1     
DEVELOPMENTAL CENTER MODIFICATIONS

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: David G. Buxton

5     
House Sponsor: Michael S. Kennedy

6     

7     LONG TITLE
8     General Description:
9          This bill makes amendments regarding the sale or lease of land, water rights, or water
10     shares associated with the Utah State Developmental Center.
11     Highlighted Provisions:
12          This bill:
13          ▸     creates a special revenue fund, subject to appropriation for the money received from
14     the sale or lease of land, water rights, or water shares associated with the
15     developmental center;
16          ▸     repeals the expendable special revenue fund for developmental center land; and
17          ▸     establishes terms and management procedures for the newly created special revenue
18     fund.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          None
23     Special Voting Requirements:
24          As required by Section 62A-5-206.6, amendments to Section 62A-5-206.6 must pass by
25     the affirmative vote of two-thirds of all the members elected to each house of the
26     Legislature.
27     Utah Code Sections Affected:
28     AMENDS:
29          51-7-2, as last amended by Laws of Utah 2017, Chapters 343 and 363

30          62A-5-101, as last amended by Laws of Utah 2017, Chapter 43
31          62A-5-206.6, as enacted by Laws of Utah 2016, Chapter 300
32          63A-5-215, as last amended by Laws of Utah 2016, Chapter 298
33     ENACTS:
34          62A-5-206.7, Utah Code Annotated 1953
35          62A-5-206.8, Utah Code Annotated 1953
36     

37     Be it enacted by the Legislature of the state of Utah:
38          Section 1. Section 51-7-2 is amended to read:
39          51-7-2. Exemptions from chapter.
40          The following funds are exempt from this chapter:
41          (1) funds invested in accordance with the participating employees' designation or
42     direction pursuant to a public employees' deferred compensation plan established and operated
43     in compliance with Section 457 of the Internal Revenue Code of 1986, as amended;
44          (2) funds of the Utah State Retirement Board;
45          (3) funds of the Utah Housing Corporation;
46          (4) endowment funds of higher education institutions;
47          (5) permanent and other land grant trust funds established pursuant to the Utah
48     Enabling Act and the Utah Constitution;
49          (6) the State Post-Retirement Benefits Trust Fund;
50          (7) the funds of the Utah Educational Savings Plan;
51          (8) funds of the permanent state trust fund created by and operated under Utah
52     Constitution, Article XXII, Section 4;
53          (9) the funds in the Navajo Trust Fund; [and]
54          (10) the funds in the Radioactive Waste Perpetual Care and Maintenance Account[.];
55     and
56          (11) the Utah State Developmental Center Long-Term Sustainability Fund, created in
57     Section 62A-5-206.7.

58          Section 2. Section 62A-5-101 is amended to read:
59          62A-5-101. Definitions.
60          As used in this chapter:
61          (1) "Approved provider" means a person approved by the division to provide
62     home-based services.
63          (2) "Board" means the Utah State Developmental Center Board created under Section
64     62A-5-202.5.
65          (3) (a) "Brain injury" means an acquired injury to the brain that is neurological in
66     nature, including a cerebral vascular accident.
67          (b) "Brain injury" does not include a deteriorating disease.
68          (4) "Designated intellectual disability professional" means:
69          (a) a psychologist licensed under Title 58, Chapter 61, Psychologist Licensing Act,
70     who:
71          (i) (A) has at least one year of specialized training in working with persons with an
72     intellectual disability; or
73          (B) has at least one year of clinical experience with persons with an intellectual
74     disability; and
75          (ii) is designated by the division as specially qualified, by training and experience, in
76     the treatment of an intellectual disability; or
77          (b) a clinical social worker, certified social worker, marriage and family therapist, or
78     professional counselor, licensed under Title 58, Chapter 60, Mental Health Professional
79     Practice Act, who:
80          (i) has at least two years of clinical experience with persons with an intellectual
81     disability; and
82          (ii) is designated by the division as specially qualified, by training and experience, in
83     the treatment of an intellectual disability.
84          (5) "Deteriorating disease" includes:
85          (a) multiple sclerosis;

86          (b) muscular dystrophy;
87          (c) Huntington's chorea;
88          (d) Alzheimer's disease;
89          (e) ataxia; or
90          (f) cancer.
91          (6) "Developmental center" means the Utah State Developmental Center, established in
92     accordance with Part 2, Utah State Developmental Center.
93          (7) "Director" means the director of the Division of Services for People with
94     Disabilities.
95          (8) "Direct service worker" means a person who provides services to a person with a
96     disability:
97          (a) when the services are rendered in:
98          (i) the physical presence of the person with a disability; or
99          (ii) a location where the person rendering the services has access to the physical
100     presence of the person with a disability; and
101          (b) (i) under a contract with the division;
102          (ii) under a grant agreement with the division; or
103          (iii) as an employee of the division.
104          (9) (a) "Disability" means a severe, chronic disability that:
105          (i) is attributable to:
106          (A) an intellectual disability;
107          (B) a condition that qualifies a person as a person with a related condition, as defined
108     in 42 C.F.R. 435.1009;
109          (C) a physical disability; or
110          (D) a brain injury;
111          (ii) is likely to continue indefinitely;
112          (iii) (A) for a condition described in Subsection (9)(a)(i)(A), (B), or (C), results in a
113     substantial functional limitation in three or more of the following areas of major life activity:

114          (I) self-care;
115          (II) receptive and expressive language;
116          (III) learning;
117          (IV) mobility;
118          (V) self-direction;
119          (VI) capacity for independent living; or
120          (VII) economic self-sufficiency; or
121          (B) for a condition described in Subsection (9)(a)(i)(D), results in a substantial
122     limitation in three or more of the following areas:
123          (I) memory or cognition;
124          (II) activities of daily life;
125          (III) judgment and self-protection;
126          (IV) control of emotions;
127          (V) communication;
128          (VI) physical health; or
129          (VII) employment; and
130          (iv) requires a combination or sequence of special interdisciplinary or generic care,
131     treatment, or other services that:
132          (A) may continue throughout life; and
133          (B) must be individually planned and coordinated.
134          (b) "Disability" does not include a condition due solely to:
135          (i) mental illness;
136          (ii) personality disorder;
137          (iii) deafness or being hard of hearing;
138          (iv) visual impairment;
139          (v) learning disability;
140          (vi) behavior disorder;
141          (vii) substance abuse; or

142          (viii) the aging process.
143          (10) "Division" means the Division of Services for People with Disabilities.
144          (11) "Eligible to receive division services" or "eligibility" means qualification, based
145     on criteria established by the division in accordance with Subsection 62A-5-102(4), to receive
146     services that are administered by the division.
147          (12) "Endorsed program" means a facility or program that:
148          (a) is operated:
149          (i) by the division; or
150          (ii) under contract with the division; or
151          (b) provides services to a person committed to the division under Part 3, Admission to
152     an Intermediate Care Facility for People with an Intellectual Disability.
153          (13) "Licensed physician" means:
154          (a) an individual licensed to practice medicine under:
155          (i) Title 58, Chapter 67, Utah Medical Practice Act; or
156          (ii) Title 58, Chapter 68, Utah Osteopathic Medical Practice Act; or
157          (b) a medical officer of the United States Government while in this state in the
158     performance of official duties.
159          (14) "Physical disability" means a medically determinable physical impairment that has
160     resulted in the functional loss of two or more of a person's limbs.
161          (15) "Public funds" means state or federal funds that are disbursed by the division.
162          (16) "Resident" means an individual under observation, care, or treatment in an
163     intermediate care facility for people with an intellectual disability.
164          (17) "Sustainability fund" means the Utah State Developmental Center Long-Term
165     Sustainability Fund created in Section 62A-5-206.7.
166          Section 3. Section 62A-5-206.6 is amended to read:
167          62A-5-206.6. Utah State Developmental Center land and water rights.
168          (1) As used in this section, "long-term lease" means:
169          (a) a lease with a term of five years or more; or

170          (b) a lease with a term of less than five years that may be unilaterally renewed by the
171     lessee.
172          [(2) Notwithstanding Section 63A-5-215, any money received by the board from the
173     sale, lease, except any lease existing on May 1, 1995, or other disposition of real property
174     associated with the developmental center shall be deposited in the expendable special revenue
175     fund created in Subsection (3).]
176          [(3) (a) There is created an expendable special revenue fund known as the "Utah State
177     Developmental Center Land Fund."]
178          [(b) The Division of Finance shall deposit the following money into the expendable
179     special revenue fund:]
180          [(i) money from the sale, long-term lease, except any lease existing on May 1, 1995, or
181     other disposition of real property associated with the developmental center; and]
182          [(ii) money from the sale, long-term lease, or other disposition of water rights
183     associated with the developmental center.]
184          [(c) The state treasurer shall invest money in the fund described in Subsection (3)
185     according to the procedures and requirements of Title 51, Chapter 7, State Money Management
186     Act, and the revenue from the investment shall remain with the expendable special revenue
187     fund, except as provided in Subsection (4).]
188          [(d) (i) Except as provided in Subsection (4), the money or revenue in the fund may not
189     be diverted, appropriated, expended, or committed to be expended for a purpose that is not
190     listed in this section.]
191          [(ii) Notwithstanding Section 63J-1-211, the Legislature may not appropriate money or
192     revenue from the fund to eliminate or otherwise reduce an operating deficit if the money or
193     revenue appropriated from the fund is expended or committed to be expended for a purpose
194     other than one listed in this section.]
195          [(iii) The Legislature may not amend the purposes for which money or revenue in the
196     fund may be expended or committed to be expended except by the affirmative vote of
197     two-thirds of all the members elected to each house.]

198          [(4) The board may expend money or revenue from the Utah State Developmental
199     Center Land Fund to:]
200          [(a) fulfill the functions of the Utah State Developmental Center as described in
201     Sections 62A-5-201 and 62A-5-203; and]
202          [(b) assist the division in the division's administration of services and supports, as
203     described in Sections 62A-5-102 and 62A-5-103.]
204          [(5)] (2) (a) Notwithstanding Section 65A-4-1, any sale, long-term lease, or other
205     disposition of real property [or], water rights, or water shares associated with the
206     developmental center shall be conducted as provided in this Subsection [(5)] (2).
207          (b) The board shall:
208          (i) approve the sale, long-term lease, or other disposition of real property [or], water
209     rights, or water shares associated with the developmental center;
210          (ii) secure the approval of the Legislature before offering the real property [or], water
211     rights, or water shares for sale, long-term lease, or other disposition; and
212          (iii) if the Legislature's approval is secured, as described in Subsection [(5)] (2)(b)(ii),
213     direct the Division of Facilities Construction and Management to convey, lease, or dispose of
214     the real property [or], water rights, or water shares associated with the developmental center
215     according to the board's determination.
216          Section 4. Section 62A-5-206.7 is enacted to read:
217          62A-5-206.7. Utah State Developmental Center Long-Term Sustainability Fund.
218          (1) There is created a special revenue fund entitled the "Utah State Developmental
219     Center Long-Term Sustainability Fund."
220          (2) The sustainability fund consists of:
221          (a) revenue generated from the lease, except any lease existing on May 1, 1995, of land
222     associated with the Utah State Developmental Center;
223          (b) all proceeds from the sale or other disposition of real property, water rights, or
224     water shares associated with the Utah State Developmental Center; and
225          (c) all existing money in the Utah State Developmental Center Land Fund, created in

226     Section 62A-5-206.6.
227          (3) The state treasurer shall invest sustainability fund money by following the
228     procedures and requirements in Section 62A-5-206.8.
229          (4) (a) The board shall ensure that money or revenue deposited into the sustainability
230     fund is irrevocable and is expended only as provided in Subsection (5).
231          (b) The Legislature may not amend the purposes in Subsection (5) for which money or
232     revenue in the fund may be expended or committed to be expended, except by the affirmative
233     vote of two-thirds of all the members elected to each house.
234          (5) (a) Money may be expended from the sustainability fund to:
235          (i) fulfill the functions of the Utah State Developmental Center described in Sections
236     62A-5-201 and 62A-5-203; and
237          (ii) assist the division in the division's administration of services and supports
238     described in Sections 62A-5-102 and 62A-5-103.
239          (b) Money from the sustainability fund may not be expended:
240          (i) for a purpose other than the purposes described in Subsection (5)(a); or
241          (ii) to reduce the amount of money that the Legislature appropriates from the General
242     Fund for the purposes described in Subsection (5)(a).
243          (6) Money may be expended from the sustainability fund only under the following
244     conditions:
245          (a) if the balance of the sustainability fund is at least $5,000,000 at the end of the fiscal
246     year, the board may expend the earnings generated by the sustainability fund during the fiscal
247     year for a purpose described in Subsection (5)(a);
248          (b) if the balance of the sustainability fund is at least $50,000,000 at the end of the
249     fiscal year, the Legislature may appropriate to the division up to 5% of the balance of the
250     sustainability fund for a purpose described in Subsection (5)(a); and
251          (c) the board or the division may not expend any money from the sustainability fund,
252     except as provided in Subsection (6)(a), without legislative appropriation.
253          (7) The sustainability fund is revocable only by the affirmative vote of two-thirds of all

254     the members elected to each house of the Legislature.
255          Section 5. Section 62A-5-206.8 is enacted to read:
256          62A-5-206.8. Management of the Utah State Developmental Center Sustainability
257     Fund.
258          (1) The state treasurer shall invest the assets of the sustainability fund with the primary
259     goal of providing for the stability, income, and growth of the principal.
260          (2) Nothing in this section requires a specific outcome in investing.
261          (3) The state treasurer may deduct any administrative costs incurred in managing
262     sustainability fund assets from earnings before depositing earnings into the sustainability fund.
263          (4) (a) The state treasurer may employ professional asset managers to assist in the
264     investment of assets of the sustainability fund.
265          (b) The state treasurer may only provide compensation to asset managers from earnings
266     generated by the sustainability fund's investments.
267          (5) The state treasurer shall invest and manage the sustainability fund assets as a
268     prudent investor would under Section 67-19d-302.
269          Section 6. Section 63A-5-215 is amended to read:
270          63A-5-215. Disposition of proceeds received by division from sale of property.
271          (1) [The] Except as provided in Section 62A-5-206.7, the money received by the
272     division from the sale or other disposition of property shall be paid into the state treasury and
273     becomes a part of the funds provided by law for carrying out the building program of the state,
274     and are appropriated for that purpose.
275          (2) The proceeds from sales of property belonging to or used by a particular state
276     agency shall, to the extent practicable, be expended for the construction of buildings or in the
277     performance of other work for the benefit of that agency.