First Substitute H.B. 226

Representative David Ure proposes the following substitute bill:

1 LEGISLATIVE APPROVAL FOR CAPITAL
2 PROJECTS
3 2004 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: David Ure
6
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
25

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 that do not provide a new facility 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 provide a new facility for a state agency or higher education 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.