) The supervision and control of the legislative area is reserved to the Legislature.
(c) The supervision and control of the judicial area is reserved to the judiciary for trial courts
only.
(d) The director may not supervise or control the allocation of space for entities in the public
and higher education systems.
(4) The director may:
(a) hire or otherwise procure assistance and services, professional, skilled, or otherwise, that
are necessary to carry out the director's responsibilities, and may expend funds provided for that
purpose either through annual operating budget appropriations or from nonlapsing project funds;
(b) sue and be sued in the name of the division; and
(c) hold, buy, lease, and acquire by exchange or otherwise, as authorized by the Legislature
through an appropriations act or other specific legislation, whatever real or personal property that
is necessary for the discharge of the director's duties.
(5) Notwithstanding the provisions of Subsection (1)(d), the following entities may hold title
to any real property, buildings, fixtures, and appurtenances held by them for purposes other than
administration that are under their control and management:

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(a) the Office of Trust Administrator;
(b) the Department of Transportation;
(c) the Division of Forestry, Fire and State Lands;
(d) the Department of Natural Resources;
(e) the Utah National Guard;
(f) any area vocational center or other institution administered by the State Board of
Education; and
(g) any institution of higher education.
(6) Notwithstanding Subsections (1)(c) and (d), the School and Institutional Trust Lands
Administration may hold title to any real property, buildings, fixtures, and appurtenances held by
it that are under its control [and management].

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