S.B. 5011 Enrolled

STATUTORY AMENDMENTS TO IMPLEMENT
BUDGET CUTS
2002 FIFTH SPECIAL SESSION
STATE OF UTAH
Sponsor: Leonard M. Blackham
This act modifies the Budgetary Procedures Act by authorizing the Legislature to
appropriate monies from a restricted account to cure an operating deficit. This act expands
the uses of the statewide contingency reserve and capital projects reserve fund to allow them
to be spent for DFCM administrative costs.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
63A-5-209, as last amended by Chapter 231, Laws of Utah 2000
63A-5-219, as renumbered and amended by Chapter 212, Laws of Utah 1993
ENACTS:
63-38-3.6, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 63-38-3.6 is enacted to read:
63-38-3.6. Appropriating from restricted accounts.
(1) As used in this section, "operating deficit," means that estimated General Fund or
Uniform School Fund revenues are less than budgeted for the current or next fiscal year.
(2) Notwithstanding any other statute that limits the Legislature's power to appropriate
from a restricted account, if the Legislature determines that an operating deficit exists, unless
prohibited by federal law or court order, the Legislature may, in eliminating the deficit, appropriate
monies from a restricted account into the General Fund.
Section 2. Section 63A-5-209 is amended to read:
63A-5-209. Building appropriations supervised by director -- Disposition of surplus.
(1) The director shall:
(a) supervise the expenditure of funds in providing plans, engineering specifications, sites,
and construction of the buildings for which legislative appropriations are made and shall

specifically allocate money appropriated when more than one project is included in any single
appropriation without legislative directive;
(b) (i) expend the amount necessary from appropriations for planning, engineering, and
architectural work; and
(ii) allocate amounts from appropriations necessary to cover expenditures previously made
from the planning fund in the preparation of plans, engineering, and specifications shall be returned
to the fund; and
(c) hold in a statewide contingency reserve the amount budgeted for contingencies in
appropriations for the construction or remodeling of facilities, for contingencies which may be over
and above all amounts obligated by contract for planning, engineering, and architectural work, sites,
and construction contracts.
(i) The amount budgeted for contingencies shall be based on a sliding scale percentage of
the construction cost. The sliding scale shall range from 4-1/2% to 6-1/2% for new construction, and
from 6% to 9-1/2% for remodeling projects.
(ii) The statewide contingency funds shall be held by the director to cover costs such as
change orders and other unforeseen, necessary costs beyond those specifically budgeted for the
project.
(iii) (A) The Legislature shall annually review the percentage and the amount held in the
statewide contingency reserve. [It]
(B) The Legislature may reappropriate to other building needs, including the cost of
administering building projects, any amount from the statewide contingency reserve [which] that is
determined to be in excess of the reserve required to meet future contingency needs.
(2) The director shall hold in a separate reserve those state appropriated funds accrued
through bid savings and project residual as a project reserve.
(a) The director may authorize the use of project reserve funds only for the award of
contracts in excess of the construction budget if this is required to meet the intent of the project.
(b) The Legislature shall annually review the amount held in the project reserve for possible
reallocation by the Legislature to other building needs, including the cost of administering building

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projects.
(3) If any part of the appropriation for a building project, other than the part set aside for the
Utah Percent-for-Art Program under Title 9, Chapter 6, Part 4, remains unencumbered after the
award of construction and professional service contracts, and establishing a reserve for fixed and
moveable equipment, the balance of the appropriation shall be dedicated to the project reserve and
does not revert to the General Fund.
(4) (a) One percent of the amount appropriated for the construction of any new state building
or facility may be appropriated and set aside for the Utah Percent-for-Art Program administered by
the Division of Fine Arts under Title 9, Chapter 6, Part 4.
(b) The director shall release to the Division of Fine Arts any funds included in an
appropriation to the division that are designated by the Legislature for the Utah Percent-for-Art
Program.
(c) Funds from appropriations for any state building or facility of which any part is derived
from the issuance of bonds, to the extent it would jeopardize the federal income tax exemption
otherwise allowed for interest paid on bonds, may not be set aside.
Section 3. Section 63A-5-219 is amended to read:
63A-5-219. Transfer from project reserve monies.
(1) With the approval of and through an appropriation by the Legislature, the division shall
transfer at least $100,000 annually from the project reserve monies to the General Fund to pay for
personal service expenses associated with the management of construction projects.
(2) With the approval of and as directed by the Legislature, the division shall transfer
additional monies from the project reserve monies to pay administrative costs associated with the
management of construction projects and other division responsibilities.


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