8 LONG TITLE
9 General Description:
10 This bill amends provisions relating to capital improvement and capital development
12 Highlighted Provisions:
13 This bill:
14 ▸ modifies the State Building Board's duties;
15 ▸ addresses the process by which the State Building Board recommends and
16 prioritizes capital development projects;
17 ▸ requires the State Building Board to complete a process report relating to operations
18 and maintenance costs; and
19 ▸ makes technical and conforming changes.
20 Money Appropriated in this Bill:
22 Other Special Clauses:
24 Utah Code Sections Affected:
26 63A-5-103, as last amended by Laws of Utah 2013, Chapter 250
27 63A-5-104, as last amended by Laws of Utah 2014, Chapters 113 and 195
28 63I-2-263, as last amended by Laws of Utah 2014, Chapters 172, 423, and 427
30 63A-5-104.1, Utah Code Annotated 1953
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 63A-5-103 is amended to read:
34 63A-5-103. Board -- Powers.
35 (1) The State Building Board shall:
36 (a) in cooperation with state institutions, departments, commissions, and agencies,
37 prepare a master plan of structures built or contemplated;
38 (b) submit to the governor and the Legislature a comprehensive five-year building plan
39 for the state containing the information required by Subsection (2);
40 (c) amend and keep current the five-year building program for submission to the
41 governor and subsequent legislatures;
42 (d) as a part of the long-range plan, recommend to the governor and Legislature any
43 changes in the law that are necessary to insure an effective, well-coordinated building program
44 for all state institutions;
45 (e) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
46 make rules:
47 (i) that are necessary to discharge its duties and the duties of the Division of Facilities
48 Construction and Management;
49 (ii) to establish standards and requirements for life cycle cost-effectiveness of state
50 facility projects; [
51 (iii) to govern the disposition of real property by the division and establish factors,
52 including appraised value and historical significance, in evaluating the disposition;
53 (iv) to establish standards and requirements for a capital development project request,
54 including a requirement for a feasibility study; and
55 (v) to establish standards and requirements for reporting operations and maintenance
56 expenditures for state-owned facilities, including standards and requirements relating to utility
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; [
69 (h) assure the efficient use of all building space[
70 (i) conduct ongoing facilities maintenance audits for state-owned facilities.
71 (2) In order to provide adequate information upon which the State Building Board may
72 make its recommendation under Subsection (1), any state agency requesting new full-time
73 employees for the next fiscal year shall report those anticipated requests to the building board
74 at least 90 days before the annual general session in which the request is made.
75 (3) (a) The State Building Board shall ensure that the five-year building plan required
76 by Subsection (1)(c) includes:
77 (i) a list that prioritizes construction of new buildings for all structures built or
78 contemplated based upon each agency's, department's, commission's, and institution's present
79 and future needs;
80 (ii) information, and space use data for all state-owned and leased facilities;
81 (iii) substantiating data to support the adequacy of any projected plans;
82 (iv) a summary of all statewide contingency reserve and project reserve balances as of
83 the end of the most recent fiscal year;
84 (v) a list of buildings that have completed a comprehensive facility evaluation by an
85 architect/engineer or are scheduled to have an evaluation;
86 (vi) for those buildings that have completed the evaluation, the estimated costs of
87 needed improvements; and
88 (vii) for projects recommended in the first two years of the five-year building plan:
89 (A) detailed estimates of the cost of each project;
90 (B) the estimated cost to operate and maintain the building or facility on an annual
92 (C) the cost of capital improvements to the building or facility, estimated at 1.1% of
93 the replacement cost of the building or facility, on an annual basis;
94 (D) the estimated number of new agency full-time employees expected to be housed in
95 the building or facility;
96 (E) the estimated cost of new or expanded programs and personnel expected to be
97 housed in the building or facility;
98 (F) the estimated lifespan of the building with associated costs for major component
99 replacement over the life of the building; and
100 (G) the estimated cost of any required support facilities.
101 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
102 State Building Board may make rules prescribing the format for submitting the information
103 required by this Subsection (3).
104 (4) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
105 the State Building Board may make rules establishing circumstances under which bids may be
106 modified when all bids for a construction project exceed available funds as certified by the
108 (b) In making those rules, the State Building Board shall provide for the fair and
109 equitable treatment of bidders.
110 (5) (a) A person who violates a rule adopted by the board under Subsection (1)(e) is
111 subject to a civil penalty not to exceed $2,500 for each violation plus the amount of any actual
112 damages, expenses, and costs related to the violation of the rule that are incurred by the state.
113 (b) The board may take any other action allowed by law.
114 (c) If any violation of a rule adopted by the board is also an offense under Title 76,
115 Utah Criminal Code, the violation is subject to the civil penalty, damages, expenses, and costs
116 allowed under Subsection (1)(e) in addition to any criminal prosecution.
117 Section 2. Section 63A-5-104 is amended to read:
118 63A-5-104. Definitions -- Capital development and capital improvement process
119 -- Approval requirements -- Limitations on new projects -- Emergencies.
120 (1) As used in this section:
121 (a) "Capital developments" means a:
122 (i) remodeling, site, or utility project with a total cost of $2,500,000 or more;
123 (ii) new facility with a construction cost of $500,000 or more; or
124 (iii) purchase of real property where an appropriation is requested to fund the purchase.
125 (b) "Capital improvements" means a:
126 (i) remodeling, alteration, replacement, or repair project with a total cost of less than
128 (ii) site and utility improvement with a total cost of less than $2,500,000; or
129 (iii) new facility with a total construction cost of less than $500,000.
130 (c) (i) "New facility" means the construction of a new building on state property
131 regardless of funding source.
132 (ii) "New facility" includes:
133 (A) an addition to an existing building; and
134 (B) the enclosure of space that was not previously fully enclosed.
135 (iii) "New facility" does not mean:
136 (A) the replacement of state-owned space that is demolished or that is otherwise
137 removed from state use, if the total construction cost of the replacement space is less than
138 $2,500,000; or
139 (B) the construction of facilities that do not fully enclose a space.
140 (d) "Replacement cost of existing state facilities and infrastructure" means the
141 replacement cost, as determined by the Division of Risk Management, of state facilities,
142 excluding auxiliary facilities as defined by the State Building Board and the replacement cost
143 of infrastructure as defined by the State Building Board.
144 (e) "State funds" means public money appropriated by the Legislature.
145 (2) (a) The State Building Board, on behalf of all state agencies, commissions,
146 departments, and institutions shall submit its capital development recommendations and
147 priorities to the Legislature for approval and prioritization.
148 (b) In developing the State Building Board's capital development recommendations and
149 priorities, the State Building Board shall:
150 (i) require each state agency, commission, department, or institution requesting an
151 appropriation for a capital development project to complete a study that demonstrates the
152 feasibility of the capital development project, including:
153 (A) the need for the capital development project;
154 (B) the appropriateness of the scope of the capital development project;
155 (C) any private funding for the capital development project; and
156 (D) the economic and community impacts of the capital development project; and
157 (ii) verify the completion and accuracy of the feasibility study described in Subsection
159 (3) (a) Except as provided in Subsections (3)(b), (d), and (e), a capital development
160 project may not be constructed on state property without legislative approval.
161 (b) Legislative approval is not required for a capital development project that consists
162 of the design or construction of a new facility if the State Building Board determines that:
163 (i) the requesting state agency, commission, department, or institution has provided
164 adequate assurance that:
165 (A) state funds will not be used for the design or construction of the facility; and
166 (B) the state agency, commission, department, or institution has a plan for funding in
167 place that will not require increased state funding to cover the cost of operations and
168 maintenance to, or state funding for, immediate or future capital improvements to the resulting
169 facility; and
170 (ii) the use of the state property is:
171 (A) appropriate and consistent with the master plan for the property; and
172 (B) will not create an adverse impact on the state.
173 (c) (i) The Division of Facilities Construction and Management shall maintain a record
174 of facilities constructed under the exemption provided in Subsection (3)(b).
175 (ii) For facilities constructed under the exemption provided in Subsection (3)(b), a state
176 agency, commission, department, or institution may not request:
177 (A) increased state funds for operations and maintenance; or
178 (B) state capital improvement funding.
179 (d) Legislative approval is not required for:
180 (i) the renovation, remodeling, or retrofitting of an existing facility with nonstate funds
181 that has been approved by the State Building Board;
182 (ii) a facility to be built with nonstate funds and owned by nonstate entities within
183 research park areas at the University of Utah and Utah State University;
184 (iii) a facility to be built at This is the Place State Park by This is the Place Foundation
185 with funds of the foundation, including grant money from the state, or with donated services or
187 (iv) a capital project that:
188 (A) is funded by:
189 (I) the Uintah Basin Revitalization Fund; or
190 (II) the Navajo Revitalization Fund; and
191 (B) does not provide a new facility for a state agency or higher education institution; or
192 (v) a capital project on school and institutional trust lands that is funded by the School
193 and Institutional Trust Lands Administration from the Land Grant Management Fund and that
194 does not fund construction of a new facility for a state agency or higher education institution.
195 (e) (i) Legislative approval is not required for capital development projects to be built
196 for the Department of Transportation:
197 (A) as a result of an exchange of real property under Section 72-5-111; or
198 (B) as a result of a sale or exchange of real property from a maintenance facility if the
199 real property is exchanged for, or the proceeds from the sale of the real property are used for,
200 another maintenance facility, including improvements for a maintenance facility and real
202 (ii) When the Department of Transportation approves a sale or exchange under
203 Subsection (3)(e), it shall notify the president of the Senate, the speaker of the House, and the
204 cochairs of the Infrastructure and General Government Appropriations Subcommittee of the
205 Legislature's Joint Appropriation Committee about any new facilities to be built or improved
206 under this exemption.
207 (4) (a) (i) The State Building Board, on behalf of all state agencies, commissions,
208 departments, and institutions shall by January 15 of each year, submit a list of anticipated
209 capital improvement requirements to the Legislature for review and approval.
210 (ii) The list shall identify:
211 (A) a single project that costs more than $1,000,000;
212 (B) multiple projects within a single building or facility that collectively cost more than
214 (C) a single project that will be constructed over multiple years with a yearly cost of
215 $1,000,000 or more and an aggregate cost of more than $2,500,000;
216 (D) multiple projects within a single building or facility with a yearly cost of
217 $1,000,000 or more and an aggregate cost of more than $2,500,000;
218 (E) a single project previously reported to the Legislature as a capital improvement
219 project under $1,000,000 that, because of an increase in costs or scope of work, will now cost
220 more than $1,000,000; and
221 (F) multiple projects within a single building or facility previously reported to the
222 Legislature as a capital improvement project under $1,000,000 that, because of an increase in
223 costs or scope of work, will now cost more than $1,000,000.
224 (b) Unless otherwise directed by the Legislature, the State Building Board shall
225 prioritize capital improvements from the list submitted to the Legislature up to the level of
226 appropriation made by the Legislature.
227 (c) In prioritizing capital improvements, the State Building Board shall consider the
228 results of facility evaluations completed by an architect/engineer as stipulated by the building
229 board's facilities maintenance standards.
230 (d) Beginning on July 1, 2013, in prioritizing capital improvements, the State Building
231 Board shall allocate at least 80% of the funds that the Legislature appropriates for capital
232 improvements to:
233 (i) projects that address:
234 (A) a structural issue;
235 (B) fire safety;
236 (C) a code violation; or
237 (D) any issue that impacts health and safety;
238 (ii) projects that upgrade:
239 (A) an HVAC system;
240 (B) an electrical system;
241 (C) essential equipment;
242 (D) an essential building component; or
243 (E) infrastructure, including a utility tunnel, water line, gas line, sewer line, roof,
244 parking lot, or road; or
245 (iii) projects that demolish and replace an existing building that is in extensive
246 disrepair and cannot be fixed by repair or maintenance.
247 (e) Beginning on July 1, 2013, in prioritizing capital improvements, the State Building
248 Board shall allocate no more than 20% of the funds that the Legislature appropriates for capital
249 improvements to:
250 (i) remodeling and aesthetic upgrades to meet state programmatic needs; or
251 (ii) construct an addition to an existing building or facility.
252 (f) The State Building Board may require an entity that benefits from a capital
253 improvement project to repay the capital improvement funds from savings that result from the
255 (g) The State Building Board may provide capital improvement funding to a single
256 project, or to multiple projects within a single building or facility, even if the total cost of the
257 project or multiple projects is $2,500,000 or more, if:
258 (i) the capital improvement project or multiple projects require more than one year to
259 complete; and
260 (ii) the Legislature has affirmatively authorized the capital improvement project or
261 multiple projects to be funded in phases.
262 (h) In prioritizing and allocating capital improvement funding, the State Building
263 Board shall comply with the requirement in Subsection 63B-23-101(2)(f).
264 (5) The Legislature may authorize:
265 (a) the total square feet to be occupied by each state agency; and
266 (b) the total square feet and total cost of lease space for each agency.
267 (6) If construction of a new building or facility will be paid for by nonstate funds, but
268 will require an immediate or future increase in state funding for operations and maintenance or
269 for capital improvements, the Legislature may not authorize the new building or facility until
270 the Legislature appropriates funds for:
271 (a) the portion of operations and maintenance, if any, that will require an immediate or
272 future increase in state funding; and
273 (b) the portion of capital improvements, if any, that will require an immediate or future
274 increase in state funding.
275 (7) (a) Except as provided in Subsection (7)(b) or (c), the Legislature may not fund the
276 design or construction of any new capital development projects, except to complete the funding
277 of projects for which partial funding has been previously provided, until the Legislature has
278 appropriated 1.1% of the replacement cost of existing state facilities and infrastructure to
279 capital improvements.
280 (b) (i) As used in this Subsection (7)(b):
281 (A) "Education Fund budget deficit" is as defined in Section 63J-1-312; and
282 (B) "General Fund budget deficit" is as defined in Section 63J-1-312.
283 (ii) If the Legislature determines that an Education Fund budget deficit or a General
284 Fund budget deficit exists, the Legislature may, in eliminating the deficit, reduce the amount
285 appropriated to capital improvements to 0.9% of the replacement cost of state buildings and
287 (c) (i) The requirements under Subsections (6)(a) and (b) do not apply to the 2008-09,
288 2009-10, 2010-11, 2011-12, and 2012-13 fiscal years.
289 (ii) For the 2013-14 fiscal year, the amount appropriated to capital improvements shall
290 be reduced to 0.9% of the replacement cost of state facilities.
291 (8) It is the policy of the Legislature that a new building or facility be approved and
292 funded for construction in a single budget action, therefore the Legislature may not fund the
293 programming, design, and construction of a new building or facility in phases over more than
294 one year unless the Legislature has approved each phase of the funding for the construction of
295 the new building or facility by the affirmative vote of two-thirds of all the members elected to
296 each house.
297 (9) (a) If, after approval of capital development and capital improvement priorities by
298 the Legislature under this section, emergencies arise that create unforeseen critical capital
299 improvement projects, the State Building Board may, notwithstanding the requirements of Title
300 63J, Chapter 1, Budgetary Procedures Act, reallocate capital improvement funds to address
301 those projects.
302 (b) The State Building Board shall report any changes it makes in capital improvement
303 allocations approved by the Legislature to:
304 (i) the Office of Legislative Fiscal Analyst within 30 days of the reallocation; and
305 (ii) the Legislature at its next annual general session.
306 (10) (a) The State Building Board may adopt a rule allocating to institutions and
307 agencies their proportionate share of capital improvement funding.
308 (b) The State Building Board shall ensure that the rule:
309 (i) reserves funds for the Division of Facilities Construction and Management for
310 emergency projects; and
311 (ii) allows the delegation of projects to some institutions and agencies with the
312 requirement that a report of expenditures will be filed annually with the Division of Facilities
313 Construction and Management and appropriate governing bodies.
314 (11) It is the intent of the Legislature that in funding capital improvement requirements
315 under this section the General Fund be considered as a funding source for at least half of those
317 (12) (a) Subject to Subsection (12)(b), at least 80% of the state funds appropriated for
318 capital improvements shall be used for maintenance or repair of the existing building or
320 (b) The State Building Board may modify the requirement described in Subsection
321 (12)(a) if the State Building Board determines that a different allocation of capital
322 improvements funds is in the best interest of the state.
323 Section 3. Section 63A-5-104.1 is enacted to read:
324 63A-5-104.1. State Building Board -- Process study and recommendations.
325 (1) (a) The State Building Board, in collaboration with the Board of Regents, each
326 higher education institution, as defined in Section 53B-1-201, the Utah Schools for the Deaf
327 and the Blind, and any other state entity that the State Building Board invites to participate,
328 shall prepare a report that proposes:
329 (i) a process for tracking direct and indirect operations and maintenance costs on an
330 individual building basis; and
331 (ii) alternative funding mechanisms for operations and maintenance costs for
332 state-owned and state-operated facilities that incorporate actual expenses, the purpose for
333 which the facility is used, the age of the facility, the condition of the facility, and the location of
334 the facility.
335 (b) In preparing a proposal described in Subsection (1)(a)(ii), the State Building Board
336 shall consider an internal service fund, individual appropriation line items, and a formula to
337 determine funding.
338 (2) No later than September 1, 2015, the State Building Board shall submit the report
339 described in Subsection (1) to:
340 (a) the legislative fiscal analyst; and
341 (b) the Infrastructure and General Government Appropriations Subcommittee.
342 Section 4. Section 63I-2-263 is amended to read:
343 63I-2-263. Repeal dates, Title 63A to Title 63M.
345 (1) Section 63A-5-104.1 is repealed on January 1, 2016.
346 (2) Section 63C-9-501.1 is repealed on July 1, 2015.