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S.B. 148 Enrolled

             1     

TRANSPORTATION MAINTENANCE FACILITIES

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: J. Stuart Adams

             5     
House Sponsor: Gage Froerer

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Utah Administrative Services Code and the Transportation Code
             10      by amending provisions relating to the exchange or sale of real property for
             11      transportation maintenance facilities.
             12      Highlighted Provisions:
             13          This bill:
             14          .    provides that legislative approval is not required for capital development projects to
             15      be built for the Department of Transportation as a result of a sale or exchange of
             16      real property from a maintenance facility if the real property is exchanged for, or the
             17      proceeds from the sale of the real property are used for, another maintenance
             18      facility, including improvements for a maintenance facility and real property;
             19          .    provides that when the Department of Transportation approves a sale or exchange, it
             20      shall notify the president of the Senate, the speaker of the House, and the cochairs
             21      of the Capital Facilities and Administrative Services Subcommittee of the
             22      Legislature's Joint Appropriation Committee about any new facilities to be built or
             23      improved under this exemption;
             24          .    provides that proceeds from the sale of real property or an interest in real property
             25      from a maintenance facility may be used by the Department of Transportation for
             26      the purchase or improvement of another maintenance facility; and
             27          .    makes technical changes.
             28      Money Appropriated in this Bill:
             29          None


             30      Other Special Clauses:
             31          None
             32      Utah Code Sections Affected:
             33      AMENDS:
             34          63A-5-104, as last amended by Laws of Utah 2011, Chapters 219 and 409
             35          72-5-111, as last amended by Laws of Utah 2008, Chapter 3
             36     
             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 63A-5-104 is amended to read:
             39           63A-5-104. Definitions -- Capital development and capital improvement process
             40      -- Approval requirements -- Limitations on new projects -- Emergencies.
             41          (1) As used in this section:
             42          (a) "Capital developments" means a:
             43          (i) remodeling, site, or utility project with a total cost of $2,500,000 or more;
             44          (ii) new facility with a construction cost of $500,000 or more; or
             45          (iii) purchase of real property where an appropriation is requested to fund the purchase.
             46          (b) "Capital improvements" means a:
             47          (i) remodeling, alteration, replacement, or repair project with a total cost of less than
             48      $2,500,000;
             49          (ii) site and utility improvement with a total cost of less than $2,500,000; or
             50          (iii) new facility with a total construction cost of less than $500,000.
             51          (c) (i) "New facility" means the construction of a new building on state property
             52      regardless of funding source.
             53          (ii) "New facility" includes:
             54          (A) an addition to an existing building; and
             55          (B) the enclosure of space that was not previously fully enclosed.
             56          (iii) "New facility" does not mean:
             57          (A) the replacement of state-owned space that is demolished or that is otherwise


             58      removed from state use, if the total construction cost of the replacement space is less than
             59      $2,500,000; or
             60          (B) the construction of facilities that do not fully enclose a space.
             61          (d) "Replacement cost of existing state facilities" means the replacement cost, as
             62      determined by the Division of Risk Management, of state facilities, excluding auxiliary
             63      facilities as defined by the State Building Board.
             64          (e) "State funds" means public money appropriated by the Legislature.
             65          (2) The State Building Board, on behalf of all state agencies, commissions,
             66      departments, and institutions shall submit its capital development recommendations and
             67      priorities to the Legislature for approval and prioritization.
             68          (3) (a) Except as provided in Subsections (3)(b), (d), and (e), a capital development
             69      project may not be constructed on state property without legislative approval.
             70          (b) Legislative approval is not required for a capital development project that consists
             71      of the design or construction of a new facility if the State Building Board determines that:
             72          (i) the requesting state agency, commission, department, or institution has provided
             73      adequate assurance that:
             74          (A) state funds will not be used for the design or construction of the facility; and
             75          (B) the state agency, commission, department, or institution has a plan for funding in
             76      place that will not require increased state funding to cover the cost of operations and
             77      maintenance to, or state funding for, immediate or future capital improvements to the resulting
             78      facility; and
             79          (ii) the use of the state property is:
             80          (A) appropriate and consistent with the master plan for the property; and
             81          (B) will not create an adverse impact on the state.
             82          (c) (i) The Division of Facilities Construction and Management shall maintain a record
             83      of facilities constructed under the exemption provided in Subsection (3)(b).
             84          (ii) For facilities constructed under the exemption provided in Subsection (3)(b), a state
             85      agency, commission, department, or institution may not request:


             86          (A) increased state funds for operations and maintenance; or
             87          (B) state capital improvement funding.
             88          (d) Legislative approval is not required for:
             89          (i) the renovation, remodeling, or retrofitting of an existing facility with nonstate funds
             90      that has been approved by the State Building Board;
             91          (ii) a facility to be built with nonstate funds and owned by nonstate entities within
             92      research park areas at the University of Utah and Utah State University;
             93          (iii) a facility to be built at This is the Place State Park by This is the Place Foundation
             94      with funds of the foundation, including grant money from the state, or with donated services or
             95      materials;
             96          (iv) a capital project that:
             97          (A) is funded by:
             98          (I) the Uintah Basin Revitalization Fund; or
             99          (II) the Navajo Revitalization Fund; and
             100          (B) does not provide a new facility for a state agency or higher education institution; or
             101          (v) a capital project on school and institutional trust lands that is funded by the School
             102      and Institutional Trust Lands Administration from the Land Grant Management Fund and that
             103      does not fund construction of a new facility for a state agency or higher education institution.
             104          (e) (i) Legislative approval is not required for capital development projects to be built
             105      for the Department of Transportation:
             106          (A) as a result of an exchange of real property under Section 72-5-111 [.]; or
             107          (B) as a result of a sale or exchange of real property from a maintenance facility if the
             108      real property is exchanged for, or the proceeds from the sale of the real property are used for,
             109      another maintenance facility, including improvements for a maintenance facility and real
             110      property.
             111          (ii) When the Department of Transportation approves [those exchanges] a sale or
             112      exchange under Subsection (3)(e), it shall notify the president of the Senate, the speaker of the
             113      House, and the cochairs of the Capital Facilities and Administrative Services Subcommittee of


             114      the Legislature's Joint Appropriation Committee about any new facilities to be built or
             115      improved under this exemption.
             116          (4) (a) (i) The State Building Board, on behalf of all state agencies, commissions,
             117      departments, and institutions shall by January 15 of each year, submit a list of anticipated
             118      capital improvement requirements to the Legislature for review and approval.
             119          (ii) The list shall identify:
             120          (A) a single project that costs more than $1,000,000;
             121          (B) multiple projects within a single building or facility that collectively cost more than
             122      $1,000,000;
             123          (C) a single project that will be constructed over multiple years with a yearly cost of
             124      $1,000,000 or more and an aggregate cost of more than $2,500,000;
             125          (D) multiple projects within a single building or facility with a yearly cost of
             126      $1,000,000 or more and an aggregate cost of more than $2,500,000;
             127          (E) a single project previously reported to the Legislature as a capital improvement
             128      project under $1,000,000 that, because of an increase in costs or scope of work, will now cost
             129      more than $1,000,000; and
             130          (F) multiple projects within a single building or facility previously reported to the
             131      Legislature as a capital improvement project under $1,000,000 that, because of an increase in
             132      costs or scope of work, will now cost more than $1,000,000.
             133          (b) Unless otherwise directed by the Legislature, the State Building Board shall
             134      prioritize capital improvements from the list submitted to the Legislature up to the level of
             135      appropriation made by the Legislature.
             136          (c) In prioritizing capital improvements, the State Building Board shall consider the
             137      results of facility evaluations completed by an architect/engineer as stipulated by the building
             138      board's facilities maintenance standards.
             139          (d) The State Building Board may require an entity that benefits from a capital
             140      improvement project to repay the capital improvement funds from savings that result from the
             141      project.


             142          (e) The State Building Board may provide capital improvement funding to a single
             143      project, or to multiple projects within a single building or facility, even if the total cost of the
             144      project or multiple projects is $2,500,000 or more, if:
             145          (i) the capital improvement project or multiple projects require more than one year to
             146      complete; and
             147          (ii) the Legislature has affirmatively authorized the capital improvement project or
             148      multiple projects to be funded in phases.
             149          (5) The Legislature may authorize:
             150          (a) the total square feet to be occupied by each state agency; and
             151          (b) the total square feet and total cost of lease space for each agency.
             152          (6) (a) Except as provided in Subsection (6)(b) or (c), the Legislature may not fund the
             153      design or construction of any new capital development projects, except to complete the funding
             154      of projects for which partial funding has been previously provided, until the Legislature has
             155      appropriated 1.1% of the replacement cost of existing state facilities to capital improvements.
             156          (b) (i) As used in this Subsection (6)(b):
             157          (A) "Education Fund budget deficit" is as defined in Section 63J-1-312 ; and
             158          (B) "General Fund budget deficit" is as defined in Section 63J-1-312 .
             159          (ii) If the Legislature determines that an Education Fund budget deficit or a General
             160      Fund budget deficit exists, the Legislature may, in eliminating the deficit, reduce the amount
             161      appropriated to capital improvements to 0.9% of the replacement cost of state buildings.
             162          (c) The requirements under Subsections (6)(a) and (b) do not apply to the 2008-09,
             163      2009-10, 2010-11, and 2011-12 fiscal years.
             164          (7) (a) If, after approval of capital development and capital improvement priorities by
             165      the Legislature under this section, emergencies arise that create unforeseen critical capital
             166      improvement projects, the State Building Board may, notwithstanding the requirements of Title
             167      63J, Chapter 1, Budgetary Procedures Act, reallocate capital improvement funds to address
             168      those projects.
             169          (b) The State Building Board shall report any changes it makes in capital improvement


             170      allocations approved by the Legislature to:
             171          (i) the Office of Legislative Fiscal Analyst within 30 days of the reallocation; and
             172          (ii) the Legislature at its next annual general session.
             173          (8) (a) The State Building Board may adopt a rule allocating to institutions and
             174      agencies their proportionate share of capital improvement funding.
             175          (b) The State Building Board shall ensure that the rule:
             176          (i) reserves funds for the Division of Facilities Construction and Management for
             177      emergency projects; and
             178          (ii) allows the delegation of projects to some institutions and agencies with the
             179      requirement that a report of expenditures will be filed annually with the Division of Facilities
             180      Construction and Management and appropriate governing bodies.
             181          (9) It is the intent of the Legislature that in funding capital improvement requirements
             182      under this section the General Fund be considered as a funding source for at least half of those
             183      costs.
             184          Section 2. Section 72-5-111 is amended to read:
             185           72-5-111. Disposal of real property.
             186          (1) (a) If the department determines that any real property or interest in real property,
             187      acquired for a highway purpose, is no longer necessary for the purpose, the department may
             188      lease, sell, exchange, or otherwise dispose of the real property or interest in the real property.
             189          (b) (i) Real property may be sold at private or public sale.
             190          (ii) Except as provided in Subsection (1)(c) related to exchanges and Subsection (1)(d)
             191      related to the proceeds of any sale of real property from a maintenance facility, proceeds of any
             192      sale shall be deposited with the state treasurer and credited to the Transportation Fund.
             193          (c) If approved by the commission, real property or an interest in real property may be
             194      exchanged by the department for other real property or interest in real property, including
             195      improvements, for highway purposes.
             196          (d) Proceeds from the sale of real property or an interest in real property from a
             197      maintenance facility may be used by the department for the purchase or improvement of


             198      another maintenance facility, including real property.
             199          (2) (a) In the disposition of real property at any private sale, first consideration shall be
             200      given to the original grantor or the original grantor's heirs.
             201          (b) Notwithstanding the provisions of Section 78B-6-521 , if no portion of a parcel of
             202      real property acquired by the department is used for transportation purposes, then the original
             203      grantor or the grantor's heirs shall be given the opportunity to repurchase the parcel of real
             204      property at the department's original purchase price from the grantor.
             205          (c) In accordance with Section 72-5-404 , this Subsection (2) does not apply to property
             206      rights acquired in proposed transportation corridors using funds from the Transportation
             207      Corridor Preservation Revolving Loan Fund created in Section 72-2-117 .
             208          (3) (a) Any sale, exchange, or disposal of real property or interest in real property made
             209      by the department under this section, is exempt from the mineral reservation provisions of Title
             210      65A, Chapter 6, Mineral Leases.
             211          (b) Any deed made and delivered by the department under this section without specific
             212      reservations in the deed is a conveyance of all the state's right, title, and interest in the real
             213      property or interest in the real property.


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