H.B. 9 Enrolled

             1     

REVENUE BOND AND CAPITAL FACILITIES

             2     
AMENDMENTS

             3     
2014 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Gage Froerer

             6     
Senate Sponsor: Wayne A. Harper

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill repeals an existing revenue bond authorization, authorizes certain state
             11      agencies and institutions to issue revenue bonds, and authorizes or amends the
             12      authorization for the lease-purchase, construction, or renovation of capital facilities
             13      using agency, institutional, or donated funds.
             14      Highlighted Provisions:
             15          This bill:
             16          .    repeals a revenue bond authorization for the State Building Ownership Authority to
             17      issue or execute obligations or enter into or arrange for a lease-purchase agreement
             18      to provide up to $10,500,000 for the construction of a multipurpose building for the
             19      state fair park that has not been issued;
             20          .    increases the planning, design, and construction or renovation authorizations and
             21      maximum square footage of the following, provided that only agency, institutional,
             22      or donated funds are used:
             23              .    for a Center for the Arts at Southern Utah University, increases the authorization
             24      by $5,000,000;
             25              .    for a Science and Technology Building at Utah State University Tooele,
             26      increases the authorization by $1,800,000; and
             27              .    for a Drivers License Building in Price, increases the authorization by $228,000;
             28          .    authorizes the State Board of Regents to issue revenue bonds for the following:
             29              .    $45,238,000 for constructing the Lassonde Living Center at the University of


             30      Utah; and
             31              .    $32,000,000 for the replacement of utility distribution infrastructure at the
             32      University of Utah;
             33          .    provides a prohibition on using state funding for operations and maintenance and
             34      capital improvement costs for the Lassonde Living Center at the University of Utah;
             35          .    provides that until July 1, 2024, the Utah State Building Board shall annually
             36      allocate up to $1,500,000 of the capital improvement funding allocation given to the
             37      University of Utah to be used to pay the debt service on the bond authorized for the
             38      replacement of utility distribution infrastructure at the University of Utah;
             39          .    authorizes the planning, design, and construction or renovation of the following,
             40      provided that only agency, institutional, or donated funds are used:
             41              .    for an expansion and renovation of the Alumni House at the University of Utah
             42      at a cost of $10,000,000, and prohibits the use of state funds for operation and
             43      maintenance and capital improvement costs of the building; and
             44              .    for a Communications and Driver License Building at the Department of Public
             45      Safety in Vernal at a cost of up to $875,000, and authorizes the use of state
             46      funds for operation and maintenance and capital improvement costs of the
             47      building; and
             48          .    authorizes the Mountainland Applied Technology Campus of the Utah College of
             49      Applied Technology to use up to $10,683,000 of existing and institutional funds to
             50      enter into a lease-purchase agreement for a Technology Trades Building for the
             51      Mountainland Applied Technology College at the Lehi Campus and prohibits the
             52      college from requesting state funds for operation and maintenance costs or capital
             53      improvements during the term of the lease-purchase agreement.
             54      Money Appropriated in this Bill:
             55          None
             56      Other Special Clauses:
             57          None


             58      Utah Code Sections Affected:
             59      AMENDS:
             60           63A-5-104 , as last amended by Laws of Utah 2013, Chapters 250 and 409
             61           63B-22-201 , as enacted by Laws of Utah 2013, Chapter 409
             62           63I-1-263 , as last amended by Laws of Utah 2013, Chapters 28, 62, 101, 167, 250, and
             63      413
             64      ENACTS:
             65           63B-23-101 , Utah Code Annotated 1953
             66           63B-23-201 , Utah Code Annotated 1953
             67           63B-23-301 , Utah Code Annotated 1953
             68      REPEALS:
             69           63B-9-102 , as last amended by Laws of Utah 2008, Chapter 382
             70     
             71      Be it enacted by the Legislature of the state of Utah:
             72          Section 1. Section 63A-5-104 is amended to read:
             73           63A-5-104. Definitions -- Capital development and capital improvement process
             74      -- Approval requirements -- Limitations on new projects -- Emergencies.
             75          (1) As used in this section:
             76          (a) "Capital developments" means a:
             77          (i) remodeling, site, or utility project with a total cost of $2,500,000 or more;
             78          (ii) new facility with a construction cost of $500,000 or more; or
             79          (iii) purchase of real property where an appropriation is requested to fund the purchase.
             80          (b) "Capital improvements" means a:
             81          (i) remodeling, alteration, replacement, or repair project with a total cost of less than
             82      $2,500,000;
             83          (ii) site and utility improvement with a total cost of less than $2,500,000; or
             84          (iii) new facility with a total construction cost of less than $500,000.
             85          (c) (i) "New facility" means the construction of a new building on state property


             86      regardless of funding source.
             87          (ii) "New facility" includes:
             88          (A) an addition to an existing building; and
             89          (B) the enclosure of space that was not previously fully enclosed.
             90          (iii) "New facility" does not mean:
             91          (A) the replacement of state-owned space that is demolished or that is otherwise
             92      removed from state use, if the total construction cost of the replacement space is less than
             93      $2,500,000; or
             94          (B) the construction of facilities that do not fully enclose a space.
             95          (d) "Replacement cost of existing state facilities" means the replacement cost, as
             96      determined by the Division of Risk Management, of state facilities, excluding auxiliary
             97      facilities as defined by the State Building Board.
             98          (e) "State funds" means public money appropriated by the Legislature.
             99          (2) The State Building Board, on behalf of all state agencies, commissions,
             100      departments, and institutions shall submit its capital development recommendations and
             101      priorities to the Legislature for approval and prioritization.
             102          (3) (a) Except as provided in Subsections (3)(b), (d), and (e), a capital development
             103      project may not be constructed on state property without legislative approval.
             104          (b) Legislative approval is not required for a capital development project that consists
             105      of the design or construction of a new facility if the State Building Board determines that:
             106          (i) the requesting state agency, commission, department, or institution has provided
             107      adequate assurance that:
             108          (A) state funds will not be used for the design or construction of the facility; and
             109          (B) the state agency, commission, department, or institution has a plan for funding in
             110      place that will not require increased state funding to cover the cost of operations and
             111      maintenance to, or state funding for, immediate or future capital improvements to the resulting
             112      facility; and
             113          (ii) the use of the state property is:


             114          (A) appropriate and consistent with the master plan for the property; and
             115          (B) will not create an adverse impact on the state.
             116          (c) (i) The Division of Facilities Construction and Management shall maintain a record
             117      of facilities constructed under the exemption provided in Subsection (3)(b).
             118          (ii) For facilities constructed under the exemption provided in Subsection (3)(b), a state
             119      agency, commission, department, or institution may not request:
             120          (A) increased state funds for operations and maintenance; or
             121          (B) state capital improvement funding.
             122          (d) Legislative approval is not required for:
             123          (i) the renovation, remodeling, or retrofitting of an existing facility with nonstate funds
             124      that has been approved by the State Building Board;
             125          (ii) a facility to be built with nonstate funds and owned by nonstate entities within
             126      research park areas at the University of Utah and Utah State University;
             127          (iii) a facility to be built at This is the Place State Park by This is the Place Foundation
             128      with funds of the foundation, including grant money from the state, or with donated services or
             129      materials;
             130          (iv) a capital project that:
             131          (A) is funded by:
             132          (I) the Uintah Basin Revitalization Fund; or
             133          (II) the Navajo Revitalization Fund; and
             134          (B) does not provide a new facility for a state agency or higher education institution; or
             135          (v) a capital project on school and institutional trust lands that is funded by the School
             136      and Institutional Trust Lands Administration from the Land Grant Management Fund and that
             137      does not fund construction of a new facility for a state agency or higher education institution.
             138          (e) (i) Legislative approval is not required for capital development projects to be built
             139      for the Department of Transportation:
             140          (A) as a result of an exchange of real property under Section 72-5-111 ; or
             141          (B) as a result of a sale or exchange of real property from a maintenance facility if the


             142      real property is exchanged for, or the proceeds from the sale of the real property are used for,
             143      another maintenance facility, including improvements for a maintenance facility and real
             144      property.
             145          (ii) When the Department of Transportation approves a sale or exchange under
             146      Subsection (3)(e), it shall notify the president of the Senate, the speaker of the House, and the
             147      cochairs of the Infrastructure and General Government Appropriations Subcommittee of the
             148      Legislature's Joint Appropriation Committee about any new facilities to be built or improved
             149      under this exemption.
             150          (4) (a) (i) The State Building Board, on behalf of all state agencies, commissions,
             151      departments, and institutions shall by January 15 of each year, submit a list of anticipated
             152      capital improvement requirements to the Legislature for review and approval.
             153          (ii) The list shall identify:
             154          (A) a single project that costs more than $1,000,000;
             155          (B) multiple projects within a single building or facility that collectively cost more than
             156      $1,000,000;
             157          (C) a single project that will be constructed over multiple years with a yearly cost of
             158      $1,000,000 or more and an aggregate cost of more than $2,500,000;
             159          (D) multiple projects within a single building or facility with a yearly cost of
             160      $1,000,000 or more and an aggregate cost of more than $2,500,000;
             161          (E) a single project previously reported to the Legislature as a capital improvement
             162      project under $1,000,000 that, because of an increase in costs or scope of work, will now cost
             163      more than $1,000,000; and
             164          (F) multiple projects within a single building or facility previously reported to the
             165      Legislature as a capital improvement project under $1,000,000 that, because of an increase in
             166      costs or scope of work, will now cost more than $1,000,000.
             167          (b) Unless otherwise directed by the Legislature, the State Building Board shall
             168      prioritize capital improvements from the list submitted to the Legislature up to the level of
             169      appropriation made by the Legislature.


             170          (c) In prioritizing capital improvements, the State Building Board shall consider the
             171      results of facility evaluations completed by an architect/engineer as stipulated by the building
             172      board's facilities maintenance standards.
             173          (d) Beginning on July 1, 2013, in prioritizing capital improvements, the State Building
             174      Board shall allocate at least 80% of the funds that the Legislature appropriates for capital
             175      improvements to:
             176          (i) projects that address:
             177          (A) a structural issue;
             178          (B) fire safety;
             179          (C) a code violation; or
             180          (D) any issue that impacts health and safety;
             181          (ii) projects that upgrade:
             182          (A) an HVAC system;
             183          (B) an electrical system;
             184          (C) essential equipment;
             185          (D) an essential building component; or
             186          (E) infrastructure, including a utility tunnel, water line, gas line, sewer line, roof,
             187      parking lot, or road; or
             188          (iii) projects that demolish and replace an existing building that is in extensive
             189      disrepair and cannot be fixed by repair or maintenance.
             190          (e) Beginning on July 1, 2013, in prioritizing capital improvements, the State Building
             191      Board shall allocate no more than 20% of the funds that the Legislature appropriates for capital
             192      improvements to:
             193          (i) remodeling and aesthetic upgrades to meet state programmatic needs; or
             194          (ii) construct an addition to an existing building or facility.
             195          (f) The State Building Board may require an entity that benefits from a capital
             196      improvement project to repay the capital improvement funds from savings that result from the
             197      project.


             198          (g) The State Building Board may provide capital improvement funding to a single
             199      project, or to multiple projects within a single building or facility, even if the total cost of the
             200      project or multiple projects is $2,500,000 or more, if:
             201          (i) the capital improvement project or multiple projects require more than one year to
             202      complete; and
             203          (ii) the Legislature has affirmatively authorized the capital improvement project or
             204      multiple projects to be funded in phases.
             205          (h) In prioritizing and allocating capital improvement funding, the State Building
             206      Board shall comply with the requirement in Subsection 63B-23-101 (2)(f).
             207          (5) The Legislature may authorize:
             208          (a) the total square feet to be occupied by each state agency; and
             209          (b) the total square feet and total cost of lease space for each agency.
             210          (6) If construction of a new building or facility will be paid for by nonstate funds, but
             211      will require an immediate or future increase in state funding for operations and maintenance or
             212      for capital improvements, the Legislature may not authorize the new building or facility until
             213      the Legislature appropriates funds for:
             214          (a) the portion of operations and maintenance, if any, that will require an immediate or
             215      future increase in state funding; and
             216          (b) the portion of capital improvements, if any, that will require an immediate or future
             217      increase in state funding.
             218          (7) (a) Except as provided in Subsection (7)(b) or (c), the Legislature may not fund the
             219      design or construction of any new capital development projects, except to complete the funding
             220      of projects for which partial funding has been previously provided, until the Legislature has
             221      appropriated 1.1% of the replacement cost of existing state facilities to capital improvements.
             222          (b) (i) As used in this Subsection (7)(b):
             223          (A) "Education Fund budget deficit" is as defined in Section 63J-1-312 ; and
             224          (B) "General Fund budget deficit" is as defined in Section 63J-1-312 .
             225          (ii) If the Legislature determines that an Education Fund budget deficit or a General


             226      Fund budget deficit exists, the Legislature may, in eliminating the deficit, reduce the amount
             227      appropriated to capital improvements to 0.9% of the replacement cost of state buildings.
             228          (c) (i) The requirements under Subsections (6)(a) and (b) do not apply to the 2008-09,
             229      2009-10, 2010-11, 2011-12, and 2012-13 fiscal years.
             230          (ii) For the 2013-14 fiscal year, the amount appropriated to capital improvements shall
             231      be reduced to 0.9% of the replacement cost of state facilities.
             232          (8) (a) If, after approval of capital development and capital improvement priorities by
             233      the Legislature under this section, emergencies arise that create unforeseen critical capital
             234      improvement projects, the State Building Board may, notwithstanding the requirements of Title
             235      63J, Chapter 1, Budgetary Procedures Act, reallocate capital improvement funds to address
             236      those projects.
             237          (b) The State Building Board shall report any changes it makes in capital improvement
             238      allocations approved by the Legislature to:
             239          (i) the Office of Legislative Fiscal Analyst within 30 days of the reallocation; and
             240          (ii) the Legislature at its next annual general session.
             241          (9) (a) The State Building Board may adopt a rule allocating to institutions and
             242      agencies their proportionate share of capital improvement funding.
             243          (b) The State Building Board shall ensure that the rule:
             244          (i) reserves funds for the Division of Facilities Construction and Management for
             245      emergency projects; and
             246          (ii) allows the delegation of projects to some institutions and agencies with the
             247      requirement that a report of expenditures will be filed annually with the Division of Facilities
             248      Construction and Management and appropriate governing bodies.
             249          (10) It is the intent of the Legislature that in funding capital improvement requirements
             250      under this section the General Fund be considered as a funding source for at least half of those
             251      costs.
             252          (11) (a) Subject to Subsection (11)(b), at least 80% of the state funds appropriated for
             253      capital improvements shall be used for maintenance or repair of the existing building or


             254      facility.
             255          (b) The State Building Board may modify the requirement described in Subsection
             256      (11)(a) if the State Building Board determines that a different allocation of capital
             257      improvements funds is in the best interest of the state.
             258          Section 2. Section 63B-22-201 is amended to read:
             259           63B-22-201. Authorizations to design and construct capital facilities using
             260      institutional or agency funds.
             261          (1) The Legislature intends that:
             262          (a) Southern Utah University may, subject to requirements in Title 63A, Chapter 5,
             263      State Building Board - Division of Facilities Construction and Management, use up to
             264      [$30,000,000] $35,000,000 in donations and institutional funds to plan, design, and construct a
             265      Center for the Arts with up to [80,490] 110,000 square feet;
             266          (b) no state funds be used for any portion of this project; and
             267          (c) the university may not request state funds for operation and maintenance costs or
             268      capital improvements.
             269          (2) The Legislature intends that:
             270          (a) the University of Utah may, subject to requirements in Title 63A, Chapter 5, State
             271      Building Board - Division of Facilities Construction and Management, use up to $11,040,000
             272      in donations and institutional funds to plan, design, and construct a Renovation and Addition of
             273      Phase II of the Kennecott Building with up to 40,700 new square feet;
             274          (b) no state funds be used for any portion of this project; and
             275          (c) the university may use state funds for operation and maintenance costs or capital
             276      improvements.
             277          (3) The Legislature intends that:
             278          (a) Utah State University may, subject to requirements in Title 63A, Chapter 5, State
             279      Building Board - Division of Facilities Construction and Management, use up to [$8,000,000]
             280      $9,800,000 in donations and institutional funds to plan, design, and construct a Science and
             281      Technology Building at Utah State University Tooele with up to [26,000] 33,000 square feet;


             282          (b) no state funds be used for any portion of this project; and
             283          (c) the university may use state funds for operation and maintenance costs or capital
             284      improvements.
             285          (4) The Legislature intends that:
             286          (a) the Department of Public Safety may, subject to requirements in Title 63A, Chapter
             287      5, State Building Board - Division of Facilities Construction and Management, use up to
             288      [$1,277,000] $1,505,000 in nonlapsing balances to plan, design, and construct a Drivers
             289      License Building in Price with up to [7,000] 7,500 square feet;
             290          (b) no state funds be used for any portion of this project; and
             291          (c) the department may use state funds for operation and maintenance costs or capital
             292      improvements.
             293          Section 3. Section 63B-23-101 is enacted to read:
             294     
CHAPTER 23. 2014 BONDING AND FINANCING AUTHORIZATIONS

             295     
Part 1. 2014 Revenue Bond Authorizations

             296          63B-23-101. Revenue bond authorizations -- Board of Regents.
             297          (1) The Legislature intends that:
             298          (a) the Board of Regents, on behalf of the University of Utah, may issue, sell, and
             299      deliver revenue bonds or other evidences of indebtedness of the University of Utah to borrow
             300      money on the credit, revenues, and reserves of the university, other than appropriations of the
             301      Legislature, to finance the cost of constructing the Lassonde Living Center;
             302          (b) the University of Utah use student fees and rents as the primary revenue sources for
             303      repayment of any obligation created under authority of this Subsection (1);
             304          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
             305      this Subsection (1) is $45,238,000, together with other amounts necessary to pay costs of
             306      issuance, pay capitalized interest, and fund any debt service reserve requirements;
             307          (d) the university shall plan, design, and construct the Lassonde Living Center subject
             308      to the requirements of Title 63A, Chapter 5, State Building Board - Division of Facilities
             309      Construction and Management; and


             310          (e) the university may not request state funds for operation and maintenance costs or
             311      capital improvements.
             312          (2) The Legislature intends that:
             313          (a) the Board of Regents, on behalf of the University of Utah, may issue, sell, and
             314      deliver revenue bonds or other evidences of indebtedness of the University of Utah to borrow
             315      money on the credit, revenues, and reserves of the university, except as provided in Subsection
             316      (2)(f), other than appropriations of the Legislature, to finance the cost of replacing the
             317      University of Utah's utility distribution infrastructure;
             318          (b) the University of Utah impose a power bill surcharge as the primary revenue source
             319      for the repayment of any obligation created under authority of this Subsection (2);
             320          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
             321      this Subsection (2) is $32,000,000 together with other amounts necessary to pay costs of
             322      issuance, pay capitalized interest, and fund any debt service reserve requirements;
             323          (d) the revenue bonds or evidences of indebtedness authorized by this Subsection (2)
             324      may not mature later than 10 years after the date of issuance;
             325          (e) the university shall plan, design, and construct the University of Utah's replacement
             326      utility distribution infrastructure subject to the requirements of Title 63A, Chapter 5, State
             327      Building Board - Division of Facilities Construction and Management; and
             328          (f) until July 1, 2024, the Utah State Building Board annually allocate up to $1,500,000
             329      of the capital improvement funding allocation given to the University of Utah under Section
             330      63A-5-104 to be used to pay the debt service on the bonds authorized under this Subsection
             331      (2).
             332          Section 4. Section 63B-23-201 is enacted to read:
             333     
Part 2. 2014 Capital Facility Design and Construction Authorizations

             334          63B-23-201. Authorizations to design and construct capital facilities using
             335      institutional or agency funds.
             336          (1) The Legislature intends that:
             337          (a) the University of Utah may, subject to requirements in Title 63A, Chapter 5, State


             338      Building Board - Division of Facilities Construction and Management, use up to $10,000,000
             339      in donations and institutional funds to plan, design, and construct an expansion and renovation
             340      of the Alumni House at the University of Utah with up to an additional 17,000 new square feet;
             341          (b) the university may not use state funds for any portion of this project; and
             342          (c) the university may not use state funds for operation and maintenance costs or
             343      capital improvements.
             344          (2) The Legislature intends that:
             345          (a) the Department of Public Safety may, subject to requirements in Title 63A, Chapter
             346      5, State Building Board - Division of Facilities Construction and Management, use up to
             347      $875,000 in nonlapsing balances to plan, design, and construct a Communications and Drivers
             348      License Building in Vernal with up to 3,500 square feet;
             349          (b) the department may not use state funds for any portion of this project; and
             350          (c) the department may use state funds for operation and maintenance costs or capital
             351      improvements.
             352          Section 5. Section 63B-23-301 is enacted to read:
             353     
Part 3. 2014 Lease-Purchase Authorizations

             354          63B-23-301. Lease-purchase authorizations.
             355          The Legislature intends that:
             356          (1) the Mountainland Applied Technology Campus of the Utah College of Applied
             357      Technology, subject to requirements in Title 63A, Chapter 5, State Building Board - Division
             358      of Facilities Construction and Management, use up to $10,683,000 of existing and institutional
             359      funds to enter into a lease-purchase agreement to plan, design, and construct a Technology
             360      Trades Building for the Mountainland Applied Technology College at the Lehi Campus with
             361      up to 40,500 square feet; and
             362          (2) the college may not request state funds for operation and maintenance costs or
             363      capital improvements during the term of the lease-purchase agreement.
             364          Section 6. Section 63I-1-263 is amended to read:
             365           63I-1-263. Repeal dates, Titles 63A to 63M.


             366          (1) Section 63A-4-204 , authorizing the Risk Management Fund to provide coverage to
             367      any public school district which chooses to participate, is repealed July 1, 2016.
             368          (2) Subsections 63A-5-104 (4)(d) and (e) are repealed on July 1, 2014.
             369          (3) Subsection 63A-4-104 (4)(h) is repealed on July 1, 2024.
             370          [(3)] (4) Section 63A-5-603 , State Facility Energy Efficiency Fund, is repealed July 1,
             371      2016.
             372          [(4)] (5) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed
             373      July 1, 2018.
             374          [(5)] (6) Section 53B-24-402 , rural residency training program, is repealed July 1,
             375      2015.
             376          [(6)] (7) Title 63C, Chapter 13, Prison Relocation and Development Authority Act, is
             377      repealed July 1, 2014.
             378          [(7)] (8) Title 63C, Chapter 14, Federal Funds Commission, is repealed July 1, 2018.
             379          [(8)] (9) Subsection 63G-6a-1402 (7) authorizing certain transportation agencies to
             380      award a contract for a design-build transportation project in certain circumstances, is repealed
             381      July 1, 2015.
             382          [(9)] (10) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed
             383      July 1, 2020.
             384          [(10)] (11) The Resource Development Coordinating Committee, created in Section
             385      63J-4-501 , is repealed July 1, 2015.
             386          [(11)] (12) Title 63M, Chapter 1, Part 4, Enterprise Zone Act, is repealed July 1, 2018.
             387          [(12)] (13) (a) Title 63M, Chapter 1, Part 11, Recycling Market Development Zone
             388      Act, is repealed January 1, 2021.
             389          (b) Subject to Subsection [(12)] (13)(c), Sections 59-7-610 and 59-10-1007 regarding
             390      tax credits for certain persons in recycling market development zones, are repealed for taxable
             391      years beginning on or after January 1, 2021.
             392          (c) A person may not claim a tax credit under Section 59-7-610 or 59-10-1007 :
             393          (i) for the purchase price of machinery or equipment described in Section 59-7-610 or


             394      59-10-1007 , if the machinery or equipment is purchased on or after January 1, 2021; or
             395          (ii) for an expenditure described in Subsection 59-7-610 (1)(b) or 59-10-1007 (1)(b), if
             396      the expenditure is made on or after January 1, 2021.
             397          (d) Notwithstanding Subsections [(12)] (13)(b) and (c), a person may carry forward a
             398      tax credit in accordance with Section 59-7-610 or 59-10-1007 if:
             399          (i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007 ; and
             400          (ii) (A) for the purchase price of machinery or equipment described in Section
             401      59-7-610 or 59-10-1007 , the machinery or equipment is purchased on or before December 31,
             402      2020; or
             403          (B) for an expenditure described in Subsection 59-7-610 (1)(b) or 59-10-1007 (1)(b), the
             404      expenditure is made on or before December 31, 2020.
             405          [(13)] (14) (a) Section 63M-1-2507 , Health Care Compact is repealed on July 1, 2014.
             406          (b) (i) The Legislature shall, before reauthorizing the Health Care Compact:
             407          (A) direct the Health System Reform Task Force to evaluate the issues listed in
             408      Subsection [(13)] (14)(b)(ii), and by January 1, 2013, develop and recommend criteria for the
             409      Legislature to use to negotiate the terms of the Health Care Compact; and
             410          (B) prior to July 1, 2014, seek amendments to the Health Care Compact among the
             411      member states that the Legislature determines are appropriate after considering the
             412      recommendations of the Health System Reform Task Force.
             413          (ii) The Health System Reform Task Force shall evaluate and develop criteria for the
             414      Legislature regarding:
             415          (A) the impact of the Supreme Court ruling on the Affordable Care Act;
             416          (B) whether Utah is likely to be required to implement any part of the Affordable Care
             417      Act prior to negotiating the compact with the federal government, such as Medicaid expansion
             418      in 2014;
             419          (C) whether the compact's current funding formula, based on adjusted 2010 state
             420      expenditures, is the best formula for Utah and other state compact members to use for
             421      establishing the block grants from the federal government;


             422          (D) whether the compact's calculation of current year inflation adjustment factor,
             423      without consideration of the regional medical inflation rate in the current year, is adequate to
             424      protect the state from increased costs associated with administering a state based Medicaid and
             425      a state based Medicare program;
             426          (E) whether the state has the flexibility it needs under the compact to implement and
             427      fund state based initiatives, or whether the compact requires uniformity across member states
             428      that does not benefit Utah;
             429          (F) whether the state has the option under the compact to refuse to take over the federal
             430      Medicare program;
             431          (G) whether a state based Medicare program would provide better benefits to the
             432      elderly and disabled citizens of the state than a federally run Medicare program;
             433          (H) whether the state has the infrastructure necessary to implement and administer a
             434      better state based Medicare program;
             435          (I) whether the compact appropriately delegates policy decisions between the
             436      legislative and executive branches of government regarding the development and
             437      implementation of the compact with other states and the federal government; and
             438          (J) the impact on public health activities, including communicable disease surveillance
             439      and epidemiology.
             440          [(14)] (15) The Crime Victim Reparations and Assistance Board, created in Section
             441      63M-7-504 , is repealed July 1, 2017.
             442          [(15)] (16) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1,
             443      2017.
             444          Section 7. Repealer.
             445          This bill repeals:
             446          Section 63B-9-102 , State Building Ownership Authority revenue bond
             447      authorizations.


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