H.B. 2003

1

CAPITAL IMPROVEMENT AMENDMENTS
2 2008 SECOND SPECIAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Kevin S. Garn
5 Senate Sponsor: Scott K. Jenkins
6
7 LONG TITLE
8 General Description:
9 This bill addresses reduced appropriations for capital improvements if a General Fund
10 budget deficit exists.
11 Highlighted Provisions:
12 This bill:
13 . defines terms;
14 . allows the Legislature to reduce the amount appropriated to capital improvements
15 when the Legislature determines the existence of a General Fund budget deficit or
16 an Education Fund budget deficit, instead of an “operating deficit”; and
17 . makes technical changes.
18 Monies Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 This bill provides an immediate effective date.
22 Utah Code Sections Affected:
23 AMENDS:
24 63A-5-104, as last amended by Laws of Utah 2008, Chapters 202, 281, and 382
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 a:
32 (i) remodeling, site, or utility project with a total cost of $2,500,000 or more;
33 (ii) new facility with a construction cost of $500,000 or more; or
34 (iii) purchase of real property where an appropriation is requested to fund the purchase.
35 (b) "Capital improvements" means a:
36 (i) remodeling, alteration, replacement, or repair project with a total cost of less than
37 $2,500,000;
38 (ii) site and utility improvement with a total cost of less than $2,500,000; or
39 (iii) new facility with a total construction cost of less than $500,000.
40 (c) (i) "New facility" means the construction of a 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 or that is otherwise
47 removed from state use, if the total construction cost of the replacement space is less than
48 $2,500,000; or
49 (B) the construction of facilities that do not fully enclose a space.
50 (d) "Replacement cost of existing state facilities" means the replacement cost, as
51 determined by the Division of Risk Management, of state facilities, excluding auxiliary
52 facilities as defined by the State Building Board.
53 (e) "State funds" means public monies appropriated by the Legislature.
54 (2) The State Building Board, on behalf of all state agencies, commissions,
55 departments, and institutions shall submit its capital development recommendations and
56 priorities to the Legislature for approval and prioritization.
57 (3) (a) Except as provided in Subsections (3)(b), (d), and (e), a capital development
58 project may not be constructed on state property without legislative approval.

59 (b) Legislative approval is not required for a capital development project if the State
60 Building Board determines that:
61 (i) the requesting higher education institution has provided adequate 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, or state funding for,
65 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) a facility 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;
79 (iii) a facility 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) a capital project that:
83 (A) is funded by:
84 (I) the Uintah Basin Revitalization Fund; or
85 (II) the Navajo Revitalization Fund; and
86 (B) does not provide a new facility for a state agency or higher education institution; or
87 (v) a capital project on school and institutional trust lands that is funded by the School
88 and Institutional Trust Lands Administration from the Land Grant Management Fund and that
89 does not fund construction of a new facility for a state agency or higher education institution.

90 (e) (i) Legislative approval is not required for capital development projects to be built
91 for the Department of Transportation as a result of an exchange of real property under Section
92 72-5-111 .
93 (ii) When the Department of Transportation approves those exchanges, it shall notify
94 the president of the Senate, the speaker of the House, and the cochairs of the Capital Facilities
95 and Administrative Services Subcommittee of the Legislature's Joint Appropriation Committee
96 about any new facilities to be built under this exemption.
97 (4) (a) (i) The State Building Board, on behalf of all state agencies, commissions,
98 departments, and institutions shall by January 15 of each year, submit a list of anticipated
99 capital improvement requirements to the Legislature for review and approval.
100 (ii) The list shall identify:
101 (A) a single project that costs more than $1,000,000;
102 (B) multiple projects within a single building or facility that collectively cost more than
103 $1,000,000;
104 (C) a single project that will be constructed over multiple years with a yearly cost of
105 $1,000,000 or more and an aggregate cost of more than $2,500,000;
106 (D) multiple projects within a single building or facility with a yearly cost of
107 $1,000,000 or more and an aggregate cost of more than $2,500,000;
108 (E) a single project previously reported to the Legislature as a capital improvement
109 project under $1,000,000 that, because of an increase in costs or scope of work, will now cost
110 more than $1,000,000; and
111 (F) multiple projects within a single building or facility previously reported to the
112 Legislature as a capital improvement project under $1,000,000 that, because of an increase in
113 costs or scope of work, will now cost more than $1,000,000.
114 (b) Unless otherwise directed by the Legislature, the State Building Board shall
115 prioritize capital improvements from the list submitted to the Legislature up to the level of
116 appropriation made by the Legislature.
117 (c) In prioritizing capital improvements, the State Building Board shall consider the
118 results of facility evaluations completed by an architect/engineer as stipulated by the building
119 board's facilities maintenance standards.
120 (d) The State Building Board may require an entity that benefits from a capital

121 improvement project to repay the capital improvement funds from savings that result from the
122 project.
123 (e) The State Building Board may provide capital improvement funding to a single
124 project, or to multiple projects within a single building or facility, even if the total cost of the
125 project or multiple projects is $2,500,000 or more, if:
126 (i) the capital improvement project or multiple projects require more than one year to
127 complete; and
128 (ii) the Legislature has affirmatively authorized the capital improvement project or
129 multiple projects to be funded in phases.
130 (5) The Legislature may authorize:
131 (a) the total square feet to be occupied by each state agency; and
132 (b) the total square feet and total cost of lease space for each agency.
133 (6) (a) Except as provided in Subsection (6)(b), the Legislature may not fund the design
134 or construction of any new capital development projects, except to complete the funding of
135 projects for which partial funding has been previously provided, until the Legislature has
136 appropriated 1.1% of the replacement cost of existing state facilities to capital improvements.
137 (b) (i) As used in this Subsection (6)(b)[, "operating deficit" means that estimated
138 General Fund or Uniform School Fund revenues are less than budgeted for the current or next
139 fiscal year.]:
140 (A) "Education Fund budget deficit" is as defined in Subsection 63J-1-202 (1)(a); and
141 (B) "General Fund budget deficit" is as defined in Subsection 63J-1-202 (1)(c).
142 (ii) If the Legislature determines that [an operating deficit exists] an Education Fund
143 budget deficit or a General Fund budget deficit exists, the Legislature may, in eliminating the
144 deficit, reduce the amount appropriated to capital improvements to 0.9% of the replacement
145 cost of state buildings.
146 (7) (a) If, after approval of capital development and capital improvement priorities by
147 the Legislature under this section, emergencies arise that create unforeseen critical capital
148 improvement projects, the State Building Board may, notwithstanding the requirements of Title
149 63J, Chapter 1, Budgetary Procedures Act, reallocate capital improvement funds to address
150 those projects.
151 (b) The State Building Board shall report any changes it makes in capital improvement

152 allocations approved by the Legislature to:
153 (i) the Office of Legislative Fiscal Analyst within 30 days of the reallocation; and
154 (ii) the Legislature at its next annual general session.
155 (8) (a) The State Building Board may adopt a rule allocating to institutions and
156 agencies their proportionate share of capital improvement funding.
157 (b) The State Building Board shall ensure that the rule:
158 (i) reserves funds for the Division of Facilities Construction and Management for
159 emergency projects; and
160 (ii) allows the delegation of projects to some institutions and agencies with the
161 requirement that a report of expenditures will be filed annually with the Division of Facilities
162 Construction and Management and appropriate governing bodies.
163 (9) It is the intent of the Legislature that in funding capital improvement requirements
164 under this section the General Fund be considered as a funding source for at least half of those
165 costs.
166 Section 2. Effective date.
167 If approved by two-thirds of all the members elected to each house, this bill takes effect
168 upon approval by the governor, or the day following the constitutional time limit of Utah
169 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
170 the date of veto override.




Legislative Review Note
as of 9-24-08 11:17 AM

Office of Legislative Research and General Counsel