Chief Sponsor: John R. Westwood

Senate Sponsor: Peter C. Knudson


9     General Description:
10          This bill modifies a provision relating to the construction of state facilities.
11     Highlighted Provisions:
12          This bill:
13          ▸     exempts higher education institution projects for the construction of student housing
14     from the supervision of the director of the Division of Facilities Construction and
15     Management under certain circumstances.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          63A-5-206, as last amended by Laws of Utah 2016, Chapter 298

24     Be it enacted by the Legislature of the state of Utah:
25          Section 1. Section 63A-5-206 is amended to read:
26          63A-5-206. Construction, alteration, and repair of state facilities -- Powers of
27     director -- Exceptions -- Expenditure of appropriations -- Notification to local

28     governments for construction or modification of certain facilities.
29          (1) As used in this section:
30          (a) "Capital developments" and "capital improvements" have the same meaning as
31     provided in Section 63A-5-104.
32          (b) "Compliance agency" has the same meaning as provided in Section 15A-1-202.
33          (c) (i) "Facility" means any building, structure, or other improvement that is
34     constructed on property owned by the state, its departments, commissions, institutions, or
35     agencies.
36          (ii) "Facility" does not mean an unoccupied structure that is a component of the state
37     highway system.
38          (d) "Life cycle cost-effective" means, as provided for in rules adopted by the State
39     Building Board, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
40     Act, the most prudent cost of owning and operating a facility, including the initial cost, energy
41     costs, operation and maintenance costs, repair costs, and the costs of energy conservation and
42     renewable energy systems.
43          (e) "Local government" means the county, municipality, or local school district that
44     would have jurisdiction to act as the compliance agency if the property on which the project is
45     being constructed were not owned by the state.
46          (f) "Renewable energy system" means a system designed to use solar, wind, geothermal
47     power, wood, or other replenishable energy source to heat, cool, or provide electricity to a
48     building.
49          (2) (a) (i) Except as provided in Subsections (3) and (4), the director shall exercise
50     direct supervision over the design and construction of all new facilities, and all alterations,
51     repairs, and improvements to existing facilities if the total project construction cost, regardless
52     of the funding source, is greater than $100,000, unless there is memorandum of understanding
53     between the director and an institution of higher education that permits the institution of higher
54     education to exercise direct supervision for a project with a total project construction cost of
55     not greater than $250,000.
56          (ii) A state entity may exercise direct supervision over the design and construction of
57     all new facilities, and all alterations, repairs, and improvements to existing facilities if:
58          (A) the total project construction cost, regardless of the funding sources, is $100,000 or

59     less; and
60          (B) the state entity assures compliance with the division's forms and contracts and the
61     division's design, construction, alteration, repair, improvements, and code inspection standards.
62          (b) The director shall prepare or have prepared by private firms or individuals designs,
63     plans, and specifications for the projects administered by the division.
64          (c) Before proceeding with construction, the director and the officials charged with the
65     administration of the affairs of the particular agency shall approve the location, design, plans,
66     and specifications.
67          (3) Projects for the construction of new facilities and alterations, repairs, and
68     improvements to existing facilities are not subject to Subsection (2) if the project:
69          (a) occurs on property under the jurisdiction of the State Capitol Preservation Board;
70          (b) is within a designated research park at the University of Utah or Utah State
71     University;
72          (c) occurs within the boundaries of This is the Place State Park and is administered by
73     This is the Place Foundation except that This is the Place Foundation may request the director
74     to administer the design and construction; [or]
75          (d) is for the creation and installation of art under Title 9, Chapter 6, Part 4, Utah
76     Percent-for-Art Act[.]; or
77          (e) is a project of an institution of higher education for the construction of student
78     housing that will not require the expenditure of state funds for:
79          (i) operation and maintenance expenses; or
80          (ii) the cost of repairs or improvements.
81          (4) (a) (i) The State Building Board may authorize the delegation of control over
82     design, construction, and all other aspects of any project to entities of state government on a
83     project-by-project basis or for projects within a particular dollar range and a particular project
84     type.
85          (ii) The state entity to whom control is delegated shall assume fiduciary control over
86     project finances, shall assume all responsibility for project budgets and expenditures, and shall
87     receive all funds appropriated for the project, including any contingency funds contained in the
88     appropriated project budget.
89          (iii) Delegation of project control does not exempt the state entity from complying with

90     the codes and guidelines for design and construction adopted by the division and the State
91     Building Board.
92          (iv) State entities that receive a delegated project may not access, for the delegated
93     project, the division's statewide contingency reserve and project reserve authorized in Section
94     63A-5-209.
95          (b) For facilities that will be owned, operated, maintained, and repaired by an entity
96     that is not a state agency and that are located on state property, the State Building Board may
97     authorize the owner to administer the design and construction of the project instead of the
98     division.
99          (5) Notwithstanding any other provision of this section, if a donor donates land to an
100     eligible institution of higher education and commits to build a building or buildings on that
101     land, and the institution agrees to provide funds for the operations and maintenance costs from
102     sources other than state funds, and agrees that the building or buildings will not be eligible for
103     state capital improvement funding, the higher education institution may:
104          (a) oversee and manage the construction without involvement, oversight, or
105     management from the division; or
106          (b) arrange for management of the project by the division.
107          (6) (a) The role of compliance agency as provided in Title 15A, State Construction and
108     Fire Codes Act, shall be provided by:
109          (i) the director, for projects administered by the division;
110          (ii) the entity designated by the State Capitol Preservation Board, for projects under
111     Subsection (3)(a);
112          (iii) the local government, for projects exempt from the division's administration under
113     Subsection (3)(b) or administered by This is the Place Foundation under Subsection (3)(c);
114          (iv) the state entity or local government designated by the State Building Board, for
115     projects under Subsection (4); or
116          (v) the institution, for projects exempt from the division's administration under
117     Subsection (5)(a).
118          (b) For the installation of art under Subsection (3)(d), the role of compliance agency
119     shall be provided by the entity that is acting in this capacity for the balance of the project as
120     provided in Subsection (6)(a).

121          (c) The local government acting as the compliance agency under Subsection (6)(a)(iii)
122     may:
123          (i) only review plans and inspect construction to enforce the State Construction Code
124     or an approved code under Title 15A, State Construction and Fire Codes Act; and
125          (ii) charge a building permit fee of no more than the amount it could have charged if
126     the land upon which the improvements are located were not owned by the state.
127          (d) (i) The use of state property and any improvements constructed on state property,
128     including improvements constructed by nonstate entities, is not subject to the zoning authority
129     of local governments as provided in Sections 10-9a-304 and 17-27a-304.
130          (ii) The state entity controlling the use of the state property shall consider any input
131     received from the local government in determining how the property shall be used.
132          (7) Before construction may begin, the director shall review the design of projects
133     exempted from the division's administration under Subsection (4) to determine if the design:
134          (a) complies with any restrictions placed on the project by the State Building Board;
135     and
136          (b) is appropriate for the purpose and setting of the project.
137          (8) The director shall ensure that state-owned facilities, except for facilities under the
138     control of the State Capitol Preservation Board, are life cycle cost-effective.
139          (9) The director may expend appropriations for statewide projects from funds provided
140     by the Legislature for those specific purposes and within guidelines established by the State
141     Building Board.
142          (10) (a) The director, with the approval of the Office of the Legislative Fiscal Analyst,
143     shall develop standard forms to present capital development and capital improvement cost
144     summary data.
145          (b) The director shall:
146          (i) within 30 days after the completion of each capital development project, submit cost
147     summary data for the project on the standard form to the Office of the Legislative Fiscal
148     Analyst; and
149          (ii) upon request, submit cost summary data for a capital improvement project to the
150     Office of Legislative Fiscal Analyst on the standard form.
151          (11) Notwithstanding the requirements of Title 63J, Chapter 1, Budgetary Procedures

152     Act, the director may:
153          (a) accelerate the design of projects funded by any appropriation act passed by the
154     Legislature in its annual general session;
155          (b) use any unencumbered existing account balances to fund that design work; and
156          (c) reimburse those account balances from the amount funded for those projects when
157     the appropriation act funding the project becomes effective.
158          (12) (a) The director, the director's designee, or the state entity to whom control has
159     been designated under Subsection (4), shall notify in writing the elected representatives of local
160     government entities directly and substantively affected by any diagnostic, treatment, parole,
161     probation, or other secured facility project exceeding $250,000, if:
162          (i) the nature of the project has been significantly altered since prior notification;
163          (ii) the project would significantly change the nature of the functions presently
164     conducted at the location; or
165          (iii) the project is new construction.
166          (b) At the request of either the state entity or the local government entity,
167     representatives from the state entity and the affected local entity shall conduct or participate in
168     a local public hearing or hearings to discuss these issues.
169          (13) (a) (i) Before beginning the construction of student housing on property owned by
170     the state or a public institution of higher education, the director shall provide written notice of
171     the proposed construction, as provided in Subsection (13)(a)(ii), if any of the proposed student
172     housing buildings is within 300 feet of privately owned residential property.
173          (ii) Each notice under Subsection (13)(a)(i) shall be provided to the legislative body
174     and, if applicable, the mayor of:
175          (A) the county in whose unincorporated area the privately owned residential property is
176     located; or
177          (B) the municipality in whose boundaries the privately owned residential property is
178     located.
179          (b) (i) Within 21 days after receiving the notice required by Subsection (13)(a)(i), a
180     county or municipality entitled to the notice may submit a written request to the director for a
181     public hearing on the proposed student housing construction.
182          (ii) If a county or municipality requests a hearing under Subsection (13)(b)(i), the

183     director and the county or municipality shall jointly hold a public hearing to provide
184     information to the public and to allow the director and the county or municipality to receive
185     input from the public about the proposed student housing construction.

Legislative Review Note
Office of Legislative Research and General Counsel