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First Substitute S.B. 278

This document includes House Floor Amendments incorporated into the bill on Thu, Mar 14, 2013 at 4:12 PM by jeyring. -->

Senator Wayne A. Harper proposes the following substitute bill:


             1     
CAPITAL IMPROVEMENT AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Wayne A. Harper

             5     
House Sponsor: Gage Froerer

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions of Title 63A, Chapter 5, State Building Board - Division of
             10      Facilities Construction and Management.
             11      Highlighted Provisions:
             12          This bill:
             13          .    requires the State Building Board to include the cost of capital improvements for a
             14      new building or facility in the required five-year building plan;
             15          .    provides that the Legislature may not authorize construction of a new building or
             16      facility that will be paid for with nonstate funds until the Legislature appropriates
             17      ongoing funding for the cost of operations and maintenance and capital
             18      improvements;
             19          .    amends appropriations for capital improvements from 1.1% to 0.9% for the 2013-14
             20      fiscal year;
             21          .    provides that at least 80% of the funds appropriated for capital improvements shall
             22      be used for maintenance or repair of the existing building or facility;
             23          .    subject to sunset review, repeals certain provisions related to prioritization of capital
             24      improvements projects on July 1, 2014; and
             25          .    makes technical changes.



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             26
     Money Appropriated in this Bill:
             27          None
             28      Other Special Clauses:
             29          None
             30      Utah Code Sections Affected:
             31      AMENDS:
             32          63A-5-103, as last amended by Laws of Utah 2010, Chapter 338
             33          63A-5-104, as last amended by Laws of Utah 2012, Chapters 129, 242, and 393
             34          63I-1-263 (Effective 05/01/13), as last amended by Laws of Utah 2012, Chapters 126,
             35      206, 347, 369, and 395
             36     

             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 63A-5-103 is amended to read:
             39           63A-5-103. Board -- Powers.
             40          (1) The State Building Board shall:
             41          (a) in cooperation with state institutions, departments, commissions, and agencies,
             42      prepare a master plan of structures built or contemplated;
             43          (b) submit to the governor and the Legislature a comprehensive five-year building plan
             44      for the state containing the information required by Subsection (2);
             45          (c) amend and keep current the five-year building program for submission to the
             46      governor and subsequent legislatures;
             47          (d) as a part of the long-range plan, recommend to the governor and Legislature any
             48      changes in the law that are necessary to insure an effective, well-coordinated building program
             49      for all state institutions;
             50          (e) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             51      make rules:
             52          (i) that are necessary to discharge its duties and the duties of the Division of Facilities
             53      Construction and Management;
             54          (ii) to establish standards and requirements for life cycle cost-effectiveness of state
             55      facility projects; and
             56          (iii) to govern the disposition of real property by the division and establish factors,



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             57
     including appraised value and historical significance, in evaluating the disposition;
             58          (f) with support from the Division of Facilities Construction and Management,
             59      establish design criteria, standards, and procedures for planning, design, and construction of
             60      new state facilities and for improvements to existing state facilities, including life-cycle
             61      costing, cost-effectiveness studies, and other methods and procedures that address:
             62          (i) the need for the building or facility;
             63          (ii) the effectiveness of its design;
             64          (iii) the efficiency of energy use; and
             65          (iv) the usefulness of the building or facility over its lifetime;
             66          (g) prepare and submit a yearly request to the governor and the Legislature for a
             67      designated amount of square footage by type of space to be leased by the Division of Facilities
             68      Construction and Management in that fiscal year; and
             69          (h) assure the efficient use of all building space.
             70          (2) In order to provide adequate information upon which the State Building Board may
             71      make its recommendation under Subsection (1), any state agency requesting new full-time
             72      employees for the next fiscal year shall report those anticipated requests to the building board
             73      at least 90 days before the annual general session in which the request is made.
             74          (3) (a) The State Building Board shall ensure that the five-year building plan required
             75      by Subsection (1)(c) includes:
             76          (i) a list that prioritizes construction of new buildings for all structures built or
             77      contemplated based upon each agency's, department's, commission's, and institution's present
             78      and future needs;
             79          (ii) information, and space use data for all state-owned and leased facilities;
             80          (iii) substantiating data to support the adequacy of any projected plans;
             81          (iv) a summary of all statewide contingency reserve and project reserve balances as of
             82      the end of the most recent fiscal year;
             83          (v) a list of buildings that have completed a comprehensive facility evaluation by an
             84      architect/engineer or are scheduled to have an evaluation;
             85          (vi) for those buildings that have completed the evaluation, the estimated costs of
             86      needed improvements; and
             87          (vii) for projects recommended in the first two years of the five-year building plan:



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             88
         (A) detailed estimates of the cost of each project;
             89          (B) the estimated cost to operate and maintain the building or facility on an annual
             90      basis;
             91          (C) the cost of capital improvements to the building or facility, estimated at 1.1% of
             92      the replacement cost of the building or facility, on an annual basis;
             93          [(C)] (D) the estimated number of new agency full-time employees expected to be
             94      housed in the building or facility;
             95          [(D)] (E) the estimated cost of new or expanded programs and personnel expected to
             96      be housed in the building or facility;
             97          [(E)] (F) the estimated lifespan of the building with associated costs for major
             98      component replacement over the life of the building; and
             99          [(F)] (G) the estimated cost of any required support facilities.
             100          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             101      State Building Board may make rules prescribing the format for submitting the information
             102      required by this Subsection (3).
             103          (4) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             104      the State Building Board may make rules establishing circumstances under which bids may be
             105      modified when all bids for a construction project exceed available funds as certified by the
             106      director.
             107          (b) In making those rules, the State Building Board shall provide for the fair and
             108      equitable treatment of bidders.
             109          (5) (a) A person who violates a rule adopted by the board under Subsection (1)(e) is
             110      subject to a civil penalty not to exceed $2,500 for each violation plus the amount of any actual
             111      damages, expenses, and costs related to the violation of the rule that are incurred by the state.
             112          (b) The board may take any other action allowed by law.
             113          (c) If any violation of a rule adopted by the board is also an offense under Title 76,
             114      Utah Criminal Code, the violation is subject to the civil penalty, damages, expenses, and costs
             115      allowed under Subsection (1)(e) in addition to any criminal prosecution.
             116          Section 2. Section 63A-5-104 is amended to read:
             117           63A-5-104. Definitions -- Capital development and capital improvement process
             118      -- Approval requirements -- Limitations on new projects -- Emergencies.



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             119
         (1) As used in this section:
             120          (a) "Capital developments" means a:
             121          (i) remodeling, site, or utility project with a total cost of $2,500,000 or more;
             122          (ii) new facility with a construction cost of $500,000 or more; or
             123          (iii) purchase of real property where an appropriation is requested to fund the purchase.
             124          (b) "Capital improvements" means a:
             125          (i) remodeling, alteration, replacement, or repair project with a total cost of less than
             126      $2,500,000;
             127          (ii) site and utility improvement with a total cost of less than $2,500,000; or
             128          (iii) new facility with a total construction cost of less than $500,000.
             129          (c) (i) "New facility" means the construction of a new building on state property
             130      regardless of funding source.
             131          (ii) "New facility" includes:
             132          (A) an addition to an existing building; and
             133          (B) the enclosure of space that was not previously fully enclosed.
             134          (iii) "New facility" does not mean:
             135          (A) the replacement of state-owned space that is demolished or that is otherwise
             136      removed from state use, if the total construction cost of the replacement space is less than
             137      $2,500,000; or
             138          (B) the construction of facilities that do not fully enclose a space.
             139          (d) "Replacement cost of existing state facilities" means the replacement cost, as
             140      determined by the Division of Risk Management, of state facilities, excluding auxiliary
             141      facilities as defined by the State Building Board.
             142          (e) "State funds" means public money appropriated by the Legislature.
             143          (2) The State Building Board, on behalf of all state agencies, commissions,
             144      departments, and institutions shall submit its capital development recommendations and
             145      priorities to the Legislature for approval and prioritization.
             146          (3) (a) Except as provided in Subsections (3)(b), (d), and (e), a capital development
             147      project may not be constructed on state property without legislative approval.
             148          (b) Legislative approval is not required for a capital development project that consists
             149      of the design or construction of a new facility if the State Building Board determines that:



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         (i) the requesting state agency, commission, department, or institution has provided
             151      adequate assurance that:
             152          (A) state funds will not be used for the design or construction of the facility; and
             153          (B) the state agency, commission, department, or institution has a plan for funding in
             154      place that will not require increased state funding to cover the cost of operations and
             155      maintenance to, or state funding for, immediate or future capital improvements to the resulting
             156      facility; and
             157          (ii) the use of the state property is:
             158          (A) appropriate and consistent with the master plan for the property; and
             159          (B) will not create an adverse impact on the state.
             160          (c) (i) The Division of Facilities Construction and Management shall maintain a record
             161      of facilities constructed under the exemption provided in Subsection (3)(b).
             162          (ii) For facilities constructed under the exemption provided in Subsection (3)(b), a state
             163      agency, commission, department, or institution may not request:
             164          (A) increased state funds for operations and maintenance; or
             165          (B) state capital improvement funding.
             166          (d) Legislative approval is not required for:
             167          (i) the renovation, remodeling, or retrofitting of an existing facility with nonstate funds
             168      that has been approved by the State Building Board;
             169          (ii) a facility to be built with nonstate funds and owned by nonstate entities within
             170      research park areas at the University of Utah and Utah State University;
             171          (iii) a facility to be built at This is the Place State Park by This is the Place Foundation
             172      with funds of the foundation, including grant money from the state, or with donated services or
             173      materials;
             174          (iv) a capital project that:
             175          (A) is funded by:
             176          (I) the Uintah Basin Revitalization Fund; or
             177          (II) the Navajo Revitalization Fund; and
             178          (B) does not provide a new facility for a state agency or higher education institution; or
             179          (v) a capital project on school and institutional trust lands that is funded by the School
             180      and Institutional Trust Lands Administration from the Land Grant Management Fund and that



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     does not fund construction of a new facility for a state agency or higher education institution.
             182          (e) (i) Legislative approval is not required for capital development projects to be built
             183      for the Department of Transportation:
             184          (A) as a result of an exchange of real property under Section 72-5-111 ; or
             185          (B) as a result of a sale or exchange of real property from a maintenance facility if the
             186      real property is exchanged for, or the proceeds from the sale of the real property are used for,
             187      another maintenance facility, including improvements for a maintenance facility and real
             188      property.
             189          (ii) When the Department of Transportation approves a sale or exchange under
             190      Subsection (3)(e), it shall notify the president of the Senate, the speaker of the House, and the
             191      cochairs of the Infrastructure and General Government Appropriations Subcommittee of the
             192      Legislature's Joint Appropriation Committee about any new facilities to be built or improved
             193      under this exemption.
             194          (4) (a) (i) The State Building Board, on behalf of all state agencies, commissions,
             195      departments, and institutions shall by January 15 of each year, submit a list of anticipated
             196      capital improvement requirements to the Legislature for review and approval.
             197          (ii) The list shall identify:
             198          (A) a single project that costs more than $1,000,000;
             199          (B) multiple projects within a single building or facility that collectively cost more than
             200      $1,000,000;
             201          (C) a single project that will be constructed over multiple years with a yearly cost of
             202      $1,000,000 or more and an aggregate cost of more than $2,500,000;
             203          (D) multiple projects within a single building or facility with a yearly cost of
             204      $1,000,000 or more and an aggregate cost of more than $2,500,000;
             205          (E) a single project previously reported to the Legislature as a capital improvement
             206      project under $1,000,000 that, because of an increase in costs or scope of work, will now cost
             207      more than $1,000,000; and
             208          (F) multiple projects within a single building or facility previously reported to the
             209      Legislature as a capital improvement project under $1,000,000 that, because of an increase in
             210      costs or scope of work, will now cost more than $1,000,000.
             211          (b) Unless otherwise directed by the Legislature, the State Building Board shall



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House Floor Amendments 3-14-2013 je/crg
             212      prioritize capital improvements from the list submitted to the Legislature up to the level of
             213      appropriation made by the Legislature.
             214          (c) In prioritizing capital improvements, the State Building Board shall consider the
             215      results of facility evaluations completed by an architect/engineer as stipulated by the building
             216      board's facilities maintenance standards.
             217          (d) Beginning on July 1, H. [ 3013 ] 2013 .H , in prioritizing capital improvements, the
             217a      State Building
             218      Board shall allocate at least 80% of the funds that the Legislature appropriates for capital
             219      improvements to:
             220          (i) projects that address:
             221          (A) a structural issue;
             222          (B) fire safety;
             223          (C) a code violation; or
             224          (D) any issue that impacts health and safety;
             225          (ii) projects that upgrade:
             226          (A) an HVAC system;
             227          (B) an electrical system;
             228          (C) essential equipment;
             229          (D) an essential building component; or
             230          (E) infrastructure, including a utility tunnel, water line, gas line, sewer line, roof,
             231      parking lot, or road; or
             232          (iii) projects that demolish and replace an existing building that is in extensive
             233      disrepair and cannot be fixed by repair or maintenance.
             234          (e) Beginning on July 1, 2013, in prioritizing capital improvements, the State Building
             235      Board shall allocate no more than 20% of the funds that the Legislature appropriates for capital
             236      improvements to:
             237          (i) remodeling and aesthetic upgrades to meet state programmatic needs; or
             238          (ii) construct an addition to an existing building or facility.
             239          [(d)] (f) The State Building Board may require an entity that benefits from a capital
             240      improvement project to repay the capital improvement funds from savings that result from the
             241      project.
             242          [(e)] (g) The State Building Board may provide capital improvement funding to a



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     single project, or to multiple projects within a single building or facility, even if the total cost
             244      of the project or multiple projects is $2,500,000 or more, if:
             245          (i) the capital improvement project or multiple projects require more than one year to
             246      complete; and
             247          (ii) the Legislature has affirmatively authorized the capital improvement project or
             248      multiple projects to be funded in phases.
             249          (5) The Legislature may authorize:
             250          (a) the total square feet to be occupied by each state agency; and
             251          (b) the total square feet and total cost of lease space for each agency.
             252          (6) If construction of a new building or facility will be paid for by nonstate funds, but
             253      will require an immediate or future increase in state funding for operations and maintenance or
             254      for capital improvements, the Legislature may not authorize the new building or facility until
             255      the Legislature appropriates funds for:
             256          (a) the portion of operations and maintenance, if any, that will require an immediate or
             257      future increase in state funding; and
             258          (b) the portion of capital improvements, if any, that will require an immediate or future
             259      increase in state funding.
             260          [(6)] (7) (a) Except as provided in Subsection [(6)] (7)(b) or (c), the Legislature may
             261      not fund the design or construction of any new capital development projects, except to
             262      complete the funding of projects for which partial funding has been previously provided, until
             263      the Legislature has appropriated 1.1% of the replacement cost of existing state facilities to
             264      capital improvements.
             265          (b) (i) As used in this Subsection [(6)] (7)(b):
             266          (A) "Education Fund budget deficit" is as defined in Section 63J-1-312 ; and
             267          (B) "General Fund budget deficit" is as defined in Section 63J-1-312 .
             268          (ii) If the Legislature determines that an Education Fund budget deficit or a General
             269      Fund budget deficit exists, the Legislature may, in eliminating the deficit, reduce the amount
             270      appropriated to capital improvements to 0.9% of the replacement cost of state buildings.
             271          (c) (i) The requirements under Subsections (6)(a) and (b) do not apply to the 2008-09,
             272      2009-10, 2010-11, 2011-12, and 2012-13 fiscal years.
             273          (ii) For the 2013-14 fiscal year, the amount appropriated to capital improvements shall



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     be reduced to 0.9% of the replacement cost of state facilities.
             275          [(7)] (8) (a) If, after approval of capital development and capital improvement
             276      priorities by the Legislature under this section, emergencies arise that create unforeseen critical
             277      capital improvement projects, the State Building Board may, notwithstanding the requirements
             278      of Title 63J, Chapter 1, Budgetary Procedures Act, reallocate capital improvement funds to
             279      address those projects.
             280          (b) The State Building Board shall report any changes it makes in capital improvement
             281      allocations approved by the Legislature to:
             282          (i) the Office of Legislative Fiscal Analyst within 30 days of the reallocation; and
             283          (ii) the Legislature at its next annual general session.
             284          [(8)] (9) (a) The State Building Board may adopt a rule allocating to institutions and
             285      agencies their proportionate share of capital improvement funding.
             286          (b) The State Building Board shall ensure that the rule:
             287          (i) reserves funds for the Division of Facilities Construction and Management for
             288      emergency projects; and
             289          (ii) allows the delegation of projects to some institutions and agencies with the
             290      requirement that a report of expenditures will be filed annually with the Division of Facilities
             291      Construction and Management and appropriate governing bodies.
             292          [(9)] (10) It is the intent of the Legislature that in funding capital improvement
             293      requirements under this section the General Fund be considered as a funding source for at least
             294      half of those costs.
             295          (11) (a) Subject to Subsection (11)(b), at least 80% of the state funds appropriated for
             296      capital improvements shall be used for maintenance or repair of the existing building or
             297      facility.
             298          (b) The State Building Board may modify the requirement described in Subsection
             299      (11)(a) if the State Building Board determines that a different allocation of capital
             300      improvements funds is in the best interest of the state.
             301          Section 3. Section 63I-1-263 (Effective 05/01/13) is amended to read:
             302           63I-1-263 (Effective 05/01/13). Repeal dates, Titles 63A to 63M.
             303          (1) Section 63A-4-204 , authorizing the Risk Management Fund to provide coverage to
             304      any public school district which chooses to participate, is repealed July 1, 2016.



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         (2) Subsections 63A-5-104 (d) and (e) are repealed on July 1, 2014.
             306          [(2)] (3) Section 63A-5-603 , State Facility Energy Efficiency Fund, is repealed July 1,
             307      2016.
             308          [(3)] (4) Section 63C-8-106 , rural residency training program, is repealed July 1, 2015.
             309          [(4)] (5) Title 63C, Chapter 13, Prison Relocation and Development Authority Act, is
             310      repealed July 1, 2014.
             311          [(5)] (6) Subsection 63G-6a-1402 (7) authorizing certain transportation agencies to
             312      award a contract for a design-build transportation project in certain circumstances, is repealed
             313      July 1, 2015.
             314          [(6)] (7) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed
             315      July 1, 2020.
             316          [(7)] (8) The Resource Development Coordinating Committee, created in Section
             317      63J-4-501 , is repealed July 1, 2015.
             318          [(8)] (9) Title 63M, Chapter 1, Part 4, Enterprise Zone Act, is repealed July 1, 2018.
             319          [(9)] (10) (a) Title 63M, Chapter 1, Part 11, Recycling Market Development Zone Act,
             320      is repealed January 1, 2021.
             321          (b) Subject to Subsection (9)(c), Sections 59-7-610 and 59-10-1007 regarding tax
             322      credits for certain persons in recycling market development zones, are repealed for taxable
             323      years beginning on or after January 1, 2021.
             324          (c) A person may not claim a tax credit under Section 59-7-610 or 59-10-1007 :
             325          (i) for the purchase price of machinery or equipment described in Section 59-7-610 or
             326      59-10-1007 , if the machinery or equipment is purchased on or after January 1, 2021; or
             327          (ii) for an expenditure described in Subsection 59-7-610 (1)(b) or 59-10-1007 (1)(b), if
             328      the expenditure is made on or after January 1, 2021.
             329          (d) Notwithstanding Subsections (9)(b) and (c), a person may carry forward a tax credit
             330      in accordance with Section 59-7-610 or 59-10-1007 if:
             331          (i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007 ; and
             332          (ii) (A) for the purchase price of machinery or equipment described in Section
             333      59-7-610 or 59-10-1007 , the machinery or equipment is purchased on or before December 31,
             334      2020; or
             335          (B) for an expenditure described in Subsection 59-7-610 (1)(b) or 59-10-1007 (1)(b), the



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     expenditure is made on or before December 31, 2020.
             337          [(10)] (11) (a) Section 63M-1-2507 , Health Care Compact is repealed on July 1, 2014.
             338          (b) (i) The Legislature shall, before reauthorizing the Health Care Compact:
             339          (A) direct the Health System Reform Task Force to evaluate the issues listed in
             340      Subsection (10)(b)(ii), and by January 1, 2013 develop and recommend criteria for the
             341      Legislature to use to negotiate the terms of the Health Care Compact; and
             342          (B) prior to July 1, 2014, seek amendments to the Health Care Compact among the
             343      member states that the Legislature determines are appropriate after considering the
             344      recommendations of the Health System Reform Task Force.
             345          (ii) The Health System Reform Task Force shall evaluate and develop criteria for the
             346      Legislature regarding:
             347          (A) the impact of the Supreme Court ruling on the Affordable Care Act;
             348          (B) whether Utah is likely to be required to implement any part of the Affordable Care
             349      Act prior to negotiating the compact with the federal government, such as Medicaid expansion
             350      in 2014;
             351          (C) whether the compact's current funding formula, based on adjusted 2010 state
             352      expenditures, is the best formula for Utah and other state compact members to use for
             353      establishing the block grants from the federal government;
             354          (D) whether the compact's calculation of current year inflation adjustment factor,
             355      without consideration of the regional medical inflation rate in the current year, is adequate to
             356      protect the state from increased costs associated with administering a state based Medicaid and
             357      a state based Medicare program;
             358          (E) whether the state has the flexibility it needs under the compact to implement and
             359      fund state based initiatives, or whether the compact requires uniformity across member states
             360      that does not benefit Utah;
             361          (F) whether the state has the option under the compact to refuse to take over the federal
             362      Medicare program;
             363          (G) whether a state based Medicare program would provide better benefits to the
             364      elderly and disabled citizens of the state than a federally run Medicare program;
             365          (H) whether the state has the infrastructure necessary to implement and administer a
             366      better state based Medicare program;



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             367
         (I) whether the compact appropriately delegates policy decisions between the
             368      legislative and executive branches of government regarding the development and
             369      implementation of the compact with other states and the federal government; and
             370          (J) the impact on public health activities, including communicable disease surveillance
             371      and epidemiology.
             372          [(11)] (12) The Crime Victim Reparations and Assistance Board, created in Section
             373      63M-7-504 , is repealed July 1, 2017.
             374          [(12)] (13) Title 63M, Chapter 9, Families, Agencies, and Communities Together for
             375      Children and Youth At Risk Act, is repealed July 1, 2016.
             376          [(13)] (14) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1,
             377      2017.


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