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First Substitute H.B. 226

This document includes House Floor Amendments incorporated into the bill on Mon, Feb 16, 2004 at 4:01 PM by kholt. --> This document includes Senate Committee Amendments incorporated into the bill on Fri, Feb 20, 2004 at 2:49 PM by smaeser. -->

Representative David Ure proposes the following substitute bill:





Sponsor: David Ure

             7      LONG TITLE
             8      General Description:
             9          This bill clarifies approval requirements for capital development and capital
             10      improvement projects.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines the term "state funds" in order to clarify which capital projects require
             14      legislative approval;
             15          .    clarifies the scope of existing exceptions to legislative approval requirements;
             16          .    exempts certain capital projects from legislative approval requirements; and
             17          .    makes technical corrections.
             18      Monies Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          None
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          63A-5-104, as last amended by Chapter 15, Laws of Utah 2002, Fifth Special Session

             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 63A-5-104 is amended to read:
             28           63A-5-104. Capital development and capital improvement process -- Approval
             29      requirements -- Limitations on new projects -- Emergencies.
             30          (1) As used in this section:
             31          (a) "Capital developments" means any:
             32          (i) remodeling, site, or utility projects with a total cost of $1,500,000 or more;
             33          (ii) new facility with a construction cost of $250,000 or more; or
             34          (iii) purchase of real property where an appropriation is requested to fund the purchase.
             35          (b) "Capital improvements" means any:
             36          (i) remodeling, alteration, replacement, or repair project with a total cost of less than
             37      $1,500,000;
             38          (ii) site and utility improvement with a total cost of less than $1,500,000; or
             39          (iii) new facility with a total construction cost of less than $250,000.
             40          (c) (i) "New facility" means the construction of any new building on state property
             41      regardless of funding source.
             42          (ii) "New facility" includes:
             43          (A) an addition to an existing building; and
             44          (B) the enclosure of space that was not previously fully enclosed.
             45          (iii) "New facility" does not mean:
             46          (A) the replacement of state-owned space that is demolished, if the total construction
             47      cost of the replacement space is less than $1,500,000; or
             48          (B) the construction of facilities that do not fully enclose a space.
             49          (d) "Replacement cost of existing state facilities" means the replacement cost, as
             50      determined by the Division of Risk Management, of state facilities, excluding auxiliary
             51      facilities as defined by the State Building Board.
             52          (e) (i) "State funds" means public monies appropriated by the Legislature.
             53          (2) The State Building Board, on behalf of all state agencies, commissions,
             54      departments, and institutions shall submit its capital development recommendations and
             55      priorities to the Legislature for approval and prioritization.
             56          (3) (a) Except as provided in Subsections (3)(b), (d), and (e), a capital development

             57      project may not be constructed on state property without legislative approval.
             58          (b) Legislative approval is not required for a capital development project if the State
             59      Building Board determines that:
             60          (i) the requesting [agency or] higher education institution has provided adequate
             61      assurance that:
             62          (A) state funds will not be used for the design or construction of[,] the facility; and
             63          (B) the higher education institution has a plan for funding in place that will not require
             64      increased state funding to cover the cost of operations and maintenance to, [and] or state
             65      funding for, immediate or future capital improvements to the resulting facility; and
             66          (ii) the use of the state property is:
             67          (A) appropriate and consistent with the master plan for the property; and
             68          (B) will not create an adverse impact on the state.
             69          (c) (i) The Division of Facilities Construction and Management shall maintain a record
             70      of facilities constructed under the exemption provided in Subsection(3)(b).
             71          (ii) For facilities constructed under the exemption provided in Subsection (3)(b), a
             72      higher education institution may not request:
             73          (A) increased state funds for operations and maintenance; or
             74          (B) state capital improvement funding.
             75          (d) Legislative approval is not required for:
             76          (i) the renovation, remodeling, or retrofitting of an existing facility with nonstate funds;
             77          (ii) facilities to be built with nonstate funds and owned by nonstate entities within
             78      research park areas at the University of Utah and Utah State University; [or]
             79          (iii) facilities to be built at This is the Place State Park by This is the Place Foundation
             80      with funds of the foundation, including grant monies from the state, or with donated services or
             81      materials[.];
             82          (iv) capital projects that are funded by the Navajo Trust Fund Board from Navajo Trust
             83      Fund monies and S THE UINTAH BASIN REVITALIZATION FUND s that do not provide a new facility
             83a      for a state agency or higher education
             84      institution; or
             85          (v) capital projects on school and institutional trust lands that are funded by the School
             86      and Institutional Trust Lands Administration from the Land Grant Management Fund and that
             87      do not H [ provide ] FUND CONSTRUCTION OF h a new facility for a state agency or higher education
             87a      institution.

             88          (e) (i) Legislative approval is not required for capital development projects to be built
             89      for the Department of Transportation as a result of an exchange of real property under Section
             90      72-5-111 .
             91          (ii) When the Department of Transportation approves those exchanges, it shall notify
             92      the president of the Senate, the speaker of the House, and the cochairs of the Capital Facilities
             93      and Administrative Services Subcommittee of the Legislature's Joint Appropriation Committee
             94      about any new facilities to be built under this exemption.
             95          (4) (a) The State Building Board, on behalf of all state agencies, commissions,
             96      departments, and institutions shall by January 15 of each year, submit a list of anticipated
             97      capital improvement requirements to the Legislature for review and approval.
             98          (b) Unless otherwise directed by the Legislature, the building board shall prioritize
             99      capital improvements from the list submitted to the Legislature up to the level of appropriation
             100      made by the Legislature.
             101          (c) In prioritizing capital improvements, the building board shall consider the results of
             102      facility evaluations completed by an architect/engineer as stipulated by the building board's
             103      facilities maintenance standards.
             104          (5) The Legislature may authorize:
             105          (a) the total square feet to be occupied by each state agency; and
             106          (b) the total square feet and total cost of lease space for each agency.
             107          (6) (a) Except as provided in Subsection (6)(b), the Legislature may not fund the design
             108      or construction of any new capital development projects, except to complete the funding of
             109      projects for which partial funding has been previously provided, until the Legislature has
             110      appropriated 1.1% of the replacement cost of existing state facilities to capital improvements.
             111          (b) (i) As used in this Subsection (6)(b), "operating deficit" means that estimated
             112      General Fund or Uniform School Fund revenues are less than budgeted for the current or next
             113      fiscal year.
             114          (ii) If the Legislature determines that an operating deficit exists, the Legislature may, in
             115      eliminating the deficit, reduce the amount appropriated to capital improvements to 0.9% of the
             116      replacement cost of state buildings.
             117          (7) (a) If, after approval of capital development and capital improvement priorities by
             118      the Legislature under this section, emergencies arise that create unforeseen critical capital

             119      improvement projects, the State Building Board may, notwithstanding the requirements of Title
             120      63, Chapter 38, Budgetary Procedures Act, reallocate capital improvement funds to address
             121      those projects.
             122          (b) The building board shall report any changes it makes in capital improvement
             123      allocations approved by the Legislature to:
             124          (i) the Office of Legislative Fiscal Analyst within 30 days of the reallocation; and
             125          (ii) the Legislature at its next annual general session.
             126          (8) (a) The State Building Board may adopt a rule allocating to institutions and
             127      agencies their proportionate share of capital improvement funding.
             128          (b) The building board shall ensure that the rule:
             129          (i) reserves funds for the Division of Facilities Construction and Management for
             130      emergency projects; and
             131          (ii) allows the delegation of projects to some institutions and agencies with the
             132      requirement that a report of expenditures will be filed annually with the Division of Facilities
             133      Construction and Management and appropriate governing bodies.
             134          (9) It is the intent of the Legislature that in funding capital improvement requirements
             135      under this section the General Fund be considered as a funding source for at least half of those
             136      costs.

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