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S.B. 189





Chief Sponsor: Curtis S. Bramble

House Sponsor: Stephen D. Clark

             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions regarding capital projects accounting and use of project
             10      reserve money.
             11      Highlighted Provisions:
             12          This bill:
             13          .    requires the director of the Division of Facilities Construction and Management to
             14      account for reserve money accrued from state appropriated funds generated from
             15      bid savings and project residuals in separate accounts, one for capital improvement
             16      projects and one for capital development projects;
             17          .    allows the state building board to re-allocate bid savings and project residuals for
             18      approved capital improvement projects;
             19          .    provides for certain limitations and reporting of the transfer of funds between
             20      projects; and
             21          .    make technical changes.
             22      Monies Appropriated in this Bill:
             23          None
             24      Other Special Clauses:
             25          None
             26      Utah Code Sections Affected:
             27      AMENDS:

             28          63A-5-209, as last amended by Laws of Utah 2002, Fifth Special Session, Chapter 20
             30      Be it enacted by the Legislature of the state of Utah:
             31          Section 1. Section 63A-5-209 is amended to read:
             32           63A-5-209. Building appropriations supervised by director -- Contingencies --
             33      Disposition of project reserve funds -- Set aside for Utah Percent-for-Art Program.
             34          (1) The director shall:
             35          (a) (i) supervise the expenditure of funds in providing plans, engineering
             36      specifications, sites, and construction of the buildings for which legislative appropriations are
             37      made; and [shall]
             38          (ii) specifically allocate money appropriated when more than one project is included in
             39      any single appropriation without legislative directive;
             40          (b) (i) expend the amount necessary from appropriations for planning, engineering, and
             41      architectural work; and
             42          (ii) (A) allocate amounts from appropriations necessary to cover expenditures
             43      previously made from the planning fund under Section 63A-5-211 in the preparation of plans,
             44      engineering, and specifications [shall be returned to the fund]; and
             45          (B) return the amounts described in Subsection (1)(b)(ii)(A) to the planning fund; and
             46          (c) hold in a statewide contingency reserve the amount budgeted for contingencies:
             47          (i) in appropriations for the construction or remodeling of facilities[, for
             48      contingencies]; and
             49          (ii) which may be over and above all amounts obligated by contract for planning,
             50      engineering, [and] architectural work, sites, and construction contracts.
             51          [(i) The] (2) (a) The director shall base the amount budgeted for contingencies [shall
             52      be based] on a sliding scale percentage of the construction cost[. The sliding scale shall range
             53      from] ranging from:
             54          (i) 4-1/2% to 6-1/2% for new construction[,]; and [from]
             55          (ii) 6% to 9-1/2% for remodeling projects.
             56          [(ii)] (b) The director shall hold the statewide contingency funds [shall be held by the
             57      director] to cover:
             58          (i) costs [such as] of change orders; and [other]

             59          (ii) unforeseen, necessary costs beyond those specifically budgeted for the project.
             60          [(iii) (A)] (c) (i) The Legislature shall annually review the percentage and the amount
             61      held in the statewide contingency reserve.
             62          [(B)] (ii) The Legislature may reappropriate to other building needs, including the cost
             63      of administering building projects, any amount from the statewide contingency reserve that is
             64      [determined to be] in excess of the reserve required to meet future contingency needs.
             65          [(2)] (3) (a) The director shall hold in a separate reserve those state appropriated funds
             66      accrued through bid savings and project residual as a project reserve.
             67          (b) The director shall account for the funds accrued under Subsection (3)(a) in separate
             68      accounts as follows:
             69          (i) bid savings and project residual from a capital improvement project, as defined in
             70      Section 63A-5-104 ; and
             71          (ii) bid savings and project residual from a capital development project, as defined in
             72      Section 63A-5-104 .
             73          (c) The State Building Board may authorize the use of project reserve funds in the
             74      account described in Subsection (3)(b)(i) for a capital improvement project:
             75          (i) approved under Section 63A-5-104 ; and
             76          (ii) for which funds are not allocated.
             77          [(a)] (d) The director may:
             78          (i) authorize the use of project reserve funds [only] in the accounts described in
             79      Subsection (3)(b) for the award of contracts in excess of [the] a project's construction budget if
             80      [this] the use is required to meet the intent of the project[.]; and
             81          (ii) transfer money from the account described in Subsection (3)(b)(i) to the account
             82      described in Subsection (3)(b)(ii) if a capital development project has exceeded its construction
             83      budget.
             84          (e) The director shall report to the Office of the Legislative Fiscal Analyst within 30
             85      days:
             86          (i) an authorization under Subsection (3)(c); or
             87          (ii) a transfer under Subsection (3)(d).
             88          [(b)] (f) The Legislature shall annually review the amount held in the project reserve
             89      for possible reallocation by the Legislature to other building needs, including the cost of

             90      administering building projects.
             91          [(3)] (4) If any part of the appropriation for a building project, other than the part set
             92      aside for the Utah Percent-for-Art Program under Title 9, Chapter 6, Part 4, remains
             93      unencumbered after the award of construction and professional service contracts[,] and
             94      establishing a reserve for fixed and moveable equipment, the balance of the appropriation
             95      [shall be] is dedicated to the project reserve and does not revert to the General Fund.
             96          [(4)] (5) (a) One percent of the amount appropriated for the construction of any new
             97      state building or facility may be appropriated and set aside for the Utah Percent-for-Art
             98      Program administered by the Division of Fine Arts under Title 9, Chapter 6, Part 4.
             99          (b) The director shall release to the Division of Fine Arts any funds included in an
             100      appropriation to the division that are designated by the Legislature for the Utah Percent-for-Art
             101      Program.
             102          (c) Funds from appropriations for any state building or facility of which any part is
             103      derived from the issuance of bonds, to the extent it would jeopardize the federal income tax
             104      exemption otherwise allowed for interest paid on bonds, may not be set aside.

Legislative Review Note
    as of 2-16-10 12:10 PM

Office of Legislative Research and General Counsel

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