7 LONG TITLE
8 General Description:
9 This bill addresses provisions related to the State Building Board.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ provides for the appointment of a director of the State Building Board;
14 ▸ modifies the State Building Board's rulemaking authority;
15 ▸ exempts facility programming from certain appropriations requirements; and
16 ▸ makes technical and conforming changes.
17 Money Appropriated in this Bill:
19 Other Special Clauses:
21 Utah Code Sections Affected:
23 63A-5-101, as last amended by Laws of Utah 2013, Chapter 310
24 63A-5-103, as last amended by Laws of Utah 2016, Chapter 298
25 63A-5-104, as last amended by Laws of Utah 2016, Chapter 298
27 63A-5-100, Utah Code Annotated 1953
28 63A-5-101.5, Utah Code Annotated 1953
30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 63A-5-100 is enacted to read:
32 63A-5-100. Definitions.
33 As used in this part, "board" means the State Building Board created under Section
35 Section 2. Section 63A-5-101 is amended to read:
36 63A-5-101. Creation.
37 (1) [
61 (2) (a) The executive director shall appoint a director of the board with the approval of
62 the governor.
63 (b) The director appointed under Subsection (2)(a) is equivalent to a division director
64 described in Section 63A-1-109.
65 Section 3. Section 63A-5-101.5 is enacted to read:
66 63A-5-101.5. State Building Board composition -- Appointment -- Per diem and
67 expenses -- Administrative services.
68 (1) (a) The board is composed of eight members, seven of whom are voting members
69 who the governor appoints for terms of four years.
70 (b) The executive director of the Governor's Office of Management and Budget or the
71 executive director's designee is a nonvoting member of the board.
72 (2) Notwithstanding the requirements of Subsection (1)(a), the governor shall, at the
73 time of a member's appointment or reappointment, adjust the length of the member's term to
74 ensure that approximately half of the board is appointed every two years.
75 (3) When a vacancy occurs in the membership of the board for any reason, the
76 governor shall appoint a replacement for the unexpired term of the member who created the
78 (4) Each board member shall hold office until the governor appoints and qualifies a
79 successor, but no member may serve more than two consecutive terms.
80 (5) The governor shall designate one member as the chair of the board.
81 (6) A member of the board may not receive compensation or benefits for the member's
82 service on the board, but may receive per diem and travel expenses in accordance with:
83 (a) Section 63A-3-106;
84 (b) Section 63A-3-107; and
85 (c) rules made by the Division of Finance in accordance with Sections 63A-3-106 and
87 (7) A member of the board is not required to post a bond for the performance of the
88 member's official duties.
89 (8) The department shall provide the board administrative and staff services and
90 necessary space and equipment.
91 Section 4. Section 63A-5-103 is amended to read:
92 63A-5-103. Board -- Powers -- Rulemaking authority.
93 (1) The State Building Board shall:
94 (a) in cooperation with agencies, prepare a master plan of structures built or
96 (b) submit to the governor and the Legislature a comprehensive five-year building plan
97 for the state containing the information required by Subsection (2);
98 (c) amend and keep current the five-year building program that complies with the
99 requirements described in Subsection (6), for submission to the governor and subsequent
100 legislatures; and
101 (d) as a part of the long-range plan, recommend to the governor and Legislature any
102 changes in the law that are necessary to ensure an effective, well-coordinated building program
103 for all agencies[
105 Rulemaking Act, make rules:
107 Facilities Construction and Management;
109 of state facility projects;
111 factors, including appraised value and historical significance, in evaluating the disposition;
113 request and feasibility study described in Subsection 63A-5-104(2)(b), including [
123 (i) a deadline by which a state agency is required to submit a capital development
124 project request; and
125 (ii) conditions and requirements by which a state agency may modify the state agency's
126 capital development project request after the agency submits the request;
127 (e) for the monitoring of a state agency's operations and maintenance expenditures for a
128 state-owned facility, that:
129 (i) establish standards and requirements for utility metering;
130 (ii) create an operations and maintenance program for a state agency's facilities;
131 (iii) establish a methodology for determining reasonably anticipated inflationary costs
132 for each operation and maintenance program described in Subsection (2)(e)(ii);
133 (iv) require an agency to report the amount the agency receives and expends on
134 operations and maintenance; and
136 new facility[
137 (3) The board shall:
139 establish design criteria, standards, and procedures for planning, design, and construction of
140 new state facilities and for improvements to existing state facilities, including life-cycle
141 costing, cost-effectiveness studies, and other methods and procedures that address:
142 (i) the need for the building or facility;
143 (ii) the effectiveness of its design;
144 (iii) the efficiency of energy use; and
145 (iv) the usefulness of the building or facility over its lifetime;
147 designated amount of square footage by type of space to be leased by the Division of Facilities
148 Construction and Management in that fiscal year;
152 Subsection [
153 2017 General Session or any session of the Legislature after the 2017 General Session.
154 (b) On or before September 1, 2016, each agency shall revise the agency's budget to
155 comply with the rules described in Subsection [
156 (c) Beginning on December 1, 2016, the Office of the Legislative Fiscal Analyst and
157 the Governor's Office of Management and Budget shall, for each agency with operating and
158 maintenance expenses, ensure that each required budget for that agency is adjusted in
159 accordance with the rules described in Subsection [
161 may make a recommendation described in Subsection (1), any state agency requesting new
162 full-time employees for the next fiscal year shall report those anticipated requests to the
163 building board at least 90 days before the annual general session in which the request is made.
165 required by Subsection (1)(c) includes:
166 (i) a list that prioritizes construction of new buildings for all structures built or
167 contemplated based upon each agency's present and future needs;
168 (ii) information, and space use data for all state-owned and leased facilities;
169 (iii) substantiating data to support the adequacy of any projected plans;
170 (iv) a summary of all statewide contingency reserve and project reserve balances as of
171 the end of the most recent fiscal year;
172 (v) a list of buildings that have completed a comprehensive facility evaluation by an
173 architect/engineer or are scheduled to have an evaluation;
174 (vi) for those buildings that have completed the evaluation, the estimated costs of
175 needed improvements; and
176 (vii) for projects recommended in the first two years of the five-year building plan:
177 (A) detailed estimates of the cost of each project;
178 (B) the estimated cost to operate and maintain the building or facility on an annual
180 (C) the cost of capital improvements to the building or facility, estimated at 1.1% of
181 the replacement cost of the building or facility, on an annual basis;
182 (D) the estimated number of new agency full-time employees expected to be housed in
183 the building or facility;
184 (E) the estimated cost of new or expanded programs and personnel expected to be
185 housed in the building or facility;
186 (F) the estimated lifespan of the building with associated costs for major component
187 replacement over the life of the building; and
188 (G) the estimated cost of any required support facilities.
189 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
190 State Building Board may make rules prescribing the format for submitting the information
191 required by this Subsection [
193 Act, the State Building Board may make rules establishing circumstances under which bids
194 may be modified when all bids for a construction project exceed available funds as certified by
195 the director.
196 (b) In making [
197 shall provide for the fair and equitable treatment of bidders.
199 under Subsection [
200 violation plus the amount of any actual damages, expenses, and costs related to the violation of
201 the rule that are incurred by the state.
202 (b) The board may take any other action allowed by law.
203 (c) If any violation of a rule [
204 offense under Title 76, Utah Criminal Code, the violation is subject to the civil penalty,
205 damages, expenses, and costs allowed under Subsection [
207 Section 5. Section 63A-5-104 is amended to read:
208 63A-5-104. Definitions -- Capital development and capital improvement process
209 -- Approval requirements -- Limitations on new projects -- Emergencies.
210 (1) As used in this section:
211 (a) (i) "Capital developments" means a:
212 (A) remodeling, site, or utility project with a total cost of $3,500,000 or more;
213 (B) new facility with a construction cost of $500,000 or more; or
214 (C) purchase of real property where an appropriation is requested to fund the purchase.
215 (ii) "Capital developments" does not include a project described in Subsection
217 (b) "Capital improvements" means:
218 (i) a remodeling, alteration, replacement, or repair project with a total cost of less than
220 (ii) a site or utility improvement with a total cost of less than $3,500,000;
221 (iii) a utility infrastructure improvement project that:
222 (A) has a total cost of less than $7,000,000;
223 (B) consists of two or more projects that, if done separately, would each cost less than
224 $3,500,000; and
225 (C) the State Building Board determines is more cost effective or feasible to be
226 completed as a single project; or
227 (iv) a new facility with a total construction cost of less than $500,000.
228 (c) (i) "New facility" means the construction of a new building on state property
229 regardless of funding source.
230 (ii) "New facility" includes:
231 (A) an addition to an existing building; and
232 (B) the enclosure of space that was not previously fully enclosed.
233 (iii) "New facility" does not include:
234 (A) the replacement of state-owned space that is demolished or that is otherwise
235 removed from state use, if the total construction cost of the replacement space is less than
236 $3,500,000; or
237 (B) the construction of facilities that do not fully enclose a space.
238 (d) "Replacement cost of existing state facilities and infrastructure" means the
239 replacement cost, as determined by the Division of Risk Management, of state facilities,
240 excluding auxiliary facilities as defined by the State Building Board and the replacement cost
241 of infrastructure as defined by the State Building Board.
242 (e) "State funds" means public money appropriated by the Legislature.
243 (2) (a) The [
245 recommendations and priorities to the Legislature for approval and prioritization.
246 (b) In developing the [
247 recommendations and priorities, the [
248 agency [
249 (i) submit to the board a capital development project request; and
250 (ii) complete and submit to the board a study that demonstrates the feasibility of the
251 capital development project, including:
252 (A) the need for the capital development project;
253 (B) the appropriateness of the scope of the capital development project;
254 (C) any private funding for the capital development project; and
255 (D) the economic and community impacts of the capital development project[
259 Section 53B-1-102 that submits a request for a capital development project address whether
260 and how, as a result of the project, the institution will:
262 and employment in the current market and the projected market for the next five years;
264 10 years;
267 Development, including relating to training and incentives;
273 (e) The board shall give more weight[
275 a request that is designated as a lower priority by the State Board of Regents only when
276 determining the order of prioritization among requests submitted by the State Board of
282 (3) (a) Except as provided in Subsections (3)(b), (d), and (e), a capital development
283 project may not be constructed on state property without legislative approval.
284 (b) Legislative approval is not required for a capital development project that consists
285 of the design or construction of a new facility if:
286 (i) the [
287 provided adequate assurance that state funds will not be used for the design or construction of
288 the facility;
289 (ii) the state agency provides to the [
290 signed by the head of the state agency:
291 (A) stating that funding or a revenue stream is in place, or will be in place before the
292 project is completed, to ensure that increased state funding will not be required to cover the
293 cost of operations and maintenance to the resulting facility for immediate or future capital
294 improvements; and
295 (B) detailing the source of the funding that will be used for the cost of operations and
296 maintenance for immediate and future capital improvements to the resulting facility; and
297 (iii) the [
298 (A) appropriate and consistent with the master plan for the property; and
299 (B) will not create an adverse impact on the state.
300 (c) (i) The Division of Facilities Construction and Management shall maintain a record
301 of facilities constructed under the exemption provided in Subsection (3)(b).
302 (ii) For facilities constructed under the exemption provided in Subsection (3)(b), a state
303 agency may not request:
304 (A) increased state funds for operations and maintenance; or
305 (B) state capital improvement funding.
306 (d) Legislative approval is not required for:
307 (i) the renovation, remodeling, or retrofitting of an existing facility with nonstate funds
308 that has been approved by the [
309 (ii) a facility to be built with nonstate funds and owned by nonstate entities within
310 research park areas at the University of Utah and Utah State University;
311 (iii) a facility to be built at This is the Place State Park by This is the Place Foundation
312 with funds of the foundation, including grant money from the state, or with donated services or
314 (iv) a capital project that:
315 (A) is funded by[
316 Revitalization Fund; and
317 (B) does not provide a new facility for a state agency or higher education institution; or
318 (v) a capital project on school and institutional trust lands that is funded by the School
319 and Institutional Trust Lands Administration from the Land Grant Management Fund and that
320 does not fund construction of a new facility for a state agency or higher education institution.
321 (e) (i) Legislative approval is not required for capital development projects to be built
322 for the Department of Transportation:
323 (A) as a result of an exchange of real property under Section 72-5-111; or
324 (B) as a result of a sale or exchange of real property from a maintenance facility if the
325 real property is exchanged for, or the proceeds from the sale of the real property are used for,
326 another maintenance facility, including improvements for a maintenance facility and real
328 (ii) When the Department of Transportation approves a sale or exchange under
329 Subsection (3)(e), it shall notify the president of the Senate, the speaker of the House, and the
330 cochairs of the Infrastructure and General Government Appropriations Subcommittee of the
331 Legislature's Joint Appropriation Committee about any new facilities to be built or improved
332 under this exemption.
333 (4) (a) (i) [
334 shall, on behalf of all state agencies, [
336 Legislature for review and approval.
337 (ii) The [
338 (A) a single project that costs more than $1,000,000;
339 (B) multiple projects within a single building or facility that collectively cost more than
341 (C) a single project that will be constructed over multiple years with a yearly cost of
342 $1,000,000 or more and an aggregate cost of more than $3,500,000;
343 (D) multiple projects within a single building or facility with a yearly cost of
344 $1,000,000 or more and an aggregate cost of more than $3,500,000;
345 (E) a single project previously reported to the Legislature as a capital improvement
346 project under $1,000,000 that, because of an increase in costs or scope of work, will now cost
347 more than $1,000,000;
348 (F) multiple projects within a single building or facility previously reported to the
349 Legislature as a capital improvement project under $1,000,000 that, because of an increase in
350 costs or scope of work, will now cost more than $1,000,000; and
351 (G) projects approved under Subsection (1)(b)(iii).
352 (b) Unless otherwise directed by the Legislature, the [
353 prioritize capital improvements from the list submitted to the Legislature up to the level of
354 appropriation made by the Legislature.
355 (c) In prioritizing capital improvements, the [
356 consider the results of facility evaluations completed by an architect/engineer as stipulated by
357 the building board's facilities maintenance standards.
358 (d) [
360 for capital improvements to:
361 (i) projects that address:
362 (A) a structural issue;
363 (B) fire safety;
364 (C) a code violation; or
365 (D) any issue that impacts health and safety;
366 (ii) projects that upgrade:
367 (A) an HVAC system;
368 (B) an electrical system;
369 (C) essential equipment;
370 (D) an essential building component; or
371 (E) infrastructure, including a utility tunnel, water line, gas line, sewer line, roof,
372 parking lot, or road; or
373 (iii) projects that demolish and replace an existing building that is in extensive
374 disrepair and cannot be fixed by repair or maintenance.
375 (e) [
377 appropriates for capital improvements to:
378 (i) remodeling and aesthetic upgrades to meet state programmatic needs; or
379 (ii) construct an addition to an existing building or facility.
380 (f) The [
381 improvement project to repay the capital improvement funds from savings that result from the
383 (g) The [
384 single project, or to multiple projects within a single building or facility, even if the total cost
385 of the project or multiple projects is $3,500,000 or more, if:
386 (i) the capital improvement project is a project described in Subsection (1)(b)(iii); and
387 (ii) the Legislature has not refused to fund the project with capital improvement funds.
388 (h) In prioritizing and allocating capital improvement funding, the State Building
389 Board shall comply with the requirement in Subsection 63B-23-101(2)(f).
390 (5) The Legislature may authorize:
391 (a) the total square feet to be occupied by each state agency; and
392 (b) the total square feet and total cost of lease space for each agency.
393 (6) If construction of a new building or facility will require an immediate or future
394 increase in state funding for operations and maintenance or for capital improvements, the
395 Legislature may not authorize the new building or facility until the Legislature appropriates
396 funds for:
397 (a) the portion of operations and maintenance, if any, that will require an immediate or
398 future increase in state funding; and
399 (b) the portion of capital improvements, if any, that will require an immediate or future
400 increase in state funding.
401 (7) (a) Except as provided in Subsection (7)(b), the Legislature may not fund the design
402 or construction of any new capital development projects, except to complete the funding of
403 projects for which partial funding has been previously provided, until the Legislature has
404 appropriated 1.1% of the replacement cost of existing state facilities and infrastructure to
405 capital improvements.
410 deficit or a General Fund budget deficit [
411 63J-1-312, the Legislature may, in eliminating the deficit, reduce the amount appropriated to
412 capital improvements to 0.9% of the replacement cost of state buildings and infrastructure.
415 (8) (a) The Legislature may not fund the [
416 a new building or facility in phases over more than one year unless the Legislature has
417 approved each phase of the funding for the construction of the new building or facility by [
419 (b) This Subsection (8) does not apply to an appropriation to fund a new building or
420 facility's programming.
421 (9) (a) [
422 Budgetary Procedures Act, after the Legislatures approves capital development and capital
423 improvement priorities [
426 emergency arises that creates an unforseen and critical need for a capital improvement project,
427 the board may reallocate capital improvement funds to address [
428 (b) The [
429 capital improvement allocations approved by the Legislature to:
430 (i) the Office of Legislative Fiscal Analyst within 30 days of the reallocation; and
431 (ii) the Legislature at its next annual general session.
432 (10) (a) The [
433 and agencies their proportionate share of capital improvement funding.
434 (b) The [
435 (i) reserves funds for the Division of Facilities Construction and Management for
436 emergency projects; and
437 (ii) allows the delegation of projects to some institutions and agencies with the
438 requirement that a report of expenditures will be filed annually with the Division of Facilities
439 Construction and Management and appropriate governing bodies.
440 (11) It is the intent of the Legislature that in funding capital improvement requirements
441 under this section the General Fund be considered as a funding source for at least half of those
443 (12) (a) Subject to Subsection (12)(b), at least 80% of the state funds appropriated for
444 capital improvements shall be used for maintenance or repair of the existing building or
446 (b) The [
447 Subsection (12)(a) if the [
448 capital improvements funds is in the best interest of the state.
Legislative Review Note
Office of Legislative Research and General Counsel