1     
AMENDMENTS RELATING TO ADMINISTRATION OF

2     
STATE FACILITIES

3     
2020 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Walt Brooks

6     
Senate Sponsor: David G. Buxton

7     

8     LONG TITLE
9     General Description:
10          This bill modifies provisions relating to the administration of state facilities.
11     Highlighted Provisions:
12          This bill:
13          ▸     reorganizes and modifies provisions relating to the state building board, the
14     Division of Facilities Construction and Management, and the administration of state
15     facilities;
16          ▸     modifies duties and responsibilities of the state building board and the director of
17     the Division of Facilities Construction and Management;
18          ▸     increases from $100,000 to $250,000 the value of property that is exempt from rules
19     adopted to ensure that the value of property being bought or exchanged is congruent
20     with the terms of the purchase or exchange;
21          ▸     increases from $100,000 to $250,000 the value of property the disposal or lease of
22     which is not governed by provisions relating to the disposition of property owned by
23     the Division of Facilities and Construction Management;
24          ▸     repeals obsolete or redundant language; and
25          ▸     makes technical and conforming changes.
26     Money Appropriated in this Bill:
27          None
28     Other Special Clauses:

29          This bill provides a special effective date.
30          This bill provides a coordination clause.
31     Utah Code Sections Affected:
32     AMENDS:
33          11-44-201, as last amended by Laws of Utah 2018, Chapter 415
34          11-59-302, as enacted by Laws of Utah 2018, Chapter 388
35          11-59-304, as enacted by Laws of Utah 2018, Chapter 388
36          11-59-501, as enacted by Laws of Utah 2018, Chapter 388
37          17B-2a-818.5, as last amended by Laws of Utah 2018, Chapter 319
38          19-1-206, as last amended by Laws of Utah 2018, Chapter 319
39          26-18-402, as last amended by Laws of Utah 2018, Chapter 319
40          26-40-115, as last amended by Laws of Utah 2019, Chapter 393
41          51-11-102, as enacted by Laws of Utah 2018, Chapter 253
42          53B-2-109, as enacted by Laws of Utah 2005, Chapter 231
43          53B-2a-101, as last amended by Laws of Utah 2019, Chapter 482
44          53B-2a-117, as enacted by Laws of Utah 2019, Chapter 482
45          53B-22-201, as enacted by Laws of Utah 2019, Chapter 482
46          53B-22-204, as enacted by Laws of Utah 2019, Chapter 482
47          63A-1-112, as last amended by Laws of Utah 2015, Chapter 181
48          63B-1-304, as last amended by Laws of Utah 2010, Chapter 286
49          63B-2-301, as last amended by Laws of Utah 2013, Chapters 310 and 465
50          63B-4-201, as last amended by Laws of Utah 2016, Chapter 144
51          63B-9-103, as last amended by Laws of Utah 2014, Chapter 196
52          63B-16-201, as enacted by Laws of Utah 2007, Chapter 174
53          63B-16-202, as last amended by Laws of Utah 2012, Chapter 393
54          63B-16-301, as enacted by Laws of Utah 2007, Chapter 174
55          63B-17-201, as last amended by Laws of Utah 2009, Chapter 150

56          63B-17-202, as enacted by Laws of Utah 2008, Chapter 128
57          63B-17-301, as enacted by Laws of Utah 2008, Chapter 128
58          63B-23-101, as last amended by Laws of Utah 2019, Chapter 468
59          63B-25-101, as last amended by Laws of Utah 2019, Chapter 246
60          63C-9-403, as last amended by Laws of Utah 2018, Chapter 319
61          63G-6a-103, as last amended by Laws of Utah 2019, Chapters 136, 170, 314, and 456
62          63H-6-102, as last amended by Laws of Utah 2016, Chapter 301
63          63H-6-103, as last amended by Laws of Utah 2019, Chapters 370 and 456
64          63I-1-263, as last amended by Laws of Utah 2019, Chapters 89, 246, 311, 414, 468,
65     469, 482 and last amended by Coordination Clause, Laws of Utah 2019, Chapter
66     246
67          63J-1-201 (Superseded 07/01/20), as last amended by Laws of Utah 2019, Chapter 136
68          63J-1-201 (Effective 07/01/20), as last amended by Laws of Utah 2019, Chapters 136
69     and 464
70          63J-1-206, as last amended by Laws of Utah 2019, Chapters 182 and 468
71          63J-1-602.2, as last amended by Laws of Utah 2019, Chapters 136, 326, 468, and 469
72          63J-3-103, as last amended by Laws of Utah 2017, Chapter 382
73          65A-4-1, as last amended by Laws of Utah 2019, Chapter 195
74          72-6-107.5, as last amended by Laws of Utah 2018, Chapter 319
75          79-2-404, as last amended by Laws of Utah 2018, Chapter 319
76     ENACTS:
77          63A-5b-101, Utah Code Annotated 1953
78          63A-5b-102, Utah Code Annotated 1953
79          63A-5b-201, Utah Code Annotated 1953
80          63A-5b-202, Utah Code Annotated 1953
81          63A-5b-203, Utah Code Annotated 1953
82          63A-5b-303, Utah Code Annotated 1953

83          63A-5b-304, Utah Code Annotated 1953
84          63A-5b-305, Utah Code Annotated 1953
85          63A-5b-401, Utah Code Annotated 1953
86          63A-5b-402, Utah Code Annotated 1953
87          63A-5b-403, Utah Code Annotated 1953
88          63A-5b-404, Utah Code Annotated 1953
89          63A-5b-406, Utah Code Annotated 1953
90          63A-5b-501, Utah Code Annotated 1953
91          63A-5b-502, Utah Code Annotated 1953
92          63A-5b-601, Utah Code Annotated 1953
93          63A-5b-602, Utah Code Annotated 1953
94          63A-5b-603, Utah Code Annotated 1953
95          63A-5b-604, Utah Code Annotated 1953
96          63A-5b-606, Utah Code Annotated 1953
97          63A-5b-701, Utah Code Annotated 1953
98          63A-5b-702, Utah Code Annotated 1953
99          63A-5b-703, Utah Code Annotated 1953
100          63A-5b-801, Utah Code Annotated 1953
101          63A-5b-1001, Utah Code Annotated 1953
102          63A-5b-1101, Utah Code Annotated 1953
103          63A-5b-1103, Utah Code Annotated 1953
104          63A-5b-1104, Utah Code Annotated 1953
105          63A-5b-1105, Utah Code Annotated 1953
106     RENUMBERS AND AMENDS:
107          63A-5b-301, (Renumbered from 63A-5-201, as renumbered and amended by Laws of
108     Utah 1993, Chapter 212)
109          63A-5b-302, (Renumbered from 63A-5-203, as renumbered and amended by Laws of

110     Utah 1993, Chapter 212)
111          63A-5b-405, (Renumbered from 63A-5-228, as enacted by Laws of Utah 2019, Chapter
112     468)
113          63A-5b-503, (Renumbered from 63A-5-211, as last amended by Laws of Utah 2011,
114     Chapter 303)
115          63A-5b-605, (Renumbered from 63A-5-208, as last amended by Laws of Utah 2016,
116     Chapter 348)
117          63A-5b-607, (Renumbered from 63A-5-205.5, as enacted by Laws of Utah 2018,
118     Chapter 319)
119          63A-5b-608, (Renumbered from 63A-5-207, as last amended by Laws of Utah 2000,
120     Chapter 231)
121          63A-5b-609, (Renumbered from 63A-5-209, as last amended by Laws of Utah 2019,
122     Chapter 468)
123          63A-5b-610, (Renumbered from 63A-5-219, as last amended by Laws of Utah 2002,
124     Fifth Special Session, Chapter 20)
125          63A-5b-802, (Renumbered from 63A-5-302, as last amended by Laws of Utah 2012,
126     Chapter 347)
127          63A-5b-803, (Renumbered from 63A-5-303, as enacted by Laws of Utah 1995, Chapter
128     113)
129          63A-5b-804, (Renumbered from 63A-5-304, as enacted by Laws of Utah 1995, Chapter
130     113)
131          63A-5b-805, (Renumbered from 63A-5-305, as last amended by Laws of Utah 2016,
132     Chapter 240)
133          63A-5b-806, (Renumbered from 63A-5-401, as last amended by Laws of Utah 2019,
134     Chapter 195)
135          63A-5b-901, (Renumbered from 63A-5a-102, as enacted by Laws of Utah 2019,
136     Chapter 195)

137          63A-5b-902, (Renumbered from 63A-5a-103, as enacted by Laws of Utah 2019,
138     Chapter 195)
139          63A-5b-903, (Renumbered from 63A-5a-104, as enacted by Laws of Utah 2019,
140     Chapter 195)
141          63A-5b-904, (Renumbered from 63A-5a-201, as enacted by Laws of Utah 2019,
142     Chapter 195)
143          63A-5b-905, (Renumbered from 63A-5a-202, as enacted by Laws of Utah 2019,
144     Chapter 195)
145          63A-5b-906, (Renumbered from 63A-5a-203, as enacted by Laws of Utah 2019,
146     Chapter 195)
147          63A-5b-907, (Renumbered from 63A-5a-204, as enacted by Laws of Utah 2019,
148     Chapter 195)
149          63A-5b-908, (Renumbered from 63A-5a-205, as enacted by Laws of Utah 2019,
150     Chapter 195)
151          63A-5b-909, (Renumbered from 63A-5a-206, as enacted by Laws of Utah 2019,
152     Chapter 195)
153          63A-5b-910, (Renumbered from 63A-5-215, as last amended by Laws of Utah 2018,
154     Chapter 404)
155          63A-5b-911, (Renumbered from 63A-5-224, as enacted by Laws of Utah 2009, Chapter
156     53)
157          63A-5b-912, (Renumbered from 63A-5-226, as enacted by Laws of Utah 2016, Chapter
158     298)
159          63A-5b-1002, (Renumbered from 63A-5-701, as last amended by Laws of Utah 2015,
160     Chapter 181)
161          63A-5b-1003, (Renumbered from 63A-5-603, as last amended by Laws of Utah 2016,
162     Chapter 322)
163          63A-5b-1102, (Renumbered from 63A-5-801, as last amended by Laws of Utah 2008,

164     Chapter 360 and renumbered and amended by Laws of Utah 2008, Chapter 382)
165          63A-5b-1106, (Renumbered from 63A-5-222, as last amended by Laws of Utah 2009,
166     Chapters 53 and 344)
167          63A-5b-1107, (Renumbered from 63A-5-225, as last amended by Laws of Utah 2019,
168     Chapter 246)
169     REPEALS:
170          63A-5-100, as enacted by Laws of Utah 2017, Chapter 355
171          63A-5-101, as last amended by Laws of Utah 2017, Chapter 355
172          63A-5-101.5, as enacted by Laws of Utah 2017, Chapter 355
173          63A-5-102, as last amended by Laws of Utah 2012, Chapter 199
174          63A-5-103, as last amended by Laws of Utah 2019, Chapter 195
175          63A-5-104, as last amended by Laws of Utah 2019, Chapters 468 and 482
176          63A-5-202, as enacted by Laws of Utah 1993, Chapter 212
177          63A-5-204, as last amended by Laws of Utah 2019, Chapters 195 and 255
178          63A-5-205, as last amended by Laws of Utah 2018, Chapter 319
179          63A-5-206, as last amended by Laws of Utah 2019, Chapter 195
180          63A-5-216, as renumbered and amended by Laws of Utah 1993, Chapter 212
181          63A-5-223, as enacted by Laws of Utah 2009, Chapter 217
182          63A-5-301, as last amended by Laws of Utah 2007, Chapter 12
183          63A-5-501, as renumbered and amended by Laws of Utah 2008, Chapter 382
184          63A-5-502, as last amended by Laws of Utah 2018, Chapter 148
185          63A-5-601, as renumbered and amended by Laws of Utah 2008, Chapters 334 and 382
186          63A-5-602, as last amended by Laws of Utah 2017, Chapter 181
187          63A-5a-101, as enacted by Laws of Utah 2019, Chapter 195
188     Utah Code Sections Affected by Coordination Clause:
189          63A-5-205.5, as enacted by Laws of Utah 2018, Chapter 319
190          63A-5b-607, Utah Code Annotated 1953

191     

192     Be it enacted by the Legislature of the state of Utah:
193          Section 1. Section 11-44-201 is amended to read:
194          11-44-201. Political subdivision responsibilities -- State responsibilities.
195          (1) A political subdivision may:
196          (a) enter into a performance efficiency agreement;
197          (b) develop and administer a performance efficiency program;
198          (c) analyze energy consumption by the political subdivision;
199          (d) designate a staff member who is responsible for a performance efficiency program;
200     and
201          (e) provide the governing body of the political subdivision with information regarding
202     the performance efficiency program.
203          (2) The following entities may provide information, technical resources, and other
204     assistance to a political subdivision acting under this chapter:
205          (a) the Utah Geological Survey, created in Section 79-3-201;
206          (b) the State Board of Education;
207          (c) the Division of Purchasing and General Services, created in Section 63A-2-101;
208     and
209          (d) the Division of Facilities Construction and Management, created in Section
210     [63A-5-201] 63A-5b-301.
211          Section 2. Section 11-59-302 is amended to read:
212          11-59-302. Number of board members -- Appointment -- Vacancies -- Chairs.
213          (1) The board shall consist of 11 members as provided in Subsection (2).
214          (2) (a) The president of the Senate shall appoint two members of the Senate to serve as
215     members of the board.
216          (b) The speaker of the House of Representatives shall appoint two members of the
217     House of Representatives to serve as members of the board.

218          (c) The governor shall appoint four individuals to serve as members of the board:
219          (i) one of whom shall be a member of the board of or employed by the Governor's
220     Office of Economic Development, created in Section 63N-1-201; and
221          (ii) one of whom shall be an employee of the Division of Facilities Construction and
222     Management, created in Section [63A-5-201] 63A-5b-301.
223          (d) The Salt Lake County mayor shall appoint one board member, who shall be an
224     elected Salt Lake County government official.
225          (e) The mayor of Draper, or a member of the Draper city council that the mayor
226     designates, shall serve as a board member.
227          (f) The commissioner of higher education, appointed under Section 53B-1-105, or the
228     commissioner's designee, shall serve as a board member.
229          (3) (a) (i) Subject to Subsection (3)(a)(ii), a vacancy on the board shall be filled in the
230     same manner under this section as the appointment of the member whose vacancy is being
231     filled.
232          (ii) If the mayor of Draper or commissioner of higher education is removed as a board
233     member under Subsection (5), the mayor of Draper or commissioner of higher education, as the
234     case may be, shall designate an individual to serve as a member of the board, as provided in
235     Subsection (2)(e) or (f), respectively.
236          (b) Each person appointed or designated to fill a vacancy shall serve the remaining
237     unexpired term of the member whose vacancy the person is filling.
238          (4) A member of the board appointed by the governor, president of the Senate, or
239     speaker of the House of Representatives serves at the pleasure of and may be removed and
240     replaced at any time, with or without cause, by the governor, president of the Senate, or speaker
241     of the House of Representatives, respectively.
242          (5) A member of the board may be removed by a vote of two-thirds of all members of
243     the board.
244          (6) (a) The governor shall appoint one board member to serve as cochair of the board.

245          (b) The president of the Senate and speaker of the House of Representatives shall
246     jointly appoint one legislative member of the board to serve as cochair of the board.
247          Section 3. Section 11-59-304 is amended to read:
248          11-59-304. Staff and other support services -- Cooperation from state and local
249     government entities.
250          (1) As used in this section:
251          (a) "Division" means the Division of Facilities Construction and Management, created
252     in Section [63A-5-201] 63A-5b-301.
253          (b) "Office" means the Governor's Office of Economic Development, created in
254     Section 63N-1-201.
255          (2) If and as requested by the board:
256          (a) the division shall:
257          (i) provide staff support to the board; and
258          (ii) make available to the board existing division resources and expertise to assist the
259     board in the development, marketing, and disposition of the point of the mountain state land;
260     and
261          (b) the office shall cooperate with and provide assistance to the board in the board's:
262          (i) formulation of a development plan for the point of the mountain state land; and
263          (ii) management and implementation of a development plan, including the marketing
264     of property and recruitment of businesses and others to locate on the point of the mountain
265     state land.
266          (3) A department, division, or other agency of the state and a political subdivision of
267     the state shall cooperate with the authority and the board to the fullest extent possible to
268     provide whatever support, information, or other assistance the board requests that is reasonably
269     necessary to help the authority fulfill its duties and responsibilities under this chapter.
270          Section 4. Section 11-59-501 is amended to read:
271          11-59-501. Dissolution of authority -- Restrictions -- Publishing notice of

272     dissolution -- Authority records -- Dissolution expenses.
273          (1) The authority may not be dissolved unless:
274          (a) the authority board first receives approval from the Legislative Management
275     Committee of the Legislature to dissolve the authority; and
276          (b) the authority has no outstanding bonded indebtedness, other unpaid loans,
277     indebtedness, or advances, and no legally binding contractual obligations with persons or
278     entities other than the state.
279          (2) To dissolve the authority, the board shall:
280          (a) obtain the approval of the Legislative Management Committee of the Legislature;
281     and
282          (b) adopt a resolution dissolving the authority, to become effective as provided in the
283     resolution.
284          (3) Upon the dissolution of the authority:
285          (a) the Governor's Office of Economic Development shall publish a notice of
286     dissolution:
287          (i) in a newspaper of general circulation in the county in which the dissolved authority
288     is located; and
289          (ii) as required in Section 45-1-101; and
290          (b) all title to property owned by the authority vests in the Division of Facilities
291     Construction and Management, created in Section [63A-5-201] 63A-5b-301, for the benefit of
292     the state.
293          (4) The board shall deposit all books, documents, records, papers, and seal of the
294     dissolved authority with the state auditor for safekeeping and reference.
295          (5) The authority shall pay all expenses of the deactivation and dissolution.
296          Section 5. Section 17B-2a-818.5 is amended to read:
297          17B-2a-818.5. Contracting powers of public transit districts -- Health insurance
298     coverage.

299          (1) As used in this section:
300          (a) "Aggregate" means the sum of all contracts, change orders, and modifications
301     related to a single project.
302          (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
303          (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
304     "operative" who:
305          (i) works at least 30 hours per calendar week; and
306          (ii) meets employer eligibility waiting requirements for health care insurance, which
307     may not exceed the first day of the calendar month following 60 days after the day on which
308     the individual is hired.
309          (d) "Health benefit plan" means the same as that term is defined in Section 31A-1-301.
310          (e) "Qualified health insurance coverage" means the same as that term is defined in
311     Section 26-40-115.
312          (f) "Subcontractor" means the same as that term is defined in Section [63A-5-208]
313     63A-5b-605.
314          (2) Except as provided in Subsection (3), the requirements of this section apply to:
315          (a) a contractor of a design or construction contract entered into by the public transit
316     district on or after July 1, 2009, if the prime contract is in an aggregate amount equal to or
317     greater than $2,000,000; and
318          (b) a subcontractor of a contractor of a design or construction contract entered into by
319     the public transit district on or after July 1, 2009, if the subcontract is in an aggregate amount
320     equal to or greater than $1,000,000.
321          (3) The requirements of this section do not apply to a contractor or subcontractor
322     described in Subsection (2) if:
323          (a) the application of this section jeopardizes the receipt of federal funds;
324          (b) the contract is a sole source contract; or
325          (c) the contract is an emergency procurement.

326          (4) A person that intentionally uses change orders, contract modifications, or multiple
327     contracts to circumvent the requirements of this section is guilty of an infraction.
328          (5) (a) A contractor subject to the requirements of this section shall demonstrate to the
329     public transit district that the contractor has and will maintain an offer of qualified health
330     insurance coverage for the contractor's employees and the employee's dependents during the
331     duration of the contract by submitting to the public transit district a written statement that:
332          (i) the contractor offers qualified health insurance coverage that complies with Section
333     26-40-115;
334          (ii) is from:
335          (A) an actuary selected by the contractor or the contractor's insurer; or
336          (B) an underwriter who is responsible for developing the employer group's premium
337     rates; and
338          (iii) was created within one year before the day on which the statement is submitted.
339          (b) A contractor that is subject to the requirements of this section shall:
340          (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
341     is subject to the requirements of this section shall obtain and maintain an offer of qualified
342     health insurance coverage for the subcontractor's employees and the employees' dependents
343     during the duration of the subcontract; and
344          (ii) obtain from a subcontractor that is subject to the requirements of this section a
345     written statement that:
346          (A) the subcontractor offers qualified health insurance coverage that complies with
347     Section 26-40-115;
348          (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, or an
349     underwriter who is responsible for developing the employer group's premium rates; and
350          (C) was created within one year before the day on which the contractor obtains the
351     statement.
352          (c) (i) (A) A contractor that fails to maintain an offer of qualified health insurance

353     coverage as described in Subsection (5)(a) during the duration of the contract is subject to
354     penalties in accordance with an ordinance adopted by the public transit district under
355     Subsection (6).
356          (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
357     and maintain an offer of qualified health insurance coverage described in Subsection (5)(b)(i).
358          (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
359     insurance coverage described in Subsection (5)(b)(i) during the duration of the subcontract is
360     subject to penalties in accordance with an ordinance adopted by the public transit district under
361     Subsection (6).
362          (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
363     an offer of qualified health insurance coverage described in Subsection (5)(a).
364          (6) The public transit district shall adopt ordinances:
365          (a) in coordination with:
366          (i) the Department of Environmental Quality in accordance with Section 19-1-206;
367          (ii) the Department of Natural Resources in accordance with Section 79-2-404;
368          (iii) the State Building Board in accordance with Section [63A-5-205.5] 63A-5b-607;
369          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403; and
370          (v) the Department of Transportation in accordance with Section 72-6-107.5; and
371          (b) that establish:
372          (i) the requirements and procedures a contractor and a subcontractor shall follow to
373     demonstrate compliance with this section, including:
374          (A) that a contractor or subcontractor's compliance with this section is subject to an
375     audit by the public transit district or the Office of the Legislative Auditor General;
376          (B) that a contractor that is subject to the requirements of this section shall obtain a
377     written statement described in Subsection (5)(a); and
378          (C) that a subcontractor that is subject to the requirements of this section shall obtain a
379     written statement described in Subsection (5)(b)(ii);

380          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
381     violates the provisions of this section, which may include:
382          (A) a three-month suspension of the contractor or subcontractor from entering into
383     future contracts with the public transit district upon the first violation;
384          (B) a six-month suspension of the contractor or subcontractor from entering into future
385     contracts with the public transit district upon the second violation;
386          (C) an action for debarment of the contractor or subcontractor in accordance with
387     Section 63G-6a-904 upon the third or subsequent violation; and
388          (D) monetary penalties which may not exceed 50% of the amount necessary to
389     purchase qualified health insurance coverage for employees and dependents of employees of
390     the contractor or subcontractor who were not offered qualified health insurance coverage
391     during the duration of the contract; and
392          (iii) a website on which the district shall post the commercially equivalent benchmark,
393     for the qualified health insurance coverage identified in Subsection (1)(e), that is provided by
394     the Department of Health, in accordance with Subsection 26-40-115(2).
395          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(b)(ii), a contractor
396     or subcontractor who intentionally violates the provisions of this section is liable to the
397     employee for health care costs that would have been covered by qualified health insurance
398     coverage.
399          (ii) An employer has an affirmative defense to a cause of action under Subsection
400     (7)(a)(i) if:
401          (A) the employer relied in good faith on a written statement described in Subsection
402     (5)(a) or (5)(b)(ii); or
403          (B) a department or division determines that compliance with this section is not
404     required under the provisions of Subsection (3).
405          (b) An employee has a private right of action only against the employee's employer to
406     enforce the provisions of this Subsection (7).

407          (8) Any penalties imposed and collected under this section shall be deposited into the
408     Medicaid Restricted Account created in Section 26-18-402.
409          (9) The failure of a contractor or subcontractor to provide qualified health insurance
410     coverage as required by this section:
411          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
412     or contractor under:
413          (i) Section 63G-6a-1602; or
414          (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
415          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
416     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
417     or construction.
418          Section 6. Section 19-1-206 is amended to read:
419          19-1-206. Contracting powers of department -- Health insurance coverage.
420          (1) As used in this section:
421          (a) "Aggregate" means the sum of all contracts, change orders, and modifications
422     related to a single project.
423          (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
424          (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
425     "operative" who:
426          (i) works at least 30 hours per calendar week; and
427          (ii) meets employer eligibility waiting requirements for health care insurance, which
428     may not exceed the first day of the calendar month following 60 days after the day on which
429     the individual is hired.
430          (d) "Health benefit plan" means the same as that term is defined in Section 31A-1-301.
431          (e) "Qualified health insurance coverage" means the same as that term is defined in
432     Section 26-40-115.
433          (f) "Subcontractor" means the same as that term is defined in Section [63A-5-208]

434     63A-5b-605.
435          (2) Except as provided in Subsection (3), the requirements of this section apply to:
436          (a) a contractor of a design or construction contract entered into by, or delegated to, the
437     department, or a division or board of the department, on or after July 1, 2009, if the prime
438     contract is in an aggregate amount equal to or greater than $2,000,000; and
439          (b) a subcontractor of a contractor of a design or construction contract entered into by,
440     or delegated to, the department, or a division or board of the department, on or after July 1,
441     2009, if the subcontract is in an aggregate amount equal to or greater than $1,000,000.
442          (3) This section does not apply to contracts entered into by the department or a division
443     or board of the department if:
444          (a) the application of this section jeopardizes the receipt of federal funds;
445          (b) the contract or agreement is between:
446          (i) the department or a division or board of the department; and
447          (ii) (A) another agency of the state;
448          (B) the federal government;
449          (C) another state;
450          (D) an interstate agency;
451          (E) a political subdivision of this state; or
452          (F) a political subdivision of another state;
453          (c) the executive director determines that applying the requirements of this section to a
454     particular contract interferes with the effective response to an immediate health and safety
455     threat from the environment; or
456          (d) the contract is:
457          (i) a sole source contract; or
458          (ii) an emergency procurement.
459          (4) A person that intentionally uses change orders, contract modifications, or multiple
460     contracts to circumvent the requirements of this section is guilty of an infraction.

461          (5) (a) A contractor subject to the requirements of this section shall demonstrate to the
462     executive director that the contractor has and will maintain an offer of qualified health
463     insurance coverage for the contractor's employees and the employees' dependents during the
464     duration of the contract by submitting to the executive director a written statement that:
465          (i) the contractor offers qualified health insurance coverage that complies with Section
466     26-40-115;
467          (ii) is from:
468          (A) an actuary selected by the contractor or the contractor's insurer; or
469          (B) an underwriter who is responsible for developing the employer group's premium
470     rates; and
471          (iii) was created within one year before the day on which the statement is submitted.
472          (b) A contractor that is subject to the requirements of this section shall:
473          (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
474     is subject to the requirements of this section shall obtain and maintain an offer of qualified
475     health insurance coverage for the subcontractor's employees and the employees' dependents
476     during the duration of the subcontract; and
477          (ii) obtain from a subcontractor that is subject to the requirements of this section a
478     written statement that:
479          (A) the subcontractor offers qualified health insurance coverage that complies with
480     Section 26-40-115;
481          (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, or an
482     underwriter who is responsible for developing the employer group's premium rates; and
483          (C) was created within one year before the day on which the contractor obtains the
484     statement.
485          (c) (i) (A) A contractor that fails to maintain an offer of qualified health insurance
486     coverage described in Subsection (5)(a) during the duration of the contract is subject to
487     penalties in accordance with administrative rules adopted by the department under Subsection

488     (6).
489          (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
490     and maintain an offer of qualified health insurance coverage described in Subsection (5)(b)(i).
491          (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
492     insurance coverage described in Subsection (5)(b) during the duration of the subcontract is
493     subject to penalties in accordance with administrative rules adopted by the department under
494     Subsection (6).
495          (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
496     an offer of qualified health insurance coverage described in Subsection (5)(a).
497          (6) The department shall adopt administrative rules:
498          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
499          (b) in coordination with:
500          (i) a public transit district in accordance with Section 17B-2a-818.5;
501          (ii) the Department of Natural Resources in accordance with Section 79-2-404;
502          (iii) the State Building Board in accordance with Section [63A-5-205.5] 63A-5b-607;
503          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403;
504          (v) the Department of Transportation in accordance with Section 72-6-107.5; and
505          (vi) the Legislature's Administrative Rules Review Committee; and
506          (c) that establish:
507          (i) the requirements and procedures a contractor and a subcontractor shall follow to
508     demonstrate compliance with this section, including:
509          (A) that a contractor or subcontractor's compliance with this section is subject to an
510     audit by the department or the Office of the Legislative Auditor General;
511          (B) that a contractor that is subject to the requirements of this section shall obtain a
512     written statement described in Subsection (5)(a); and
513          (C) that a subcontractor that is subject to the requirements of this section shall obtain a
514     written statement described in Subsection (5)(b)(ii);

515          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
516     violates the provisions of this section, which may include:
517          (A) a three-month suspension of the contractor or subcontractor from entering into
518     future contracts with the state upon the first violation;
519          (B) a six-month suspension of the contractor or subcontractor from entering into future
520     contracts with the state upon the second violation;
521          (C) an action for debarment of the contractor or subcontractor in accordance with
522     Section 63G-6a-904 upon the third or subsequent violation; and
523          (D) notwithstanding Section 19-1-303, monetary penalties which may not exceed 50%
524     of the amount necessary to purchase qualified health insurance coverage for an employee and
525     the dependents of an employee of the contractor or subcontractor who was not offered qualified
526     health insurance coverage during the duration of the contract; and
527          (iii) a website on which the department shall post the commercially equivalent
528     benchmark, for the qualified health insurance coverage identified in Subsection (1)(e), that is
529     provided by the Department of Health, in accordance with Subsection 26-40-115(2).
530          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
531     or subcontractor who intentionally violates the provisions of this section is liable to the
532     employee for health care costs that would have been covered by qualified health insurance
533     coverage.
534          (ii) An employer has an affirmative defense to a cause of action under Subsection
535     (7)(a)(i) if:
536          (A) the employer relied in good faith on a written statement described in Subsection
537     (5)(a) or (5)(b)(ii); or
538          (B) the department determines that compliance with this section is not required under
539     the provisions of Subsection (3).
540          (b) An employee has a private right of action only against the employee's employer to
541     enforce the provisions of this Subsection (7).

542          (8) Any penalties imposed and collected under this section shall be deposited into the
543     Medicaid Restricted Account created in Section 26-18-402.
544          (9) The failure of a contractor or subcontractor to provide qualified health insurance
545     coverage as required by this section:
546          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
547     or contractor under:
548          (i) Section 63G-6a-1602; or
549          (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
550          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
551     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
552     or construction.
553          Section 7. Section 26-18-402 is amended to read:
554          26-18-402. Medicaid Restricted Account.
555          (1) There is created a restricted account in the General Fund known as the Medicaid
556     Restricted Account.
557          (2) (a) Except as provided in Subsection (3), the following shall be deposited into the
558     Medicaid Restricted Account:
559          (i) any general funds appropriated to the department for the state plan for medical
560     assistance or for the Division of Health Care Financing that are not expended by the
561     department in the fiscal year for which the general funds were appropriated and which are not
562     otherwise designated as nonlapsing shall lapse into the Medicaid Restricted Account;
563          (ii) any unused state funds that are associated with the Medicaid program, as defined in
564     Section 26-18-2, from the Department of Workforce Services and the Department of Human
565     Services; and
566          (iii) any penalties imposed and collected under:
567          (A) Section 17B-2a-818.5;
568          (B) Section 19-1-206;

569          (C) Section [63A-5-205.5] 63A-5b-607;
570          (D) Section 63C-9-403;
571          (E) Section 72-6-107.5; or
572          (F) Section 79-2-404.
573          (b) The account shall earn interest and all interest earned shall be deposited into the
574     account.
575          (c) The Legislature may appropriate money in the restricted account to fund programs
576     that expand medical assistance coverage and private health insurance plans to low income
577     persons who have not traditionally been served by Medicaid, including the Utah Children's
578     Health Insurance Program created in Chapter 40, Utah Children's Health Insurance Act.
579          (3) For fiscal years 2008-09, 2009-10, 2010-11, 2011-12, and 2012-13 the following
580     funds are nonlapsing:
581          (a) any general funds appropriated to the department for the state plan for medical
582     assistance, or for the Division of Health Care Financing that are not expended by the
583     department in the fiscal year in which the general funds were appropriated; and
584          (b) funds described in Subsection (2)(a)(ii).
585          Section 8. Section 26-40-115 is amended to read:
586          26-40-115. State contractor -- Employee and dependent health benefit plan
587     coverage.
588          (1) For purposes of Sections 17B-2a-818.5, 19-1-206, [63A-5-205.5] 63A-5b-607,
589     63C-9-403, 72-6-107.5, and 79-2-404, "qualified health insurance coverage" means, at the time
590     the contract is entered into or renewed:
591          (a) a health benefit plan and employer contribution level with a combined actuarial
592     value at least actuarially equivalent to the combined actuarial value of the benchmark plan
593     determined by the program under Subsection 26-40-106(1)(a), and a contribution level at
594     which the employer pays at least 50% of the premium for the employee and the dependents of
595     the employee who reside or work in the state; or

596          (b) a federally qualified high deductible health plan that, at a minimum:
597          (i) has a deductible that is:
598          (A) the lowest deductible permitted for a federally qualified high deductible health
599     plan; or
600          (B) a deductible that is higher than the lowest deductible permitted for a federally
601     qualified high deductible health plan, but includes an employer contribution to a health savings
602     account in a dollar amount at least equal to the dollar amount difference between the lowest
603     deductible permitted for a federally qualified high deductible plan and the deductible for the
604     employer offered federally qualified high deductible plan;
605          (ii) has an out-of-pocket maximum that does not exceed three times the amount of the
606     annual deductible; and
607          (iii) provides that the employer pays 60% of the premium for the employee and the
608     dependents of the employee who work or reside in the state.
609          (2) The department shall:
610          (a) on or before July 1, 2016:
611          (i) determine the commercial equivalent of the benchmark plan described in Subsection
612     (1)(a); and
613          (ii) post the commercially equivalent benchmark plan described in Subsection (2)(a)(i)
614     on the department's website, noting the date posted; and
615          (b) update the posted commercially equivalent benchmark plan annually and at the
616     time of any change in the benchmark.
617          Section 9. Section 51-11-102 is amended to read:
618          51-11-102. Definitions.
619          As used in this chapter:
620          (1) "Division" means the Division of Facilities Construction and Management created
621     in Section [63A-5-201] 63A-5b-301.
622          (2) "Fund" means the Winter Sports Venue Grant Fund.

623          (3) "Improve" or "improvements" means the replacement or addition to infrastructure,
624     buildings, building components, or facility equipment.
625          (4) "Venue" means a facility:
626          (a) designed and currently approved under standards developed by a generally
627     recognized sports federation to host world-class level, international winter sports competitions;
628     and
629          (b) used for recreational, developmental, and competitive athletic training.
630          (5) "Venue operator" means a person who:
631          (a) (i) operates a venue; and
632          (ii) the venue is exempt from federal income taxation under Section 501(c)(3), Internal
633     Revenue Code; or
634          (b) owns a venue or operates a venue under contract with the public owner of the
635     venue.
636          Section 10. Section 53B-2-109 is amended to read:
637          53B-2-109. Notice to local government when constructing student housing.
638          (1) Each institution that intends to construct student housing on property owned by the
639     institution shall provide written notice of the intended construction, as provided in Subsection
640     (2), before any funds are committed to the construction, if any of the proposed student housing
641     buildings is within 300 feet of privately owned residential property.
642          (2) Each notice under Subsection (1) shall be provided to the legislative body and, if
643     applicable, the mayor of:
644          (a) the county in whose unincorporated area the privately owned residential property is
645     located; or
646          (b) the municipality in whose boundaries the privately owned residential property is
647     located.
648          (3) (a) (i) Within 21 days after receiving the notice required by Subsection (1), a county
649     or municipality entitled to the notice may submit a written request to the institution for a public

650     hearing on the proposed student housing construction.
651          (ii) Each county or municipality that submits a written request for a hearing under
652     Subsection (3)(a) shall deliver a copy of the request to the Division of Facilities Construction
653     and Management.
654          (b) If a county or municipality requests a hearing under Subsection (3)(a), the
655     legislative body of the affected county or municipality and the institution shall jointly hold a
656     public hearing to provide information to the public and to allow the institution and the county
657     or municipality to receive input from the public about the proposed student housing
658     construction.
659          (c) A public hearing held under Subsection (3)(a) satisfies the public hearing
660     requirement of Subsection [63A-5-206(13)(b)] 63A-5b-1104(2) for the same proposed student
661     housing construction.
662          Section 11. Section 53B-2a-101 is amended to read:
663          53B-2a-101. Definitions.
664          As used in this chapter:
665          (1) "Board of trustees" means the UTech Board of Trustees.
666          (2) "Capital [developments] development" means the same as [that term is] capital
667     development project, as defined in Section [63A-5-104] 63A-5b-401.
668          (3) "Commissioner of technical education" means the UTech commissioner of
669     technical education.
670          (4) "Competency-based" means mastery of subject matter or skill level, as
671     demonstrated through business and industry approved standards and assessments, achieved
672     through participation in a hands-on learning environment, and which is tied to observable,
673     measurable performance objectives.
674          (5) "Dedicated project" means a capital development project for which state funds from
675     the Technical Colleges Capital Projects Fund created in Section 53B-2a-118 are requested or
676     used.

677          (6) "Nondedicated project" means a capital development project for which state funds
678     from a source other than the Technical Colleges Capital Projects Fund created in Section
679     53B-2a-118 are requested or used.
680          (7) "Open-entry, open-exit" means:
681          (a) a method of instructional delivery that allows for flexible scheduling in response to
682     individual student needs or requirements and demonstrated competency when knowledge and
683     skills have been mastered;
684          (b) students have the flexibility to begin or end study at any time, progress through
685     course material at their own pace, and demonstrate competency when knowledge and skills
686     have been mastered; and
687          (c) if competency is demonstrated in a program of study, a credential, certificate, or
688     diploma may be awarded.
689          (8) "State funds" means the same as that term is defined in Section [63A-5-104]
690     63A-5b-401.
691          (9) "UTech" means the Utah System of Technical Colleges described in Section
692     53B-1-102.
693          Section 12. Section 53B-2a-117 is amended to read:
694          53B-2a-117. Legislative approval -- Capital development projects --
695     Prioritization.
696          (1) As used in this section:
697          (a) "Consumer Price Index" means the Consumer Price Index for All Urban Consumers
698     as published by the Bureau of Labor Statistics of the United States Department of Labor.
699          (b) "Fund" means the Technical Colleges Capital Projects Fund created in Section
700     53B-2a-118.
701          (2) In accordance with this section, a technical college is required to receive legislative
702     approval in an appropriations act for a dedicated project or a nondedicated project.
703          (3) In accordance with Section 53B-2a-112, a technical college shall submit to the

704     board of trustees a proposal for a funding request for each dedicated project or nondedicated
705     project for which the technical college seeks legislative approval.
706          (4) The board of trustees shall:
707          (a) review each proposal submitted under Subsection (3) to ensure that the proposal
708     complies with Section 53B-2a-112;
709          (b) based on the results of the board of trustees' review under Subsection (4)(a), create:
710          (i) a list of approved dedicated projects, prioritized in accordance with Subsection (6);
711     and
712          (ii) a list of approved nondedicated projects, prioritized in accordance with Subsection
713     (6); and
714          (c) submit the lists described in Subsection (4)(b) to:
715          (i) the governor;
716          (ii) the Infrastructure and General Government Appropriations Subcommittee;
717          (iii) the Higher Education Appropriations Subcommittee; and
718          (iv) the State Building Board for the State Building Board's:
719          (A) recommendation, for the list described in Subsection (4)(b)(i); or
720          (B) recommendation and prioritization, for the list described in Subsection (4)(b)(ii).
721          (5) A dedicated project:
722          (a) is subject to the State Building Board's recommendation as described in Section
723     [63A-5-104] 63A-5b-403; and
724          (b) is not subject to the State Building Board's prioritization as described in Section
725     [63A-5-104] 63A-5b-403.
726          (6) (a) Subject to Subsection (7), the board of trustees shall prioritize funding requests
727     for capital development projects described in this section based on:
728          (i) growth and capacity;
729          (ii) effectiveness and support of critical programs;
730          (iii) cost effectiveness;

731          (iv) building deficiencies and life safety concerns; and
732          (v) alternative funding sources.
733          (b) On or before August 1, 2019, the board of trustees shall establish:
734          (i) how the board of trustees will measure each factor described in Subsection (6)(a);
735     and
736          (ii) procedures for prioritizing funding requests for capital development projects
737     described in this section.
738          (7) (a) Subject to Subsection (7)(b), and in accordance with Subsection (6), the board
739     of trustees may annually prioritize:
740          (i) up to three nondedicated projects if the ongoing appropriation to the fund is less
741     than $7,000,000;
742          (ii) up to two nondedicated projects if the ongoing appropriation to the fund is at least
743     $7,000,000 but less than $14,000,000; or
744          (iii) one nondedicated project if the ongoing appropriation to the fund is at least
745     $14,000,000.
746          (b) For each calendar year beginning on or after January 1, 2020, the dollar amounts
747     described in Subsection (7)(a) shall be adjusted by an amount equal to the percentage
748     difference between:
749          (i) the Consumer Price Index for the 2019 calendar year; and
750          (ii) the Consumer Price Index for the previous calendar year.
751          (8) (a) A technical college may request operations and maintenance funds for a capital
752     development project approved under this section.
753          (b) The Legislature shall consider a technical college's request described in Subsection
754     (8)(a).
755          Section 13. Section 53B-22-201 is amended to read:
756          53B-22-201. Definitions.
757          As used in this part:

758          (1) "Capital [developments] development" means the same as [that term is] capital
759     development project, as defined in Section [63A-5-104] 63A-5b-401.
760          (2) "Consumer Price Index" means the Consumer Price Index for All Urban
761     Consumers as published by the Bureau of Labor Statistics of the United States Department of
762     Labor.
763          (3) "Dedicated project" means a capital development project for which state funds from
764     an institution's allocation are requested or used.
765          (4) "Fund" means the Higher Education Capital Projects Fund created in Section
766     53B-22-202.
767          (5) "Institution" means a college or university that is part of the Utah System of Higher
768     Education described in Section 53B-1-102.
769          (6) "Institution's allocation" means the total amount of money in the fund that an
770     institution has been allocated in accordance with Section 53B-22-203.
771          (7) "Nondedicated project" means a capital development project for which state funds
772     from a source other than an institution's allocation are requested or used.
773          (8) "State funds" means the same as that term is defined in Section [63A-5-104]
774     63A-5b-401.
775          Section 14. Section 53B-22-204 is amended to read:
776          53B-22-204. Funding request for capital development project -- Legislative
777     approval -- Board prioritization, approval, and review.
778          (1) In accordance with this section, an institution is required to receive legislative
779     approval in an appropriations act for a dedicated project or a nondedicated project.
780          (2) An institution shall submit to the board a proposal for a funding request for each
781     dedicated project or nondedicated project for which the institution seeks legislative approval.
782          (3) The board shall:
783          (a) review each proposal submitted under Subsection (2) to ensure the proposal:
784          (i) is cost effective and an efficient use of resources;

785          (ii) is consistent with the institution's mission and master plan; and
786          (iii) fulfills a critical institutional facility need;
787          (b) based on the results of the board's review under Subsection (3)(a), create:
788          (i) a list of approved dedicated projects; and
789          (ii) a list of approved nondedicated projects, prioritized in accordance with Subsection
790     (5); and
791          (c) submit the lists described in Subsection (3)(b) to:
792          (i) the governor;
793          (ii) the Infrastructure and General Government Appropriations Subcommittee;
794          (iii) the Higher Education Appropriations Subcommittee; and
795          (iv) the State Building Board for the State Building Board's:
796          (A) recommendation, for the list described in Subsection (3)(b)(i); or
797          (B) recommendation and prioritization, for the list described in Subsection (3)(b)(ii).
798          (4) A dedicated project:
799          (a) is subject to the State Building Board's recommendation as described in Section
800     [63A-5-104] 63A-5b-403; and
801          (b) is not subject to the State Building Board's prioritization as described in Section
802     [63A-5-104] 63A-5b-403.
803          (5) (a) Subject to Subsection (6), the board shall prioritize institution requests for
804     funding for nondedicated projects based on:
805          (i) capital facility need;
806          (ii) utilization of facilities;
807          (iii) maintenance and condition of facilities; and
808          (iv) any other factor determined by the board.
809          (b) On or before August 1, 2019, the board shall establish how the board will prioritize
810     institution requests for funding for nondedicated projects, including:
811          (i) how the board will measure each factor described in Subsection (5)(a); and

812          (ii) procedures for prioritizing requests.
813          (6) (a) Subject to Subsection (6)(b), and in accordance with Subsection (5), the board
814     may annually prioritize:
815          (i) up to three nondedicated projects if the ongoing appropriation to the fund is less
816     than $50,000,000;
817          (ii) up to two nondedicated projects if the ongoing appropriation to the fund is at least
818     $50,000,000 but less than $100,000,000; or
819          (iii) one nondedicated project if the ongoing appropriation to the fund is at least
820     $100,000,000.
821          (b) For each calendar year beginning on or after January 1, 2020, the dollar amounts
822     described in Subsection (6)(a) shall be adjusted by an amount equal to the percentage
823     difference between:
824          (i) the Consumer Price Index for the 2019 calendar year; and
825          (ii) the Consumer Price Index for the previous calendar year.
826          (7) (a) An institution may request operations and maintenance funds for a capital
827     development project approved under this section.
828          (b) The Legislature shall consider an institution's request described in Subsection
829     (7)(a).
830          (8) After an institution completes a capital development project described in this
831     section, the board shall review the capital development project, including the costs and design
832     of the capital development project.
833          Section 15. Section 63A-1-112 is amended to read:
834          63A-1-112. Certificates of participation -- Legislative approval required --
835     Definition -- Exception.
836          (1) (a) Certificates of participation for either capital facilities or capital improvements
837     may not be issued by the department, its subdivisions, or any other state agency after July 1,
838     1985, without prior legislative approval.

839          (b) Nothing in this section affects the rights and obligations surrounding certificates of
840     participation that were issued prior to July 1, 1985.
841          (2) (a) As used in this section, "certificate of participation" means an instrument that
842     acts as evidence of the certificate holder's undivided interest in property being lease-purchased,
843     the payment on which is subject to appropriation by the Legislature.
844          (b) (i) As used in this Subsection (2)(b), "performance efficiency agreement" means the
845     same as that term is defined in Section [63A-5-701] 63A-5b-1001.
846          (ii) "Certificate of participation" does not include a performance efficiency agreement.
847          Section 16. Section 63A-5b-101 is enacted to read:
848     
CHAPTER 5b. ADMINISTRATION OF STATE FACILITIES

849     
Part 1. General Provisions

850          63A-5b-101. Title.
851          This chapter is known as "Administration of State Facilities."
852          Section 17. Section 63A-5b-102 is enacted to read:
853          63A-5b-102. Definitions.
854          As used in this chapter:
855          (1) "Board" means the state building board created in Section 63A-5b-201.
856          (2) "Board of Regents" means the State Board of Regents established in Section
857     53B-1-103.
858          (3) "Capitol hill facilities" means the same as that term is defined in Section
859     63C-9-102.
860          (4) "Capitol hill grounds" means the same as that term is defined in Section 63C-9-102.
861          (5) "Compliance agency" means the same as that term is defined in Section 15A-1-202.
862          (6) "Director" means the division director, appointed under Section 63A-5b-302.
863          (7) "Division" means the Division of Facilities Construction and Management created
864     in Section 63A-5b-301.
865          (8) "Institution of higher education" means an institution listed in Subsection

866     53B-2-101(1).
867          (9) "Trust lands administration" means the School and Institutional Trust Lands
868     Administration established in Section 53C-1-201.
869          (10) "UTech board" means the UTech Board of Trustees created in Section
870     53B-2a-103.
871          Section 18. Section 63A-5b-201 is enacted to read:
872     
Part 2. State Building Board

873          63A-5b-201. Creation of state building board -- Composition -- Appointment --
874     Per diem and expenses -- Board officers.
875          (1) There is created within the department the state building board.
876          (2) (a) The board is composed of eight members, seven of whom are voting members
877     appointed by the governor.
878          (b) The executive director of the Governor's Office of Management and Budget, or the
879     executive director's designee, is a nonvoting member of the board.
880          (3) The term of a voting board member is four years, except that the governor shall, at
881     the time of a member's appointment or reappointment, adjust the length of the member's term,
882     as necessary, to ensure that approximately half of the board is appointed every two years.
883          (4) When a vacancy occurs in the membership of the voting members of the board for
884     any reason, the governor shall appoint a replacement for the unexpired term of the member
885     who created the vacancy.
886          (5) (a) A voting board member shall hold office until a successor is appointed and
887     qualified.
888          (b) A voting board member may not serve more than two consecutive terms.
889          (6) The governor shall designate one board member as the board chair.
890          (7) A member of the board may not receive compensation or benefits for the member's
891     service on the board, but may receive per diem and travel expenses in accordance with:
892          (a) Sections 63A-3-106 and 63A-3-107; and

893          (b) rules made by the Division of Finance in accordance with Sections 63A-3-106 and
894     63A-3-107.
895          (8) A member of the board is not required to post a bond for the performance of the
896     member's official duties.
897          (9) The executive director or the executive director's designee shall serve as secretary
898     to the board and shall:
899          (a) manage scheduling for the board and the board's calendar;
900          (b) establish and manage the agenda for meetings of the board;
901          (c) keep the minutes of board meetings;
902          (d) assist the board in the board's obligation to comply with Title 52, Chapter 4, Utah
903     Open and Public Meetings Act;
904          (e) (i) assist the board in the board's obligation to comply with Title 63G, Chapter 2,
905     Government Records Access and Management Act; and
906          (ii) act as the board's records officer, as defined in Section 63G-2-103; and
907          (f) assist the board in the board's obligation to comply with Title 63G, Chapter 3, Utah
908     Administrative Rulemaking Act.
909          Section 19. Section 63A-5b-202 is enacted to read:
910          63A-5b-202. State building Board powers and duties.
911          (1) The board may, in accordance with Title 63G, Chapter 3, Utah Administrative
912     Rulemaking Act, make rules that are necessary to discharge the board's duties.
913          (2) The board shall:
914          (a) review and approve agency master plans of structures built or contemplated;
915          (b) submit capital development recommendations and priorities to the Legislature as
916     set forth in Section 63A-5b-402;
917          (c) submit recommendations for dedicated projects and prioritize nondedicated projects
918     as provided in Section 63A-5b-403;
919          (d) make a finding that the requirements of Section 53B-2a-112 are met before the

920     board may consider a funding request from the UTech board pertaining to new capital facilities
921     and land purchases; and
922          (e) fulfill the board's responsibilities under:
923          (i) Section 63A-5b-802, relating to the approval of leases with terms of more than 10
924     years;
925          (ii) Section 63A-5b-907, relating to vacant division-owned property; and
926          (iii) Section 63A-5b-1003, relating to the approval of loans from the state facility
927     energy efficiency fund.
928          (3) The board may:
929          (a) authorize capital development projects without Legislative approval only as
930     authorized in Section 63A-5b-404; and
931          (b) make rules relating to the categorical delegation of projects as provided in
932     Subsection 63A-5b-604(4).
933          Section 20. Section 63A-5b-203 is enacted to read:
934          63A-5b-203. Meetings of state building board -- Rules of procedure -- Quorum.
935          (1) The board shall meet quarterly and at other times at the call of the executive
936     director or at the request of the board chair.
937          (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
938     board shall adopt rules of procedure for the conduct of the board's meetings.
939          (3) Four members of the board constitute a quorum for the transaction of business.
940          (4) The board shall conduct all meetings of the board in accordance with Title 52,
941     Chapter 4, Open and Public Meetings Act.
942          Section 21. Section 63A-5b-301, which is renumbered from Section 63A-5-201 is
943     renumbered and amended to read:
944     
Part 3. Division of Facilities Construction and Management

945          [63A-5-201].      63A-5b-301. Creation -- Administration.
946          There is created within the department the Division of Facilities Construction and

947     Management, to be administered by a director.
948          Section 22. Section 63A-5b-302, which is renumbered from Section 63A-5-203 is
949     renumbered and amended to read:
950          [63A-5-203].      63A-5b-302. Director of division -- Appointment.
951          The executive director shall appoint the director of the division with the approval of the
952     governor.
953          Section 23. Section 63A-5b-303 is enacted to read:
954          63A-5b-303. Duties and authority of division.
955          (1) (a) The division shall:
956          (i) subject to Subsection (1)(b), supervise and control the allocation of space, in
957     accordance with legislative directive through annual appropriations acts, other legislation, or
958     statute, to agencies in all buildings or space owned, leased, or rented by or to the state, except
959     as provided in Subsection (3) or as otherwise provided by statute;
960          (ii) assure the efficient use of all building space under the division's supervision and
961     control;
962          (iii) acquire title to all real property, buildings, fixtures, and appurtenances for use by
963     the state or an agency, as authorized by the Legislature through an appropriation act, other
964     legislation, or statute, subject to Subsection (1)(c);
965          (iv) except as otherwise provided by statute, hold title to all real property, buildings,
966     fixtures, and appurtenances owned by the state or an agency;
967          (v) collect and maintain all deeds, abstracts of title, and all other documents evidencing
968     title to or an interest in property belonging to the state or of the state's departments, except
969     institutions of higher education and the trust lands administration;
970          (vi) (A) periodically conduct a market analysis of proposed rates and fees; and
971          (B) include in a market analysis a comparison of the division's rates and fees with the
972     rates and fees of other public or private sector providers of comparable services, if rates and
973     fees for comparable services are reasonably available;

974          (vii) implement the state building energy efficiency program under Section
975     63A-5b-1002;
976          (viii) convey, lease, or dispose of the real property, water rights, or water shares
977     associated with the Utah State Developmental Center if directed to do so by the Utah State
978     Developmental Center board, as provided in Subsection 62A-5-206.6(2); and
979          (ix) take all other action that the division is required to do under this chapter or other
980     applicable statute.
981          (b) In making an allocation of space under Subsection (1)(a)(i), the division shall
982     conduct one or more studies to determine the actual needs of each agency.
983          (c) The division may, without legislative approval, acquire title to real property for use
984     by the state or an agency if the acquisition cost does not exceed $250,000.
985          (2) The division may:
986          (a) sue and be sued;
987          (b) as authorized by the Legislature, buy, lease, or otherwise acquire, by exchange or
988     otherwise, and hold real or personal property necessary for the discharge of the division's
989     duties; and
990          (c) take all other action necessary for carrying out the purposes of this chapter.
991          (3) (a) The division may not supervise or control the allocation of space for an
992     institution of higher education or an entity in the public education system.
993          (b) The supervision and control of the legislative area is reserved to the Legislature.
994          (c) The supervision and control of the trial courts area is reserved to the judiciary.
995          (d) The supervision and control of capitol hill facilities and capitol hill grounds is
996     reserved to the State Capitol Preservation Board.
997          (4) Before the division charges a rate, fee, or other amount for a service provided by
998     the division's internal service fund to an executive branch agency, or to a service subscriber
999     other than an executive branch agency, the division shall:
1000          (a) submit an analysis of the proposed rate, fee, or other amount to the rate committee

1001     created in Section 63A-1-114; and
1002          (b) obtain the approval of the Legislature as required by Section 63J-1-410.
1003          Section 24. Section 63A-5b-304 is enacted to read:
1004          63A-5b-304. Agencies authorized to hold title.
1005          Notwithstanding Section 63A-5b-303, an agency may hold title to real property that the
1006     agency occupies for a purpose other than the agency's administrative offices, if the agency is:
1007          (1) the Department of Transportation;
1008          (2) the Department of Natural Resources;
1009          (3) the Department of Workforce Services;
1010          (4) the Division of Forestry, Fire, and State Lands;
1011          (5) the Utah National Guard;
1012          (6) an area vocational center or other institution administered by the State Board of
1013     Education;
1014          (7) the trust lands administration; and
1015          (8) an institution of higher education.
1016          Section 25. Section 63A-5b-305 is enacted to read:
1017          63A-5b-305. Duties and authority of director.
1018          (1) The director shall:
1019          (a) administer the division's duties and responsibilities;
1020          (b) report all property acquired by the state, except property acquired by an institution
1021     of higher education or the trust lands administration, to the director of the Division of Finance
1022     for inclusion in the state's financial records;
1023          (c) after receiving the notice required under Subsection 10-2-419(3)(d), file a written
1024     protest at or before the public hearing under Subsection 10-2-419(2)(b), if:
1025          (i) it is in the best interest of the state to protest the boundary adjustment; or
1026          (ii) the Legislature instructs the director to protest the boundary adjustment; and
1027          (d) take all other action that the director is required to take under this chapter or other

1028     applicable statute.
1029          (2) The director may:
1030          (a) create forms and make policies necessary for the division or director to perform the
1031     division or director's duties;
1032          (b) (i) hire or otherwise procure assistance and service, professional, skilled, or
1033     otherwise, necessary to carry out the director's duties under this chapter; and
1034          (ii) expend funds provided for the purpose described in Subsection (2)(b)(i) through
1035     annual operation budget appropriations or from other nonlapsing project funds;
1036          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1037     make rules necessary for the division or director to perform the division or director's duties;
1038     and
1039          (d) take all other action necessary for carrying out the purposes of this chapter.
1040          Section 26. Section 63A-5b-401 is enacted to read:
1041     
Part 4. Development of Capital Facilities

1042          63A-5b-401. Definitions.
1043          As used in this part:
1044          (1) (a) "Capital development project" means:
1045          (i) a remodeling or site or utility improvement project with a total cost of $3,500,000 or
1046     more;
1047          (ii) a new facility with a construction cost of $500,000 or more; or
1048          (iii) a purchase of real property if an appropriation is requested and made for the
1049     purchase.
1050          (b) "Capital development project" does not include a capital improvement project.
1051          (2) "Capital improvement project" means:
1052          (a) a remodeling, alteration, replacement, repair, or site or utility improvement project:
1053          (i) with a total cost of less than $3,500,000; or
1054          (ii) (A) with a total cost of $3,500,000 or more; and

1055          (B) that will be paid for with funds that are not state funds;
1056          (b) a utility infrastructure improvement project that:
1057          (i) has a total cost of less than $7,000,000;
1058          (ii) consists of two or more projects that, if done separately, would each cost less than
1059     $3,500,000; and
1060          (iii) the division determines is more cost effective or feasible to be completed as a
1061     single project; or
1062          (c) a new facility with a total construction cost of less than $500,000.
1063          (3) (a) "New facility" means a new building constructed on state property regardless of
1064     the source of the funding that pays for construction of the new building.
1065          (b) "New facility" includes:
1066          (i) an addition to an existing building; and
1067          (ii) the enclosure of space that was not previously fully enclosed.
1068          (c) "New facility" does not include:
1069          (i) the replacement of state-owned space that is demolished or that is otherwise
1070     removed from state use, if the total construction cost of the replacement space is less than
1071     $3,500,000; or
1072          (ii) the construction of facilities that do not fully enclose a space.
1073          (4) "Replacement cost" means, as determined by the Division of Risk Management:
1074          (a) for state facilities, excluding auxiliary facilities as defined by the director, the cost
1075     to replace those facilities; and
1076          (b) for infrastructure, as defined by the director, the cost to replace the infrastructure.
1077          (5) "State funds" means public money appropriated by the Legislature.
1078          Section 27. Section 63A-5b-402 is enacted to read:
1079          63A-5b-402. Capital development process -- Approval requirements.
1080          (1) Except as provided in Section 63A-5b-404, the board shall, on behalf of all
1081     agencies, submit capital development project recommendations and priorities to the Legislature

1082     for approval and prioritization.
1083          (2) An agency that requests an appropriation for a capital development project shall
1084     submit to the division for transmission to the board a capital development project request and a
1085     feasibility study relating to the capital development project.
1086          (3) (a) The division shall, in consultation with the board and in accordance with Title
1087     63G, Chapter 3, Utah Administrative Rulemaking Act, make rules that establish standards and
1088     requirements for a capital development project request and feasibility study.
1089          (b) The rules shall include:
1090          (i) a deadline by which an agency is required to submit a capital development project
1091     request;
1092          (ii) conditions under which an agency may modify the agency's capital development
1093     project request after the agency submits the request, and requirements applicable to a
1094     modification; and
1095          (iii) requirements for the contents of a feasibility study, including:
1096          (A) the need for the capital development project;
1097          (B) the appropriateness of the scope of the capital development project;
1098          (C) any private funding for the capital development project; and
1099          (D) the economic and community impacts of the capital development project.
1100          (4) The division shall verify the completion and accuracy of a feasibility study that an
1101     agency submits under Subsection (2) prior to transmitting the feasibility study to the board.
1102          Section 28. Section 63A-5b-403 is enacted to read:
1103          63A-5b-403. Institutions of higher education -- Capital development projects --
1104     Dedicated and nondedicated projects -- Recommendations and prioritization.
1105          (1) As used in this section:
1106          (a) "Dedicated project" has the same meaning as that term is defined in:
1107          (i) Section 53B-2a-101, for a capital development project under Title 53B, Chapter 2a,
1108     Utah System of Technical Colleges; or

1109          (ii) Section 53B-22-201, for a capital development project under Title 53B, Chapter 22,
1110     Higher Education Capital Projects.
1111          (b) "Nondedicated project" has the same meaning as that term is defined in:
1112          (i) Section 53B-2a-101, for a capital development project under Title 53B, Chapter 2a,
1113     Utah System of Technical Colleges; or
1114          (ii) Section 53B-22-201, for a capital development project under Title 53B, Chapter 22,
1115     Higher Education Capital Projects.
1116          (2) (a) The board shall submit recommendations to the Legislature in accordance with:
1117          (i) Section 53B-2a-117, for a dedicated project under Title 53B, Chapter 2a, Utah
1118     System of Technical Colleges; or
1119          (ii) Section 53B-22-204, for a dedicated project under Title 53B, Chapter 22, Higher
1120     Education Capital Projects.
1121          (b) A dedicated project is not subject to prioritization by the board.
1122          (3) (a) The board shall prioritize nondedicated projects in accordance with:
1123          (i) Section 63A-5b-402; and
1124          (ii) (A) Section 53B-2a-117, for a nondedicated project under Title 53B, Chapter 2a,
1125     Utah System of Technical Colleges; or
1126          (B) Section 53B-22-204, for a nondedicated project under Title 53B, Chapter 22,
1127     Higher Education Capital Projects.
1128          (b) In the board's scoring process for prioritizing nondedicated projects, the board shall
1129     give more weight to a request that is designated as a higher priority by the UTech board or
1130     Board of Regents than a request that is designated as a lower priority by the UTech board or
1131     Board of Regents only for determining the order of prioritization among requests submitted by
1132     the UTech board or Board of Regents, respectively.
1133          (4) The board shall require that an institution of higher education that submits a request
1134     for a capital development project address whether and how, as a result of the project, the
1135     institution of higher education will:

1136          (a) offer courses or other resources that will help meet demand for jobs, training, and
1137     employment in the current market and the projected market for the next five years;
1138          (b) respond to individual skilled and technical job demand over the next three, five,
1139     and 10 years;
1140          (c) respond to industry demands for trained workers;
1141          (d) help meet commitments made by the Governor's Office of Economic Development,
1142     including relating to training and incentives;
1143          (e) respond to changing needs in the economy; and
1144          (f) respond to demands for online or in-class instruction, based on demographics.
1145          (5) The division shall:
1146          (a) (i) assist institutions of higher education in providing the information required by
1147     Subsection (3); and
1148          (ii) verify the completion and accuracy of the information submitted by an institution
1149     of higher education under Subsection (3);
1150          (b) assist the UTech board to fulfill the requirements of Section 53B-2a-112 in
1151     connection with the finding that the board is required to make under Subsection
1152     53B-2a-112(5)(b); and
1153          (c) assist the Board of Regents in submitting a list of dedicated projects to the board for
1154     approval and nondedicated projects to the board for recommendation and prioritization
1155     pursuant to Section 53B-22-204.
1156          Section 29. Section 63A-5b-404 is enacted to read:
1157          63A-5b-404. Exceptions to requirement of legislative approval for capital
1158     development projects.
1159          (1) (a) Except as provided in this section, a capital development project may not be
1160     constructed on state property without legislative approval.
1161          (b) The board may authorize a capital development project on state property without
1162     legislative approval only as provided in this section.

1163          (2) (a) Legislative approval is not required for a capital development project that
1164     consists of the design or construction of a new facility if:
1165          (i) the board determines that the requesting agency has provided adequate assurance
1166     that state funds will not be used for the design or construction of the facility;
1167          (ii) the agency provides to the board a written document, signed by the head of the
1168     agency:
1169          (A) stating that funding or a revenue stream is in place, or will be in place before the
1170     project is completed, to ensure that increased state funding will not be required to cover the
1171     cost of operations and maintenance for the resulting facility or for immediate or future capital
1172     improvements; and
1173          (B) detailing the source of the funding that will be used for the cost of operations and
1174     maintenance and for immediate and future capital improvements to the resulting facility; and
1175          (iii) the board determines that the use of the state property:
1176          (A) is appropriate and consistent with the master plan for the property; and
1177          (B) will not create an adverse impact on the state.
1178          (b) For a facility constructed without legislative approval under Subsection (2)(a), an
1179     agency may not request:
1180          (i) increased state funds for operations and maintenance; or
1181          (ii) increased state capital improvement funding.
1182          (3) Legislative approval is not required for:
1183          (a) a facility:
1184          (i) to be built with funds other than state funds and owned by an entity other than a
1185     state entity; and
1186          (ii) that is within a research park area at the University of Utah or Utah State
1187     University;
1188          (b) a facility to be built at This is the Place State Park by the This is the Place
1189     Foundation with funds of the This is the Place Foundation or with donated services or materials

1190     and that may include grant money from the state;
1191          (c) a project that:
1192          (i) is funded by the Uintah Basin Revitalization Fund or the Navajo Revitalization
1193     Fund; and
1194          (ii) does not provide a new facility for an agency or institution of higher education; or
1195          (d) a project on school and institutional trust lands that:
1196          (i) is funded by the trust lands administration from the Land Grant Management Fund;
1197     and
1198          (ii) does not fund construction of a new facility for an agency or institution of higher
1199     education.
1200          (4) (a) Legislative approval is not required for a capital development project to be built
1201     for the Department of Transportation resulting from:
1202          (i) an exchange of real property under Section 72-5-111; or
1203          (ii) a sale or exchange of real property from a maintenance facility if the proceeds from
1204     the sale of the real property are used for, or the real property is exchanged for:
1205          (A) real property for another maintenance facility; or
1206          (B) another maintenance facility, including improvements for a maintenance facility.
1207          (b) If the Department of Transportation approves a sale or exchange under Subsection
1208     (4)(a) for a capital development project subject to the board's approval, the Department of
1209     Transportation shall notify the president of the Senate, the speaker of the House of
1210     Representatives, and the cochairs of the Infrastructure and General Government Appropriations
1211     Subcommittee of the Legislature's Joint Appropriations Committee about any new facilities to
1212     be built or improved.
1213          Section 30. Section 63A-5b-405, which is renumbered from Section 63A-5-228 is
1214     renumbered and amended to read:
1215          [63A-5-228].      63A-5b-405. Capital improvement projects.
1216          [(1) As used in this section:]

1217          [(a) "Building board" means the State Building Board created under Section
1218     63A-5-101.]
1219          [(b) "Capital improvement" means:]
1220          [(i) a remodeling, alteration, replacement, or repair project with a total cost of less than
1221     $3,500,000;]
1222          [(ii) a site or utility improvement with a total cost of less than $3,500,000;]
1223          [(iii) a utility infrastructure improvement project that:]
1224          [(A) has a total cost of less than $7,000,000;]
1225          [(B) consists of two or more projects that, if done separately, would each cost less than
1226     $3,500,000; and]
1227          [(C) the division determines is more cost effective or feasible to be completed as a
1228     single project; or]
1229          [(iv) a new facility with a total construction cost of less than $500,000.]
1230          [(c) "Capital improvements list" means the list that the division is required to submit to
1231     the Legislature under Subsection (2)(a).]
1232          [(2) (a) (i)] (1) (a) On or before January 15 of each year, the division shall, on behalf of
1233     all [state] agencies, submit a list of anticipated capital improvement project requirements to the
1234     Legislature.
1235          [(ii)] (b) The division shall ensure that the capital improvements project list identifies:
1236          [(A)] (i) each single capital improvement project that costs more than $1,000,000;
1237          [(B)] (ii) each multiple capital improvement project within a single building or facility
1238     that collectively costs more than $1,000,000;
1239          [(C)] (iii) each single capital improvement project that will be constructed over
1240     multiple years with a yearly cost of $1,000,000 or more and an aggregate cost of more than
1241     $3,500,000;
1242          [(D)] (iv) each multiple capital improvement project within a single building or facility
1243     with a yearly cost of $1,000,000 or more and an aggregate cost of more than $3,500,000;

1244          [(E)] (v) each single capital improvement project previously reported to the Legislature
1245     as a capital improvement project under $1,000,000 that, because of an increase in costs or
1246     scope of work, will now cost more than $1,000,000;
1247          [(F)] (vi) each multiple capital improvement project within a single building or facility
1248     previously reported to the Legislature as a capital improvement project under $1,000,000 that,
1249     because of an increase in costs or scope of work, will now cost more than $1,000,000; and
1250          [(G)] (vii) each capital improvement project described in Subsection [(1)(b)(iii)]
1251     63A-5b-401(3)(c).
1252          [(b)] (2) (a) Unless otherwise directed by the Legislature, the division shall prioritize
1253     capital [improvements] improvement projects on the capital [improvements] improvement
1254     project list up to the level of appropriation made by the Legislature.
1255          [(c)] (b) In prioritizing capital [improvements] improvement projects, the division shall
1256     consider the results of facility evaluations completed by an architect or engineer as stipulated
1257     by the [building board's] division's facilities maintenance standards.
1258          [(d)] (c) In prioritizing capital [improvements] improvement projects, the division shall
1259     allocate at least 90% of the funds that the Legislature appropriates for capital [improvements]
1260     improvement projects to:
1261          (i) capital improvement projects that address:
1262          (A) a structural issue;
1263          (B) fire safety;
1264          (C) a code violation; or
1265          (D) any issue that impacts health and safety;
1266          (ii) capital improvement projects that upgrade:
1267          (A) an HVAC system;
1268          (B) an electrical system;
1269          (C) essential equipment;
1270          (D) an essential building component; or

1271          (E) infrastructure, including a utility tunnel, water line, gas line, sewer line, roof,
1272     parking lot, or road; or
1273          (iii) capital improvement projects that demolish and replace an existing building that is
1274     in extensive disrepair and cannot be fixed by repair or maintenance.
1275          [(e)] (d) In prioritizing capital [improvements] improvement projects, the division may
1276     not allocate more than 10% of the funds that the Legislature appropriates for capital
1277     [improvements] improvement projects to:
1278          (i) remodeling and aesthetic upgrades to meet state programmatic needs; or
1279          (ii) construct an addition to an existing building or facility.
1280          [(f)] (3) The division may require an entity that benefits from a capital improvement
1281     project to repay the capital improvement funds from savings that result from the capital
1282     improvement project.
1283          [(g)] (4) The division may provide capital improvement project funding to a single
1284     project or to multiple projects within a single building or facility, even if the total cost of the
1285     project or multiple projects is $3,500,000 or more, if:
1286          [(i)] (a) the capital improvement project is a project described in Subsection
1287     [(1)(b)(iii)] 63A-5b-401(3)(c); and
1288          [(ii)] (b) the Legislature has not refused to fund the project with capital improvement
1289     project funds.
1290          [(h)] (5) In prioritizing and allocating capital improvement project funding, the
1291     division shall comply with the requirement in Subsection 63B-23-101(2)(f).
1292          [(i)] (6) (a) In developing the capital improvement project list and priorities, the
1293     division shall require each [state] agency that requests an appropriation for a capital
1294     improvement project to:
1295          (i) submit a capital improvement project request; and
1296          (ii) complete and submit a project scoping document.
1297          [(j)] (b) A project scoping document under Subsection [(2)(i)(ii)] (6)(a)(ii) shall

1298     address:
1299          (i) the need for the capital improvement project; and
1300          (ii) the appropriateness of the scope of the capital improvement project.
1301          [(k)] (c) The division shall verify the completion and accuracy of a project scoping
1302     document that [a state] an agency submits under Subsection [(2)(i)(ii)] (6)(a)(ii).
1303          [(3) (a) Beginning July 1, 2020, the division shall implement a program to charge state
1304     agencies, except institutions included within the state system of higher education under Section
1305     53B-1-102, lease payments for the agency's use and occupancy of space within a building.]
1306          [(b) Before July 1, 2020, the division shall:]
1307          [(i) conduct a market analysis of market lease rates for comparable space in buildings
1308     comparable to division-owned buildings; and]
1309          [(ii) establish lease rates for an agency's use and occupancy of a division-owned
1310     building.]
1311          [(c) The lease rates shall be:]
1312          [(i) consistent with market rates for comparable space in comparable buildings;]
1313          [(ii) calculated to cover:]
1314          [(A) an amortized amount for capital replacement;]
1315          [(B) an amount for capital improvements; and]
1316          [(C) operation and maintenance costs; and]
1317          [(iii) in proportion to legislative appropriations.]
1318          [(d) In making appropriations to cover lease payments under this Subsection (3), the
1319     Legislature shall create a line item, as defined in Section 63J-1-102, for each agency to fund the
1320     lease payments.]
1321          (7) Except for this Subsection (7), this section does not apply to a capital improvement
1322     project described in Subsection 63A-5b-401(2)(a)(ii).
1323          Section 31. Section 63A-5b-406 is enacted to read:
1324          63A-5b-406. Limitations on new projects.

1325          (1) The Legislature may authorize:
1326          (a) the total square footage to be occupied by each agency; and
1327          (b) the total square footage and total cost of lease space for each agency.
1328          (2) If construction of a new building or facility will require an immediate or future
1329     increase in state funding for operations and maintenance or for capital improvements, the
1330     Legislature may not authorize the new building or facility until the Legislature appropriates
1331     funds for:
1332          (a) the portion of operations and maintenance, if any, that will require an immediate or
1333     future increase in state funding; and
1334          (b) the portion of capital improvements, if any, that will require an immediate or future
1335     increase in state funding.
1336          (3) (a) Except as provided in Subsections (3)(b) and (c), the Legislature may not fund
1337     the design or construction of any new capital development project, except to complete the
1338     funding of a project for which partial funding has been previously provided, until the
1339     Legislature has appropriated 1.1% of the replacement cost of existing state facilities and
1340     infrastructure to capital improvements.
1341          (b) If the Legislature determines that there exists an Education Fund budget deficit, as
1342     defined in Section 63J-1-312, or a General Fund budget deficit, as defined in Section
1343     63J-1-312, the Legislature may, in eliminating the deficit, reduce the amount appropriated to
1344     capital improvements to 0.9% of the replacement cost of state buildings and infrastructure.
1345          (c) Subsection (3)(a) does not apply to a dedicated project as defined in Section
1346     63A-5b-403.
1347          (4) (a) (i) Except as provided in Subsection (4)(a)(ii), the Legislature may not fund the
1348     design and construction of a new facility in phases over more than one year unless the
1349     Legislature approves the funding for both the design and construction by a vote of two-thirds of
1350     all the members elected to each house.
1351          (ii) Subsection (4)(a)(i) does not apply to a dedicated project as defined in Section

1352     63A-5b-403.
1353          (b) An agency shall receive approval from the director before the agency begins
1354     programming for a new facility:
1355          (i) that requires legislative approval; or
1356          (ii) to be built under Subsection 63A-5b-404(2).
1357          (c) The division or an agency may fund the programming of a new facility before the
1358     Legislature makes an appropriation for the new facility under Subsection (4)(a).
1359          (5) (a) The director, with the approval of the Office of the Legislative Fiscal Analyst,
1360     shall develop standard forms to present capital development project and capital improvement
1361     project cost summary data.
1362          (b) The director shall:
1363          (i) within 30 days after the completion of each capital development project, submit cost
1364     summary data for the project on the standard form to the Office of the Legislative Fiscal
1365     Analyst; and
1366          (ii) upon request, submit cost summary data for a capital improvement project to the
1367     Office of the Legislative Fiscal Analyst on the standard form.
1368          (6) (a) After the Legislature approves capital development project priorities under
1369     Section 63A-5b-402 and capital improvement project priorities under Section 63A-5b-405, the
1370     director may reallocate capital development project or capital improvement project funds to
1371     address a critical need for a capital improvement project:
1372          (i) if an emergency arises that creates an unforeseen and critical need for the capital
1373     improvement project; and
1374          (ii) notwithstanding the requirements of Title 63J, Chapter 1, Budgetary Procedures
1375     Act.
1376          (b) The director shall report any changes the director makes in capital development
1377     project or capital improvement project allocations approved by the Legislature to:
1378          (i) the Office of the Legislative Fiscal Analyst within 30 days after the reallocation; and

1379          (ii) the Legislature at the Legislature's next annual general session.
1380          Section 32. Section 63A-5b-501 is enacted to read:
1381     
Part 5. Planning and Programming

1382          63A-5b-501. Five-year building plan.
1383          (1) The director shall:
1384          (a) in cooperation with agencies, prepare a master plan of structures built or
1385     contemplated;
1386          (b) submit to the governor and the Legislature a comprehensive five-year building plan
1387     for the state containing the information required by Subsection (2);
1388          (c) amend and keep current the five-year building plan that complies with the
1389     requirements described in Subsection (2), for submission to the governor and subsequent
1390     legislatures; and
1391          (d) as part of the long-range plan, recommend to the governor and Legislature any
1392     changes in the law that are necessary to ensure an effective, well-coordinated building program
1393     for all agencies.
1394          (2) (a) The director shall ensure that the five-year building plan required by Subsection
1395     (1)(b) includes:
1396          (i) a list that prioritizes construction of new buildings for all structures built or
1397     contemplated based upon each agency's present and future needs;
1398          (ii) information and space use data for all state-owned and leased facilities;
1399          (iii) substantiating data to support the adequacy of any projected plans;
1400          (iv) a summary of all statewide contingency reserve and project reserve balances as of
1401     the end of the most recent fiscal year;
1402          (v) a list of buildings that have completed a comprehensive facility evaluation by an
1403     architect or engineer or are scheduled to have an evaluation;
1404          (vi) for those buildings that have completed the evaluation, the estimated costs of
1405     needed improvements; and

1406          (vii) for projects recommended in the first two years of the five-year building plan:
1407          (A) detailed estimates of the cost of each project;
1408          (B) the estimated cost to operate and maintain the building or facility on an annual
1409     basis;
1410          (C) the cost of capital improvements to the building or facility, estimated at 1.1% of
1411     the replacement cost of the building or facility, on an annual basis;
1412          (D) the estimated number of new agency full-time employees expected to be housed in
1413     the building or facility;
1414          (E) the estimated cost of new or expanded programs and personnel expected to be
1415     housed in the building or facility;
1416          (F) the estimated lifespan of the building with associated costs for major component
1417     replacement over the life of the building; and
1418          (G) the estimated cost of any required support facilities.
1419          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1420     director may make rules prescribing the format for submitting the information required by this
1421     Subsection (2).
1422          (3) To provide adequate information to enable the director to make a recommendation
1423     described in Subsection (1), an agency requesting new full-time employees for the next fiscal
1424     year shall report those anticipated requests to the director at least 90 days before the annual
1425     general session in which the request is made.
1426          Section 33. Section 63A-5b-502 is enacted to read:
1427          63A-5b-502. Programming.
1428          (1) As used in this section:
1429          (a) "Program document" means a final document that contains programming
1430     information.
1431          (b) "Programming" means services to define the scope and purpose of an anticipated
1432     project, and may include:

1433          (i) researching criteria applicable to the scope and purpose of an anticipated project;
1434          (ii) identifying the scale of the project and the type of facilities and the level of
1435     specialized functions that will be required;
1436          (iii) identifying and prioritizing values and goals that will impact the project, including
1437     institutional purposes, growth objectives, and cultural, technological, temporal, aesthetic,
1438     symbolic, economic, environmental, safety, sustainability, and other relevant criteria;
1439          (iv) evaluating functional efficiency, user comfort, building economics, environmental
1440     sustainability, and visual quality;
1441          (v) identifying objectives for the project, including such elements as image,
1442     efficiencies, functionality, cost, and schedule;
1443          (vi) identifying and evaluating the constraints that will have an impact on the project
1444     such as legal requirements, financial constraints, location, access, visibility, and building
1445     services;
1446          (vii) developing standards such as area allowances, space allocation, travel distances,
1447     and furniture and equipment requirements;
1448          (viii) establishing general space quality standards related to such elements as lighting
1449     levels, equipment performance, acoustical requirements, security, and aesthetics;
1450          (ix) identifying required spaces;
1451          (x) establishing sizes and relationships;
1452          (xi) establishing space efficiency factors or the ratio of net square footage to gross
1453     square footage; and
1454          (xii) documenting particular space requirements such as special HVAC, plumbing,
1455     power, lighting, acoustical, furnishings, equipment, or security needs.
1456          (2) A program document may:
1457          (a) incorporate written and graphic materials; and
1458          (b) include:
1459          (i) an executive summary;

1460          (ii) documentation of the methodology used to develop the programming;
1461          (iii) value and goal statements;
1462          (iv) relevant facts upon which the programming was based;
1463          (v) conclusions derived from data analysis;
1464          (vi) relationship diagrams;
1465          (vii) flow diagrams;
1466          (viii) matrices identifying space allocations and relationships;
1467          (ix) space listings by function and size; and
1468          (x) space program sheets, including standard requirements and special HVAC,
1469     plumbing, power, lighting, acoustical, furnishings, equipment, or security needs.
1470          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1471     director may make rules:
1472          (a) establishing the types of projects for which programming and a program document
1473     are required;
1474          (b) establishing the scope of programming required for defined categories of projects;
1475          (c) establishing the circumstances under which an agency must obtain authorization
1476     from the director to engage in programming;
1477          (d) governing the funding of programming;
1478          (e) relating to the administration of programming; and
1479          (f) regarding any restrictions that may be imposed on a person involved in
1480     programming from participating in the preparation of construction documents for a project that
1481     is the subject of the programming.
1482          Section 34. Section 63A-5b-503, which is renumbered from Section 63A-5-211 is
1483     renumbered and amended to read:
1484          [63A-5-211].      63A-5b-503. Planning Fund expenditures authorized --
1485     Ceiling on expenditures -- Recovery.
1486          (1) The Planning Fund shall be used to make payments for engineering, architectural,

1487     and other planning expenses necessary to make a meaningful cost estimate of any facility or
1488     improvement with a demonstrable or immediate need.
1489          (2) The director may make expenditures from the Planning Fund in order to provide
1490     planning information to the [State Building Board] board, the governor, and the Legislature, up
1491     to a maximum of $350,000 in outstanding Planning Fund commitments.
1492          (3) (a) The director shall authorize all payments made from the Planning Fund.
1493          (b) [These payments] Payments from the Planning Fund shall be a charge on the
1494     project for which they were drawn.
1495          (c) [The amount paid shall be credited to the Planning Fund when] If the Legislature
1496     appropriates money for [any] a building project for which planning costs have previously been
1497     paid from the Planning Fund, the director shall credit that amount to the Planning Fund.
1498          (4) (a) [Money may also be expended] The director may expend money from the
1499     Planning Fund for architectural and engineering services incident to the planning and
1500     preparation of applications for funds on construction financed by other than state sources,
1501     including federal grants.
1502          (b) [However, upon] Upon approval of [such] financing referred to in Subsection
1503     (4)(a), the director shall reimburse to the Planning Fund the money spent for architectural and
1504     engineering services [shall be returned as a reimbursement to the Planning Fund].
1505          Section 35. Section 63A-5b-601 is enacted to read:
1506     
Part 6. Design and Construction

1507          63A-5b-601. Definitions.
1508          As used in this part:
1509          (1) (a) "Facility" means any building, structure, or other improvement that is
1510     constructed:
1511          (i) on property owned by the state, the state's departments, commissions, institutions,
1512     or agencies; or
1513          (ii) by the state, the state's departments, commissions, institutions, or agencies on

1514     property not owned by the state.
1515          (b) "Facility" does not mean an unoccupied structure that is a component of the state
1516     highway system.
1517          (2) "Local government" means the county, municipality, or local school district that
1518     would have jurisdiction to act as the compliance agency if the division did not have jurisdiction
1519     to act as the compliance agency.
1520          Section 36. Section 63A-5b-602 is enacted to read:
1521          63A-5b-602. Design criteria, standards, and procedures.
1522          (1) The director shall establish design criteria, standards, and procedures for the
1523     planning, design, and construction of a new facility and for improvements to an existing
1524     facility, including life-cycle costing, cost-effectiveness studies, and other methods and
1525     procedures that address:
1526          (a) the need for the facility;
1527          (b) the effectiveness of the facility's design;
1528          (c) the efficiency of energy use; and
1529          (d) the usefulness of the facility over the facility's lifetime.
1530          (2) Before proceeding with construction, the director and the officials charged with the
1531     administration of the affairs of the particular agency shall approve the location, design, plans,
1532     and specifications.
1533          (3) The director shall prepare or have prepared by one or more private persons the
1534     designs, plans, and specifications for the projects administered by the division.
1535          (4) Before construction may begin, the director shall review the design of projects
1536     exempted from the division's administration under Section 63A-5b-604 to determine if the
1537     design:
1538          (a) complies with any restrictions placed on the project by the director; and
1539          (b) is appropriate for the purpose and setting of the project.
1540          (5) Notwithstanding the requirements of Title 63J, Chapter 1, Budgetary Procedures

1541     Act, the director may:
1542          (a) accelerate the design of a project funded by an appropriation act passed by the
1543     Legislature in the Legislature's annual general session;
1544          (b) use an unencumbered existing account balance to fund that design work; and
1545          (c) reimburse the account balance from the amount funded for the project when the
1546     appropriation act funding the project becomes effective.
1547          Section 37. Section 63A-5b-603 is enacted to read:
1548          63A-5b-603. Contracting powers of director -- Bids -- Retainage.
1549          (1) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, the director
1550     may enter into a contract for any work or professional service that the division or board may do
1551     or have done.
1552          (2) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1553     the director may make rules establishing circumstances under which bids may be modified
1554     when all bids for a construction project exceed available funds as determined by the director.
1555          (b) In making the rules described in Subsection (2)(a), the director shall provide for the
1556     fair and equitable treatment of bidders.
1557          (c) The judgment of the director as to the responsibility and qualifications of a bidder is
1558     conclusive, except in case of fraud or bad faith.
1559          (3) The division shall make all payments to the contractor for completed work in
1560     accordance with Section 15-6-2 and pay the interest specified in Section 15-6-3 on any
1561     payments that are late.
1562          (4) If the division retains or withholds a payment on a contract with a private contractor
1563     to do work for the division, the division shall retain or withhold and release the payment as
1564     provided in Section 13-8-5.
1565          Section 38. Section 63A-5b-604 is enacted to read:
1566          63A-5b-604. Construction, alteration, and repair of state facilities -- Powers of
1567     director -- Exceptions -- Expenditure of appropriations -- Compliance agency role.

1568          (1) (a) Except as provided in this section and Section 63A-5b-1101, the director shall
1569     exercise direct supervision over the design and construction of all new facilities, and all
1570     alterations, repairs, and improvements to existing facilities, if the total project construction
1571     cost, regardless of the funding source, is greater than $100,000.
1572          (b) A state entity may exercise direct supervision over the design and construction of
1573     all new facilities, and over all alterations, repairs, and improvements to existing facilities, if:
1574          (i) the total project construction cost, regardless of the funding sources, is $100,000 or
1575     less; and
1576          (ii) the state entity assures compliance with the division's forms and contracts and the
1577     division's design, construction, alteration, repair, improvement, and code inspection standards.
1578          (2) The director may enter into a capital improvement partnering agreement with an
1579     institution of higher education that permits the institution of higher education to exercise direct
1580     supervision for a capital improvement project with oversight from the division.
1581          (3) (a) Subject to Subsection (3)(b), the director may delegate control over design,
1582     construction, and other aspects of any project to entities of state government on a
1583     project-by-project basis.
1584          (b) With respect to a delegation of control under Subsection (3)(a), the director may:
1585          (i) impose terms and conditions on the delegation that the director considers necessary
1586     or advisable to protect the interests of the state; and
1587          (ii) revoke the delegation and assume control of the design, construction, or other
1588     aspect of a delegated project if the director considers the revocation and assumption of control
1589     to be necessary to protect the interests of the state.
1590          (4) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1591     the board may delegate control over design, construction, and all other aspects of any project to
1592     entities of state government on a categorical basis for projects within a particular dollar range
1593     and a particular project type.
1594          (b) Rules adopted by the board under Subsection (4)(a) may:

1595          (i) impose the terms and conditions on categorical delegation that the board considers
1596     necessary or advisable to protect the interests of the state;
1597          (ii) provide for the revocation of the delegation on a categorical or project specific
1598     basis and for the division to assume control of the design, construction, or other aspect of a
1599     category of delegated projects or a specific delegated project if the board considers revocation
1600     of the delegation and assumption of control to be necessary to protect the interests of the state;
1601          (iii) require that a categorical delegation be renewed by the board on an annual basis;
1602     and
1603          (iv) require the division's oversight of delegated projects.
1604          (5) (a) A state entity to which project control is delegated under this section shall:
1605          (i) assume fiduciary control over project finances;
1606          (ii) assume all responsibility for project budgets and expenditures; and
1607          (iii) receive all funds appropriated for the project, including any contingency funds
1608     contained in the appropriated project budget.
1609          (b) Notwithstanding a delegation of project control under this section, a state entity to
1610     which control is delegated is required to comply with the division's codes and guidelines for
1611     design and construction.
1612          (c) A state entity to which project control is delegated under this section may not
1613     access, for the delegated project, the division's statewide contingency reserve and project
1614     reserve authorized in Section 63A-5b-609.
1615          (d) For a facility that will be owned, operated, maintained, and repaired by an entity
1616     that is not an agency and that is located on state property, the director may authorize the
1617     facility's owner to administer the design and construction of the project relating to that facility.
1618          (6) (a) A project for the construction of a new facility and a project for alterations,
1619     repairs, and improvements to an existing facility are not subject to Subsection (1) if the project:
1620          (i) occurs on property under the jurisdiction of the State Capitol Preservation Board;
1621          (ii) is within a designated research park at the University of Utah or Utah State

1622     University;
1623          (iii) occurs within the boundaries of This is the Place State Park and is administered by
1624     This is the Place Foundation; or
1625          (iv) is for the creation and installation of art under Title 9, Chapter 6, Part 4, Utah
1626     Percent-for-Art Act.
1627          (b) Notwithstanding Subsection (6)(a)(iii), the This is the Place Foundation may
1628     request the director to administer the design and construction of a project within the boundaries
1629     of This is the Place State Park.
1630          (7) (a) The role of compliance agency under Title 15A, State Construction and Fire
1631     Codes Act, shall be filled by:
1632          (i) the director, for a project administered by the division;
1633          (ii) the entity designated by the State Capitol Preservation Board, for a project under
1634     Subsection (6)(a)(i);
1635          (iii) the local government, for a project that is:
1636          (A) not subject to the division's administration under Subsection (6)(a)(ii); or
1637          (B) administered by This is the Place Foundation under Subsection (6)(a)(iii);
1638          (iv) the compliance agency designated by the director, for a project under Subsection
1639     (2), (3), (4), or (5)(d); and
1640          (v) for the installation of art under Subsection (6)(a)(iv), the entity that is acting as the
1641     compliance officer for the balance of the project for which the art is being installed.
1642          (b) A local government acting as the compliance agency under Subsection (7)(a)(iii)
1643     may:
1644          (i) only review plans and inspect construction to enforce the state construction code or
1645     an approved code under Title 15A, State Construction and Fire Codes Act; and
1646          (ii) charge a building permit fee of no more than the amount the local government
1647     could have charged if the land upon which the improvements are located were not owned by
1648     the state.

1649          (8) (a) The zoning authority of a local government under Section 10-9a-305 or
1650     17-27a-305 does not apply to the use of state property or any improvements constructed on
1651     state property, including improvements constructed by an entity other than a state entity.
1652          (b) A state entity controlling the use of state property shall consider any input received
1653     from a local government in determining how the property is to be used.
1654          Section 39. Section 63A-5b-605, which is renumbered from Section 63A-5-208 is
1655     renumbered and amended to read:
1656          [63A-5-208].      63A-5b-605. Requirement for bidders to list subcontractors
1657     -- Changing subcontractors -- Bidders as subcontractors.
1658          (1) As used in this section:
1659          (a) "First-tier subcontractor" means a subcontractor who contracts directly with the
1660     prime contractor.
1661          (b) (i) "Subcontractor" means [any] a person [or entity] under contract with a
1662     contractor or another subcontractor to provide services or labor for the construction,
1663     installation, or repair of an improvement to real property.
1664          (ii) "Subcontractor" includes a trade contractor or specialty contractor.
1665          (iii) "Subcontractor" does not include [suppliers who provide] a supplier that provides
1666     only materials, equipment, or supplies to a contractor or subcontractor.
1667          (2) The director shall apply the provisions of this section to achieve fair and
1668     competitive bidding and to discourage bid-shopping by contractors.
1669          (3) (a) (i) (A) On [each] a public construction project, the director shall, except as
1670     provided in Subsection (3)(a)(ii), require the apparent lowest three bidders to submit a list of
1671     their first-tier subcontractors indicating each first-tier each subcontractor's name, bid amount,
1672     and other information required by rule.
1673          (B) [Other bidders who are] A bidder that is not one of the apparent lowest three
1674     bidders may also submit a list of [their] the bidder's first-tier subcontractors containing the
1675     information required by this Subsection (3).

1676          (ii) A bidder is not required to list a first-tier subcontractor if:
1677          (A) the bidder's total bid is less than $500,000 and the first-tier subcontractor's bid is
1678     less than $20,000; or
1679          (B) the bidder's total bid is $500,000 or more and the first-tier subcontractor's bid is
1680     less than $35,000.
1681          [(C) The director may not consider any bid submitted by a bidder if the bidder fails to
1682     submit a subcontractor list meeting the requirements of this section.]
1683          [(ii) On projects where the contractor's total bid is less than $500,000, subcontractors
1684     whose bid is less than $20,000 need not be listed.]
1685          [(iii) On projects where the contractor's total bid is $500,000 or more, subcontractors
1686     whose bid is less than $35,000 need not be listed.]
1687          (b) [(i) The bidders] A bidder shall submit [this] the list required under this section
1688     within 24 hours after the bid opening time, not including [Saturdays, Sundays, and state
1689     holidays] Saturday, Sunday, and any state holiday.
1690          [(ii)] (c) [This] A list submitted under this section does not limit the director's right to
1691     authorize a change in the listing of any subcontractor.
1692          (4) The director may not consider a bid submitted by a bidder that fails to submit a list
1693     meeting the requirements of this section.
1694          [(c)] (5) [The bidders] A bidder shall verify that all subcontractors listed as part of
1695     [their bids] the bidder's bid are licensed as required by state law.
1696          [(d)] (6) (a) [Twenty-four] After 24 hours after the bid opening, [the contractor] a
1697     bidder may change the [contractor's] bidder's subcontractors only after:
1698          (i) receiving permission from the director; and
1699          (ii) establishing [that]:
1700          (A) that the change is in the best interest of the state; and
1701          (B) the [contractor establishes] reasons for the change that meet the standards
1702     established by the [State Building Board] director.

1703          [(e)] (b) If the director approves [any changes] a change in subcontractors that [result]
1704     results in a net lower contract price for subcontracted work, the director may require the bidder
1705     to reduce the total of the prime contract [may be reduced] to reflect the [changes] change.
1706          [(4)] (7) (a) A bidder may list [himself] the bidder as a subcontractor [when] if:
1707          (i) the bidder is currently licensed to perform the portion of the work for which the
1708     bidder lists [himself] the bidder as a subcontractor [and:]; and
1709          [(i)] (ii) (A) the bidder intends to perform the work of a subcontractor [himself]; or
1710          [(ii)] (B) the bidder intends to obtain a subcontractor at a later date to perform the work
1711     [at a later date] because the bidder was unable to[: (A)] obtain a bid from a qualified
1712     subcontractor[; or (B) obtain a bid] or from a qualified subcontractor at a cost that the bidder
1713     considers to be reasonable.
1714          (b) (i) [When] If the bidder intends to perform the work of a subcontractor [himself],
1715     the director may, by written request, require that the bidder provide the director with
1716     information indicating the bidder's:
1717          (A) previous experience in the type of work to be performed; and
1718          (B) qualifications for performing the work.
1719          (ii) [The bidder must] A bidder shall respond in writing within five business days [of]
1720     after receiving the director's written request under Subsection (7)(b)(i).
1721          (iii) If the [bidder's submitted] information a bidder submits under Subsection (7)(b)(ii)
1722     causes the director to reasonably believe that [self-performance] the bidder's performance of
1723     the portion of the work [by the bidder] is likely to [yield] result in a substandard finished
1724     product, the director shall:
1725          (A) require the bidder to use a subcontractor for the portion of the work in question and
1726     obtain the subcontractor bid under the supervision of the director; or
1727          (B) reject the bidder's bid.
1728          [(c) (i)] (8) (a) [When the] If a bidder intends to obtain a subcontractor [to perform the
1729     work at a later date] at a later date to perform work described in the bidder's bid, the bidder

1730     shall provide documentation with the subcontractor list required under this section:
1731          (i) describing[: (A)] the bidder's efforts to obtain a bid of a qualified subcontractor at a
1732     reasonable cost; and
1733          [(B)] (ii) explaining why the bidder was unable to obtain a qualified subcontractor bid.
1734          [(ii)] (b) If [the] a bidder who intends to obtain a subcontractor at a later date to
1735     perform the work [at a later date] described in a bid is awarded a contract, the director:
1736          (i) shall supervise the bidder's efforts to obtain a qualified subcontractor bid[.]; and
1737          [(iii)] (ii) [The director] may not adjust the amount of the contract awarded in order to
1738     reflect the actual amount of the subcontractor's bid.
1739          [(5)] (9) The division may not disclose any subcontractor bid amounts obtained under
1740     this section until the division has awarded the project to a contractor.
1741          [(6) (a) The director shall, in consultation with the State Building Board, prepare draft
1742     rules establishing a process for resolving disputes involved with contracts under the division's
1743     procurement authority.]
1744          [(b) The director shall consider, and the rules may include:]
1745          [(i) requirements regarding preliminary resolution efforts between the parties directly
1746     involved with the dispute;]
1747          [(ii) requirements for the filing of claims, including notification, timeframes, and
1748     documentation;]
1749          [(iii) identification of the types of costs eligible for allocation and a method for
1750     allocating costs among the parties to the dispute;]
1751          [(iv) required time periods, not to exceed 60 days, for the resolution of the claim;]
1752          [(v) provision for an independent hearing officer, panel, or arbitrator to extend the time
1753     period for resolution of the claim by not to exceed 60 additional days for good cause;]
1754          [(vi) provision for the extension of required time periods if the claimant agrees;]
1755          [(vii) requirements that decisions be issued in writing;]
1756          [(viii) provisions for administrative appeals of the decision;]

1757          [(ix) provisions for the timely payment of claims after resolution of the dispute,
1758     including any appeals;]
1759          [(x) a requirement that the final determination resulting from the dispute resolution
1760     process provided for in the rules is a final agency action subject to judicial review as provided
1761     in Sections 63G-4-401 and 63G-4-402;]
1762          [(xi) a requirement that a claim or dispute that does not include a monetary claim
1763     against the division or its agents is not limited to the dispute resolution process provided for in
1764     this Subsection (6);]
1765          [(xii) requirements for claims and disputes to be eligible for this dispute resolution
1766     process;]
1767          [(xiii) the use of an independent hearing officer, panel, arbitration, or mediation; and]
1768          [(xiv) the circumstances under which a subcontractor may file a claim directly with the
1769     division.]
1770          [(c) Persons pursuing claims under the process required by this Subsection (6):]
1771          [(i) are bound by the decision reached under this process unless the decision is properly
1772     appealed; and]
1773          [(ii) may not pursue claims or disputes under the dispute resolution process established
1774     in Title 63G, Chapter 6a, Utah Procurement Code.]
1775          [(7)] (10) In addition to all other reasons allowed by [law] statute or rule, the director
1776     may reject all bids if [none] all of the bidders whose [bid is] bids are within the budget of the
1777     project fail to submit a subcontractor list [that meets the requirements of] as required under this
1778     section.
1779          [(8) Any violation of this section, or any fraudulent misrepresentation by a contractor,
1780     subcontractor, or supplier, may be grounds for:]
1781          [(a) the contractor, subcontractor, or supplier to be suspended or debarred by the
1782     director; or]
1783          [(b) the contractor or subcontractor to be disciplined by the Division of Professional

1784     and Occupational Licensing.]
1785          Section 40. Section 63A-5b-606 is enacted to read:
1786          63A-5b-606. Dispute resolution process -- Penalties for fraud or bad faith claim.
1787          (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1788     director shall adopt rules for the division establishing a process for resolving disputes involved
1789     with contracts under the division's procurement authority.
1790          (2) The director shall consider, and the rules may include:
1791          (a) requirements regarding preliminary resolution efforts between the parties directly
1792     involved with the dispute;
1793          (b) requirements for the filing of a claim, including notification, time frames, and
1794     documentation;
1795          (c) identification of the types of costs eligible for allocation and a method for allocating
1796     costs among the parties to the dispute;
1797          (d) a required time period, not to exceed 60 days, for the resolution of the claim;
1798          (e) a provision for an independent hearing officer, panel, or arbitrator to extend the
1799     time period for resolution of the claim by not to exceed 60 additional days for good cause;
1800          (f) a provision for the extension of required time periods if the claimant agrees;
1801          (g) requirements that decisions be issued in writing;
1802          (h) provisions for an administrative appeal of a decision;
1803          (i) provisions for the timely payment of claims after resolution of the dispute, including
1804     any appeals;
1805          (j) a requirement that the final determination resulting from the dispute resolution
1806     process provided for in the rules is a final agency action subject to judicial review as provided
1807     in Sections 63G-4-401 and 63G-4-402;
1808          (k) a requirement that a claim or dispute that does not include a monetary claim against
1809     the division or an agent of the division is not limited to the dispute resolution process provided
1810     for in this section;

1811          (l) requirements for claims and disputes to be eligible for the dispute resolution process
1812     under this section;
1813          (m) the use of an independent hearing officer or panel or the use of arbitration or
1814     mediation; and
1815          (n) the circumstances under which a subcontractor may file a claim directly with the
1816     division.
1817          (3) A person pursuing a claim under the process established as provided in this section:
1818          (a) is bound by the decision reached under this process, subject to any modification of
1819     the decision on appeal; and
1820          (b) may not pursue a claim, protest, or dispute under the dispute resolution process
1821     established in Title 63G, Chapter 6a, Utah Procurement Code.
1822          (4) A fraudulent misrepresentation made by or bad faith claim pursued by a contractor,
1823     subcontractor, or supplier, may be grounds for:
1824          (a) the director to suspend or debar the contractor, subcontractor, or supplier; or
1825          (b) the contractor, subcontractor, or supplier to be disciplined by the Division of
1826     Professional and Occupational Licensing.
1827          Section 41. Section 63A-5b-607, which is renumbered from Section 63A-5-205.5 is
1828     renumbered and amended to read:
1829          [63A-5-205.5].      63A-5b-607. Health insurance requirements -- Penalties.
1830          (1) As used in this section:
1831          (a) "Aggregate amount" means the dollar sum of all contracts, change orders, and
1832     modifications [related to] for a single project.
1833          (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
1834          (c) ["Employee] "Eligible employee" means an employee, as defined in Section
1835     34A-2-104, [an "employee," "worker," or "operative"] who:
1836          (i) works at least 30 hours per calendar week; and
1837          (ii) meets the employer eligibility waiting [requirements] period for qualified health

1838     [care insurance, which may not exceed the first day of the calendar month following 60 days
1839     after the day on which the individual is hired] insurance coverage provided by the employer.
1840          [(d) "Health benefit plan" means the same as that term is defined in Section
1841     31A-1-301.]
1842          [(e)] (d) "Qualified health insurance coverage" means the same as that term is defined
1843     in Section 26-40-115.
1844          [(f)] (e) "Subcontractor" means the same as that term is defined in Section [63A-5-208]
1845     63A-5b-605.
1846          (2) Except as provided in Subsection (3), the requirements of this section apply to:
1847          (a) a contractor of a design or construction contract [entered into by] with the division
1848     [or the State Building Board on or after July 1, 2009,] if the prime contract is in an aggregate
1849     amount [equal to or greater than] of $2,000,000 or more; and
1850          (b) a subcontractor of a contractor of a design or construction contract [entered into by]
1851     with the division [or State Building Board on or after July 1, 2009,] if the subcontract is in an
1852     aggregate amount [equal to or greater than] of $1,000,000 or more.
1853          (3) The requirements of this section do not apply to a contractor or subcontractor
1854     [described in Subsection (2)] if:
1855          (a) the application of this section jeopardizes the division's receipt of federal funds;
1856          (b) the contract is a sole source contract, as defined in Section 63G-6a-103; or
1857          (c) the contract is the result of an emergency procurement.
1858          (4) A person [that] who intentionally uses a change [orders,] order, contract
1859     [modifications,] modification, or multiple contracts to circumvent the requirements of this
1860     section is guilty of an infraction.
1861          (5) (a) A contractor that is subject to the requirements of this section shall [demonstrate
1862     to the director that the contractor has and will]:
1863          (i) make and maintain an offer of qualified health insurance coverage for the
1864     contractor's eligible employees and the eligible employees' dependents [by submitting]; and

1865          (ii) submit to the director a written statement [that:] demonstrating that the contractor
1866     is in compliance with Subsection (5)(a)(i).
1867          [(i) the contractor offers qualified health insurance coverage that complies with Section
1868     26-40-115;]
1869          [(ii) is from:]
1870          (b) A statement under Subsection (5)(a)(ii):
1871          (i) shall be from:
1872          (A) an actuary selected by the contractor or the contractor's insurer; or
1873          (B) an underwriter who is responsible for developing the employer group's premium
1874     rates; and
1875          [(iii) was] (ii) may not be created [within] more than one year before the day on which
1876     the [statement is submitted] contractor submits the statement to the director.
1877          [(b)] (6) (a) A contractor that is subject to the requirements of this section shall:
1878          (i) [place a requirement in each of the contractor's subcontracts that a subcontractor
1879     that is subject to the requirements of this section shall] ensure that each contract the contractor
1880     enters with a subcontractor that is subject to the requirements of this section requires the
1881     subcontractor to obtain and maintain an offer of qualified health insurance coverage for the
1882     subcontractor's eligible employees and the eligible employees' dependents during the duration
1883     of the subcontract; and
1884          (ii) obtain from a subcontractor [that is subject to the requirements of this section]
1885     referred to in Subsection (6)(a)(i) a written statement demonstrating that[:] the subcontractor
1886     offers qualified health insurance coverage to eligible employees and eligible employees'
1887     dependents.
1888          [(A) the subcontractor offers qualified health insurance coverage that complies with
1889     Section 26-40-115;]
1890          [(B)] (b) [is] A statement under Subsection (6)(a)(ii):
1891          (i) shall be from:

1892          (A) an actuary selected by the subcontractor or the subcontractor's insurer[,]; or
1893          (B) an underwriter who is responsible for developing the employer group's premium
1894     rates; and
1895          [(C)] (ii) [was] may not be created [within] more than one year before the day on
1896     which the contractor obtains the statement from the subcontractor.
1897          [(c) (i) (A)] (7) (a) (i) A contractor that fails to maintain an offer of qualified health
1898     insurance coverage [described in Subsection (5)(a)] during the duration of the contract as
1899     required in this section is subject to penalties in accordance with administrative rules adopted
1900     by the division under [Subsection (6)] this section.
1901          [(B)] (ii) A contractor is not subject to penalties for the failure of a subcontractor to
1902     obtain and maintain an offer of qualified health insurance coverage [described in Subsection
1903     (5)(b)(i)] as required in this section.
1904          [(ii) (A)] (b) (i) A subcontractor that fails to obtain and maintain an offer of qualified
1905     health insurance coverage [described in Subsection (5)(b)(i)] during the duration of the
1906     subcontract as required in this section is subject to penalties in accordance with administrative
1907     rules adopted by the division under [Subsection (6)] this section.
1908          [(B)] (ii) A subcontractor is not subject to penalties for the failure of a contractor to
1909     maintain an offer of qualified health insurance coverage [described in Subsection (5)(a)] as
1910     required in this section.
1911          [(6)] (8) The division shall adopt administrative rules:
1912          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1913          (b) in coordination with:
1914          (i) the Department of Environmental Quality in accordance with Section 19-1-206;
1915          (ii) the Department of Natural Resources in accordance with Section 79-2-404;
1916          (iii) a public transit district in accordance with Section 17B-2a-818.5;
1917          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403;
1918          (v) the Department of Transportation in accordance with Section 72-6-107.5; and

1919          (vi) the Legislature's Administrative Rules Review Committee; and
1920          (c) that establish:
1921          (i) the requirements and procedures for a contractor and a subcontractor [shall follow]
1922     to demonstrate compliance with this section, including:
1923          (A) a provision that a contractor or subcontractor's compliance with this section is
1924     subject to an audit by the division or the Office of the Legislative Auditor General;
1925          (B) a provision that a contractor that is subject to the requirements of this section
1926     [shall] obtain a written statement [described in Subsection (5)(a)] as provided in Subsection
1927     (5); and
1928          (C) a provision that a subcontractor that is subject to the requirements of this section
1929     [shall] obtain a written statement [described in Subsection (5)(b)(ii)] as provided in Subsection
1930     (6);
1931          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
1932     violates the provisions of this section, which may include:
1933          (A) a three-month suspension of the contractor or subcontractor from entering into a
1934     future [contracts] contract with the state upon the first violation;
1935          (B) a six-month suspension of the contractor or subcontractor from entering into a
1936     future [contracts] contract with the state upon the second violation;
1937          (C) an action for debarment of the contractor or subcontractor in accordance with
1938     Section 63G-6a-904 upon the third or subsequent violation; and
1939          (D) monetary penalties which may not exceed 50% of the amount necessary to
1940     purchase qualified health insurance coverage for eligible employees and dependents of eligible
1941     employees of the contractor or subcontractor who were not offered qualified health insurance
1942     coverage during the duration of the contract; and
1943          (iii) a website [on which] for the department [shall] to post the commercially
1944     equivalent benchmark for the qualified health insurance coverage that is provided by the
1945     Department of Health in accordance with Subsection 26-40-115(2).

1946          [(7) (a)] (9) During the duration of a contract, the division may perform an audit to
1947     verify a contractor or subcontractor's compliance with this section.
1948          [(b)] (10) (a) Upon the division's request, a contractor or subcontractor shall provide
1949     the division:
1950          (i) a signed actuarial certification that the coverage the contractor or subcontractor
1951     offers is qualified health insurance coverage; or
1952          (ii) all relevant documents and information necessary for the division to determine
1953     compliance with this section.
1954          [(c)] (b) If a contractor or subcontractor provides the documents and information
1955     described in Subsection [(7)(b)(ii)] (10)(a)(i), the Insurance Department shall assist the division
1956     in determining if the coverage the contractor or subcontractor offers is qualified health
1957     insurance coverage.
1958          [(8)] (11) (a) (i) In addition to the penalties imposed under Subsection [(6)(c)(ii)] (7), a
1959     contractor or subcontractor that intentionally violates the provisions of this section is liable to
1960     [the] an eligible employee for health care costs that would have been covered by qualified
1961     health insurance coverage.
1962          (ii) An employer has an affirmative defense to a cause of action under Subsection [(8)]
1963     (11)(a)(i) if:
1964          (A) the employer relied in good faith on a written statement described in Subsection
1965     [(5)(a) or (5)(b)(ii)] (5) or (6); or
1966          (B) the department determines that compliance with this section is not required under
1967     the provisions of Subsection (3).
1968          (b) An eligible employee has a private right of action [only] against the employee's
1969     employer [to enforce the provisions of this Subsection (8)] only as provided in this Subsection
1970     (11).
1971          [(9)] (12) [Any penalties imposed and collected] The director shall cause money
1972     collected from the imposition and collection of a penalty under this section [shall] to be

1973     deposited into the Medicaid Restricted Account created by Section 26-18-402.
1974          [(10)] (13) The failure of a contractor or subcontractor to provide qualified health
1975     insurance coverage as required by this section:
1976          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
1977     or contractor under:
1978          (i) Section 63G-6a-1602; or
1979          (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
1980          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
1981     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
1982     or construction.
1983          (14) An employer's waiting period for an employee to become eligible for qualified
1984     health insurance coverage may not extend beyond the first day of the calendar month following
1985     60 days after the day on which the employee is hired.
1986          Section 42. Section 63A-5b-608, which is renumbered from Section 63A-5-207 is
1987     renumbered and amended to read:
1988          [63A-5-207].      63A-5b-608. Obligations beyond authorized funding
1989     prohibited -- Exceptions.
1990          (1) [The] Unless otherwise specifically instructed by the terms of the appropriation for
1991     a particular project, the director shall assure[, unless otherwise specifically instructed by the
1992     terms of the appropriation of a particular project,] that no obligations beyond the authorized
1993     funding are incurred in the construction of any project authorized by the Legislature.
1994          (2) The director may expend appropriations for statewide projects from funds provided
1995     by the Legislature for the purposes and within the guidelines established by the Legislature.
1996          [(2)] (3) The director may consent to the drafting of a plan or the awarding of a
1997     contract that will exceed in cost the funding currently available for the project [in question]
1998     only if the Legislature has specifically provided for extending construction of a building or the
1999     completion of a project into future fiscal periods.

2000          Section 43. Section 63A-5b-609, which is renumbered from Section 63A-5-209 is
2001     renumbered and amended to read:
2002          [63A-5-209].      63A-5b-609. Expenditure of appropriated funds supervised
2003     by director -- Contingencies -- Disposition of project reserve funds -- Set aside for Utah
2004     Percent-for-Art Program.
2005          (1) The director shall:
2006          (a) (i) supervise the expenditure of funds in providing plans, engineering
2007     specifications, sites, and construction of the buildings for which legislative appropriations are
2008     made; and
2009          (ii) specifically allocate money appropriated [when] if more than one project is
2010     included in any single appropriation without legislative directive;
2011          (b) (i) expend the amount necessary from appropriations for planning, engineering, and
2012     architectural work; and
2013          (ii) (A) allocate amounts from appropriations necessary to cover expenditures
2014     previously made from the planning fund under Section [63A-5-211] 63A-5b-503 in the
2015     preparation of plans, engineering, and specifications; and
2016          (B) return the amounts described in Subsection (1)(b)(ii)(A) to the planning fund; and
2017          (c) hold in a statewide contingency reserve the amount budgeted for contingencies:
2018          (i) in appropriations for the construction or remodeling of facilities; and
2019          (ii) [which may be] that are over and above all amounts obligated by contract for
2020     planning, engineering, architectural work, sites, and construction contracts.
2021          (2) (a) The director shall base the amount budgeted for contingencies on a sliding scale
2022     percentage of the construction cost ranging from:
2023          (i) 4-1/2% to 6-1/2% for new construction; and
2024          (ii) 6% to 9-1/2% for remodeling projects.
2025          (b) The director shall hold the statewide contingency funds to cover:
2026          (i) costs of change orders; and

2027          (ii) unforeseen, necessary costs beyond those specifically budgeted for the project.
2028          (c) (i) The Legislature shall annually review the percentage and the amount held in the
2029     statewide contingency reserve.
2030          (ii) The Legislature may reappropriate to other building needs, including the cost of
2031     administering building projects, any amount from the statewide contingency reserve that is in
2032     excess of the reserve required to meet future contingency needs.
2033          (3) (a) The director shall hold in a separate project reserve [those] state appropriated
2034     funds accrued through bid savings and project residual [as a project reserve].
2035          (b) The director shall account for the funds accrued under Subsection (3)(a) in separate
2036     accounts as follows:
2037          (i) bid savings and project residual from a capital improvement project, as defined in
2038     Section [63A-5-104] 63A-5b-401; and
2039          (ii) bid savings and project residual from a capital development project, as defined in
2040     Section [63A-5-104] 63A-5b-401.
2041          (c) The [State Building Board may authorize the use of] director may use project
2042     reserve funds in the account described in Subsection (3)(b)(i) for a capital improvement
2043     project:
2044          (i) approved under Section [63A-5-104] 63A-5b-405; and
2045          (ii) for which funds are not allocated.
2046          (d) The director may:
2047          (i) authorize the use of project reserve funds in the accounts described in Subsection
2048     (3)(b) for the award of contracts in excess of a project's construction budget if the use is
2049     required to meet the intent of the project;
2050          (ii) transfer money from the account described in Subsection (3)(b)(i) to the account
2051     described in Subsection (3)(b)(ii) if a capital development project has exceeded its construction
2052     budget; and
2053          (iii) use project reserve funds for any emergency capital improvement project, whether

2054     or not the emergency capital improvement project is related to a project that has exceeded its
2055     construction budget.
2056          (e) The director shall report to the Office of the Legislative Fiscal Analyst within 30
2057     days:
2058          (i) an [authorization] expenditure under Subsection (3)(c); or
2059          (ii) a transfer under Subsection (3)(d).
2060          (f) The Legislature shall annually review the amount held in the project reserve for
2061     possible reallocation by the Legislature to other building needs, including the cost of
2062     administering building projects.
2063          (4) If any part of the appropriation for a building project, other than the part set aside
2064     for the Utah Percent-for-Art Program under Title 9, Chapter 6, Part 4, Utah Percent-for-Art
2065     Act, remains unencumbered after the award of construction and professional service contracts
2066     and establishing a reserve for fixed and moveable equipment, the balance of the appropriation
2067     is dedicated to the project reserve and does not revert to the General Fund.
2068          (5) (a) One percent of the amount appropriated for the construction of any new state
2069     building or facility may be appropriated and set aside for the Utah Percent-for-Art Program
2070     administered by the Division of Fine Arts under Title 9, Chapter 6, Part 4, Utah Percent-for-Art
2071     Act.
2072          (b) The director shall release to the Division of Fine Arts any funds included in an
2073     appropriation to the division that are designated by the Legislature for the Utah Percent-for-Art
2074     Program.
2075          (c) Funds from appropriations for [any] a state building or facility [of which] may not
2076     be set aside:
2077          (i) if any part of the funds is derived from the issuance of bonds[,]; and
2078          (ii) to the extent [it] the set aside of funds would jeopardize the federal income tax
2079     exemption otherwise allowed for interest paid on bonds[, may not be set aside].
2080          Section 44. Section 63A-5b-610, which is renumbered from Section 63A-5-219 is

2081     renumbered and amended to read:
2082          [63A-5-219].      63A-5b-610. Transfer from project reserve money.
2083          (1) With the approval of and through an appropriation by the Legislature, the division
2084     shall transfer at least $100,000 annually from the project reserve money to the General Fund to
2085     pay for personal service expenses associated with the management of construction projects.
2086          (2) With the approval of and as directed by the Legislature, the division shall transfer
2087     additional money from the project reserve money to pay administrative costs associated with
2088     the management of construction projects and other division responsibilities.
2089          Section 45. Section 63A-5b-701 is enacted to read:
2090     
Part 7. Operation and Maintenance

2091          63A-5b-701. Operation and maintenance for state facilities.
2092          (1) As used in this section, "maintenance functions" means all programs and activities
2093     related to the operation and maintenance of a state facility, including preventive maintenance
2094     and inspection.
2095          (2) (a) The director shall direct or delegate maintenance functions for an agency, except
2096     for:
2097          (i) the State Capitol Preservation Board; and
2098          (ii) an institution of higher education.
2099          (b) The director may delegate responsibility for maintenance functions to an agency
2100     only if:
2101          (i) the agency requests the responsibility; and
2102          (ii) the director determines that:
2103          (A) the agency has the necessary resources and skills to comply with maintenance
2104     functions standards approved by the director; and
2105          (B) the delegation would result in net cost savings to the state as a whole.
2106          (c) The State Capitol Preservation Board and an institution of higher education are
2107     exempt from division oversight of maintenance functions.

2108          (d) An institution of higher education shall comply with the division's facility
2109     maintenance functions standards.
2110          (3) (a) An institution of higher education shall annually report to the division, in a
2111     format required by the division, on the institution of higher education's compliance with the
2112     division's maintenance functions standards.
2113          (b) The division shall:
2114          (i) prescribe a standard format for reporting compliance with the division's
2115     maintenance functions standards;
2116          (ii) report to the Legislature on the compliance or noncompliance with the standards;
2117     and
2118          (iii) conduct periodic audits to ensure that institutions of higher education are
2119     complying with the standards and report the results of the audits to the Legislature.
2120          Section 46. Section 63A-5b-702 is enacted to read:
2121          63A-5b-702. Standards and requirements for state facilities -- Life-cycle cost
2122     effectiveness.
2123          (1) As used in this section:
2124          (a) "Life cycle cost-effective" means the most prudent cost of owning, operating, and
2125     maintaining a facility, including the initial cost, energy costs, operation and maintenance costs,
2126     repair costs, and the costs of energy conservation and renewable energy systems.
2127          (b) "Renewable energy system" means a system designed to use solar, wind,
2128     geothermal power, wood, or other replenishable energy source to heat, cool, or provide
2129     electricity to a building.
2130          (2) The director shall, in accordance with Title 63G, Chapter 3, Utah Administrative
2131     Rulemaking Act, make rules:
2132          (a) that establish standards and requirements for determining whether a state facility
2133     project is life cycle cost-effective;
2134          (b) for the monitoring of an agency's operation and maintenance expenditures for a

2135     state-owned facility;
2136          (c) to establish standards and requirements for utility metering;
2137          (d) that create an operation and maintenance program for an agency's facilities;
2138          (e) that establish a methodology for determining reasonably anticipated inflationary
2139     costs for each operation and maintenance program described in Subsection (2)(d);
2140          (f) that require an agency to report the amount the agency receives and expends on
2141     operation and maintenance; and
2142          (g) that provide for determining the actual cost for operation and maintenance requests
2143     for a new facility.
2144          (3) The director shall:
2145          (a) ensure that state-owned facilities, except for facilities under the control of the State
2146     Capitol Preservation Board, are life cycle cost-effective;
2147          (b) conduct ongoing facilities audits of state-owned facilities; and
2148          (c) monitor an agency's operation and maintenance expenditures for state-owned
2149     facilities as provided in rules made under Subsection (2)(b).
2150          (4) (a) An agency shall comply with the rules made under Subsection (2) for new
2151     facility requests submitted to the Legislature for a session of the Legislature after the 2017
2152     General Session.
2153          (b) The Office of the Legislative Fiscal Analyst and the Governor's Office of
2154     Management and Budget shall, for each agency with operation and maintenance expenses,
2155     ensure that each required budget for the agency is adjusted in accordance with the rules
2156     described in Subsection (2)(e).
2157          Section 47. Section 63A-5b-703 is enacted to read:
2158          63A-5b-703. Agency lease payments.
2159          (1) (a) Beginning July 1, 2020, the division shall implement a program to charge
2160     agencies, except institutions of higher education, lease payments for the agency's use and
2161     occupancy of space within a building.

2162          (b) Before July 1, 2020, the division shall:
2163          (i) conduct a market analysis of market lease rates for comparable space in buildings
2164     comparable to division-owned buildings; and
2165          (ii) establish lease rates for an agency's use and occupancy of a division-owned
2166     building.
2167          (c) The lease rates shall be:
2168          (i) consistent with market rates for comparable space in comparable buildings;
2169          (ii) calculated to cover:
2170          (A) an amortized amount for capital replacement;
2171          (B) an amount for capital improvements; and
2172          (C) operation and maintenance costs; and
2173          (iii) in proportion to legislative appropriations.
2174          (2) In making appropriations to cover lease payments under this section, the
2175     Legislature shall create a line item, as defined in Section 63J-1-102, for each agency to fund the
2176     lease payments.
2177          Section 48. Section 63A-5b-801 is enacted to read:
2178     
Part 8. Acquisitions of Real Property Interests

2179          63A-5b-801. Definitions.
2180          As used in this part:
2181          (1) "Agency optional term" means an option that is exclusively exercisable by a leasing
2182     agency to extend the lease term.
2183          (2) "High-cost lease" means a real property lease that:
2184          (a) has an initial term including any agency optional term of 10 years or more; or
2185          (b) will require lease payments of more than $5,000,000 over the term of the lease,
2186     including any agency optional term.
2187          (3) (a) "Leasing agency" means a department, commission, board, council, agency,
2188     institution, officer, corporation, fund, division, office, committee, authority, laboratory, library,

2189     unit, bureau, panel, or other administrative unit of the state.
2190          (b) "Leasing agency" does not include:
2191          (i) the legislative branch;
2192          (ii) the judicial branch; and
2193          (iii) an institution of higher education.
2194          (4) "Significant lease terms" includes the duration of the lease, the frequency of the
2195     periodic payments, a renewal clause, a purchase option, a cancellation clause, a repair and
2196     maintenance clause, and a restriction on use of the property.
2197          Section 49. Section 63A-5b-802, which is renumbered from Section 63A-5-302 is
2198     renumbered and amended to read:
2199          [63A-5-302].      63A-5b-802. Leasing responsibilities of the director.
2200          (1) The director shall:
2201          (a) prepare and submit a yearly request to the governor and Legislature for a designated
2202     amount of square footage by type of space to be leased by the division for that fiscal year;
2203          [(a)] (b) lease, in the name of the division, all real property space to be occupied by
2204     [an] a leasing agency;
2205          [(b)] (c) in leasing space[, comply with]:
2206          [(i) Title 63G, Chapter 6a, Utah Procurement Code; and]
2207          (i) use a process consistent with the best interest of the state, the requirements of the
2208     leasing agency, and the anticipated use of the property; and
2209          (ii) comply with any legislative mandates contained in the appropriations act or other
2210     [specific] legislation;
2211          [(c)] (d) apply the criteria contained in Subsection (1)[(e)](f) to prepare a report
2212     evaluating each high-cost lease at least 12 months before [it] the lease expires;
2213          [(d)] (e) evaluate each lease under the division's control and apply the criteria
2214     contained in Subsection [(1)(e), when appropriate, to evaluate those leases] (1)(f), as
2215     applicable, to evaluate the lease;

2216          [(e)] (f) in evaluating leases:
2217          (i) determine whether [or not] the lease is cost-effective when the needs of the leasing
2218     agency to be housed in the leased facilities are considered;
2219          (ii) determine whether [or not] another option such as construction, use of other
2220     state-owned space, or a lease-purchase agreement is more cost-effective than leasing;
2221          (iii) determine whether [or not] the significant lease terms are cost-effective and
2222     provide the state with sufficient flexibility and protection from liability;
2223          (iv) compare the proposed lease payments to the current market rates, and evaluate
2224     whether [or not] the proposed lease payments are reasonable under current market conditions;
2225          (v) compare proposed significant lease terms to the current market, and recommend
2226     whether [or not] these proposed terms are reasonable under current market conditions; and
2227          (vi) if applicable, recommend that the lease or modification to a lease be approved or
2228     disapproved;
2229          [(f)] (g) based upon the evaluation, include in the report recommendations that identify
2230     viable alternatives to:
2231          (i) make the lease cost-effective; or
2232          (ii) meet the leasing agency's needs when the lease expires; and
2233          [(g)] (h) upon request, provide the information included in the report to:
2234          (i) the leasing agency benefitted by the lease; and
2235          (ii) the Office of the Legislative Fiscal Analyst.
2236          (2) The director may:
2237          (a) subject to legislative appropriation, enter into a facility [leases with terms] lease
2238     with a term of up to 10 years [when] if the length of the lease's term is economically
2239     advantageous to the state; and
2240          (b) with the approval of the [State Building Board] board and subject to legislative
2241     appropriation, enter into a facility [leases with terms] lease with a term of more than 10 years
2242     [when] if the length of the lease's term is economically advantageous to the state.

2243          Section 50. Section 63A-5b-803, which is renumbered from Section 63A-5-303 is
2244     renumbered and amended to read:
2245          [63A-5-303].      63A-5b-803. Reporting of leasing activity.
2246          (1) The director shall:
2247          (a) prepare a standard form upon which [agencies and other state institutions and
2248     entities can report their] a leasing agency and another state institution or entity can report the
2249     current and proposed lease activity of the leasing agency, institution, or entity, including any
2250     lease [renewals] renewal; and
2251          (b) develop procedures and mechanisms within the division to:
2252          (i) obtain and share information about each leasing agency's real property needs; and
2253          (ii) provide oversight and review of lessors and lessees during the term of each lease.
2254          (2) Each leasing agency, the Judicial Council, and the Board of Regents, for each
2255     institution of higher education, shall report all current and proposed lease activity on the
2256     standard form prepared by the division to:
2257          (a) the [State Building Board] division; and
2258          (b) the Office of the Legislative Fiscal Analyst.
2259          Section 51. Section 63A-5b-804, which is renumbered from Section 63A-5-304 is
2260     renumbered and amended to read:
2261          [63A-5-304].      63A-5b-804. Leasing by the Administrative Office of the
2262     Courts -- Judicial Council approval required for high-cost lease -- Director's
2263     responsibilities.
2264          (1) Before executing [any] a high-cost lease or a modification to a lease that results in a
2265     high-cost lease, the Administrative Office of the Courts shall submit a draft of the new lease or
2266     modification to:
2267          (a) the Judicial Council; and
2268          (b) the director [of the Division of Facilities Construction and Management].
2269          (2) The director shall:

2270          (a) review the [drafts] draft submitted by the Administrative Office of the Courts; and
2271          (b) within 30 days after receiving the [drafts from the office] draft, submit a report on
2272     [those drafts] the draft to:
2273          (i) the Judicial Council; and
2274          (ii) the Office of the Legislative Fiscal Analyst.
2275          (3) [The] A report under Subsection (2)(b) shall contain:
2276          (a) the director's opinion about:
2277          (i) whether [or not] the lease or modification is cost-effective when the needs of the
2278     entity to be housed in the leased facility are considered;
2279          (ii) whether [or not] another option such as construction, use of other state-owned
2280     space, or a lease-purchase agreement is more cost-effective than leasing; and
2281          (iii) whether [or not] the significant lease terms are cost-effective and provide the state
2282     with sufficient flexibility and protection from liability;
2283          (b) a comparison of the proposed lease payments to the current market rates, and a
2284     recommendation as to whether [or not] the proposed lease payments are reasonable under
2285     current market conditions;
2286          (c) a comparison of proposed significant lease terms to the current market, and a
2287     recommendation as to whether [these] the proposed terms are reasonable under current market
2288     conditions; and
2289          (d) a recommendation from the director that the lease or modification to a lease be
2290     approved or disapproved.
2291          (4) (a) The Administrative Office of the Courts may not execute [any] a new high-cost
2292     [leases or modifications to any] lease or modification to an existing lease that will result in a
2293     high-cost lease unless [that lease or those modifications are] the lease or modification is
2294     approved by a majority vote of the Judicial Council.
2295          (b) The Judicial Council shall consider the recommendations of the director [of the
2296     division] in determining whether [or not] to approve a high-cost [leases and modifications]

2297     lease or modification resulting in a high-cost [leases] lease.
2298          Section 52. Section 63A-5b-805, which is renumbered from Section 63A-5-305 is
2299     renumbered and amended to read:
2300          [63A-5-305].      63A-5b-805. Leasing by higher education institutions.
2301          (1) The Board of Regents shall establish written policies and procedures governing
2302     leasing by an institution of higher education [institutions].
2303          (2) Except as provided in Sections 53B-2a-113 and 63M-2-602, [a] an institution of
2304     higher education [institution] shall comply with the procedures and requirements of the Board
2305     of Regents' policies before signing or renewing a lease.
2306          Section 53. Section 63A-5b-806, which is renumbered from Section 63A-5-401 is
2307     renumbered and amended to read:
2308          [63A-5-401].      63A-5b-806. Division rules on the value of property bought
2309     or exchanged -- Exception.
2310          (1) [If the division buys, sells, or exchanges real property, the] The division shall, in
2311     accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules to
2312     ensure that, if the division buys or exchanges real property, the value of the real property is
2313     congruent with the proposed price and other terms of the purchase[, sale,] or exchange.
2314          (2) The rules:
2315          (a) shall establish procedures for determining the value of the real property;
2316          (b) may provide that an appraisal, as defined [under] in Section 61-2g-102,
2317     demonstrates the real property's value; and
2318          (c) may require that the appraisal be completed by a state-certified general appraiser, as
2319     defined [under] in Section 61-2g-102.
2320          (3) The rules adopted under Subsection (1) [does] do not apply to[: (a)] the purchase[,
2321     sale,] or exchange of real property, or [to] an interest in real property, with a value of less than
2322     [$100,000] $250,000, as estimated by the division[; or].
2323          [(b) a transfer of ownership or lease of vacant division-owned property, as defined in

2324     Section 63A-5a-102, at below fair market value under Chapter 5a, Division-Owned Real
2325     Property Act.]
2326          Section 54. Section 63A-5b-901, which is renumbered from Section 63A-5a-102 is
2327     renumbered and amended to read:
2328     
Part 9. Disposal of Division-Owned Property

2329          [63A-5a-102].      63A-5b-901. Definitions.
2330          As used in this [chapter] part:
2331          (1) "Applicant" means a person who submits a timely, qualified proposal to the
2332     division.
2333          [(2) "Board" means the State Building Board, created in Section 63A-5-101.]
2334          [(3)] (2) "Condemnee" means the same as that term is defined in Section 78B-6-520.3.
2335          [(4)] (3) "Convey" means:
2336          (a) to provide for a primary state agency's occupancy or use of vacant division-owned
2337     property; or
2338          (b) to effect a transfer of ownership or lease of vacant division-owned property to a
2339     secondary state agency, local government entity, public purpose nonprofit entity, or private
2340     party.
2341          [(5) "Director" means the division director, appointed under Section 63A-5-203.]
2342          [(6) "Division" means the Division of Facilities Construction and Management, created
2343     in Section 63A-5-201.]
2344          [(7)] (4) "Division-owned property" means real property, including an interest in real
2345     property, to which the division holds title, regardless of who occupies or uses the real property.
2346          [(8)] (5) "Local government entity" means a county, city, town, metro township, local
2347     district, special service district, community development and renewal agency, conservation
2348     district, school district, or other political subdivision of the state.
2349          [(9)] (6) "Primary state agency" means a state agency for which the division holds title
2350     to real property that the state agency occupies or uses, as provided in Subsection

2351     [63A-5-204(2)(a)(iv)] 63A-5b-303(1)(a)(iv).
2352          [(10)] (7) "Private party" means a person who is not a state agency, local government
2353     entity, or public purpose nonprofit entity.
2354          [(11)] (8) "Public purpose nonprofit entity" means a corporation, association,
2355     organization, or entity that:
2356          (a) is located within the state;
2357          (b) is not a state agency or local government entity;
2358          (c) is exempt from federal income taxation under Section 501(c)(3), Internal Revenue
2359     Code; and
2360          (d) operates to fulfill a public purpose.
2361          [(12)] (9) "Qualified proposal" means a written proposal that:
2362          (a) meets the criteria established by the division by rule under Section 63A-5b-903;
2363          (b) if submitted by a local government entity or public purpose nonprofit entity,
2364     explains the public purpose for which the local government entity or public purpose nonprofit
2365     entity seeks a transfer of ownership or lease of the vacant division-owned property; and
2366          (c) the director determines will, if accepted and implemented, provide a material
2367     benefit to the state.
2368          [(13)] (10) "Secondary state agency" means a state agency:
2369          (a) that is authorized to hold title to real property that the state agency occupies or uses,
2370     as provided in Subsection [63A-5-204(6)] 63A-5b-303(4); and
2371          (b) for which the division does not hold title to real property that the state agency
2372     occupies or uses.
2373          [(14)] (11) "State agency" means a department, division, office, entity, agency, or other
2374     unit of state government.
2375          [(15)] (12) "Transfer of ownership" includes a transfer of the ownership of vacant
2376     division-owned property that occurs as part of an exchange of the vacant division-owned
2377     property for another property.

2378          [(16)] (13) "Vacant division-owned property" means division-owned property that:
2379          (a) a primary state agency has discontinued to occupy or use; and
2380          (b) the director has determined should be made available for:
2381          (i) use or occupancy by a primary state agency; or
2382          (ii) a transfer of ownership or lease to a secondary state agency, local government
2383     entity, public purpose nonprofit entity, or private party.
2384          [(17)] (14) "Written proposal" means a brief statement in writing that explains:
2385          (a) the proposed use or occupancy, transfer of ownership, or lease of vacant
2386     division-owned property; and
2387          (b) how the state will benefit from the proposed use or occupancy, transfer of
2388     ownership, or lease.
2389          Section 55. Section 63A-5b-902, which is renumbered from Section 63A-5a-103 is
2390     renumbered and amended to read:
2391          [63A-5a-103].      63A-5b-902. Application of part.
2392          (1) The provisions of this [chapter] part, other than this section, do not apply to:
2393          (a) a conveyance, lease, or disposal under Subsection [63A-5-204(2)(a)(x)]
2394     63A-5b-303(1)(a)(x); or
2395          (b) the division's disposal or lease of division-owned property with a value under
2396     [$100,000] $250,000, as estimated by the division.
2397          (2) Nothing in Subsection (1)(b) may be construed to diminish or eliminate the
2398     division's responsibility to manage division-owned property in the best interests of the state.
2399          Section 56. Section 63A-5b-903, which is renumbered from Section 63A-5a-104 is
2400     renumbered and amended to read:
2401          [63A-5a-104].      63A-5b-903. Rules adopted by the division.
2402          The division may, in accordance with Title 63G, Chapter 3, Utah Administrative
2403     Rulemaking Act, make rules to:
2404          (1) establish criteria that a written proposal is required to satisfy in order to be a

2405     qualified proposal, including, if applicable, a minimum acceptable purchase price; and
2406          (2) define criteria that the director will consider in making a determination whether a
2407     proposed use or occupancy, transfer of ownership, or lease of vacant division-owned property
2408     provides a material benefit to the state.
2409          Section 57. Section 63A-5b-904, which is renumbered from Section 63A-5a-201 is
2410     renumbered and amended to read:
2411          [63A-5a-201].      63A-5b-904. Division authority with respect to vacant
2412     division-owned property -- Limitations.
2413          (1) Subject to Section [63A-5a-206] 63A-5b-909, the division may, as provided in this
2414     [chapter] part:
2415          (a) provide for a primary state agency's occupancy or use of vacant division-owned
2416     property;
2417          (b) effect a transfer of ownership or lease of vacant division-owned property to a
2418     secondary state agency, local government entity, public purpose nonprofit entity, or private
2419     party; or
2420          (c) refer vacant division-owned property to the Department of Transportation for sale
2421     by auction, as provided in Section [63A-5a-205] 63A-5b-908.
2422          (2) The division may not effect a transfer of ownership or lease of vacant
2423     division-owned property without receiving fair market value in return unless:
2424          (a) the director determines that the transfer of ownership or lease is in the best interests
2425     of the state;
2426          (b) for a proposed transfer of ownership or lease to a local government entity, public
2427     purpose nonprofit entity, or private party, the director determines that the local government
2428     entity, public purpose nonprofit entity, or private party intends to use the property to fulfill a
2429     public purpose;
2430          (c) the director requests and receives a recommendation on the proposed transfer of
2431     ownership or lease from the Legislative Executive Appropriations Committee;

2432          (d) the director communicates the Executive Appropriations Committee's
2433     recommendation to the executive director; and
2434          (e) the executive director approves the transfer of ownership or lease.
2435          (3) (a) If the division effects a transfer of ownership of vacant division-owned property
2436     without receiving fair market value in return, as provided in this [chapter] part, the division
2437     shall require the documents memorializing the transfer of ownership to preserve to the
2438     division:
2439          (i) in the case of a transfer of ownership of vacant division-owned property to a
2440     secondary state agency, local government entity, or public purpose nonprofit entity for no or
2441     nominal consideration, a right of reversion, providing for the ownership of the property to
2442     revert to the division if the property ceases to be used for the public benefit; or
2443          (ii) in the case of any other transfer of ownership of vacant division-owned property, a
2444     right of first refusal allowing the division to purchase the property from the transferee for the
2445     same price that the transferee paid to the division if the transferee wishes to transfer ownership
2446     of the former vacant division-owned property.
2447          (b) Subsection (3)(a) does not apply to the sale of vacant division-owned property at an
2448     auction under Section [63A-5a-205] 63A-5b-908.
2449          Section 58. Section 63A-5b-905, which is renumbered from Section 63A-5a-202 is
2450     renumbered and amended to read:
2451          [63A-5a-202].      63A-5b-905. Notice required before division may convey
2452     division-owned property.
2453          (1) Before the division may convey vacant division-owned property, the division shall
2454     give notice as provided in Subsection (2).
2455          (2) A notice required under Subsection (1) shall:
2456          (a) identify and describe the vacant division-owned property;
2457          (b) indicate the availability of the vacant division-owned property;
2458          (c) invite persons interested in the vacant division-owned property to submit a written

2459     proposal to the division;
2460          (d) indicate the deadline for submitting a written proposal;
2461          (e) be posted on the division's website for at least 60 consecutive days before the
2462     deadline for submitting a written proposal, in a location specifically designated for notices
2463     dealing with vacant division-owned property;
2464          (f) be posted on the Utah Public Notice Website created in Section 63F-1-701 for at
2465     least 60 consecutive days before the deadline for submitting a written proposal; and
2466          (g) be sent by email to each person who has previously submitted to the division a
2467     written request to receive notices under this section.
2468          Section 59. Section 63A-5b-906, which is renumbered from Section 63A-5a-203 is
2469     renumbered and amended to read:
2470          [63A-5a-203].      63A-5b-906. Submitting a written proposal for vacant
2471     division-owned property.
2472          (1) A person may submit to the division a written proposal:
2473          (a) in response to the division's notice under Section [63A-5a-202] 63A-5b-905; or
2474          (b) with respect to vacant division-owned property as to which the division has not
2475     given notice under Section [63A-5a-202] 63A-5b-905.
2476          (2) The division is not required to consider a written proposal or provide notice under
2477     Section [63A-5a-202] 63A-5b-905 if the director determines that the written proposal is not a
2478     qualified proposal.
2479          (3) If a person submits a qualified proposal to the division under Subsection (1)(b):
2480          (a) the division shall:
2481          (i) give notice as provided in Section [63A-5a-202] 63A-5b-905; and
2482          (ii) treat the qualified proposal as though it were submitted in response to the notice;
2483     and
2484          (b) the person may, within the time provided for the submission of written proposals,
2485     modify the qualified proposal to the extent necessary to address matters raised in the notice that

2486     were not addressed in the initial qualified proposal.
2487          (4) A person who fails to submit a qualified proposal to the division within 60 days
2488     after the date of the notice under Section [63A-5a-202] 63A-5b-905 may not be considered for
2489     the vacant division-owned property.
2490          Section 60. Section 63A-5b-907, which is renumbered from Section 63A-5a-204 is
2491     renumbered and amended to read:
2492          [63A-5a-204].      63A-5b-907. Priorities for vacant division-owned property --
2493     Division to convey vacant division-owned property.
2494          (1) (a) A state agency has priority for vacant division-owned property over a local
2495     government entity, a public purpose nonprofit entity, and a private party.
2496          (b) A local government entity and a public purpose nonprofit entity have:
2497          (i) priority for vacant division-owned property over a private party; and
2498          (ii) between them the same priority for vacant division-owned property.
2499          (2) If the division receives multiple timely qualified proposals from applicants with the
2500     highest and same priority, the division shall:
2501          (a) notify the board of:
2502          (i) the availability of the vacant division-owned property; and
2503          (ii) the applicants with the highest and same priority that have submitted qualified
2504     proposals; and
2505          (b) provide the board with a copy of the timely qualified proposals submitted by the
2506     applicants with the highest and same priority.
2507          (3) Within 30 days after being notified under Subsection (2), the board shall:
2508          (a) determine which applicant's qualified proposal is most likely to result in the highest
2509     and best public benefit; and
2510          (b) notify the division of the board's decision under Subsection (3)(a).
2511          (4) The division shall convey the vacant division-owned property to:
2512          (a) the applicant with the highest priority under Subsection (1), if the division receives

2513     a timely qualified proposal from a single applicant with the highest priority; or
2514          (b) the applicant whose qualified proposal was determined by the board under
2515     Subsection (3) to be most likely to result in the highest and best public benefit, if the division
2516     receives multiple timely qualified proposals from applicants with the highest and same priority.
2517          (5) (a) If the division leases vacant division-owned property to a private party, the
2518     division shall, within 30 days after a lease agreement is executed, provide written notice of the
2519     lease to:
2520          (i) the municipality in which the vacant division-owned property is located, if the
2521     vacant division-owned property is within a municipality; or
2522          (ii) the county in whose unincorporated area the vacant division-owned property is
2523     located, if the vacant division-owned property is not located within a municipality.
2524          (b) Nothing in this chapter may be used by a private party leasing division-owned
2525     property as a basis for not complying with applicable local land use ordinances and regulations.
2526          Section 61. Section 63A-5b-908, which is renumbered from Section 63A-5a-205 is
2527     renumbered and amended to read:
2528          [63A-5a-205].      63A-5b-908. Referring vacant division-owned property to
2529     the Department of Transportation for auction.
2530          (1) The division may refer vacant division-owned property to the Department of
2531     Transportation for a public auction if:
2532          (a) (i) the division has provided notice under Section [63A-5a-202] 63A-5b-905 with
2533     respect to the vacant division-owned property; and
2534          (ii) the division receives no qualified proposals in response to the notice under Section
2535     [63A-5a-202] 63A-5b-905;
2536          (b) the director determines that:
2537          (i) there is no reasonable likelihood that within the foreseeable future:
2538          (A) a primary state agency will use or occupy the vacant division-owned property; or
2539          (B) a secondary state agency, local government entity, or public purpose nonprofit

2540     entity will seek a transfer of ownership or lease of the vacant division-owned property; and
2541          (ii) disposing of the vacant division-owned property through a public auction is in the
2542     best interests of the state;
2543          (c) the director requests and receives a recommendation on the proposed public auction
2544     from the Legislative Executive Appropriations Committee;
2545          (d) the director communicates the Executive Appropriations Committee's
2546     recommendation to the executive director; and
2547          (e) the executive director approves the public auction.
2548          (2) If the division refers a vacant division-owned property to the Department of
2549     Transportation for public auction, the Department of Transportation shall publicly auction the
2550     vacant division-owned property under the same law and in the same manner that apply to a
2551     public auction of Department of Transportation property.
2552          (3) At a public auction conducted under Subsection (2), the Department of
2553     Transportation may, on behalf of the division, accept an offer to purchase the vacant
2554     division-owned property.
2555          (4) The division and the Department of Transportation shall coordinate together to:
2556          (a) manage the details of finalizing any sale of the vacant division-owned property at
2557     public auction; and
2558          (b) ensure that the buyer acquires proper title and that the division receives the net
2559     proceeds of the sale.
2560          (5) If a public auction under this section does not result in a sale of the vacant
2561     division-owned property, the Department of Transportation shall notify the division and refer
2562     the vacant division-owned property back to the division.
2563          Section 62. Section 63A-5b-909, which is renumbered from Section 63A-5a-206 is
2564     renumbered and amended to read:
2565          [63A-5a-206].      63A-5b-909. State real property subject to right of first
2566     refusal.

2567          (1) (a) If Section 78B-6-520.3 applies to vacant division-owned property, the division
2568     shall comply with Subsection 78B-6-520.3(3).
2569          (b) If a condemnee accepts the division's offer to sell the vacant division-owned
2570     property as provided in Section 78B-6-520.3, the division shall:
2571          (i) comply with the requirements of Section 78B-6-520.3; and
2572          (ii) terminate any process under this chapter to convey the vacant division-owned
2573     property.
2574          (c) A condemnee may waive rights and benefits afforded under Section 78B-6-520.3
2575     and instead seek a transfer of ownership or lease of vacant division-owned property under the
2576     provisions of this chapter in the same manner as any other person not entitled to the rights and
2577     benefits of Section 78B-6-520.3.
2578          (2) (a) If Section 78B-6-521 applies to the anticipated disposal of the vacant
2579     division-owned property, the division shall comply with the limitations and requirements of
2580     Subsection 78B-6-521(2).
2581          (b) If the original grantor or the original grantor's assignee accepts an offer for sale as
2582     provided in Subsection 78B-6-521(2)(a)(i), the division shall:
2583          (i) sell the vacant division-owned property to the original grantor or the original
2584     grantor's assignee, as provided in Section 78B-6-521; and
2585          (ii) terminate any process under this chapter to convey the vacant division-owned
2586     property.
2587          (c) An original grantor or the original grantor's assignee may waive rights afforded
2588     under Section 78B-6-521 and instead seek a transfer of ownership or lease of vacant
2589     division-owned property under the provisions of this chapter in the same manner as any other
2590     person seeking a transfer of ownership or lease of vacant division-owned property to which
2591     Section 78B-6-521 does not apply.
2592          Section 63. Section 63A-5b-910, which is renumbered from Section 63A-5-215 is
2593     renumbered and amended to read:

2594          [63A-5-215].      63A-5b-910. Disposition of proceeds received by division
2595     from sale of property.
2596          (1) (a) Except as provided in Section 62A-5-206.7, the division shall pay into the state
2597     treasury the money received [by the division from the sale or other disposition of property shall
2598     be paid into the state treasury and] from the transfer of ownership or lease of division-owned
2599     property.
2600          (b) Money paid into the state treasury under Subsection (1)(a):
2601          (i) becomes a part of the funds provided by law for carrying out the building program
2602     of the state[, and are]; and
2603          (ii) is appropriated for [that] the purpose described in Subsection (1)(b)(i).
2604          (2) The proceeds from [sales of] the transfer of ownership or lease of division-owned
2605     property belonging to or used by a particular state agency shall, to the extent practicable, be
2606     expended for the construction of buildings or in the performance of other work for the benefit
2607     of that state agency.
2608          Section 64. Section 63A-5b-911, which is renumbered from Section 63A-5-224 is
2609     renumbered and amended to read:
2610          [63A-5-224].      63A-5b-911. Authority to transfer land for commuter rail
2611     station and related development.
2612          The division may transfer title to a parcel of land it owns in a county of the first class to
2613     a public transit district for the purpose of facilitating the development of a commuter rail transit
2614     station and associated transit oriented development if:
2615          (1) the parcel is within one mile of the proposed commuter rail transit station and
2616     associated transit oriented development; and
2617          (2) the division receives in return fair and adequate consideration.
2618          Section 65. Section 63A-5b-912, which is renumbered from Section 63A-5-226 is
2619     renumbered and amended to read:
2620          [63A-5-226].      63A-5b-912. Report to Infrastructure and General

2621     Government Appropriations Subcommittee.
2622          The division shall, [beginning in 2016, and in every even-numbered year after 2016,] on
2623     or before the third Wednesday in November of every even-numbered year, present a written
2624     report to the Infrastructure and General Government Appropriations Subcommittee that
2625     identifies state land and buildings that are no longer needed and can be sold by the state.
2626          Section 66. Section 63A-5b-1001 is enacted to read:
2627     
Part 10. Energy Conservation and Efficiency

2628          63A-5b-1001. Definitions.
2629          As used in this part:
2630          (1) "Energy efficiency measure" means an action taken or initiated by an agency that:
2631          (a) reduces the agency's energy or fuel use or resource energy consumption, water or
2632     other resource consumption, operation and maintenance costs, or cost of energy, fuel, water, or
2633     other resource; or
2634          (b) increases the agency's energy or fuel efficiency or resource consumption efficiency.
2635          (2) "Energy efficiency program" means a program established under Section
2636     63A-5b-1002 for the purpose of improving energy efficiency measures and reducing the energy
2637     costs for state facilities.
2638          (3) "Fund" means the State Facility Energy Efficiency Fund created in Section
2639     63A-5b-1003.
2640          (4) "Performance efficiency agreement" means an agreement entered into by an agency
2641     whereby the agency implements one or more energy efficiency measures and finances the costs
2642     associated with implementation of performance efficiency measures using the stream of
2643     expected savings in costs resulting from implementation of the performance efficiency
2644     measures as a funding source for repayment.
2645          (5) (a) "State facility" means any building, structure, or other improvement that is
2646     constructed on property owned by the state, the state's departments, commissions, institutions,
2647     or agencies, or a state institution of higher education.

2648          (b) "State facility" does not include:
2649          (i) an unoccupied structure that is a component of the state highway system;
2650          (ii) a privately owned structure that is located on property owned by the state, the
2651     state's departments, commissions, institutions, or agencies, or a state institution of higher
2652     education; or
2653          (iii) a structure that is located on land administered by the trust lands administration
2654     under a lease, permit, or contract with the trust lands administration.
2655          Section 67. Section 63A-5b-1002, which is renumbered from Section 63A-5-701 is
2656     renumbered and amended to read:
2657          [63A-5-701].      63A-5b-1002. State Building Energy Efficiency Program.
2658          [(1) For purposes of this section:]
2659          [(a) "Division" means the Division of Facilities Construction and Management
2660     established in Section 63A-5-201.]
2661          [(b) "Energy efficiency measure" means an action taken or initiated by a state agency
2662     that:]
2663          [(i) reduces the state agency's energy or fuel use or resource energy consumption, water
2664     or other resource consumption, operation and maintenance costs, or cost of energy, fuel, water,
2665     or other resource; or]
2666          [(ii) increases the state agency's energy or fuel efficiency or resource consumption
2667     efficiency.]
2668          [(c) "Performance efficiency agreement" means an agreement entered into by a state
2669     agency whereby the state agency implements one or more energy efficiency measures and
2670     finances the costs associated with implementation of performance efficiency measures using
2671     the stream of expected savings in costs resulting from implementation of the performance
2672     efficiency measures as a funding source for repayment.]
2673          [(d) "State agency" means each executive, legislative, and judicial branch department,
2674     agency, board, commission, or division, and includes a state institution of higher education as

2675     defined in Section 53B-3-102.]
2676          [(e) "State Building Energy Efficiency Program" means a program established under
2677     this section for the purpose of improving energy efficiency measures and reducing the energy
2678     costs for state facilities.]
2679          [(f) (i) "State facility" means any building, structure, or other improvement that is
2680     constructed on property owned by the state, its departments, commissions, institutions, or
2681     agencies, or a state institution of higher education.]
2682          [(ii) "State facility" does not mean:]
2683          [(A) an unoccupied structure that is a component of the state highway system;]
2684          [(B) a privately owned structure that is located on property owned by the state, its
2685     departments, commissions, institutions, or agencies, or a state institution of higher education;
2686     or]
2687          [(C) a structure that is located on land administered by the School and Institutional
2688     Trust Lands Administration under a lease, permit, or contract with the School and Institutional
2689     Trust Lands Administration.]
2690          [(2)] (1) The division shall:
2691          (a) develop and administer the [state building] energy efficiency program, which shall
2692     include guidelines and procedures to improve energy efficiency in the maintenance and
2693     management of state facilities;
2694          (b) provide information and assistance to [state] agencies in their efforts to improve
2695     energy efficiency;
2696          (c) analyze energy consumption by [state] agencies to identify opportunities for
2697     improved energy efficiency;
2698          (d) establish an advisory group composed of representatives of [state] agencies to
2699     provide information and assistance in the development and implementation of the [state
2700     building] energy efficiency program; and
2701          (e) submit to the governor and to the Infrastructure and General Government

2702     Appropriations Subcommittee of the Legislature an annual report that:
2703          (i) identifies strategies for long-term improvement in energy efficiency;
2704          (ii) identifies goals for energy conservation for the upcoming year; and
2705          (iii) details energy management programs and strategies that were undertaken in the
2706     previous year to improve the energy efficiency of [state] agencies and the energy savings
2707     achieved.
2708          [(3)] (2) Each [state] agency shall:
2709          (a) designate a staff member that is responsible for coordinating energy efficiency
2710     efforts within the agency;
2711          (b) provide energy consumption and costs information to the division;
2712          (c) develop strategies for improving energy efficiency and reducing energy costs; and
2713          (d) provide the division with information regarding the agency's energy efficiency and
2714     reduction strategies.
2715          [(4) (a)] (3) (a) [A state] An agency may enter into a performance efficiency agreement
2716     for a term of up to 20 years.
2717          (b) Before entering into a performance efficiency agreement, the [state] agency shall:
2718          (i) utilize the division to oversee the project unless the project is exempt from the
2719     division's oversight or the oversight is delegated to the agency under the provisions of Section
2720     [63A-5-206] 63A-5b-701;
2721          (ii) obtain the prior approval of the governor or the governor's designee; and
2722          (iii) provide the Office of the Legislative Fiscal Analyst with a copy of the proposed
2723     agreement before the agency enters into the agreement.
2724          (4) An agency may consult with the energy efficiency program manager within the
2725     division regarding:
2726          (a) the cost effectiveness of energy efficiency measures; and
2727          (b) ways to measure energy savings that take into account fluctuations in energy costs
2728     and temperature.

2729          (5) (a) Except as provided under Subsection (5)(b) and subject to future budget
2730     constraints, the Legislature may not remove energy savings from an agency's appropriation.
2731          (b) An agency shall use energy savings to:
2732          (i) fund the cost of the energy efficiency measures; and
2733          (ii) if funds are available after meeting the requirements of Subsection (5)(b)(i), fund
2734     and implement new energy efficiency measures.
2735          (c) The Legislature may remove energy savings if:
2736          (i) an agency has complied with Subsection (5)(b)(i); and
2737          (ii) no new cost-effective energy efficiency measure is available for implementation.
2738          Section 68. Section 63A-5b-1003, which is renumbered from Section 63A-5-603 is
2739     renumbered and amended to read:
2740          [63A-5-603].      63A-5b-1003. State Facility Energy Efficiency Fund --
2741     Contents -- Use of fund money.
2742          [(1) As used in this section:]
2743          [(a) "Board" means the State Building Board.]
2744          [(b) "Division" means the Division of Facilities Construction and Management.]
2745          [(c) "Fund" means the State Facility Energy Efficiency Fund created by this section.]
2746          [(2)] (1) There is created a revolving loan fund known as the "State Facility Energy
2747     Efficiency Fund."
2748          [(3) To capitalize the fund, the Division of Finance shall, at the end of fiscal year
2749     2007-08, transfer $3,650,000 from the Stripper Well-Petroleum Violation Escrow Fund to the
2750     fund.]
2751          [(4)] (2) The fund shall consist of:
2752          (a) money transferred [under Subsection (3)] from the Stripper Well-Petroleum
2753     Violation Escrow Fund;
2754          (b) money appropriated by the Legislature;
2755          (c) money received for the repayment of loans made from the fund; and

2756          (d) interest earned on the fund.
2757          [(5)] (3) The board shall make a loan from the fund to [a state] an agency to[, wholly or
2758     in part,] finance all or part of energy efficiency measures.
2759          [(6)] (4) (a) (i) [A state] An agency requesting a loan shall submit an application to the
2760     board in the form and containing the information that the board requires, including plans and
2761     specifications for the proposed energy efficiency measures.
2762          (ii) [A state] An agency may request a loan to fund all or part of the cost of energy
2763     efficiency measures.
2764          (b) If the board rejects the application, the board shall notify the applicant stating the
2765     reasons for the rejection.
2766          [(7)] (5) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
2767     Act, the board shall make rules establishing:
2768          (i) criteria to determine:
2769          (A) loan eligibility;
2770          (B) energy efficiency measures priority; and
2771          (C) ways to measure energy savings that take into account fluctuations in energy costs
2772     and temperature; and
2773          (ii) a method of monitoring actual savings resulting from energy efficiency measures
2774     implemented using loan money from the fund, using objective and verifiable post-construction
2775     measures, if available.
2776          (b) In making rules that establish prioritization criteria for energy efficiency measures,
2777     the board may consider:
2778          (i) possible additional sources of revenue;
2779          (ii) the feasibility and practicality of the energy efficiency measures;
2780          (iii) the energy savings attributable to eligible energy efficiency measures;
2781          (iv) the annual energy savings;
2782          (v) the projected energy cost payback of eligible energy efficiency measures;

2783          (vi) other benefits to the state attributable to eligible energy efficiency measures;
2784          (vii) the availability of federal funds for the energy efficiency measures; and
2785          (viii) whether to require [a state] an agency to provide matching funds for the energy
2786     efficiency measures.
2787          [(8)] (6) (a) In reviewing energy efficiency measures for possible funding, the board
2788     shall:
2789          (i) review the loan application and the plans and specifications for the energy
2790     efficiency measures;
2791          (ii) determine whether to grant the loan by applying the loan eligibility criteria; and
2792          (iii) if the loan is granted, prioritize funding of the energy efficiency measures by
2793     applying the prioritization criteria.
2794          (b) The board may condition approval of a loan application and the availability of
2795     funds on assurances from the [state] agency that the board considers necessary to ensure that
2796     the [state] agency:
2797          (i) uses the proceeds to pay the cost of the energy efficiency measures; and
2798          (ii) implements the energy efficiency measures.
2799          [(9)] (7) The division shall annually report to the Government Operations Interim
2800     Committee of the Legislature the actual savings resulting from energy efficiency measures
2801     implemented using loan money from the fund, as monitored pursuant to rules adopted under
2802     Subsection [(7)] (5)(a)(ii).
2803          [(10)] (8) The [State Building Energy Efficiency Program] manager of the energy
2804     efficiency program shall provide staff support when the board performs the duties established
2805     in this section.
2806          Section 69. Section 63A-5b-1101 is enacted to read:
2807     
Part 11. Miscellaneous Provisions

2808          63A-5b-1101. Gifts, grants, and donations.
2809          (1) (a) The state or the division may receive a gift, grant, or donation to further the

2810     purposes of this part.
2811          (b) A gift, grant, or donation described in Subsection (1)(a) may not revert to the
2812     General Fund.
2813          (2) (a) This Subsection (2) applies if:
2814          (i) a donor donates land to an institution of higher education and commits to construct
2815     a building or buildings on the land; and
2816          (ii) the institution of higher education:
2817          (A) agrees to provide funds for the operation and maintenance costs of the building or
2818     buildings from sources other than state funds; and
2819          (B) agrees that the building or buildings will not be eligible for state capital
2820     improvement funding.
2821          (b) Notwithstanding any other provision of this chapter, an institution of higher
2822     education that receives a donation described in Subsection (2)(a) may:
2823          (i) oversee and manage a construction project on the donated land without
2824     involvement, oversight, or management from the division; or
2825          (ii) arrange for oversight and management of the construction project by the division.
2826          (c) The role of compliance agency on a construction project on the donated land shall
2827     be provided by:
2828          (i) the institution of higher education, for a construction project that the institution of
2829     higher education oversees and manages under Subsection (2)(b); or
2830          (ii) the director, for a construction project that the division oversees and manages under
2831     Subsection (2)(b)(ii).
2832          Section 70. Section 63A-5b-1102, which is renumbered from Section 63A-5-801 is
2833     renumbered and amended to read:
2834          [63A-5-801].      63A-5b-1102. Memorials by the state or state agencies.
2835          (1) As used in this section:
2836          (a) ["State] "Authorizing agency" means [any of the following of the state] an agency

2837     that holds title to state land[:].
2838          [(i) a department;]
2839          [(ii) a division;]
2840          [(iii) a board;]
2841          [(iv) an institution of higher education; or]
2842          [(v) for the judicial branch, the state court administrator.]
2843          (b) ["State] "Authorizing agency" does not mean a local district under Title 17B,
2844     Limited Purpose Local Government Entities - Local Districts, or a special service district under
2845     Title 17D, Chapter 1, Special Service District Act.
2846          (2) The Legislature, the governor, or [a state] an authorizing agency may authorize the
2847     use or donation of state land for the purpose of maintaining, erecting, or contributing to the
2848     erection or maintenance of a memorial to commemorate [those] individuals who have:
2849          (a) participated in or have given their lives in any of the one or more wars or military
2850     conflicts in which the United States of America has been a participant; or
2851          (b) given their lives in association with public service on behalf of the state, including
2852     firefighters, peace officers, highway patrol officers, or other public servants.
2853          (3) The use or donation of state land in relation to a memorial described in Subsection
2854     (2) may include:
2855          (a) using or appropriating public funds for the purchase, development, improvement, or
2856     maintenance of state land on which a memorial is located or established;
2857          (b) using or appropriating public funds for the erection, improvement, or maintenance
2858     of a memorial;
2859          (c) donating or selling state land for use in relation to a memorial; or
2860          (d) authorizing the use of state land for a memorial that is funded or maintained in part
2861     or in full by another public or private entity.
2862          (4) The Legislature, the governor, or [a state] an authorizing agency may specify the
2863     form, placement, and design of a memorial that is subject to this section if the Legislature, the

2864     governor, or the [state] authorizing agency holds title to, has authority over, or donates the land
2865     on which a memorial is established.
2866          (5) [Memorials] A memorial within the definition of a capital development project, as
2867     defined in Section [63A-5-104 must] 63A-5b-401, is required to be approved as provided for in
2868     Section [63A-5-104] 63A-5b-402.
2869          (6) Nothing in this section [shall] may be construed as a prohibition of [memorials] a
2870     memorial, including [those for purposes] a memorial for a purpose not covered by this section,
2871     [which have been] that:
2872          (a) is erected within the approval requirements in effect at the time of [their] the
2873     memorial's erection; or
2874          (b) [which] may be duly authorized through other legal means.
2875          Section 71. Section 63A-5b-1103 is enacted to read:
2876          63A-5b-1103. Making keys to buildings of state, political subdivisions, or colleges
2877     and universities without permission prohibited.
2878          (1) As used in this section:
2879          (a) "Applicable government entity" means a state agency, a political subdivision of the
2880     state, the Board of Regents, or any college or university supported in whole or in part by the
2881     state.
2882          (b) "Government facility" means a building, laboratory, facility, room, dormitory, hall,
2883     or other structure owned, licensed as a licensee, leased as a tenant, or lawfully occupied by an
2884     applicable government entity.
2885          (2) An individual may not knowingly make or cause to be made any key or duplicate
2886     key for a government facility without the prior written consent of the applicable government
2887     entity.
2888          (3) A person who violates this section is guilty of a class B misdemeanor.
2889          Section 72. Section 63A-5b-1104 is enacted to read:
2890          63A-5b-1104. Notification to local governments for construction or modification

2891     of certain facilities.
2892          (1) (a) The director or the director's designee shall notify in writing the elected
2893     representatives of a local government entity directly and substantively affected by any
2894     diagnostic, treatment, parole, probation, or other secured facility project exceeding $250,000,
2895     if:
2896          (i) the nature of the project has been significantly altered since an earlier notification;
2897          (ii) the project would significantly change the nature of the functions presently
2898     conducted at the location; or
2899          (iii) the project is new construction.
2900          (b) At the request of the state entity or the local government entity, representatives
2901     from the state entity and the affected local entity shall conduct or participate in a local public
2902     hearing or hearings to discuss the issues described in Subsection (1)(a).
2903          (2) (a) (i) Before beginning the construction of student housing on property owned by
2904     the state or an institution of higher education, the director shall provide written notice of the
2905     proposed construction, as provided in Subsection (2)(a)(ii), if any of the proposed student
2906     housing buildings is within 300 feet of privately owned residential property.
2907          (ii) Each notice under Subsection (2)(a)(i) shall be provided to the legislative body and,
2908     if applicable, the mayor of:
2909          (A) the county in whose unincorporated area the privately owned residential property is
2910     located; or
2911          (B) the municipality in whose boundary the privately owned residential property is
2912     located.
2913          (b) (i) Within 21 days after receiving the notice required by Subsection (2)(a)(i), a
2914     county or municipality entitled to the notice may submit a written request to the director for a
2915     public hearing on the proposed student housing construction.
2916          (ii) If a county or municipality requests a hearing under Subsection (2)(b)(i), the
2917     director and the county or municipality shall jointly hold a public hearing to provide

2918     information to the public and to allow the director and the county or municipality to receive
2919     input from the public about the proposed student housing construction.
2920          Section 73. Section 63A-5b-1105 is enacted to read:
2921          63A-5b-1105. Testing and inspection firm requirements.
2922          The director shall ensure that any person performing testing and inspection work
2923     governed by the American Society for Testing Materials Standard E-329 on a public building
2924     under the director's supervision:
2925          (1) fully complies with the American Society for Testing Materials standard
2926     specifications for an agency engaged in the testing and inspection of materials known as ASTM
2927     E-329; and
2928          (2) carries a minimum of $1,000,000 of errors and omissions insurance.
2929          Section 74. Section 63A-5b-1106, which is renumbered from Section 63A-5-222 is
2930     renumbered and amended to read:
2931          [63A-5-222].      63A-5b-1106. Critical land near state prison -- Definitions --
2932     Preservation as open land -- Management and use of land -- Restrictions on transfer --
2933     Wetlands development -- Conservation easement.
2934          (1) For purposes of this section:
2935          (a) "Corrections" means the Department of Corrections created under Section 64-13-2.
2936          (b) "Critical land" means:
2937          (i) a parcel of approximately 250 acres of land owned by the division and located on
2938     the east edge of the Jordan River between about 12300 South and 14600 South in Salt Lake
2939     County, approximately the southern half of whose eastern boundary abuts the Denver and Rio
2940     Grande Western Railroad right-of-way; and
2941          (ii) any parcel acquired in a transaction authorized under Subsection (3)(c) as a
2942     replacement for a portion of the parcel described in Subsection (1)(b)(i) that is conveyed as part
2943     of the transaction.
2944          (c) (i) "Open land" means land that is:

2945          (A) preserved in or restored to a predominantly natural, open, and undeveloped
2946     condition; and
2947          (B) used for:
2948          (I) wildlife habitat;
2949          (II) cultural or recreational use;
2950          (III) watershed protection; or
2951          (IV) another use consistent with the preservation of the land in or restoration of the
2952     land to a predominantly natural, open, and undeveloped condition.
2953          (ii) (A) "Open land" does not include land whose predominant use is as a developed
2954     facility for active recreational activities, including baseball, tennis, soccer, golf, or other
2955     sporting or similar activity.
2956          (B) The condition of land does not change from a natural, open, and undeveloped
2957     condition because of the development or presence on the land of facilities, including trails,
2958     waterways, and grassy areas, that:
2959          (I) enhance the natural, scenic, or aesthetic qualities of the land; or
2960          (II) facilitate the public's access to or use of the land for the enjoyment of its natural,
2961     scenic, or aesthetic qualities and for compatible recreational activities.
2962          (2) (a) (i) The critical land shall be preserved in perpetuity as open land.
2963          (ii) The long-term ownership and management of the critical land should eventually be
2964     turned over to the Department of Natural Resources created under Section 79-2-201 or another
2965     agency or entity that is able to accomplish the purposes and intent of this section.
2966          (b) Notwithstanding Subsection (2)(a)(i) and as funding is available, certain actions
2967     should be taken on or with respect to the critical land, including:
2968          (i) the development and implementation of a program to eliminate noxious vegetation
2969     and restore and facilitate the return of natural vegetation on the critical land;
2970          (ii) the development of a system of trails through the critical land that is compatible
2971     with the preservation of the critical land as open land;

2972          (iii) the development and implementation of a program to restore the natural features of
2973     and improve the flows of the Jordan River as it crosses the critical land;
2974          (iv) the preservation of the archeological site discovered on the critical land and the
2975     development of an interpretive site in connection with the archeological discovery;
2976          (v) in restoring features on the critical land, the adoption of methods and plans that will
2977     enhance the critical land's function as a wildlife habitat;
2978          (vi) taking measures to reduce safety risks on the critical land; and
2979          (vii) the elimination or rehabilitation of a prison dump site on the critical land.
2980          (3) (a) Except as provided in Subsections (3)(b) and (c), no interest in the critical land
2981     may be sold, assigned, leased, or otherwise transferred unless measures are taken to ensure that
2982     the critical land that is transferred will be preserved as open land in perpetuity.
2983          (b) Notwithstanding Subsection (3)(a), exchanges of property may be undertaken to
2984     resolve boundary disputes with adjacent property owners and easements may be granted for
2985     trails and other purposes consistent with Subsection (2)(b) and with the preservation of the
2986     critical land as open land.
2987          (c) The Department of Natural Resources may transfer title to a portion of the critical
2988     land described in Subsection (1)(b)(i) in exchange for a parcel of land if:
2989          (i) the parcel being acquired is:
2990          (A) open land; and
2991          (B) located within one mile of the portion of critical land being transferred; and
2992          (ii) the purpose of the exchange is to facilitate the development of a commuter rail
2993     transit station and associated transit oriented development.
2994          (4) The division shall use the funds remaining from the appropriation under Laws of
2995     Utah 1998, Chapter 399, for the purposes of:
2996          (a) determining the boundaries and legal description of the critical land;
2997          (b) determining the boundaries and legal description of the adjacent property owned by
2998     the division;

2999          (c) fencing the critical land and adjacent land owned by the division where appropriate
3000     and needed; and
3001          (d) assisting to carry out the intent of this section.
3002          (5) (a) Notwithstanding Subsection (2)(a)(i), the division or its successor in title to the
3003     critical land may develop or allow a public agency or private entity to develop more wetlands
3004     on the critical land than exist naturally or existed previously.
3005          (b) (i) Subject to Subsections (3)(a) and (5)(b)(ii), the division or its successor in title
3006     may transfer jurisdiction of all or a portion of the critical land to a public agency or private
3007     entity to provide for the development and management of wetlands and designated wetland
3008     buffer areas.
3009          (ii) Before transferring jurisdiction of any part of the critical land under Subsection
3010     (5)(b)(i), the division or its successor in title shall assure that reasonable efforts are made to
3011     obtain approval from the appropriate federal agency to allow mitigation credits in connection
3012     with the critical land to be used for impacts occurring anywhere along the Wasatch Front.
3013          (6) Notwithstanding any other provision of this section, corrections shall have access to
3014     the cooling pond located on the critical land as long as that access to and use of the cooling
3015     pond are not inconsistent with the preservation of the critical land as open land.
3016          (7) [The Department of] Corrections, the division, and all other state departments,
3017     divisions, or agencies shall cooperate together to carry out the intent of this section.
3018          (8) In order to ensure that the land referred to in this section is preserved as open land,
3019     the division shall, as soon as practicable, place the land under a perpetual conservation
3020     easement in favor of an independent party such as a reputable land conservation organization or
3021     a state or local government agency with experience in conservation easements.
3022          Section 75. Section 63A-5b-1107, which is renumbered from Section 63A-5-225 is
3023     renumbered and amended to read:
3024          [63A-5-225].      63A-5b-1107. Development of new correctional facilities.
3025          (1) As used in this section:

3026          (a) "Committee" means the Legislative Management Committee created in Section
3027     36-12-6.
3028          (b) "New correctional facilities" means a new prison and related facilities to be
3029     constructed to replace the state prison located in Draper.
3030          (c) "Prison project" means all aspects of a project for the design and construction of
3031     new correctional facilities on the selected site, including:
3032          (i) the acquisition of land, interests in land, easements, or rights-of-way;
3033          (ii) site improvement; and
3034          (iii) the acquisition, construction, equipping, or furnishing of facilities, structures,
3035     infrastructure, roads, parking facilities, utilities, and improvements, whether on or off the
3036     selected site, that are necessary, incidental, or convenient to the development of new
3037     correctional facilities on the selected site.
3038          (d) "Selected site" means the site selected [under Subsection 63C-15-203(2)] as the site
3039     for new correctional facilities.
3040          (2) In consultation with the committee, the division shall oversee the prison project, as
3041     provided in this section.
3042          (3) (a) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, and this
3043     section, the division shall:
3044          (i) enter into contracts with persons providing professional and construction services
3045     for the prison project;
3046          (ii) provide reports to the committee regarding the prison project, as requested by the
3047     [commission] committee; and
3048          (iii) consider input from the committee on the prison project, subject to Subsection
3049     (3)(b).
3050          (b) The division may not consult with or receive input from the committee regarding:
3051          (i) the evaluation of proposals from persons seeking to provide professional and
3052     construction services for the prison project; or

3053          (ii) the selection of persons to provide professional and construction services for the
3054     prison project.
3055          (c) A contract with a project manager or person with a comparable position on the
3056     prison project shall include a provision that requires the project manager or other person to
3057     provide reports to the committee regarding the prison project, as requested by the committee.
3058          (4) All contracts associated with the design or construction of new correctional
3059     facilities shall be awarded and managed by the division in accordance with Title 63G, Chapter
3060     6a, Utah Procurement Code, and this section.
3061          (5) The division shall coordinate with the Department of Corrections, created in
3062     Section 64-13-2, and the State Commission on Criminal and Juvenile Justice, created in
3063     Section 63M-7-201, during the prison project to help ensure that the design and construction of
3064     new correctional facilities are conducive to and consistent with, and help to implement any
3065     reforms of or changes to, the state's corrections system and corrections programs.
3066          (6) (a) There is created within the General Fund a restricted account known as the
3067     "Prison Development Restricted Account."
3068          (b) The account created in Subsection (6)(a) is funded by legislative appropriations.
3069          (c) (i) The account shall earn interest or other earnings.
3070          (ii) The Division of Finance shall deposit interest or other earnings derived from the
3071     investment of account funds into the account.
3072          (d) Upon appropriation from the Legislature, money from the account shall be used to
3073     fund the Prison Project Fund created in Subsection (7).
3074          (7) (a) There is created a capital projects fund known as the "Prison Project Fund."
3075          (b) The fund consists of:
3076          (i) money appropriated to the fund by the Legislature; and
3077          (ii) proceeds from the issuance of bonds authorized in Section 63B-25-101 to provide
3078     funding for the prison project.
3079          (c) (i) The fund shall earn interest or other earnings.

3080          (ii) The Division of Finance shall deposit interest or other earnings derived from the
3081     investment of fund money into the fund.
3082          (d) Money in the fund shall be used by the division to fund the prison project.
3083          Section 76. Section 63B-1-304 is amended to read:
3084          63B-1-304. State Building Ownership Authority created -- Members --
3085     Compensation -- Location in Department of Administrative Services.
3086          (1) There is created a body politic and corporate to be known as the State Building
3087     Ownership Authority composed of:
3088          (a) the governor;
3089          (b) the state treasurer; and
3090          (c) the chair of the [State Building Board] state building board created under Section
3091     [63A-5-101] 63A-5b-201.
3092          (2) A member may not receive compensation or benefits for the member's service, but
3093     may receive per diem and travel expenses in accordance with:
3094          (a) Section 63A-3-106;
3095          (b) Section 63A-3-107; and
3096          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
3097     63A-3-107.
3098          (3) (a) Upon request, the division shall provide staff support to the State Building
3099     Ownership Authority.
3100          (b) The State Building Ownership Authority may seek and obtain independent financial
3101     advice, support, and information from the state financial advisor created under Section
3102     67-4-16.
3103          Section 77. Section 63B-2-301 is amended to read:
3104          63B-2-301. Legislative intent -- Additional projects.
3105          It is the intent of the Legislature that:
3106          (1) The Department of Employment Security use money in the special administrative

3107     fund to plan, design, and construct a Davis County facility under the supervision of the director
3108     of the Division of Facilities Construction and Management unless supervisory authority is
3109     delegated by him as authorized by Section [63A-5-206] 63A-5b-604.
3110          (2) The University of Utah may use donated funds to plan, design, and construct the
3111     Nora Eccles Harrison addition under the supervision of the director of the Division of Facilities
3112     Construction and Management unless supervisory authority is delegated by him as authorized
3113     by Section [63A-5-206] 63A-5b-604.
3114          (3) The University of Utah may use hospital funds to plan, design, and construct the
3115     West Patient Services Building under the supervision of the director of the Division of
3116     Facilities Construction and Management unless supervisory authority is delegated by him as
3117     authorized by Section [63A-5-206] 63A-5b-604.
3118          (4) The University of Utah may use federal funds to plan, design, and construct the
3119     Computational Science Building under the supervision of the director of the Division of
3120     Facilities Construction and Management unless supervisory authority is delegated by him as
3121     authorized by Section [63A-5-206] 63A-5b-604.
3122          (5) The Board of Regents may issue revenue bonds to provide:
3123          (a) $6,700,000 to plan, design, and construct single student housing at Utah State
3124     University under the supervision of the director of the Division of Facilities Construction and
3125     Management unless supervisory authority is delegated by him as authorized by Section
3126     [63A-5-206] 63A-5b-604; and
3127          (b) additional money necessary to:
3128          (i) pay costs incident to the issuance and sale of the bonds;
3129          (ii) pay interest on the bonds that accrues during construction and acquisition of the
3130     project and for up to one year after construction is completed; and
3131          (iii) fund any reserve requirements for the bonds.
3132          (6) Utah State University may use federal funds to plan, design, and construct the
3133     Natural Resources Lab addition under the supervision of the director of the Division of

3134     Facilities Construction and Management unless supervisory authority is delegated by him as
3135     authorized by Section [63A-5-206] 63A-5b-604.
3136          (7) Utah State University may use funds derived from property sales to plan, design,
3137     and construct emergency relocation facilities for the Farmington Botanical Gardens under the
3138     supervision of the director of the Division of Facilities Construction and Management unless
3139     supervisory authority is delegated by him as authorized by Section [63A-5-206] 63A-5b-604.
3140          (8) Utah State University may use institutional funds to plan, design, and construct an
3141     institutional residence for the president under the supervision of the director of the Division of
3142     Facilities Construction and Management unless supervisory authority is delegated by him as
3143     authorized by Section [63A-5-206] 63A-5b-604.
3144          (9) Weber State University may use discretionary funds to construct a remodel and
3145     expansion of the stores building and mail service facilities under the supervision of the director
3146     of the Division of Facilities Construction and Management unless supervisory authority is
3147     delegated by him as authorized by Section [63A-5-206] 63A-5b-604.
3148          (10) Weber State University may use fees and auxiliary revenue to plan, design, and
3149     construct a remodel and expansion of the Shepherd Student Union Building under the
3150     supervision of the director of the Division of Facilities Construction and Management unless
3151     supervisory authority is delegated by him as authorized by Section [63A-5-206] 63A-5b-604.
3152          (11) Southern Utah University may use donated funds to plan, design, and construct an
3153     alumni house under the supervision of the director of the Division of Facilities Construction
3154     and Management unless supervisory authority is delegated by him as authorized by Section
3155     [63A-5-206] 63A-5b-604.
3156          (12) Utah State University Eastern may use auxiliary revenues and other fees to:
3157          (a) make lease or other payments;
3158          (b) redeem revenue bonds or repay loans issued on behalf of the college; and
3159          (c) plan, design, and construct a 200 person residence hall under the supervision of the
3160     director of the Division of Facilities Construction and Management unless supervisory

3161     authority is delegated by him as authorized by Section [63A-5-206] 63A-5b-604.
3162          (13) The Sevier Valley Applied Technology Center may use private and Community
3163     Impact Board funds, if approved, to plan, design, and construct a performing arts/multi-use
3164     facility under the supervision of the director of the Division of Facilities Construction and
3165     Management unless supervisory authority is delegated by him as authorized by Section
3166     [63A-5-206] 63A-5b-604.
3167          (14) Ogden City and Weber County may have offices and related space for their
3168     attorneys included in the Ogden Courts building if the city and county are able to provide
3169     upfront funding to cover all costs associated with the design and construction of that space. In
3170     addition, the city and county shall cover their proportionate share of all operations and
3171     maintenance costs of their facility, including future major repairs to the building.
3172          (15) If the Legislature authorizes the Division of Facilities Construction and
3173     Management to enter into a lease purchase agreement for the Department of Human Services
3174     facility at 1385 South State Street in Salt Lake City or for the State Board of Education facility
3175     and adjacent space in Salt Lake City, or for both of those facilities, the State Building
3176     Ownership Authority, at the reasonable rates and amounts it may determine, and with technical
3177     assistance from the state treasurer, the director of the Division of Finance, and the executive
3178     director of the Governor's Office of Management and Budget, may seek out the most cost
3179     effective lease purchase plans available to the state and may, pursuant to Title 63B, Chapter 1,
3180     Part 3, State Building Ownership Authority Act, certificate out interests in, or obligations of the
3181     authority pertaining to:
3182          (a) the lease purchase obligation; or
3183          (b) lease rental payments under the lease purchase obligation.
3184          (16) Salt Lake Community College may use donated funds to plan, design, and
3185     construct an amphitheater under the supervision of the director of the Division of Facilities
3186     Construction and Management unless supervisory authority is delegated by him as authorized
3187     by Section [63A-5-206] 63A-5b-604.

3188          (17) For the Tax Commission building, that:
3189          (a) All costs associated with the construction and furnishing of the Tax Commission
3190     building that are incurred before the issuance of the 1993 general obligation bonds be
3191     reimbursed by bond proceeds.
3192          (b) The maximum amount of cost that may be reimbursed from the 1993 general
3193     obligation bond proceeds for the Tax Commission building and furnishings may not exceed
3194     $14,230,000.
3195          (c) This intent statement for Subsection (17) constitutes a declaration of official intent
3196     under Section 1.103-18 of the U.S. Treasury Regulations.
3197          Section 78. Section 63B-4-201 is amended to read:
3198          63B-4-201. Legislative intent statements -- Capital facilities.
3199          (1) (a) It is the intent of the Legislature that the University of Utah use institutional and
3200     other funds to plan, design, and construct two campus child care centers under the supervision
3201     of the director of the Division of Facilities Construction and Management unless supervisory
3202     authority is delegated by the director.
3203          (b) The university shall work with Salt Lake City and the surrounding neighborhood to
3204     ensure site compatibility for future recreational development by the city.
3205          (2) It is the intent of the Legislature that the University of Utah use institutional funds
3206     to plan, design, and construct:
3207          (a) the Union Parking structure under the supervision of the director of the Division of
3208     Facilities Construction and Management unless supervisory authority is delegated by the
3209     director;
3210          (b) the stadium renovation under the supervision of the director of the Division of
3211     Facilities Construction and Management unless supervisory authority is delegated by the
3212     director;
3213          (c) the Huntsman Cancer Institute under the supervision of the director of the Division
3214     of Facilities Construction and Management unless supervisory authority is delegated by the

3215     director;
3216          (d) the Business Case Method Building under the supervision of the director of the
3217     Division of Facilities Construction and Management unless supervisory authority is delegated
3218     by the director; and
3219          (e) the Fine Arts Museum expansion under the supervision of the director of the
3220     Division of Facilities Construction and Management unless supervisory authority is delegated
3221     by the director.
3222          (3) It is the intent of the Legislature that Utah State University use institutional funds to
3223     plan, design, and construct:
3224          (a) a student health services facility under the supervision of the director of the
3225     Division of Facilities Construction and Management unless supervisory authority is delegated
3226     by the director;
3227          (b) a women's softball field under the supervision of the director of the Division of
3228     Facilities Construction and Management unless supervisory authority is delegated by the
3229     director;
3230          (c) an addition to the Nutrition and Food Services Building under the supervision of
3231     the director of the Division of Facilities Construction and Management unless supervisory
3232     authority is delegated by the director; and
3233          (d) a Human Resource Research Center under the supervision of the director of the
3234     Division of Facilities Construction and Management unless supervisory authority is delegated
3235     by the director.
3236          (4) It is the intent of the Legislature that Weber State University use institutional funds
3237     to plan, design, and construct:
3238          (a) a track renovation under the supervision of the director of the Division of Facilities
3239     Construction and Management unless supervisory authority is delegated by the director; and
3240          (b) the Dee Events Center offices under the supervision of the director of the Division
3241     of Facilities Construction and Management unless supervisory authority is delegated by the

3242     director.
3243          (5) It is the intent of the Legislature that Southern Utah University use:
3244          (a) institutional funds to plan, design, and construct an institutional residence under the
3245     supervision of the director of the Division of Facilities Construction and Management unless
3246     supervisory authority is delegated by the director; and
3247          (b) project revenues and other funds to plan, design, and construct the Shakespearean
3248     Festival support facilities under the supervision of the director of the Division of Facilities
3249     Construction and Management unless supervisory authority is delegated by the director.
3250          (6) It is the intent of the Legislature that Dixie College use institutional funds to plan,
3251     design, and construct an institutional residence under the supervision of the director of the
3252     Division of Facilities Construction and Management unless supervisory authority is delegated
3253     by the director.
3254          (7) It is the intent of the Legislature that the Division of Forestry, Fire, and State Lands
3255     use federal and other funds to plan, design, and construct a wetlands enhancement facility
3256     under the supervision of the director of the Division of Facilities Construction and
3257     Management unless supervisory authority is delegated by the director.
3258          (8) (a) As provided in Subsection [63A-5-209(2)] 63A-5b-609(2), the funds
3259     appropriated to the Project Reserve Fund may only be used for the award of contracts in excess
3260     of the construction budget if these funds are required to meet the intent of the project.
3261          (b) It is the intent of the Legislature that:
3262          (i) up to $2,000,000 of the amount may be used to award the construction contract for
3263     the Ogden Court Building; and
3264          (ii) the need for any funds remaining as of December 31, 1995 be reviewed by the 1996
3265     Legislature.
3266          (9) (a) It is the intent of the Legislature that the State Building Ownership Authority,
3267     under authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act, issue
3268     or execute obligations or enter into or arrange for a lease purchase agreement in which

3269     participation interests may be created to provide up to $539,700 for the purchase and
3270     demolition of the Keyston property and construction of parking facilities adjacent to the State
3271     Board of Education building in Salt Lake City, with additional amounts necessary to:
3272          (i) pay costs of issuance;
3273          (ii) pay capitalized interest; and
3274          (iii) fund any debt service reserve requirements.
3275          (b) It is the intent of the Legislature that the authority seek out the most cost effective
3276     and prudent lease purchase plan available with technical assistance from the state treasurer, the
3277     director of the Division of Finance, and the executive director of the Governor's Office of
3278     Management and Budget.
3279          (10) (a) It is the intent of the Legislature that the money appropriated for Phase One of
3280     the Remodeling/Life Safety Upgrades of the Browning Fine Arts Center at Weber State
3281     University is to include design of full code compliance, life safety, space necessary to maintain
3282     required programs, and seismic upgrades.
3283          (b) The design shall identify the full scope and cost of Phase Two of the remodeling for
3284     funding consideration in the fiscal year 1997 budget cycle.
3285          (11) It is the intent of the Legislature that:
3286          (a) the fiscal year 1996 appropriation for the Davis County Higher Education land
3287     purchase includes up to $250,000 for planning purposes;
3288          (b) the Division of Facilities Construction and Management, the Board of Regents, and
3289     the assigned institution of higher education work jointly to ensure the following elements are
3290     part of the planning process:
3291          (i) projections of student enrollment and programmatic needs for the next 10 years;
3292          (ii) review and make recommendations for better use of existing space, current
3293     technologies, public/private partnerships, and other alternatives as a means to reduce the need
3294     for new facilities and still accommodate the projected student needs; and
3295          (iii) use of a master plan that includes issues of utilities, access, traffic circulation,

3296     drainage, rights of way, future developments, and other infrastructure items considered
3297     appropriate; and
3298          (c) every effort is used to minimize expenditures for this part until a definitive decision
3299     has been made by BRACC relative to Hill Air Force Base.
3300          (12) (a) It is the intent of the Legislature that the State Building Ownership Authority,
3301     under authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act, issue
3302     or execute obligations or enter into or arrange for a lease purchase agreement in which
3303     participation interests may be created, to provide up to $7,400,000 for the acquisition and
3304     improvement of the Human Services Building located at 120 North 200 West, Salt Lake City,
3305     Utah, with associated parking for the Department of Human Services together with additional
3306     amounts necessary to:
3307          (i) pay costs of issuance;
3308          (ii) pay capitalized interest; and
3309          (iii) fund any debt service reserve requirements.
3310          (b) It is the intent of the Legislature that the authority seek out the most cost effective
3311     and prudent lease purchase plan available with technical assistance from the state treasurer, the
3312     director of the Division of Finance, and the executive director of the Governor's Office of
3313     Management and Budget.
3314          (13) (a) It is the intent of the Legislature that the State Building Ownership Authority,
3315     under authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act, issue
3316     or execute obligations or enter into or arrange for a lease purchase agreement in which
3317     participation interests may be created to provide up to $63,218,600 for the construction of a
3318     Salt Lake Courts Complex together with additional amounts necessary to:
3319          (i) pay costs of issuance;
3320          (ii) pay capitalized interest; and
3321          (iii) fund any debt service reserve requirements.
3322          (b) It is the intent of the Legislature that the authority seek out the most cost effective

3323     and prudent lease purchase plan available with technical assistance from the state treasurer, the
3324     director of the Division of Finance, and the executive director of the Governor's Office of
3325     Management and Budget.
3326          (c) It is the intent of the Legislature that the Division of Facilities Construction and
3327     Management lease land to the State Building Ownership Authority for the construction of a
3328     Salt Lake Courts Complex.
3329          (14) It is the intent of the Legislature that:
3330          (a) the Board of Regents use the higher education design project money to design no
3331     more than two higher education projects from among the following projects:
3332          (i) Utah State University Eastern - Student Center;
3333          (ii) Snow College - Noyes Building;
3334          (iii) University of Utah - Gardner Hall;
3335          (iv) Utah State University - Widtsoe Hall; or
3336          (v) Southern Utah University - Physical Education Building; and
3337          (b) the higher education institutions that receive approval from the Board of Regents to
3338     design projects under this chapter design those projects under the supervision of the director of
3339     the Division of Facilities Construction and Management unless supervisory authority is
3340     delegated by the director.
3341          (15) It is the intent of the Legislature that:
3342          (a) the Board of Regents may authorize the University of Utah to use institutional
3343     funds and donated funds to design Gardner Hall; and
3344          (b) if authorized by the Board of Regents, the University of Utah may use institutional
3345     funds and donated funds to design Gardner Hall under the supervision of the director of the
3346     Division of Facilities Construction and Management unless supervisory authority is delegated
3347     by the director.
3348          (16) It is the intent of the Legislature that the Division of Facilities Construction and
3349     Management use up to $250,000 of the capital improvement money to fund the site

3350     improvements required at the San Juan campus of the Utah State University Eastern.
3351          Section 79. Section 63B-9-103 is amended to read:
3352          63B-9-103. Other capital facility authorizations and intent language.
3353          (1) It is the intent of the Legislature that:
3354          (a) Utah State University use institutional funds to plan, design, and construct a
3355     renovation and expansion of the Edith Bowen School under the direction of the director of the
3356     Division of Facilities Construction and Management unless supervisory authority has been
3357     delegated;
3358          (b) no state funds be used for any portion of this project; and
3359          (c) the university may request state funds for operations and maintenance to the extent
3360     that the university is able to demonstrate to the Board of Regents that the facility meets
3361     approved academic and training purposes under Board of Regents policy R710.
3362          (2) It is the intent of the Legislature that:
3363          (a) the University of Utah use institutional funds to plan, design, and construct a
3364     College of Science Math Center under the direction of the director of the Division of Facilities
3365     Construction and Management unless supervisory authority has been delegated;
3366          (b) no state funds be used for any portion of this project; and
3367          (c) the university may request state funds for operations and maintenance to the extent
3368     that the university is able to demonstrate to the Board of Regents that the facility meets
3369     approved academic and training purposes under Board of Regents policy R710.
3370          (3) It is the intent of the Legislature that:
3371          (a) the University of Utah use institutional funds to plan, design, and construct a
3372     Burbidge Athletics and Academics Building under the direction of the director of the Division
3373     of Facilities Construction and Management unless supervisory authority has been delegated;
3374          (b) no state funds be used for any portion of this project; and
3375          (c) the university may not request state funds for operations and maintenance.
3376          (4) It is the intent of the Legislature that:

3377          (a) the University of Utah use institutional funds to plan, design, and construct an
3378     expansion to the bookstore under the direction of the director of the Division of Facilities
3379     Construction and Management unless supervisory authority has been delegated;
3380          (b) no state funds be used for any portion of this project; and
3381          (c) the university may not request state funds for operations and maintenance.
3382          (5) It is the intent of the Legislature that:
3383          (a) the University of Utah use institutional funds to plan, design, and construct a Health
3384     Sciences/Basic Sciences Building under the direction of the director of the Division of
3385     Facilities Construction and Management unless supervisory authority has been delegated;
3386          (b) no state funds be used for any portion of this project; and
3387          (c) the university may request state funds for operations and maintenance to the extent
3388     that the university is able to demonstrate to the Board of Regents that the facility meets
3389     approved academic and training purposes under Board of Regents policy R710.
3390          (6) It is the intent of the Legislature that:
3391          (a) Weber State University use institutional funds to plan, design, and construct an
3392     expansion to the stadium under the direction of the director of the Division of Facilities
3393     Construction and Management unless supervisory authority has been delegated;
3394          (b) no state funds be used for any portion of this project; and
3395          (c) the university may not request state funds for operations and maintenance.
3396          (7) It is the intent of the Legislature that:
3397          (a) Utah Valley State College use institutional funds to plan, design, and construct a
3398     baseball stadium under the direction of the director of the Division of Facilities Construction
3399     and Management unless supervisory authority has been delegated;
3400          (b) no state funds be used for any portion of this project; and
3401          (c) the college may not request state funds for operations and maintenance.
3402          (8) It is the intent of the Legislature that:
3403          (a) Southern Utah University use institutional funds to plan, design, and construct a

3404     weight training room under the direction of the director of the Division of Facilities
3405     Construction and Management unless supervisory authority has been delegated;
3406          (b) no state funds be used for any portion of this project; and
3407          (c) the university may not request state funds for operations and maintenance.
3408          (9) It is the intent of the Legislature that:
3409          (a) Snow College may lease land at the Snow College Richfield campus to a private
3410     developer for the construction and operation of student housing;
3411          (b) the oversight and inspection of the construction comply with Section [63A-5-206]
3412     63A-5b-604;
3413          (c) no state funds be used for any portion of this project; and
3414          (d) the college may not request state funds for operations and maintenance.
3415          (10) It is the intent of the Legislature that:
3416          (a) Salt Lake Community College may lease land at the Jordan campus to Jordan
3417     School District for the construction and operation of an Applied Technology Education Center;
3418          (b) the oversight and inspection of the construction comply with Section [63A-5-206]
3419     63A-5b-604;
3420          (c) no state funds be used for any portion of this project; and
3421          (d) the college may not request state funds for operations and maintenance.
3422          (11) It is the intent of the Legislature that:
3423          (a) the Department of Transportation exchange its maintenance station at Kimball
3424     Junction for property located near Highway 40 in Summit County; and
3425          (b) the Department of Transportation use federal funds, rent paid by the Salt Lake
3426     Organizing Committee for the use of the maintenance station, and any net proceeds resulting
3427     from the exchange of property to construct a replacement facility under the direction of the
3428     director of the Division of Facilities Construction and Management unless supervisory
3429     authority has been delegated.
3430          (12) It is the intent of the Legislature that:

3431          (a) the Department of Transportation sell surplus property in Utah County;
3432          (b) the Department of Transportation use funds from that sale to remodel existing
3433     space and add an addition to the Region 3 Complex; and
3434          (c) the project cost not exceed the funds received through sale of property.
3435          (13) It is the intent of the Legislature that the Department of Workforce Services use
3436     proceeds from property sales to purchase additional property adjacent to its state-owned facility
3437     in Logan.
3438          (14) (a) It is the intent of the Legislature that, because only partial funding is provided
3439     for the Heat Plant/Infrastructure Project at Utah State University, the balance necessary to
3440     complete this project be addressed by future Legislatures, either through appropriations or
3441     through the issuance of bonds.
3442          (b) (i) In compliance with Section [63A-5-207] 63A-5b-608, the division may enter
3443     into contracts for amounts not to exceed the anticipated full project funding but may not allow
3444     work to be performed on those contracts in excess of the funding already authorized by the
3445     Legislature.
3446          (ii) Those contracts shall contain a provision for termination of the contract for the
3447     convenience of the state.
3448          (c) It is also the intent of the Legislature that this authorization to the division does not
3449     bind future Legislatures to fund the Heat Plant/Infrastructure Project at Utah State University.
3450          Section 80. Section 63B-16-201 is amended to read:
3451          63B-16-201. Revenue bond authorizations -- State Building Ownership
3452     Authority.
3453          (1) It is the intent of the Legislature that:
3454          (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
3455     1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
3456     into or arrange for a lease-purchase agreement in which participation interests may be created,
3457     to provide up to $5,662,000 for the acquisition and construction of three stores for the

3458     Department of Alcoholic Beverage Control, together with additional amounts necessary to pay
3459     costs of issuance, pay capitalized interest, and fund any debt service reserve requirements;
3460          (b) the stores to be addressed through this authorization are:
3461          (i) expansion of the North Temple store in Salt Lake County;
3462          (ii) expansion of the Taylorsville store in Salt Lake County; and
3463          (iii) reconstruction of the Bountiful store in Davis County;
3464          (c) increased sales revenues be used as the primary revenue source for repayment of
3465     any obligation created under authority of this section; and
3466          (d) the Department of Alcoholic Beverage Control may request operation and
3467     maintenance funding from sales revenues.
3468          (2) It is the intent of the Legislature that:
3469          (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
3470     1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
3471     into or arrange for a lease-purchase agreement in which participation interests may be created,
3472     to provide up to $1,476,000 for the acquisition and construction of a production warehouse for
3473     Utah Correctional Industries, together with additional amounts necessary to pay costs of
3474     issuance, pay capitalized interest, and fund any debt service reserve requirements;
3475          (b) Utah Correctional Industries' revenues be used as the primary revenue source for
3476     repayment of any obligation created under authority of this section;
3477          (c) Utah Correctional Industries may plan, design, and construct the production
3478     warehouse subject to requirements in Section [63A-5-206] 63A-5b-604; and
3479          (d) Utah Correctional Industries may not request state funds for operation and
3480     maintenance costs or capital improvements.
3481          Section 81. Section 63B-16-202 is amended to read:
3482          63B-16-202. Revenue bond authorizations -- Board of Regents.
3483          (1) It is the intent of the Legislature that:
3484          (a) when the University of Utah certifies to the Board of Regents that the university has

3485     obtained reliable commitments, convertible to cash, of $10,000,000 or more in nonstate funds
3486     to construct an on-campus student life center, the Board of Regents, on behalf of the University
3487     of Utah, may issue, sell, and deliver revenue bonds or other evidences of indebtedness of the
3488     University of Utah to borrow money on the credit, revenues, and reserves of the University of
3489     Utah, other than appropriations from the Legislature, to finance the cost of constructing an
3490     on-campus student life center;
3491          (b) student recreation fees and non-student fees be used as the primary revenue source
3492     for repayment of any obligation created under authority of this section;
3493          (c) the University of Utah may increase student recreation fees to not more than $60
3494     per semester for not more than 20 years, and use those revenues, together with the $15,000,000
3495     collected under Subsection (1)(a), to service the student life center revenue bond debt;
3496          (d) the bonds or other evidences of indebtedness authorized by this section may
3497     provide up to $42,500,000, together with other amounts necessary to pay costs of issuance, pay
3498     capitalized interest, and fund any debt service reserve requirements;
3499          (e) the University of Utah may plan, design, and construct the on-campus student life
3500     center subject to requirements in Section [63A-5-206] 63A-5b-604; and
3501          (f) the university may not request state funds for operation and maintenance costs or
3502     capital improvements.
3503          (2) It is the intent of the Legislature that:
3504          (a) the Board of Regents, on behalf of Southern Utah University, may issue, sell, and
3505     deliver revenue bonds or other evidences of indebtedness of Southern Utah University to
3506     borrow money on the credit, revenues, and reserves of Southern Utah University, other than
3507     appropriations of the Legislature, to finance the cost of constructing on-campus student
3508     dormitories;
3509          (b) student housing rental fees be used as the primary revenue source for repayment of
3510     any obligation created under authority of this section;
3511          (c) the bonds or other evidences of indebtedness authorized by this section may provide

3512     up to $17,500,000, together with other amounts necessary to pay costs of issuance, pay
3513     capitalized interest, and fund any debt service reserve requirements;
3514          (d) Southern Utah University may plan, design, and construct the on-campus student
3515     dormitories subject to requirements in Section [63A-5-206] 63A-5b-604; and
3516          (e) the university may not request state funds for operation and maintenance costs or
3517     capital improvements.
3518          Section 82. Section 63B-16-301 is amended to read:
3519          63B-16-301. Authorizations to construct capital facilities using institutional or
3520     agency funds.
3521          (1) It is the intent of the Legislature that:
3522          (a) Utah State University may, subject to requirements in Section [63A-5-206]
3523     63A-5b-604, plan, design, and construct a classroom building funded and owned by Tooele
3524     County on the university's Tooele campus;
3525          (b) no state funds be used for any portion of this project, including for future purchase
3526     or otherwise acquiring the building from Tooele County;
3527          (c) the university may not request state funds for operation and maintenance costs or
3528     capital improvements while the building is not owned by the university; and
3529          (d) the university may request state funds for operations and maintenance costs and
3530     capital improvements if the building is donated to the university and if the university is able to
3531     demonstrate to the Board of Regents that the facility meets approved academic and training
3532     purposes under Board of Regents policy R710.
3533          (2) It is the intent of the Legislature that:
3534          (a) Weber State University may, subject to requirements in Section [63A-5-206]
3535     63A-5b-604, use donations and other institutional funds to plan, design, and construct a
3536     Lifelong Learning Center;
3537          (b) no state funds be used for any portion of this project; and
3538          (c) the university may request state funds for operations and maintenance costs and

3539     capital improvements to the extent that the university is able to demonstrate to the Board of
3540     Regents that the facility meets approved academic and training purposes under Board of
3541     Regents policy R710.
3542          (3) It is the intent of the Legislature that:
3543          (a) Salt Lake Community College may, subject to requirements in Section [63A-5-206]
3544     63A-5b-604, use institutional funds to plan, design, and construct a Facilities/Security/Parking
3545     Services Building;
3546          (b) no state funds be used for any portion of this project; and
3547          (c) the college may request state funds for operations and maintenance costs and capital
3548     improvements to the extent that the college is able to demonstrate to the Board of Regents that
3549     the facility meets approved academic and training purposes under Board of Regents policy
3550     R710.
3551          Section 83. Section 63B-17-201 is amended to read:
3552          63B-17-201. Revenue bond authorizations -- State Building Ownership
3553     Authority.
3554          (1) The Legislature intends that:
3555          (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
3556     1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
3557     into or arrange for a lease purchase agreement in which participation interests may be created,
3558     to provide up to $90,000,000 for the acquisition and construction of phase II-B of a cancer
3559     clinical research hospital facility adjacent to the University of Utah Medical Center, together
3560     with additional amounts necessary to pay costs of issuance, pay capitalized interest, and fund
3561     any debt service reserve requirements;
3562          (b) the University of Utah use institutional funds as the primary revenue source for
3563     repayment of any obligation created under authority of this section;
3564          (c) the university may plan, design, and construct phase II-B of a cancer clinical
3565     research hospital facility subject to the requirements of Section [63A-5-206] 63A-5b-604; and

3566          (d) the university may not request state funds for operation and maintenance costs or
3567     capital improvements.
3568          (2) The Legislature intends that:
3569          (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
3570     1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
3571     into or arrange for a lease-purchase agreement in which participation interests may be created,
3572     to provide up to $23,700,000 for the acquisition and construction of five stores for the
3573     Department of Alcoholic Beverage Control, together with additional amounts necessary to pay
3574     costs of issuance, pay capitalized interest, and fund any debt service reserve requirements;
3575          (b) the stores to be addressed through this authorization are:
3576          (i) the replacement of a liquor store in Cedar City;
3577          (ii) a new Utah County North liquor store;
3578          (iii) a new Utah County South liquor store;
3579          (iv) a new Washington County South liquor store; and
3580          (v) a new Wasatch County Heber/Midway liquor store;
3581          (c) the Department of Alcoholic Beverage Control use increased sales revenues as the
3582     primary revenue source for repayment of any obligation created under authority of this section;
3583     and
3584          (d) the Department of Alcoholic Beverage Control may request operation and
3585     maintenance funding from sales revenues.
3586          Section 84. Section 63B-17-202 is amended to read:
3587          63B-17-202. Revenue bond authorizations -- Board of Regents.
3588          (1) The Legislature intends that:
3589          (a) the Board of Regents, on behalf of the University of Utah, may issue, sell, and
3590     deliver revenue bonds or other evidences of indebtedness of the University of Utah to borrow
3591     money on the credit, revenues, and reserves of the university, other than appropriations of the
3592     Legislature, to finance the cost of constructing a northwest campus parking structure;

3593          (b) the University of Utah use parking fees and donations as the primary revenue
3594     source for repayment of any obligation created under authority of this section;
3595          (c) the maximum amount of revenue bonds or other evidences of indebtedness
3596     authorized by this section is $21,280,000, together with other amounts necessary to pay costs
3597     of issuance, pay capitalized interest, and fund any debt service reserve requirements;
3598          (d) the university may plan, design, and construct the northwest campus parking
3599     structure subject to the requirements of Section [63A-5-206] 63A-5b-604; and
3600          (e) the university may not request state funds for operation and maintenance costs or
3601     capital improvements.
3602          (2) The Legislature intends that:
3603          (a) the Board of Regents, on behalf of Utah State University, may issue, sell, and
3604     deliver revenue bonds or other evidences of indebtedness of Utah State University to borrow
3605     money on the credit, revenues, and reserves of the university, other than appropriations of the
3606     Legislature, to finance the cost of constructing an early childhood education research center;
3607          (b) Utah State University use institutional funds as the primary revenue source for
3608     repayment of any obligation created under authority of this section;
3609          (c) the maximum amount of revenue bonds or other evidences of indebtedness
3610     authorized by this section is $15,828,000, together with other amounts necessary to pay costs
3611     of issuance, pay capitalized interest, and fund any debt service reserve requirements;
3612          (d) the university may plan, design, and construct the early childhood education
3613     research center subject to the requirements of Section [63A-5-206] 63A-5b-604; and
3614          (e) the university may request state funds for operation and maintenance costs and
3615     capital improvements to the extent that the university is able to demonstrate to the Board of
3616     Regents that the facility meets approved academic and training purposes under Board of
3617     Regents policy R710.
3618          (3) It is the intent of the Legislature that:
3619          (a) the Board of Regents, on behalf of Southern Utah University, may issue, sell, and

3620     deliver revenue bonds or other evidences of indebtedness of Southern Utah University to
3621     borrow money on the credit, revenues, and reserves of the university, other than appropriations
3622     of the Legislature, to finance the cost of constructing a Shakespearean theater;
3623          (b) Southern Utah University institutional funds be used as the primary revenue source
3624     for repayment of any obligation created under authority of this section;
3625          (c) the bonds or other evidences of indebtedness authorized by this section may provide
3626     up to $5,000,000, together with other amounts necessary to pay costs of issuance, pay
3627     capitalized interest, and fund any debt service reserve requirements;
3628          (d) the university may plan, design, and construct the theater subject to the
3629     requirements of Section [63A-5-206] 63A-5b-604; and
3630          (e) the university may request state funds for operation and maintenance costs and
3631     capital improvements to the extent that the university is able to demonstrate to the Board of
3632     Regents that the facility meets approved academic and training purposes under Board of
3633     Regents policy R710.
3634          Section 85. Section 63B-17-301 is amended to read:
3635          63B-17-301. Authorizations to construct capital facilities using institutional or
3636     agency funds.
3637          (1) The Legislature intends that:
3638          (a) the University of Utah may, subject to requirements in Section [63A-5-206]
3639     63A-5b-604, use clinical fees and donations to plan, design, and construct a neuropsychiatric
3640     institute expansion;
3641          (b) no state funds be used for any portion of this project; and
3642          (c) the university may not request state funds for operation and maintenance costs or
3643     capital improvements.
3644          (2) The Legislature intends that:
3645          (a) the University of Utah may, subject to the requirements of Section [63A-5-206]
3646     63A-5b-604, use donations to plan, design, and construct an arboretum visitor center addition;

3647          (b) no state funds be used for any portion of this project; and
3648          (c) the university may request state funds for operation and maintenance costs and
3649     capital improvements to the extent that the university is able to demonstrate to the Board of
3650     Regents that the facility meets approved academic and training purposes under Board of
3651     Regents policy R710.
3652          (3) The Legislature intends that:
3653          (a) Utah State University may, subject to the requirements of Section [63A-5-206]
3654     63A-5b-604, use donations to plan, design, and construct a business building addition;
3655          (b) no state funds be used for any portion of this project; and
3656          (c) the university may request state funds for operation and maintenance costs and
3657     capital improvements to the extent that the university is able to demonstrate to the Board of
3658     Regents that the facility meets approved academic and training purposes under Board of
3659     Regents policy R710.
3660          (4) The Legislature intends that:
3661          (a) Utah State University may, subject to the requirements of Section [63A-5-206]
3662     63A-5b-604, use donations to plan, design, and construct a Vernal entrepreneurship and energy
3663     research center;
3664          (b) no state funds be used for any portion of this project; and
3665          (c) the university may request state funds for operation and maintenance costs and
3666     capital improvements to the extent that the university is able to demonstrate to the Board of
3667     Regents that the facility meets approved academic and training purposes under Board of
3668     Regents policy R710.
3669          (5) The Legislature intends that:
3670          (a) Utah State University may, subject to the requirements of Section [63A-5-206]
3671     63A-5b-604, use research grants and other institutional funds to plan, design, and construct a
3672     hydraulics laboratory addition to the water laboratory;
3673          (b) no state funds be used for any portion of this project; and

3674          (c) the university may not request state funds for operation and maintenance costs or
3675     capital improvements.
3676          (6) The Legislature intends that:
3677          (a) Utah State University may, subject to the requirements of Section [63A-5-206]
3678     63A-5b-604, use insurance claim funds and other institutional funds to plan, design, and
3679     construct a structures laboratory enclosure;
3680          (b) no state funds be used for any portion of this project; and
3681          (c) the university may not request state funds for operation and maintenance costs or
3682     capital improvements.
3683          (7) The Legislature intends that:
3684          (a) Utah Valley University may, subject to the requirements of Section [63A-5-206]
3685     63A-5b-604, use donations to plan, design, and construct a children's theater;
3686          (b) no state funds be used for any portion of this project; and
3687          (c) the university may request state funds for operation and maintenance costs and
3688     capital improvements to the extent that the university is able to demonstrate to the Board of
3689     Regents that the facility meets approved academic and training purposes under Board of
3690     Regents policy R710.
3691          (8) The Legislature intends that:
3692          (a) Southern Utah University may, subject to the requirements of Section [63A-5-206]
3693     63A-5b-604, use donations to plan and design a science center addition;
3694          (b) this authorization and the existence of plans and designs do not guarantee nor
3695     improve the chances for legislative approval of the remainder of the building in any subsequent
3696     year; and
3697          (c) no state funds be used for any portion of this planning and design.
3698          Section 86. Section 63B-23-101 is amended to read:
3699          63B-23-101. Revenue bond authorizations -- Board of Regents.
3700          (1) The Legislature intends that:

3701          (a) the Board of Regents, on behalf of the University of Utah, may issue, sell, and
3702     deliver revenue bonds or other evidences of indebtedness of the University of Utah to borrow
3703     money on the credit, revenues, and reserves of the university, other than appropriations of the
3704     Legislature, to finance the cost of constructing the Lassonde Living Center;
3705          (b) the University of Utah use student fees and rents as the primary revenue sources for
3706     repayment of any obligation created under authority of this Subsection (1);
3707          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
3708     this Subsection (1) is $45,238,000, together with other amounts necessary to pay costs of
3709     issuance, pay capitalized interest, and fund any debt service reserve requirements;
3710          (d) the university shall plan, design, and construct the Lassonde Living Center subject
3711     to the requirements of Title 63A, Chapter 5, State Building Board - Division of Facilities
3712     Construction and Management; and
3713          (e) the university may not request state funds for operation and maintenance costs or
3714     capital improvements.
3715          (2) The Legislature intends that:
3716          (a) the Board of Regents, on behalf of the University of Utah, may issue, sell, and
3717     deliver revenue bonds or other evidences of indebtedness of the University of Utah to borrow
3718     money on the credit, revenues, and reserves of the university, except as provided in Subsection
3719     (2)(f), other than appropriations of the Legislature, to finance the cost of replacing the
3720     University of Utah's utility distribution infrastructure;
3721          (b) the University of Utah impose a power bill surcharge as the primary revenue source
3722     for the repayment of any obligation created under authority of this Subsection (2);
3723          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
3724     this Subsection (2) is $32,000,000 together with other amounts necessary to pay costs of
3725     issuance, pay capitalized interest, and fund any debt service reserve requirements;
3726          (d) the revenue bonds or evidences of indebtedness authorized by this Subsection (2)
3727     may not mature later than 10 years after the date of issuance;

3728          (e) the university shall plan, design, and construct the University of Utah's replacement
3729     utility distribution infrastructure subject to the requirements of Title 63A, Chapter 5, State
3730     Building Board - Division of Facilities Construction and Management; and
3731          (f) until July 1, 2024, the Division of Facilities Construction and Management annually
3732     allocate up to $1,500,000 of the capital improvement funding allocation given to the University
3733     of Utah under Section [63A-5-228] 63A-5b-405 to be used to pay the debt service on the bonds
3734     authorized under this Subsection (2).
3735          Section 87. Section 63B-25-101 is amended to read:
3736          63B-25-101. General obligation bonds for prison project -- Maximum amount --
3737     Use of proceeds.
3738          (1) As used in this section:
3739          (a) "Prison project" means the same as that term is defined in Section [63A-5-225]
3740     63A-5b-1107.
3741          (b) "Prison project fund" means the capital projects fund created in Subsection
3742     [63A-5-225(7)] 63A-5b-1107(7).
3743          (2) The commission may issue general obligation bonds as provided in this section.
3744          (3) (a) The total amount of bonds to be issued under this section may not exceed
3745     $570,000,000 for acquisition and construction proceeds, plus additional amounts necessary to
3746     pay costs of issuance, to pay capitalized interest, and to fund any existing debt service reserve
3747     requirements, with the total amount of the bonds not to exceed $575,700,000.
3748          (b) The maturity of bonds issued under this section may not exceed 10 years.
3749          (4) The commission shall ensure that proceeds from the issuance of bonds under this
3750     section are deposited into the Prison Project Fund for use by the division to pay all or part of
3751     the cost of the prison project, including:
3752          (a) interest estimated to accrue on the bonds authorized in this section until the
3753     completion of construction of the prison project, plus a period of 12 months after the end of
3754     construction; and

3755          (b) all related engineering, architectural, and legal fees.
3756          (5) (a) The division may enter into agreements related to the prison project before the
3757     receipt of proceeds of bonds issued under this section.
3758          (b) The division shall make those expenditures from unexpended and unencumbered
3759     building funds already appropriated to the Prison Project Fund.
3760          (c) The division shall reimburse the Prison Project Fund upon receipt of the proceeds
3761     of bonds issued under this chapter.
3762          (d) The state intends to use proceeds of tax-exempt bonds to reimburse itself for
3763     expenditures for costs of the prison project.
3764          (6) Before issuing bonds authorized under this section, the commission shall request
3765     and consider a recommendation from the Legislative Management Committee, created in
3766     Section 36-12-6, regarding the timing and amount of the issuance.
3767          Section 88. Section 63C-9-403 is amended to read:
3768          63C-9-403. Contracting power of executive director -- Health insurance coverage.
3769          (1) As used in this section:
3770          (a) "Aggregate" means the sum of all contracts, change orders, and modifications
3771     related to a single project.
3772          (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
3773          (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
3774     "operative" who:
3775          (i) works at least 30 hours per calendar week; and
3776          (ii) meets employer eligibility waiting requirements for health care insurance, which
3777     may not exceed the first of the calendar month following 60 days after the day on which the
3778     individual is hired.
3779          (d) "Health benefit plan" means the same as that term is defined in Section 31A-1-301.
3780          (e) "Qualified health insurance coverage" means the same as that term is defined in
3781     Section 26-40-115.

3782          (f) "Subcontractor" means the same as that term is defined in Section [63A-5-208]
3783     63A-5b-605.
3784          (2) Except as provided in Subsection (3), the requirements of this section apply to:
3785          (a) a contractor of a design or construction contract entered into by the board, or on
3786     behalf of the board, on or after July 1, 2009, if the prime contract is in an aggregate amount
3787     equal to or greater than $2,000,000; and
3788          (b) a subcontractor of a contractor of a design or construction contract entered into by
3789     the board, or on behalf of the board, on or after July 1, 2009, if the subcontract is in an
3790     aggregate amount equal to or greater than $1,000,000.
3791          (3) The requirements of this section do not apply to a contractor or subcontractor
3792     described in Subsection (2) if:
3793          (a) the application of this section jeopardizes the receipt of federal funds;
3794          (b) the contract is a sole source contract; or
3795          (c) the contract is an emergency procurement.
3796          (4) A person that intentionally uses change orders, contract modifications, or multiple
3797     contracts to circumvent the requirements of this section is guilty of an infraction.
3798          (5) (a) A contractor subject to the requirements of this section shall demonstrate to the
3799     executive director that the contractor has and will maintain an offer of qualified health
3800     insurance coverage for the contractor's employees and the employees' dependents during the
3801     duration of the contract by submitting to the executive director a written statement that:
3802          (i) the contractor offers qualified health insurance coverage that complies with Section
3803     26-40-115;
3804          (ii) is from:
3805          (A) an actuary selected by the contractor or the contractor's insurer; or
3806          (B) an underwriter who is responsible for developing the employer group's premium
3807     rates; and
3808          (iii) was created within one year before the day on which the statement is submitted.

3809          (b) A contractor that is subject to the requirements of this section shall:
3810          (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
3811     is subject to the requirements of this section shall obtain and maintain an offer of qualified
3812     health insurance coverage for the subcontractor's employees and the employees' dependents
3813     during the duration of the subcontract; and
3814          (ii) obtain from a subcontractor that is subject to the requirements of this section a
3815     written statement that:
3816          (A) the subcontractor offers qualified health insurance coverage that complies with
3817     Section 26-40-115;
3818          (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, or an
3819     underwriter who is responsible for developing the employer group's premium rates; and
3820          (C) was created within one year before the day on which the contractor obtains the
3821     statement.
3822          (c) (i) (A) A contractor that fails to maintain an offer of qualified health insurance
3823     coverage as described in Subsection (5)(a) during the duration of the contract is subject to
3824     penalties in accordance with administrative rules adopted by the division under Subsection (6).
3825          (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
3826     and maintain an offer of qualified health insurance coverage described in Subsection (5)(b)(i).
3827          (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
3828     insurance coverage described in Subsection (5)(b)(i) during the duration of the subcontract is
3829     subject to penalties in accordance with administrative rules adopted by the department under
3830     Subsection (6).
3831          (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
3832     an offer of qualified health insurance coverage described in Subsection (5)(a).
3833          (6) The department shall adopt administrative rules:
3834          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
3835          (b) in coordination with:

3836          (i) the Department of Environmental Quality in accordance with Section 19-1-206;
3837          (ii) the Department of Natural Resources in accordance with Section 79-2-404;
3838          (iii) the State Building Board in accordance with Section [63A-5-205.5] 63A-5b-607;
3839          (iv) a public transit district in accordance with Section 17B-2a-818.5;
3840          (v) the Department of Transportation in accordance with Section 72-6-107.5; and
3841          (vi) the Legislature's Administrative Rules Review Committee; and
3842          (c) that establish:
3843          (i) the requirements and procedures a contractor and a subcontractor shall follow to
3844     demonstrate compliance with this section, including:
3845          (A) that a contractor or subcontractor's compliance with this section is subject to an
3846     audit by the department or the Office of the Legislative Auditor General;
3847          (B) that a contractor that is subject to the requirements of this section shall obtain a
3848     written statement described in Subsection (5)(a); and
3849          (C) that a subcontractor that is subject to the requirements of this section shall obtain a
3850     written statement described in Subsection (5)(b)(ii);
3851          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
3852     violates the provisions of this section, which may include:
3853          (A) a three-month suspension of the contractor or subcontractor from entering into
3854     future contracts with the state upon the first violation;
3855          (B) a six-month suspension of the contractor or subcontractor from entering into future
3856     contracts with the state upon the second violation;
3857          (C) an action for debarment of the contractor or subcontractor in accordance with
3858     Section 63G-6a-904 upon the third or subsequent violation; and
3859          (D) monetary penalties which may not exceed 50% of the amount necessary to
3860     purchase qualified health insurance coverage for employees and dependents of employees of
3861     the contractor or subcontractor who were not offered qualified health insurance coverage
3862     during the duration of the contract; and

3863          (iii) a website on which the department shall post the commercially equivalent
3864     benchmark, for the qualified health insurance coverage identified in Subsection (1)(e), that is
3865     provided by the Department of Health, in accordance with Subsection 26-40-115(2).
3866          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
3867     or subcontractor who intentionally violates the provisions of this section is liable to the
3868     employee for health care costs that would have been covered by qualified health insurance
3869     coverage.
3870          (ii) An employer has an affirmative defense to a cause of action under Subsection
3871     (7)(a)(i) if:
3872          (A) the employer relied in good faith on a written statement described in Subsection
3873     (5)(a) or (5)(b)(ii); or
3874          (B) the department determines that compliance with this section is not required under
3875     the provisions of Subsection (3).
3876          (b) An employee has a private right of action only against the employee's employer to
3877     enforce the provisions of this Subsection (7).
3878          (8) Any penalties imposed and collected under this section shall be deposited into the
3879     Medicaid Restricted Account created in Section 26-18-402.
3880          (9) The failure of a contractor or subcontractor to provide qualified health insurance
3881     coverage as required by this section:
3882          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
3883     or contractor under:
3884          (i) Section 63G-6a-1602; or
3885          (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
3886          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
3887     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
3888     or construction.
3889          Section 89. Section 63G-6a-103 is amended to read:

3890          63G-6a-103. Definitions.
3891          As used in this chapter:
3892          (1) "Applicable rulemaking authority" means:
3893          (a) for a legislative procurement unit, the Legislative Management Committee;
3894          (b) for a judicial procurement unit, the Judicial Council;
3895          (c) (i) only to the extent of the procurement authority expressly granted to the
3896     procurement unit by statute:
3897          (A) for the building board or the Division of Facilities Construction and Management,
3898     created in Section [63A-5-201] 63A-5b-301, the building board;
3899          (B) for the Office of the Attorney General, the attorney general; and
3900          (C) for the Department of Transportation created in Section 72-1-201, the executive
3901     director of the Department of Transportation; and
3902          (ii) for each other executive branch procurement unit, the board;
3903          (d) for a local government procurement unit:
3904          (i) the legislative body of the local government procurement unit; or
3905          (ii) an individual or body designated by the legislative body of the local government
3906     procurement unit;
3907          (e) for a school district or a public school, the board, except to the extent of a school
3908     district's own nonadministrative rules that do not conflict with the provisions of this chapter;
3909          (f) for a state institution of higher education described in:
3910          (i) Subsections 53B-1-102(1)(a) and (c), the State Board of Regents; or
3911          (ii) Subsection 53B-1-102(1)(b), the Utah System of Technical Colleges Board of
3912     Trustees;
3913          (g) for the State Board of Education or the Utah Schools for the Deaf and the Blind, the
3914     State Board of Education;
3915          (h) for a public transit district, the chief executive of the public transit district;
3916          (i) for a local district other than a public transit district or for a special service district:

3917          (i) before January 1, 2015, the board of trustees of the local district or the governing
3918     body of the special service district; or
3919          (ii) on or after January 1, 2015, the board, except to the extent that the board of trustees
3920     of the local district or the governing body of the special service district makes its own rules:
3921          (A) with respect to a subject addressed by board rules; or
3922          (B) that are in addition to board rules;
3923          (j) for the Utah Educational Savings Plan, created in Section 53B-8a-103, the board of
3924     directors of the Utah Educational Savings Plan;
3925          (k) for the School and Institutional Trust Lands Administration, created in Section
3926     53C-1-201, the School and Institutional Trust Lands Board of Trustees;
3927          (l) for the School and Institutional Trust Fund Office, created in Section 53D-1-201,
3928     the School and Institutional Trust Fund Board of Trustees;
3929          (m) for the Utah Communications Authority, established in Section 63H-7a-201, the
3930     Utah Communications Authority Board, created in Section 63H-7a-203; or
3931          (n) for any other procurement unit, the board.
3932          (2) "Approved vendor" means a person who has been approved for inclusion on an
3933     approved vendor list through the approved vendor list process.
3934          (3) "Approved vendor list" means a list of approved vendors established under Section
3935     63G-6a-507.
3936          (4) "Approved vendor list process" means the procurement process described in
3937     Section 63G-6a-507.
3938          (5) "Bidder" means a person who submits a bid or price quote in response to an
3939     invitation for bids.
3940          (6) "Bidding process" means the procurement process described in Part 6, Bidding.
3941          (7) "Board" means the Utah State Procurement Policy Board, created in Section
3942     63G-6a-202.
3943          (8) "Building board" means the State Building Board, created in Section [63A-5-101]

3944     63A-5b-201.
3945          (9) "Change directive" means a written order signed by the procurement officer that
3946     directs the contractor to suspend work or make changes, as authorized by contract, without the
3947     consent of the contractor.
3948          (10) "Change order" means a written alteration in specifications, delivery point, rate of
3949     delivery, period of performance, price, quantity, or other provisions of a contract, upon mutual
3950     agreement of the parties to the contract.
3951          (11) "Chief procurement officer" means the chief procurement officer appointed under
3952     Subsection 63G-6a-302(1).
3953          (12) "Conducting procurement unit" means a procurement unit that conducts all
3954     aspects of a procurement:
3955          (a) except:
3956          (i) reviewing a solicitation to verify that it is in proper form; and
3957          (ii) causing the publication of a notice of a solicitation; and
3958          (b) including:
3959          (i) preparing any solicitation document;
3960          (ii) appointing an evaluation committee;
3961          (iii) conducting the evaluation process, except as provided in Subsection
3962     63G-6a-707(6)(b) relating to scores calculated for costs of proposals;
3963          (iv) selecting and recommending the person to be awarded a contract;
3964          (v) negotiating the terms and conditions of a contract, subject to the issuing
3965     procurement unit's approval; and
3966          (vi) contract administration.
3967          (13) "Conservation district" means the same as that term is defined in Section
3968     17D-3-102.
3969          (14) "Construction":
3970          (a) means services, including work, and supplies for a project for the construction,

3971     renovation, alteration, improvement, or repair of a public facility on real property; and
3972          (b) does not include services and supplies for the routine, day-to-day operation, repair,
3973     or maintenance of an existing public facility.
3974          (15) "Construction manager/general contractor":
3975          (a) means a contractor who enters into a contract:
3976          (i) for the management of a construction project; and
3977          (ii) that allows the contractor to subcontract for additional labor and materials that are
3978     not included in the contractor's cost proposal submitted at the time of the procurement of the
3979     contractor's services; and
3980          (b) does not include a contractor whose only subcontract work not included in the
3981     contractor's cost proposal submitted as part of the procurement of the contractor's services is to
3982     meet subcontracted portions of change orders approved within the scope of the project.
3983          (16) "Construction subcontractor":
3984          (a) means a person under contract with a contractor or another subcontractor to provide
3985     services or labor for the design or construction of a construction project;
3986          (b) includes a general contractor or specialty contractor licensed or exempt from
3987     licensing under Title 58, Chapter 55, Utah Construction Trades Licensing Act; and
3988          (c) does not include a supplier who provides only materials, equipment, or supplies to a
3989     contractor or subcontractor for a construction project.
3990          (17) "Contract" means an agreement for a procurement.
3991          (18) "Contract administration" means all functions, duties, and responsibilities
3992     associated with managing, overseeing, and carrying out a contract between a procurement unit
3993     and a contractor, including:
3994          (a) implementing the contract;
3995          (b) ensuring compliance with the contract terms and conditions by the conducting
3996     procurement unit and the contractor;
3997          (c) executing change orders;

3998          (d) processing contract amendments;
3999          (e) resolving, to the extent practicable, contract disputes;
4000          (f) curing contract errors and deficiencies;
4001          (g) terminating a contract;
4002          (h) measuring or evaluating completed work and contractor performance;
4003          (i) computing payments under the contract; and
4004          (j) closing out a contract.
4005          (19) "Contractor" means a person who is awarded a contract with a procurement unit.
4006          (20) "Cooperative procurement" means procurement conducted by, or on behalf of:
4007          (a) more than one procurement unit; or
4008          (b) a procurement unit and a cooperative purchasing organization.
4009          (21) "Cooperative purchasing organization" means an organization, association, or
4010     alliance of purchasers established to combine purchasing power in order to obtain the best
4011     value for the purchasers by engaging in procurements in accordance with Section 63G-6a-2105.
4012          (22) "Cost-plus-a-percentage-of-cost contract" means a contract under which the
4013     contractor is paid a percentage of the total actual expenses or costs in addition to the
4014     contractor's actual expenses or costs.
4015          (23) "Cost-reimbursement contract" means a contract under which a contractor is
4016     reimbursed for costs which are allowed and allocated in accordance with the contract terms and
4017     the provisions of this chapter, and a fee, if any.
4018          (24) "Days" means calendar days, unless expressly provided otherwise.
4019          (25) "Definite quantity contract" means a fixed price contract that provides for a
4020     specified amount of supplies over a specified period, with deliveries scheduled according to a
4021     specified schedule.
4022          (26) "Design professional" means:
4023          (a) an individual licensed as an architect under Title 58, Chapter 3a, Architects
4024     Licensing Act;

4025          (b) an individual licensed as a professional engineer or professional land surveyor
4026     under Title 58, Chapter 22, Professional Engineers and Professional Land Surveyors Licensing
4027     Act; or
4028          (c) an individual certified as a commercial interior designer under Title 58, Chapter 86,
4029     State Certification of Commercial Interior Designers Act.
4030          (27) "Design professional procurement process" means the procurement process
4031     described in Part 15, Design Professional Services.
4032          (28) "Design professional services" means:
4033          (a) professional services within the scope of the practice of architecture as defined in
4034     Section 58-3a-102;
4035          (b) professional engineering as defined in Section 58-22-102;
4036          (c) master planning and programming services; or
4037          (d) services within the scope of the practice of commercial interior design, as defined
4038     in Section 58-86-102.
4039          (29) "Design-build" means the procurement of design professional services and
4040     construction by the use of a single contract.
4041          (30) "Director" means the director of the division.
4042          (31) "Division" means the Division of Purchasing and General Services, created in
4043     Section 63A-2-101.
4044          (32) "Educational procurement unit" means:
4045          (a) a school district;
4046          (b) a public school, including a local school board or a charter school;
4047          (c) the Utah Schools for the Deaf and the Blind;
4048          (d) the Utah Education and Telehealth Network;
4049          (e) an institution of higher education of the state described in Section 53B-1-102; or
4050          (f) the State Board of Education.
4051          (33) "Established catalogue price" means the price included in a catalogue, price list,

4052     schedule, or other form that:
4053          (a) is regularly maintained by a manufacturer or contractor;
4054          (b) is published or otherwise available for inspection by customers; and
4055          (c) states prices at which sales are currently or were last made to a significant number
4056     of any category of buyers or buyers constituting the general buying public for the supplies or
4057     services involved.
4058          (34) "Executive branch procurement unit" means a department, division, office,
4059     bureau, agency, or other organization within the state executive branch.
4060          (35) "Fixed price contract" means a contract that provides a price, for each
4061     procurement item obtained under the contract, that is not subject to adjustment except to the
4062     extent that:
4063          (a) the contract provides, under circumstances specified in the contract, for an
4064     adjustment in price that is not based on cost to the contractor; or
4065          (b) an adjustment is required by law.
4066          (36) "Fixed price contract with price adjustment" means a fixed price contract that
4067     provides for an upward or downward revision of price, precisely described in the contract, that:
4068          (a) is based on the consumer price index or another commercially acceptable index,
4069     source, or formula; and
4070          (b) is not based on a percentage of the cost to the contractor.
4071          (37) "Grant" means an expenditure of public funds or other assistance, or an agreement
4072     to expend public funds or other assistance, for a public purpose authorized by law, without
4073     acquiring a procurement item in exchange.
4074          (38) "Head of a procurement unit" means:
4075          (a) for a legislative procurement unit, any person designated by rule made by the
4076     applicable rulemaking authority;
4077          (b) for an executive branch procurement unit:
4078          (i) the director of the division; or

4079          (ii) any other person designated by the board, by rule;
4080          (c) for a judicial procurement unit:
4081          (i) the Judicial Council; or
4082          (ii) any other person designated by the Judicial Council, by rule;
4083          (d) for a local government procurement unit:
4084          (i) the legislative body of the local government procurement unit; or
4085          (ii) any other person designated by the local government procurement unit;
4086          (e) for a local district other than a public transit district, the board of trustees of the
4087     local district or a designee of the board of trustees;
4088          (f) for a special service district, the governing body of the special service district or a
4089     designee of the governing body;
4090          (g) for a local building authority, the board of directors of the local building authority
4091     or a designee of the board of directors;
4092          (h) for a conservation district, the board of supervisors of the conservation district or a
4093     designee of the board of supervisors;
4094          (i) for a public corporation, the board of directors of the public corporation or a
4095     designee of the board of directors;
4096          (j) for a school district or any school or entity within a school district, the board of the
4097     school district, or the board's designee;
4098          (k) for a charter school, the individual or body with executive authority over the charter
4099     school, or the individual's or body's designee;
4100          (l) for an institution of higher education described in Section 53B-2-101, the president
4101     of the institution of higher education, or the president's designee;
4102          (m) for a public transit district, the board of trustees or a designee of the board of
4103     trustees;
4104          (n) for the State Board of Education, the State Board of Education or a designee of the
4105     State Board of Education; or

4106          (o) for the Utah Communications Authority, established in Section 63H-7a-201, the
4107     executive director of the Utah Communications Authority or a designee of the executive
4108     director.
4109          (39) "Immaterial error":
4110          (a) means an irregularity or abnormality that is:
4111          (i) a matter of form that does not affect substance; or
4112          (ii) an inconsequential variation from a requirement of a solicitation that has no, little,
4113     or a trivial effect on the procurement process and that is not prejudicial to other vendors; and
4114          (b) includes:
4115          (i) a missing signature, missing acknowledgment of an addendum, or missing copy of a
4116     professional license, bond, or insurance certificate;
4117          (ii) a typographical error;
4118          (iii) an error resulting from an inaccuracy or omission in the solicitation; and
4119          (iv) any other error that the chief procurement officer or the head of a procurement unit
4120     with independent procurement authority reasonably considers to be immaterial.
4121          (40) "Indefinite quantity contract" means a fixed price contract that:
4122          (a) is for an indefinite amount of procurement items to be supplied as ordered by a
4123     procurement unit; and
4124          (b) (i) does not require a minimum purchase amount; or
4125          (ii) provides a maximum purchase limit.
4126          (41) "Independent procurement authority" means authority granted to a procurement
4127     unit under Subsection 63G-6a-106(4)(a).
4128          (42) "Invitation for bids":
4129          (a) means a document used to solicit:
4130          (i) bids to provide a procurement item to a procurement unit; or
4131          (ii) quotes for a price of a procurement item to be provided to a procurement unit; and
4132          (b) includes all documents attached to or incorporated by reference in a document

4133     described in Subsection (42)(a).
4134          (43) "Issuing procurement unit" means a procurement unit that:
4135          (a) reviews a solicitation to verify that it is in proper form;
4136          (b) causes the notice of a solicitation to be published; and
4137          (c) negotiates and approves the terms and conditions of a contract.
4138          (44) "Judicial procurement unit" means:
4139          (a) the Utah Supreme Court;
4140          (b) the Utah Court of Appeals;
4141          (c) the Judicial Council;
4142          (d) a state judicial district; or
4143          (e) an office, committee, subcommittee, or other organization within the state judicial
4144     branch.
4145          (45) "Labor hour contract" is a contract under which:
4146          (a) the supplies and materials are not provided by, or through, the contractor; and
4147          (b) the contractor is paid a fixed rate that includes the cost of labor, overhead, and
4148     profit for a specified number of labor hours or days.
4149          (46) "Legislative procurement unit" means:
4150          (a) the Legislature;
4151          (b) the Senate;
4152          (c) the House of Representatives;
4153          (d) a staff office of the Legislature, the Senate, or the House of Representatives; or
4154          (e) a committee, subcommittee, commission, or other organization:
4155          (i) within the state legislative branch; or
4156          (ii) (A) that is created by statute to advise or make recommendations to the Legislature;
4157          (B) the membership of which includes legislators; and
4158          (C) for which the Office of Legislative Research and General Counsel provides staff
4159     support.

4160          (47) "Local building authority" means the same as that term is defined in Section
4161     17D-2-102.
4162          (48) "Local district" means the same as that term is defined in Section 17B-1-102.
4163          (49) "Local government procurement unit" means:
4164          (a) a county or municipality, and each office or agency of the county or municipality,
4165     unless the county or municipality adopts its own procurement code by ordinance;
4166          (b) a county or municipality that has adopted this entire chapter by ordinance, and each
4167     office or agency of that county or municipality; or
4168          (c) a county or municipality that has adopted a portion of this chapter by ordinance, to
4169     the extent that a term in the ordinance is used in the adopted portion of this chapter, and each
4170     office or agency of that county or municipality.
4171          (50) "Multiple award contracts" means the award of a contract for an indefinite
4172     quantity of a procurement item to more than one person.
4173          (51) "Multiyear contract" means a contract that extends beyond a one-year period,
4174     including a contract that permits renewal of the contract, without competition, beyond the first
4175     year of the contract.
4176          (52) "Municipality" means a city, town, or metro township.
4177          (53) "Nonadopting local government procurement unit" means:
4178          (a) a county or municipality that has not adopted Part 16, Protests, Part 17,
4179     Procurement Appeals Board, Part 18, Appeals to Court and Court Proceedings, and Part 19,
4180     General Provisions Related to Protest or Appeal; and
4181          (b) each office or agency of a county or municipality described in Subsection (53)(a).
4182          (54) "Offeror" means a person who submits a proposal in response to a request for
4183     proposals.
4184          (55) "Preferred bidder" means a bidder that is entitled to receive a reciprocal preference
4185     under the requirements of this chapter.
4186          (56) "Procure" means to acquire a procurement item through a procurement.

4187          (57) "Procurement":
4188          (a) means a procurement unit's acquisition of a procurement item through an
4189     expenditure of public funds, or an agreement to expend public funds, including an acquisition
4190     through a public-private partnership;
4191          (b) includes all functions that pertain to the acquisition of a procurement item,
4192     including:
4193          (i) preparing and issuing a solicitation; and
4194          (ii) (A) conducting a standard procurement process; or
4195          (B) conducting a procurement process that is an exception to a standard procurement
4196     process under Part 8, Exceptions to Procurement Requirements; and
4197          (c) does not include a grant.
4198          (58) "Procurement item" means a supply, a service, or construction.
4199          (59) "Procurement officer" means:
4200          (a) for a procurement unit with independent procurement authority:
4201          (i) the head of the procurement unit;
4202          (ii) a designee of the head of the procurement unit; or
4203          (iii) a person designated by rule made by the applicable rulemaking authority; or
4204          (b) for the division or a procurement unit without independent procurement authority,
4205     the chief procurement officer.
4206          (60) "Procurement unit":
4207          (a) means:
4208          (i) a legislative procurement unit;
4209          (ii) an executive branch procurement unit;
4210          (iii) a judicial procurement unit;
4211          (iv) an educational procurement unit;
4212          (v) the Utah Communications Authority, established in Section 63H-7a-201;
4213          (vi) a local government procurement unit;

4214          (vii) a local district;
4215          (viii) a special service district;
4216          (ix) a local building authority;
4217          (x) a conservation district;
4218          (xi) a public corporation; or
4219          (xii) a public transit district; and
4220          (b) does not include a political subdivision created under Title 11, Chapter 13,
4221     Interlocal Cooperation Act.
4222          (61) "Professional service" means labor, effort, or work that requires an elevated
4223     degree of specialized knowledge and discretion, including labor, effort, or work in the field of:
4224          (a) accounting;
4225          (b) administrative law judge service;
4226          (c) architecture;
4227          (d) construction design and management;
4228          (e) engineering;
4229          (f) financial services;
4230          (g) information technology;
4231          (h) the law;
4232          (i) medicine;
4233          (j) psychiatry; or
4234          (k) underwriting.
4235          (62) "Protest officer" means:
4236          (a) for the division or a procurement unit with independent procurement authority:
4237          (i) the head of the procurement unit;
4238          (ii) the head of the procurement unit's designee who is an employee of the procurement
4239     unit; or
4240          (iii) a person designated by rule made by the applicable rulemaking authority; or

4241          (b) for a procurement unit without independent procurement authority, the chief
4242     procurement officer or the chief procurement officer's designee who is an employee of the
4243     division .
4244          (63) "Public corporation" means the same as that term is defined in Section 63E-1-102.
4245          (64) "Public entity" means any government entity of the state or political subdivision of
4246     the state, including:
4247          (a) a procurement unit;
4248          (b) a municipality or county, regardless of whether the municipality or county has
4249     adopted this chapter or any part of this chapter; and
4250          (c) any other government entity located in the state that expends public funds.
4251          (65) "Public facility" means a building, structure, infrastructure, improvement, or other
4252     facility of a public entity.
4253          (66) "Public funds" means money, regardless of its source, including from the federal
4254     government, that is owned or held by a procurement unit.
4255          (67) "Public transit district" means a public transit district organized under Title 17B,
4256     Chapter 2a, Part 8, Public Transit District Act.
4257          (68) "Public-private partnership" means an arrangement or agreement, occurring on or
4258     after January 1, 2017, between a procurement unit and one or more contractors to provide for a
4259     public need through the development or operation of a project in which the contractor or
4260     contractors share with the procurement unit the responsibility or risk of developing, owning,
4261     maintaining, financing, or operating the project.
4262          (69) "Qualified vendor" means a vendor who:
4263          (a) is responsible; and
4264          (b) submits a responsive statement of qualifications under Section 63G-6a-410 that
4265     meets the minimum mandatory requirements, evaluation criteria, and any applicable score
4266     thresholds set forth in the request for statement of qualifications.
4267          (70) "Real property" means land and any building, fixture, improvement, appurtenance,

4268     structure, or other development that is permanently affixed to land.
4269          (71) "Request for information" means a nonbinding process through which a
4270     procurement unit requests information relating to a procurement item.
4271          (72) "Request for proposals" means a document used to solicit proposals to provide a
4272     procurement item to a procurement unit, including all other documents that are attached to that
4273     document or incorporated in that document by reference.
4274          (73) "Request for proposals process" means the procurement process described in Part
4275     7, Request for Proposals.
4276          (74) "Request for statement of qualifications" means a document used to solicit
4277     information about the qualifications of a person interested in responding to a potential
4278     procurement, including all other documents attached to that document or incorporated in that
4279     document by reference.
4280          (75) "Requirements contract" means a contract:
4281          (a) under which a contractor agrees to provide a procurement unit's entire requirements
4282     for certain procurement items at prices specified in the contract during the contract period; and
4283          (b) that:
4284          (i) does not require a minimum purchase amount; or
4285          (ii) provides a maximum purchase limit.
4286          (76) "Responsible" means being capable, in all respects, of:
4287          (a) meeting all the requirements of a solicitation; and
4288          (b) fully performing all the requirements of the contract resulting from the solicitation,
4289     including being financially solvent with sufficient financial resources to perform the contract.
4290          (77) "Responsive" means conforming in all material respects to the requirements of a
4291     solicitation.
4292          (78) "Sealed" means manually or electronically secured to prevent disclosure.
4293          (79) "Service":
4294          (a) means labor, effort, or work to produce a result that is beneficial to a procurement

4295     unit;
4296          (b) includes a professional service; and
4297          (c) does not include labor, effort, or work provided under an employment agreement or
4298     a collective bargaining agreement.
4299          (80) "Small purchase process" means the procurement process described in Section
4300     63G-6a-506.
4301          (81) "Sole source contract" means a contract resulting from a sole source procurement.
4302          (82) "Sole source procurement" means a procurement without competition pursuant to
4303     a determination under Subsection 63G-6a-802(1)(a) that there is only one source for the
4304     procurement item.
4305          (83) "Solicitation" means an invitation for bids, request for proposals, request for
4306     statement of qualifications, or request for information.
4307          (84) "Solicitation response" means:
4308          (a) a bid submitted in response to an invitation for bids;
4309          (b) a proposal submitted in response to a request for proposals; or
4310          (c) a statement of qualifications submitted in response to a request for statement of
4311     qualifications.
4312          (85) "Special service district" means the same as that term is defined in Section
4313     17D-1-102.
4314          (86) "Specification" means any description of the physical or functional characteristics
4315     or of the nature of a procurement item included in an invitation for bids or a request for
4316     proposals, or otherwise specified or agreed to by a procurement unit, including a description of:
4317          (a) a requirement for inspecting or testing a procurement item; or
4318          (b) preparing a procurement item for delivery.
4319          (87) "Standard procurement process" means:
4320          (a) the bidding process;
4321          (b) the request for proposals process;

4322          (c) the approved vendor list process;
4323          (d) the small purchase process; or
4324          (e) the design professional procurement process.
4325          (88) "State cooperative contract" means a contract awarded by the division for and in
4326     behalf of all public entities.
4327          (89) "Statement of qualifications" means a written statement submitted to a
4328     procurement unit in response to a request for statement of qualifications.
4329          (90) "Subcontractor":
4330          (a) means a person under contract to perform part of a contractual obligation under the
4331     control of the contractor, whether the person's contract is with the contractor directly or with
4332     another person who is under contract to perform part of a contractual obligation under the
4333     control of the contractor; and
4334          (b) includes a supplier, distributor, or other vendor that furnishes supplies or services
4335     to a contractor.
4336          (91) "Supply" means a good, material, technology, piece of equipment, or any other
4337     item of personal property.
4338          (92) "Tie bid" means that the lowest responsive bids of responsible bidders are
4339     identical in price.
4340          (93) "Time and materials contract" means a contract under which the contractor is paid:
4341          (a) the actual cost of direct labor at specified hourly rates;
4342          (b) the actual cost of materials and equipment usage; and
4343          (c) an additional amount, expressly described in the contract, to cover overhead and
4344     profit, that is not based on a percentage of the cost to the contractor.
4345          (94) "Transitional costs":
4346          (a) means the costs of changing:
4347          (i) from an existing provider of a procurement item to another provider of that
4348     procurement item; or

4349          (ii) from an existing type of procurement item to another type;
4350          (b) includes:
4351          (i) training costs;
4352          (ii) conversion costs;
4353          (iii) compatibility costs;
4354          (iv) costs associated with system downtime;
4355          (v) disruption of service costs;
4356          (vi) staff time necessary to implement the change;
4357          (vii) installation costs; and
4358          (viii) ancillary software, hardware, equipment, or construction costs; and
4359          (c) does not include:
4360          (i) the costs of preparing for or engaging in a procurement process; or
4361          (ii) contract negotiation or drafting costs.
4362          (95) "Trial use contract" means a contract for a procurement item that the procurement
4363     unit acquires for a trial use or testing to determine whether the procurement item will benefit
4364     the procurement unit.
4365          (96) "Vendor":
4366          (a) means a person who is seeking to enter into a contract with a procurement unit to
4367     provide a procurement item; and
4368          (b) includes:
4369          (i) a bidder;
4370          (ii) an offeror;
4371          (iii) an approved vendor;
4372          (iv) a design professional; and
4373          (v) a person who submits an unsolicited proposal under Section 63G-6a-712.
4374          Section 90. Section 63H-6-102 is amended to read:
4375          63H-6-102. Definitions.

4376          As used in this chapter:
4377          (1) "Board" means the board of directors of the corporation.
4378          (2) "Business related experience" means at least three years of professional experience
4379     in business administration, marketing, advertising, economic development, or a related field.
4380          (3) "Capital [developments] development" means the same as [that term is] capital
4381     development project, as defined in Section [63A-5-104] 63A-5b-401.
4382          (4) "Capital improvements" means the same as that term is defined in Section
4383     [63A-5-104] 63A-5b-401.
4384          (5) "Corporation" means the Utah State Fair Corporation created by this chapter.
4385          (6) "Corporation bond" means a bond issued by the corporation in accordance with Part
4386     2, Bonding Authority.
4387          (7) "Division" means the Division of Facilities Construction and Management created
4388     in Section [63A-5-201] 63A-5b-301.
4389          (8) "Executive director" means the executive director hired by the board in accordance
4390     with Section 63H-6-105.
4391          (9) (a) "State fair park" means the property owned by the state located at:
4392          (i) 155 North 1000 West, Salt Lake City, Utah, consisting of approximately 50 acres;
4393          (ii) 1139 West North Temple, Salt Lake City, Utah, consisting of approximately 10.5
4394     acres; and
4395          (iii) 1220 West North Temple, Salt Lake City, Utah, consisting of approximately two
4396     acres.
4397          (b) "State fair park" includes each building and each improvement on the property
4398     described in Subsection (9)(a) that is owned by the state.
4399          Section 91. Section 63H-6-103 is amended to read:
4400          63H-6-103. Utah State Fair Corporation -- Legal status -- Powers.
4401          (1) There is created an independent public nonprofit corporation known as the "Utah
4402     State Fair Corporation."

4403          (2) The board shall file articles of incorporation for the corporation with the Division
4404     of Corporations and Commercial Code.
4405          (3) The corporation, subject to this chapter, has all powers and authority permitted
4406     nonprofit corporations by law.
4407          (4) The corporation shall:
4408          (a) manage, supervise, and control:
4409          (i) all activities relating to the annual exhibition described in Subsection (4)(j); and
4410          (ii) except as otherwise provided by statute, all state expositions, including setting the
4411     time, place, and purpose of any state exposition;
4412          (b) for public entertainment, displays, and exhibits or similar events:
4413          (i) provide, sponsor, or arrange the events;
4414          (ii) publicize and promote the events; and
4415          (iii) secure funds to cover the cost of the exhibits from:
4416          (A) private contributions;
4417          (B) public appropriations;
4418          (C) admission charges; and
4419          (D) other lawful means;
4420          (c) acquire and designate exposition sites;
4421          (d) use generally accepted accounting principles in accounting for the corporation's
4422     assets, liabilities, and operations;
4423          (e) seek corporate sponsorships for the state fair park or for individual buildings or
4424     facilities within the fair park;
4425          (f) work with county and municipal governments, the Salt Lake Convention and
4426     Visitor's Bureau, the Utah Travel Council, and other entities to develop and promote
4427     expositions and the use of the state fair park;
4428          (g) develop and maintain a marketing program to promote expositions and the use of
4429     the state fair park;

4430          (h) in accordance with provisions of this part, operate and maintain the state fair park,
4431     including the physical appearance and structural integrity of the state fair park and the
4432     buildings located at the state fair park;
4433          (i) prepare an economic development plan for the state fair park;
4434          (j) hold an annual exhibition that:
4435          (i) is called the state fair or a similar name;
4436          (ii) promotes and highlights agriculture throughout the state;
4437          (iii) includes expositions of livestock, poultry, agricultural, domestic science,
4438     horticultural, floricultural, mineral and industrial products, manufactured articles, and domestic
4439     animals that, in the corporation's opinion will best stimulate agricultural, industrial, artistic, and
4440     educational pursuits and the sharing of talents among the people of Utah;
4441          (iv) includes the award of premiums for the best specimens of the exhibited articles
4442     and animals;
4443          (v) permits competition by livestock exhibited by citizens of other states and territories
4444     of the United States; and
4445          (vi) is arranged according to plans approved by the board;
4446          (k) fix the conditions of entry to the annual exhibition described in Subsection (4)(j);
4447     and
4448          (l) publish a list of premiums that will be awarded at the annual exhibition described in
4449     Subsection (4)(j) for the best specimens of exhibited articles and animals.
4450          (5) In addition to the annual exhibition described in Subsection (4)(j), the corporation
4451     may hold other exhibitions of livestock, poultry, agricultural, domestic science, horticultural,
4452     floricultural, mineral and industrial products, manufactured articles, and domestic animals that,
4453     in the corporation's opinion, will best stimulate agricultural, industrial, artistic, and educational
4454     pursuits and the sharing of talents among the people of Utah.
4455          (6) The corporation may:
4456          (a) employ advisers, consultants, and agents, including financial experts and

4457     independent legal counsel, and fix their compensation;
4458          (b) (i) participate in the state's Risk Management Fund created under Section
4459     63A-4-201; or
4460          (ii) procure insurance against any loss in connection with the corporation's property
4461     and other assets, including mortgage loans;
4462          (c) receive and accept aid or contributions of money, property, labor, or other things of
4463     value from any source, including any grants or appropriations from any department, agency, or
4464     instrumentality of the United States or Utah;
4465          (d) hold, use, loan, grant, and apply that aid and those contributions to carry out the
4466     purposes of the corporation, subject to the conditions, if any, upon which the aid and
4467     contributions were made;
4468          (e) enter into management agreements with any person or entity for the performance of
4469     the corporation's functions or powers;
4470          (f) establish whatever accounts and procedures as necessary to budget, receive, and
4471     disburse, account for, and audit all funds received, appropriated, or generated;
4472          (g) subject to Subsection (8), lease any of the facilities at the state fair park;
4473          (h) sponsor events as approved by the board; and
4474          (i) enter into one or more agreements to develop the state fair park.
4475          (7) (a) Except as provided in Subsection (7)(c), as an independent agency of Utah, the
4476     corporation is exempt from:
4477          (i) Title 51, Chapter 5, Funds Consolidation Act;
4478          (ii) Title 51, Chapter 7, State Money Management Act;
4479          (iii) Title 63A, Utah Administrative Services Code;
4480          (iv) Title 63J, Chapter 1, Budgetary Procedures Act; and
4481          (v) Title 67, Chapter 19, Utah State Personnel Management Act.
4482          (b) The board shall adopt policies parallel to and consistent with:
4483          (i) Title 51, Chapter 5, Funds Consolidation Act;

4484          (ii) Title 51, Chapter 7, State Money Management Act;
4485          (iii) Title 63A, Utah Administrative Services Code; and
4486          (iv) Title 63J, Chapter 1, Budgetary Procedures Act.
4487          (c) The corporation shall comply with:
4488          (i) Title 52, Chapter 4, Open and Public Meetings Act;
4489          (ii) Title 63G, Chapter 2, Government Records Access and Management Act;
4490          (iii) the provisions of Title 63A, Chapter 1, Part 2, Utah Public Finance Website;
4491          (iv) Title 63G, Chapter 6a, Utah Procurement Code, except for a procurement for:
4492          (A) entertainment provided at the state fair park;
4493          (B) judges for competitive exhibits; or
4494          (C) sponsorship of an event at the state fair park; and
4495          (v) the legislative approval requirements for new facilities established in [Subsection
4496     63A-5-104(3)] Section 63A-5b-404.
4497          (8) (a) Before the corporation executes a lease described in Subsection (6)(g) with a
4498     term of 10 or more years, the corporation shall:
4499          (i) submit the proposed lease to the State Building Board for the State Building Board's
4500     approval or rejection; and
4501          (ii) if the State Building Board approves the proposed lease, submit the proposed lease
4502     to the Executive Appropriations Committee for the Executive Appropriation Committee's
4503     review and recommendation in accordance with Subsection (8)(b).
4504          (b) The Executive Appropriations Committee shall review a proposed lease submitted
4505     in accordance with Subsection (8)(a) and recommend to the corporation that the corporation:
4506          (i) execute the proposed sublease; or
4507          (ii) reject the proposed sublease.
4508          Section 92. Section 63I-1-263 is amended to read:
4509          63I-1-263. Repeal dates, Titles 63A to 63N.
4510          (1) In relation to the Utah Transparency Advisory Board, on January 1, 2025:

4511          (a) Subsection 63A-1-201(1) is repealed;
4512          (b) Subsection 63A-1-202(2)(c), the language that states "using criteria established by
4513     the board" is repealed;
4514          (c) Section 63A-1-203 is repealed;
4515          (d) Subsections 63A-1-204(1) and (2), the language that states "After consultation with
4516     the board, and" is repealed; and
4517          (e) Subsection 63A-1-204(1)(b), the language that states "using the standards provided
4518     in Subsection 63A-1-203(3)(c)" is repealed.
4519          (2) Subsection [63A-5-228(2)(h)] 63A-5b-405(5), relating to prioritizing and allocating
4520     capital improvement funding, is repealed on July 1, 2024.
4521          (3) Section [63A-5-603] 63A-5b-1003, State Facility Energy Efficiency Fund, is
4522     repealed July 1, 2023.
4523          (4) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
4524     1, 2028.
4525          (5) Title 63C, Chapter 6, Utah Seismic Safety Commission, is repealed January 1,
4526     2025.
4527          (6) Title 63C, Chapter 16, Prison Development Commission Act, is repealed July 1,
4528     2020.
4529          (7) Title 63C, Chapter 17, Point of the Mountain Development Commission Act, is
4530     repealed July 1, 2021.
4531          (8) Title 63C, Chapter 18, Mental Health Crisis Line Commission, is repealed July 1,
4532     2023.
4533          (9) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1,
4534     2025.
4535          (10) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
4536     2020.
4537          (11) In relation to the State Fair Corporation Board of Directors, on January 1, 2025:

4538          (a) Subsection 63H-6-104(2)(c), related to a Senate appointment, is repealed;
4539          (b) Subsection 63H-6-104(2)(d), related to a House appointment, is repealed;
4540          (c) in Subsection 63H-6-104(2)(e), the language that states ", of whom only one may
4541     be a legislator, in accordance with Subsection (3)(e)," is repealed;
4542          (d) Subsection 63H-6-104(3)(a)(i) is amended to read:
4543          "(3)(a)(i) Except as provided in Subsection (3)(a)(ii), a board member appointed under
4544     Subsection (2)(e) or (f) shall serve a term that expires on the December 1 four years after the
4545     year that the board member was appointed.";
4546          (e) in Subsections 63H-6-104(3)(a)(ii), (c)(ii), and (d), the language that states "the
4547     president of the Senate, the speaker of the House, the governor," is repealed and replaced with
4548     "the governor"; and
4549          (f) Subsection 63H-6-104(3)(e), related to limits on the number of legislators, is
4550     repealed.
4551          (12) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.
4552          (13) Section 63M-7-212 is repealed on December 31, 2019.
4553          (14) On July 1, 2025:
4554          (a) in Subsection 17-27a-404(3)(c)(ii), the language that states "the Resource
4555     Development Coordinating Committee," is repealed;
4556          (b) Subsection 23-14-21(2)(c) is amended to read "(c) provide notification of proposed
4557     sites for the transplant of species to local government officials having jurisdiction over areas
4558     that may be affected by a transplant.";
4559          (c) in Subsection 23-14-21(3), the language that states "and the Resource Development
4560     Coordinating Committee" is repealed;
4561          (d) in Subsection 23-21-2.3(1), the language that states "the Resource Development
4562     Coordinating Committee created in Section 63J-4-501 and" is repealed;
4563          (e) in Subsection 23-21-2.3(2), the language that states "the Resource Development
4564     Coordinating Committee and" is repealed;

4565          (f) Subsection 63J-4-102(1) is repealed and the remaining subsections are renumbered
4566     accordingly;
4567          (g) Subsections 63J-4-401(5)(a) and (c) are repealed;
4568          (h) Subsection 63J-4-401(5)(b) is renumbered to Subsection 63J-4-401(5)(a) and the
4569     word "and" is inserted immediately after the semicolon;
4570          (i) Subsection 63J-4-401(5)(d) is renumbered to Subsection 63J-4-401(5)(b);
4571          (j) Sections 63J-4-501, 63J-4-502, 63J-4-503, 63J-4-504, and 63J-4-505 are repealed;
4572     and
4573          (k) Subsection 63J-4-603(1)(e)(iv) is repealed and the remaining subsections are
4574     renumbered accordingly.
4575          (15) Subsection 63J-1-602.1(13), Nurse Home Visiting Restricted Account is repealed
4576     July 1, 2026.
4577          (16) Subsection 63J-1-602.2(4), referring to dedicated credits to the Utah Marriage
4578     Commission, is repealed July 1, 2023.
4579          (17) Subsection 63J-1-602.2(5), referring to the Trip Reduction Program, is repealed
4580     July 1, 2022.
4581          (18) (a) Subsection 63J-1-602.1(53), relating to the Utah Statewide Radio System
4582     Restricted Account, is repealed July 1, 2022.
4583          (b) When repealing Subsection 63J-1-602.1(53), the Office of Legislative Research and
4584     General Counsel shall, in addition to the office's authority under Subsection 36-12-12(3), make
4585     necessary changes to subsection numbering and cross references.
4586          (19) Subsection 63J-1-602.2(23), related to the Utah Seismic Safety Commission, is
4587     repealed January 1, 2025.
4588          (20) Subsection 63J-4-708(1), in relation to the Talent Ready Utah Board, on January
4589     1, 2023, is amended to read:
4590          "(1) On or before October 1, the board shall provide an annual written report to the
4591     Social Services Appropriations Subcommittee and the Economic Development and Workforce

4592     Services Interim Committee.".
4593          (21) In relation to the Utah Substance Use and Mental Health Advisory Council, on
4594     January 1, 2023:
4595          (a) Sections 63M-7-301, 63M-7-302, 63M-7-303, 63M-7-304, and 63M-7-306 are
4596     repealed;
4597          (b) Section 63M-7-305, the language that states "council" is replaced with
4598     "commission";
4599          (c) Subsection 63M-7-305(1) is repealed and replaced with:
4600          "(1) "Commission" means the Commission on Criminal and Juvenile Justice."; and
4601          (d) Subsection 63M-7-305(2) is repealed and replaced with:
4602          "(2) The commission shall:
4603          (a) provide ongoing oversight of the implementation, functions, and evaluation of the
4604     Drug-Related Offenses Reform Act; and
4605          (b) coordinate the implementation of Section 77-18-1.1 and related provisions in
4606     Subsections 77-18-1(5)(b)(iii) and (iv).".
4607          (22) The Crime Victim Reparations and Assistance Board, created in Section
4608     63M-7-504, is repealed July 1, 2027.
4609          (23) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2021.
4610          (24) Subsection 63N-1-301(4)(c), related to the Talent Ready Utah Board, is repealed
4611     on January 1, 2023.
4612          (25) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
4613          (26) (a) Title 63N, Chapter 2, Part 4, Recycling Market Development Zone Act, is
4614     repealed January 1, 2021.
4615          (b) Subject to Subsection (26)(c), Sections 59-7-610 and 59-10-1007 regarding tax
4616     credits for certain persons in recycling market development zones, are repealed for taxable
4617     years beginning on or after January 1, 2021.
4618          (c) A person may not claim a tax credit under Section 59-7-610 or 59-10-1007:

4619          (i) for the purchase price of machinery or equipment described in Section 59-7-610 or
4620     59-10-1007, if the machinery or equipment is purchased on or after January 1, 2021; or
4621          (ii) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), if
4622     the expenditure is made on or after January 1, 2021.
4623          (d) Notwithstanding Subsections (26)(b) and (c), a person may carry forward a tax
4624     credit in accordance with Section 59-7-610 or 59-10-1007 if:
4625          (i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007; and
4626          (ii) (A) for the purchase price of machinery or equipment described in Section
4627     59-7-610 or 59-10-1007, the machinery or equipment is purchased on or before December 31,
4628     2020; or
4629          (B) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), the
4630     expenditure is made on or before December 31, 2020.
4631          (27) Section 63N-2-512 is repealed on July 1, 2021.
4632          (28) (a) Title 63N, Chapter 2, Part 6, Utah Small Business Jobs Act, is repealed
4633     January 1, 2021.
4634          (b) Section 59-9-107 regarding tax credits against premium taxes is repealed for
4635     calendar years beginning on or after January 1, 2021.
4636          (c) Notwithstanding Subsection (28)(b), an entity may carry forward a tax credit in
4637     accordance with Section 59-9-107 if:
4638          (i) the person is entitled to a tax credit under Section 59-9-107 on or before December
4639     31, 2020; and
4640          (ii) the qualified equity investment that is the basis of the tax credit is certified under
4641     Section 63N-2-603 on or before December 31, 2023.
4642          (29) Subsections 63N-3-109(2)(e) and 63N-3-109(2)(f)(i) are repealed July 1, 2023.
4643          (30) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed
4644     July 1, 2023.
4645          (31) Title 63N, Chapter 9, Part 2, Outdoor Recreational Infrastructure Grant Program,

4646     is repealed January 1, 2023.
4647          (32) In relation to the Pete Suazo Utah Athletic Commission, on January 1, 2021:
4648          (a) Subsection 63N-10-201(2)(a) is amended to read:
4649          "(2) (a) The governor shall appoint five commission members with the advice and
4650     consent of the Senate.";
4651          (b) Subsection 63N-10-201(2)(b), related to legislative appointments, is repealed;
4652          (c) in Subsection 63N-10-201(3)(a), the language that states ", president, or speaker,
4653     respectively," is repealed; and
4654          (d) Subsection 63N-10-201(3)(d) is amended to read:
4655          "(d) The governor may remove a commission member for any reason and replace the
4656     commission member in accordance with this section.".
4657          (33) In relation to the Talent Ready Utah Board, on January 1, 2023:
4658          (a) Subsection 9-22-102(16) is repealed;
4659          (b) in Subsection 9-22-114(2), the language that states "Talent Ready Utah," is
4660     repealed; and
4661          (c) in Subsection 9-22-114(5), the language that states "representatives of Talent Ready
4662     Utah," is repealed.
4663          (34) Title 63N, Chapter 12, Part 5, Talent Ready Utah Center, is repealed January 1,
4664     2023.
4665          Section 93. Section 63J-1-201 (Superseded 07/01/20) is amended to read:
4666          63J-1-201 (Superseded 07/01/20). Governor's proposed budget to Legislature --
4667     Contents -- Preparation -- Appropriations based on current tax laws and not to exceed
4668     estimated revenues.
4669          (1) The governor shall deliver, not later than 30 days before the date the Legislature
4670     convenes in the annual general session, a confidential draft copy of the governor's proposed
4671     budget recommendations to the Office of the Legislative Fiscal Analyst according to the
4672     requirements of this section.

4673          (2) (a) When submitting a proposed budget, the governor shall, within the first three
4674     days of the annual general session of the Legislature, submit to the presiding officer of each
4675     house of the Legislature:
4676          (i) a proposed budget for the ensuing fiscal year;
4677          (ii) a schedule for all of the proposed changes to appropriations in the proposed budget,
4678     with each change clearly itemized and classified; and
4679          (iii) as applicable, a document showing proposed changes in estimated revenues that
4680     are based on changes in state tax laws or rates.
4681          (b) The proposed budget shall include:
4682          (i) a projection of:
4683          (A) estimated revenues by major tax type;
4684          (B) 15-year trends for each major tax type;
4685          (C) estimated receipts of federal funds;
4686          (D) 15-year trends for federal fund receipts; and
4687          (E) appropriations for the next fiscal year;
4688          (ii) the source of changes to all direct, indirect, and in-kind matching funds for all
4689     federal grants or assistance programs included in the budget;
4690          (iii) changes to debt service;
4691          (iv) a plan of proposed changes to appropriations and estimated revenues for the next
4692     fiscal year that is based upon the current fiscal year state tax laws and rates and considers
4693     projected changes in federal grants or assistance programs included in the budget;
4694          (v) an itemized estimate of the proposed changes to appropriations for:
4695          (A) the Legislative Department as certified to the governor by the president of the
4696     Senate and the speaker of the House;
4697          (B) the Executive Department;
4698          (C) the Judicial Department as certified to the governor by the state court
4699     administrator;

4700          (D) changes to salaries payable by the state under the Utah Constitution or under law
4701     for lease agreements planned for the next fiscal year; and
4702          (E) all other changes to ongoing or one-time appropriations, including dedicated
4703     credits, restricted funds, nonlapsing balances, grants, and federal funds;
4704          (vi) for each line item, the average annual dollar amount of staff funding associated
4705     with all positions that were vacant during the last fiscal year;
4706          (vii) deficits or anticipated deficits;
4707          (viii) the recommendations for each state agency for new full-time employees for the
4708     next fiscal year, which shall also be provided to the [State Building Board] director of the
4709     Division of Facilities Construction and Management as required by Subsection [63A-5-103(5)]
4710     63A-5b-501(3);
4711          (ix) a written description and itemized report submitted by a state agency to the
4712     Governor's Office of Management and Budget under Section 63J-1-220, including:
4713          (A) a written description and an itemized report provided at least annually detailing the
4714     expenditure of the state money, or the intended expenditure of any state money that has not
4715     been spent; and
4716          (B) a final written itemized report when all the state money is spent;
4717          (x) any explanation that the governor may desire to make as to the important features
4718     of the budget and any suggestion as to methods for the reduction of expenditures or increase of
4719     the state's revenue; and
4720          (xi) information detailing certain fee increases as required by Section 63J-1-504.
4721          (3) For the purpose of preparing and reporting the proposed budget:
4722          (a) The governor shall require the proper state officials, including all public and higher
4723     education officials, all heads of executive and administrative departments and state institutions,
4724     bureaus, boards, commissions, and agencies expending or supervising the expenditure of the
4725     state money, and all institutions applying for state money and appropriations, to provide
4726     itemized estimates of changes in revenues and appropriations.

4727          (b) The governor may require the persons and entities subject to Subsection (3)(a) to
4728     provide other information under these guidelines and at times as the governor may direct,
4729     which may include a requirement for program productivity and performance measures, where
4730     appropriate, with emphasis on outcome indicators.
4731          (c) The governor may require representatives of public and higher education, state
4732     departments and institutions, and other institutions or individuals applying for state
4733     appropriations to attend budget meetings.
4734          (4) (a) The Governor's Office of Management and Budget shall provide to the Office of
4735     Legislative Fiscal Analyst, as soon as practicable, but no later than 30 days before the date the
4736     Legislature convenes in the annual general session, data, analysis, or requests used in preparing
4737     the governor's budget recommendations, notwithstanding the restrictions imposed on such
4738     recommendations by available revenue.
4739          (b) The information under Subsection (4)(a) shall include:
4740          (i) actual revenues and expenditures for the fiscal year ending the previous June 30;
4741          (ii) estimated or authorized revenues and expenditures for the current fiscal year;
4742          (iii) requested revenues and expenditures for the next fiscal year;
4743          (iv) detailed explanations of any differences between the amounts appropriated by the
4744     Legislature in the current fiscal year and the amounts reported under Subsections (4)(b)(ii) and
4745     (iii);
4746          (v) a statement of agency and program objectives, effectiveness measures, and program
4747     size indicators; and
4748          (vi) other budgetary information required by the Legislature in statute.
4749          (c) The budget information under Subsection (4)(a) shall cover:
4750          (i) all items of appropriation, funds, and accounts included in appropriations acts for
4751     the current and previous fiscal years; and
4752          (ii) any new appropriation, fund, or account items requested for the next fiscal year.
4753          (d) The information provided under Subsection (4)(a) may be provided as a shared

4754     record under Section 63G-2-206 as considered necessary by the Governor's Office of
4755     Management and Budget.
4756          (5) (a) In submitting the budget for the Department of Public Safety, the governor shall
4757     include a separate recommendation in the governor's budget for maintaining a sufficient
4758     number of alcohol-related law enforcement officers to maintain the enforcement ratio equal to
4759     or below the number specified in Subsection 32B-1-201(2).
4760          (b) If the governor does not include in the governor's budget an amount sufficient to
4761     maintain the number of alcohol-related law enforcement officers described in Subsection
4762     (5)(a), the governor shall include a message to the Legislature regarding the governor's reason
4763     for not including that amount.
4764          (6) (a) The governor may revise all estimates, except those relating to the Legislative
4765     Department, the Judicial Department, and those providing for the payment of principal and
4766     interest to the state debt and for the salaries and expenditures specified by the Utah
4767     Constitution or under the laws of the state.
4768          (b) The estimate for the Judicial Department, as certified by the state court
4769     administrator, shall also be included in the budget without revision, but the governor may make
4770     separate recommendations on the estimate.
4771          (7) The total appropriations requested for expenditures authorized by the budget may
4772     not exceed the estimated revenues from taxes, fees, and all other sources for the next ensuing
4773     fiscal year.
4774          (8) If any item of the budget as enacted is held invalid upon any ground, the invalidity
4775     does not affect the budget itself or any other item in it.
4776          Section 94. Section 63J-1-201 (Effective 07/01/20) is amended to read:
4777          63J-1-201 (Effective 07/01/20). Governor's proposed budget to Legislature --
4778     Contents -- Preparation -- Appropriations based on current tax laws and not to exceed
4779     estimated revenues.
4780          (1) The governor shall deliver, not later than 30 days before the date the Legislature

4781     convenes in the annual general session, a confidential draft copy of the governor's proposed
4782     budget recommendations to the Office of the Legislative Fiscal Analyst according to the
4783     requirements of this section.
4784          (2) (a) When submitting a proposed budget, the governor shall, within the first three
4785     days of the annual general session of the Legislature, submit to the presiding officer of each
4786     house of the Legislature:
4787          (i) a proposed budget for the ensuing fiscal year;
4788          (ii) a schedule for all of the proposed changes to appropriations in the proposed budget,
4789     with each change clearly itemized and classified; and
4790          (iii) as applicable, a document showing proposed changes in estimated revenues that
4791     are based on changes in state tax laws or rates.
4792          (b) The proposed budget shall include:
4793          (i) a projection of:
4794          (A) estimated revenues by major tax type;
4795          (B) 15-year trends for each major tax type;
4796          (C) estimated receipts of federal funds;
4797          (D) 15-year trends for federal fund receipts; and
4798          (E) appropriations for the next fiscal year;
4799          (ii) the source of changes to all direct, indirect, and in-kind matching funds for all
4800     federal grants or assistance programs included in the budget;
4801          (iii) changes to debt service;
4802          (iv) a plan of proposed changes to appropriations and estimated revenues for the next
4803     fiscal year that is based upon the current fiscal year state tax laws and rates and considers
4804     projected changes in federal grants or assistance programs included in the budget;
4805          (v) an itemized estimate of the proposed changes to appropriations for:
4806          (A) the Legislative Department as certified to the governor by the president of the
4807     Senate and the speaker of the House;

4808          (B) the Executive Department;
4809          (C) the Judicial Department as certified to the governor by the state court
4810     administrator;
4811          (D) changes to salaries payable by the state under the Utah Constitution or under law
4812     for lease agreements planned for the next fiscal year; and
4813          (E) all other changes to ongoing or one-time appropriations, including dedicated
4814     credits, restricted funds, nonlapsing balances, grants, and federal funds;
4815          (vi) for each line item, the average annual dollar amount of staff funding associated
4816     with all positions that were vacant during the last fiscal year;
4817          (vii) deficits or anticipated deficits;
4818          (viii) the recommendations for each state agency for new full-time employees for the
4819     next fiscal year, which shall also be provided to the [State Building Board] director of the
4820     Division of Facilities Construction and Management as required by Subsection [63A-5-103(5)]
4821     63A-5b-501(3);
4822          (ix) a written description and itemized report submitted by a state agency to the
4823     Governor's Office of Management and Budget under Section 63J-1-220, including:
4824          (A) a written description and an itemized report provided at least annually detailing the
4825     expenditure of the state money, or the intended expenditure of any state money that has not
4826     been spent; and
4827          (B) a final written itemized report when all the state money is spent;
4828          (x) any explanation that the governor may desire to make as to the important features
4829     of the budget and any suggestion as to methods for the reduction of expenditures or increase of
4830     the state's revenue; and
4831          (xi) information detailing certain fee increases as required by Section 63J-1-504.
4832          (3) For the purpose of preparing and reporting the proposed budget:
4833          (a) The governor shall require the proper state officials, including all public and higher
4834     education officials, all heads of executive and administrative departments and state institutions,

4835     bureaus, boards, commissions, and agencies expending or supervising the expenditure of the
4836     state money, and all institutions applying for state money and appropriations, to provide
4837     itemized estimates of changes in revenues and appropriations.
4838          (b) The governor may require the persons and entities subject to Subsection (3)(a) to
4839     provide other information under these guidelines and at times as the governor may direct,
4840     which may include a requirement for program productivity and performance measures, where
4841     appropriate, with emphasis on outcome indicators.
4842          (c) The governor may require representatives of public and higher education, state
4843     departments and institutions, and other institutions or individuals applying for state
4844     appropriations to attend budget meetings.
4845          (4) (a) The Governor's Office of Management and Budget shall provide to the Office of
4846     Legislative Fiscal Analyst, as soon as practicable, but no later than 30 days before the date the
4847     Legislature convenes in the annual general session, data, analysis, or requests used in preparing
4848     the governor's budget recommendations, notwithstanding the restrictions imposed on such
4849     recommendations by available revenue.
4850          (b) The information under Subsection (4)(a) shall include:
4851          (i) actual revenues and expenditures for the fiscal year ending the previous June 30;
4852          (ii) estimated or authorized revenues and expenditures for the current fiscal year;
4853          (iii) requested revenues and expenditures for the next fiscal year;
4854          (iv) detailed explanations of any differences between the amounts appropriated by the
4855     Legislature in the current fiscal year and the amounts reported under Subsections (4)(b)(ii) and
4856     (iii);
4857          (v) a statement of:
4858          (A) agency and program objectives, effectiveness measures, and program size
4859     indicators;
4860          (B) the final status of the program objectives, effectiveness measures, and program size
4861     indicators included in the appropriations act for the fiscal year ending the previous June 30; and

4862          (C) the current status of the program objectives, effectiveness measures, and program
4863     size indicators included in the appropriations act for the current fiscal year; and
4864          (vi) other budgetary information required by the Legislature in statute.
4865          (c) The budget information under Subsection (4)(a) shall cover:
4866          (i) all items of appropriation, funds, and accounts included in appropriations acts for
4867     the current and previous fiscal years; and
4868          (ii) any new appropriation, fund, or account items requested for the next fiscal year.
4869          (d) The information provided under Subsection (4)(a) may be provided as a shared
4870     record under Section 63G-2-206 as considered necessary by the Governor's Office of
4871     Management and Budget.
4872          (5) (a) In submitting the budget for the Department of Public Safety, the governor shall
4873     include a separate recommendation in the governor's budget for maintaining a sufficient
4874     number of alcohol-related law enforcement officers to maintain the enforcement ratio equal to
4875     or below the number specified in Subsection 32B-1-201(2).
4876          (b) If the governor does not include in the governor's budget an amount sufficient to
4877     maintain the number of alcohol-related law enforcement officers described in Subsection
4878     (5)(a), the governor shall include a message to the Legislature regarding the governor's reason
4879     for not including that amount.
4880          (6) (a) The governor may revise all estimates, except those relating to the Legislative
4881     Department, the Judicial Department, and those providing for the payment of principal and
4882     interest to the state debt and for the salaries and expenditures specified by the Utah
4883     Constitution or under the laws of the state.
4884          (b) The estimate for the Judicial Department, as certified by the state court
4885     administrator, shall also be included in the budget without revision, but the governor may make
4886     separate recommendations on the estimate.
4887          (7) The total appropriations requested for expenditures authorized by the budget may
4888     not exceed the estimated revenues from taxes, fees, and all other sources for the next ensuing

4889     fiscal year.
4890          (8) If any item of the budget as enacted is held invalid upon any ground, the invalidity
4891     does not affect the budget itself or any other item in it.
4892          Section 95. Section 63J-1-206 is amended to read:
4893          63J-1-206. Appropriations governed by chapter -- Restrictions on expenditures --
4894     Transfer of funds -- Exclusion.
4895          (1) (a) Except as provided in Subsections (1)(b) and (2)(e), or where expressly
4896     exempted in the appropriating act:
4897          (i) all money appropriated by the Legislature is appropriated upon the terms and
4898     conditions set forth in this chapter; and
4899          (ii) any department, agency, or institution that accepts money appropriated by the
4900     Legislature does so subject to the requirements of this chapter.
4901          (b) This section does not apply to:
4902          (i) the Legislature and its committees; and
4903          (ii) the Investigation Account of the Water Resources Construction Fund, which is
4904     governed by Section 73-10-8.
4905          (2) (a) Each item of appropriation is to be expended subject to any schedule of
4906     programs and any restriction attached to the item of appropriation, as designated by the
4907     Legislature.
4908          (b) Each schedule of programs or restriction attached to an appropriation item:
4909          (i) is a restriction or limitation upon the expenditure of the respective appropriation
4910     made;
4911          (ii) does not itself appropriate any money; and
4912          (iii) is not itself an item of appropriation.
4913          (c) (i) Except as provided in Subsection (2)(c)(ii), an appropriation or any surplus of
4914     any appropriation may not be diverted from any department, agency, institution, division, or
4915     line item to any other department, agency, institution, division, or line item.

4916          (ii) The state superintendent may transfer money appropriated for the Minimum School
4917     Program between line items in accordance with Section 53F-2-205.
4918          (iii) If the money appropriated to an agency to pay lease payments under the program
4919     established in [Subsection 63A-5-228(3)] Section 63A-5b-703 exceeds the amount required for
4920     the agency's lease payments to the Division of Facilities Construction and Management, the
4921     agency may:
4922          (A) transfer money from the lease payments line item to other line items within the
4923     agency; and
4924          (B) retain and use the excess money for other purposes.
4925          (d) The money appropriated subject to a schedule of programs or restriction may be
4926     used only for the purposes authorized.
4927          (e) In order for a department, agency, or institution to transfer money appropriated to it
4928     from one program to another program within a line item, the department, agency, or institution
4929     shall revise its budget execution plan as provided in Section 63J-1-209.
4930          (f) (i) The procedures for transferring money between programs within a line item as
4931     provided by Subsection (2)(e) do not apply to money appropriated to the State Board of
4932     Education for the Minimum School Program or capital outlay programs created in Title 53F,
4933     Chapter 3, State Funding -- Capital Outlay Programs.
4934          (ii) The state superintendent may transfer money appropriated for the programs
4935     specified in Subsection (2)(f)(i) only as provided by Section 53F-2-205.
4936          Section 96. Section 63J-1-602.2 is amended to read:
4937          63J-1-602.2. List of nonlapsing appropriations to programs.
4938          Appropriations made to the following programs are nonlapsing:
4939          (1) The Legislature and its committees.
4940          (2) The Percent-for-Art Program created in Section 9-6-404.
4941          (3) The LeRay McAllister Critical Land Conservation Program created in Section
4942     11-38-301.

4943          (4) Dedicated credits accrued to the Utah Marriage Commission as provided under
4944     Subsection 17-16-21(2)(d)(ii).
4945          (5) The Trip Reduction Program created in Section 19-2a-104.
4946          (6) The Division of Wildlife Resources for the appraisal and purchase of lands under
4947     the Pelican Management Act, as provided in Section 23-21a-6.
4948          (7) The primary care grant program created in Section 26-10b-102.
4949          (8) Sanctions collected as dedicated credits from Medicaid provider under Subsection
4950     26-18-3(7).
4951          (9) The Utah Health Care Workforce Financial Assistance Program created in Section
4952     26-46-102.
4953          (10) The Rural Physician Loan Repayment Program created in Section 26-46a-103.
4954          (11) The Opiate Overdose Outreach Pilot Program created in Section 26-55-107.
4955          (12) Funds that the Department of Alcoholic Beverage Control retains in accordance
4956     with Subsection 32B-2-301(7)(a) or (b).
4957          (13) The General Assistance program administered by the Department of Workforce
4958     Services, as provided in Section 35A-3-401.
4959          (14) A new program or agency that is designated as nonlapsing under Section
4960     36-24-101.
4961          (15) The Utah National Guard, created in Title 39, Militia and Armories.
4962          (16) The State Tax Commission under Section 41-1a-1201 for the:
4963          (a) purchase and distribution of license plates and decals; and
4964          (b) administration and enforcement of motor vehicle registration requirements.
4965          (17) The Search and Rescue Financial Assistance Program, as provided in Section
4966     53-2a-1102.
4967          (18) The Motorcycle Rider Education Program, as provided in Section 53-3-905.
4968          (19) The State Board of Regents for teacher preparation programs, as provided in
4969     Section 53B-6-104.

4970          (20) The Medical Education Program administered by the Medical Education Council,
4971     as provided in Section 53B-24-202.
4972          (21) The State Board of Education, as provided in Section 53F-2-205.
4973          (22) The Division of Services for People with Disabilities, as provided in Section
4974     62A-5-102.
4975          (23) The Division of Fleet Operations for the purpose of upgrading underground
4976     storage tanks under Section 63A-9-401.
4977          (24) The Utah Seismic Safety Commission, as provided in Section 63C-6-104.
4978          (25) Appropriations to the Department of Technology Services for technology
4979     innovation as provided under Section 63F-4-202.
4980          (26) The Office of Administrative Rules for publishing, as provided in Section
4981     63G-3-402.
4982          (27) The Utah Science Technology and Research Initiative created in Section
4983     63M-2-301.
4984          (28) The Governor's Office of Economic Development to fund the Enterprise Zone
4985     Act, as provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act.
4986          (29) Appropriations to fund the Governor's Office of Economic Development's Rural
4987     Employment Expansion Program, as described in Title 63N, Chapter 4, Part 4, Rural
4988     Employment Expansion Program.
4989          (30) The Department of Human Resource Management user training program, as
4990     provided in Section 67-19-6.
4991          (31) A public safety answering point's emergency telecommunications service fund, as
4992     provided in Section 69-2-301.
4993          (32) The Traffic Noise Abatement Program created in Section 72-6-112.
4994          (33) The Judicial Council for compensation for special prosecutors, as provided in
4995     Section 77-10a-19.
4996          (34) A state rehabilitative employment program, as provided in Section 78A-6-210.

4997          (35) The Utah Geological Survey, as provided in Section 79-3-401.
4998          (36) The Bonneville Shoreline Trail Program created under Section 79-5-503.
4999          (37) Adoption document access as provided in Sections 78B-6-141, 78B-6-144, and
5000     78B-6-144.5.
5001          (38) Indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah Indigent
5002     Defense Commission.
5003          (39) The program established by the Division of Facilities Construction and
5004     Management under [Subsection 63A-5-228(3)] Section 63A-5b-703 under which state agencies
5005     receive an appropriation and pay lease payments for the use and occupancy of buildings owned
5006     by the Division of Facilities Construction and Management.
5007          Section 97. Section 63J-3-103 is amended to read:
5008          63J-3-103. Definitions.
5009          As used in this chapter:
5010          (1) (a) "Appropriations" means actual unrestricted capital and operating appropriations
5011     from unrestricted General Fund and Education Fund sources.
5012          (b) "Appropriations" includes appropriations that are contingent upon available
5013     surpluses in the General Fund and Education Fund.
5014          (c) "Appropriations" does not mean:
5015          (i) public education expenditures;
5016          (ii) Utah Education and Telehealth Network expenditures in support of public
5017     education;
5018          (iii) Utah System of Technical Colleges expenditures in support of public education;
5019          (iv) State Tax Commission expenditures related to collection of income taxes in
5020     support of public education;
5021          (v) debt service expenditures;
5022          (vi) emergency expenditures;
5023          (vii) expenditures from all other fund or subfund sources;

5024          (viii) transfers or appropriations from the Education Fund to the Uniform School Fund;
5025          (ix) transfers into, or appropriations made to, the General Fund Budget Reserve
5026     Account established in Section 63J-1-312;
5027          (x) transfers into, or appropriations made to, the Education Budget Reserve Account
5028     established in Section 63J-1-313;
5029          (xi) transfers in accordance with Section 63J-1-314 into, or appropriations made to the
5030     Wildland Fire Suppression Fund created in Section 65A-8-204 or the State Disaster Recovery
5031     Restricted Account created in Section 53-2a-603;
5032          (xii) money appropriated to fund the total one-time project costs for the construction of
5033     capital [developments] development projects as defined in Section [63A-5-104] 63A-5b-401;
5034          (xiii) transfers or deposits into or appropriations made to the Centennial Highway Fund
5035     created by Section 72-2-118;
5036          (xiv) transfers or deposits into or appropriations made to the Transportation Investment
5037     Fund of 2005 created by Section 72-2-124;
5038          (xv) transfers or deposits into or appropriations made to:
5039          (A) the Department of Transportation from any source; or
5040          (B) any transportation-related account or fund from any source; or
5041          (xvi) supplemental appropriations from the General Fund to the Division of Forestry,
5042     Fire, and State Lands to provide money for wildland fire control expenses incurred during the
5043     current or previous fire years.
5044          (2) "Base year real per capita appropriations" means the result obtained for the state by
5045     dividing the fiscal year 1985 actual appropriations of the state less debt money by:
5046          (a) the state's July 1, 1983 population; and
5047          (b) the fiscal year 1983 inflation index divided by 100.
5048          (3) "Calendar year" means the time period beginning on January 1 of any given year
5049     and ending on December 31 of the same year.
5050          (4) "Fiscal emergency" means an extraordinary occurrence requiring immediate

5051     expenditures and includes the settlement under Laws of Utah 1988, Fourth Special Session,
5052     Chapter 4.
5053          (5) "Fiscal year" means the time period beginning on July 1 of any given year and
5054     ending on June 30 of the subsequent year.
5055          (6) "Fiscal year 1985 actual base year appropriations" means fiscal year 1985 actual
5056     capital and operations appropriations from General Fund and non-Uniform School Fund
5057     income tax revenue sources, less debt money.
5058          (7) "Inflation index" means the change in the general price level of goods and services
5059     as measured by the Gross National Product Implicit Price Deflator of the Bureau of Economic
5060     Analysis, U.S. Department of Commerce calculated as provided in Section 63J-3-202.
5061          (8) (a) "Maximum allowable appropriations limit" means the appropriations that could
5062     be, or could have been, spent in any given year under the limitations of this chapter.
5063          (b) "Maximum allowable appropriations limit" does not mean actual appropriations
5064     spent or actual expenditures.
5065          (9) "Most recent fiscal year's inflation index" means the fiscal year inflation index two
5066     fiscal years previous to the fiscal year for which the maximum allowable inflation and
5067     population appropriations limit is being computed under this chapter.
5068          (10) "Most recent fiscal year's population" means the fiscal year population two fiscal
5069     years previous to the fiscal year for which the maximum allowable inflation and population
5070     appropriations limit is being computed under this chapter.
5071          (11) "Population" means the number of residents of the state as of July 1 of each year
5072     as calculated by the Governor's Office of Management and Budget according to the procedures
5073     and requirements of Section 63J-3-202.
5074          (12) "Revenues" means the revenues of the state from every tax, penalty, receipt, and
5075     other monetary exaction and interest connected with it that are recorded as unrestricted revenue
5076     of the General Fund and from non-Uniform School Fund income tax revenues, except as
5077     specifically exempted by this chapter.

5078          (13) "Security" means any bond, note, warrant, or other evidence of indebtedness,
5079     whether or not the bond, note, warrant, or other evidence of indebtedness is or constitutes an
5080     "indebtedness" within the meaning of any provision of the constitution or laws of this state.
5081          Section 98. Section 65A-4-1 is amended to read:
5082          65A-4-1. Acquisition and disposition of land by state agencies.
5083          (1) All state agencies may acquire land by gift, devise, bequest, exchange,
5084     compensation for public resource value loss, or in satisfaction of a debt and are authorized to
5085     sell, lease, or otherwise dispose of land no longer needed for public purposes, unless otherwise
5086     provided by law.
5087          (2) The proceeds from the sale, lease, or other disposition of land shall go to the state
5088     agency using or holding the land unless:
5089          (a) the governor or the Legislature order its deposit in the fund from which the state
5090     agency receives its appropriations; or
5091          (b) the use or disposition of the proceeds is specified elsewhere in law.
5092          (3) Subsections (1) and (2) do not apply to division-owned property, as defined in
5093     Section [63A-5a-102] 63A-5b-901.
5094          Section 99. Section 72-6-107.5 is amended to read:
5095          72-6-107.5. Construction of improvements of highway -- Contracts -- Health
5096     insurance coverage.
5097          (1) As used in this section:
5098          (a) "Aggregate" means the sum of all contracts, change orders, and modifications
5099     related to a single project.
5100          (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
5101          (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
5102     "operative" who:
5103          (i) works at least 30 hours per calendar week; and
5104          (ii) meets employer eligibility waiting requirements for health care insurance, which

5105     may not exceed the first day of the calendar month following 60 days after the day on which
5106     the individual is hired.
5107          (d) "Health benefit plan" means the same as that term is defined in Section 31A-1-301.
5108          (e) "Qualified health insurance coverage" means the same as that term is defined in
5109     Section 26-40-115.
5110          (f) "Subcontractor" means the same as that term is defined in Section [63A-5-208]
5111     63A-5b-605.
5112          (2) Except as provided in Subsection (3), the requirements of this section apply to:
5113          (a) a contractor of a design or construction contract entered into by the department on
5114     or after July 1, 2009, if the prime contract is in an aggregate amount equal to or greater than
5115     $2,000,000; and
5116          (b) a subcontractor of a contractor of a design or construction contract entered into by
5117     the department on or after July 1, 2009, if the subcontract is in an aggregate amount equal to or
5118     greater than $1,000,000.
5119          (3) The requirements of this section do not apply to a contractor or subcontractor
5120     described in Subsection (2) if:
5121          (a) the application of this section jeopardizes the receipt of federal funds;
5122          (b) the contract is a sole source contract; or
5123          (c) the contract is an emergency procurement.
5124          (4) A person that intentionally uses change orders, contract modifications, or multiple
5125     contracts to circumvent the requirements of this section is guilty of an infraction.
5126          (5) (a) A contractor subject to the requirements of this section shall demonstrate to the
5127     department that the contractor has and will maintain an offer of qualified health insurance
5128     coverage for the contractor's employees and the employees' dependents during the duration of
5129     the contract by submitting to the department a written statement that:
5130          (i) the contractor offers qualified health insurance coverage that complies with Section
5131     26-40-115;

5132          (ii) is from:
5133          (A) an actuary selected by the contractor or the contractor's insurer; or
5134          (B) an underwriter who is responsible for developing the employer group's premium
5135     rates; and
5136          (iii) was created within one year before the day on which the statement is submitted.
5137          (b) A contractor that is subject to the requirements of this section shall:
5138          (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
5139     is subject to the requirements of this section shall obtain and maintain an offer of qualified
5140     health insurance coverage for the subcontractor's employees and the employees' dependents
5141     during the duration of the subcontract; and
5142          (ii) obtain from a subcontractor that is subject to the requirements of this section a
5143     written statement that:
5144          (A) the subcontractor offers qualified health insurance coverage that complies with
5145     Section 26-40-115;
5146          (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, or an
5147     underwriter who is responsible for developing the employer group's premium rates; and
5148          (C) was created within one year before the day on which the contractor obtains the
5149     statement.
5150          (c) (i) (A) A contractor that fails to maintain an offer of qualified health insurance
5151     coverage described in Subsection (5)(a) during the duration of the contract is subject to
5152     penalties in accordance with administrative rules adopted by the department under Subsection
5153     (6).
5154          (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
5155     and maintain an offer of qualified health insurance coverage described in Subsection (5)(b)(i).
5156          (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
5157     insurance coverage described in Subsection (5)(b) during the duration of the subcontract is
5158     subject to penalties in accordance with administrative rules adopted by the department under

5159     Subsection (6).
5160          (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
5161     an offer of qualified health insurance coverage described in Subsection (5)(a).
5162          (6) The department shall adopt administrative rules:
5163          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
5164          (b) in coordination with:
5165          (i) the Department of Environmental Quality in accordance with Section 19-1-206;
5166          (ii) the Department of Natural Resources in accordance with Section 79-2-404;
5167          (iii) the State Building Board in accordance with Section [63A-5-205.5] 63A-5b-607;
5168          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403;
5169          (v) a public transit district in accordance with Section 17B-2a-818.5; and
5170          (vi) the Legislature's Administrative Rules Review Committee; and
5171          (c) that establish:
5172          (i) the requirements and procedures a contractor and a subcontractor shall follow to
5173     demonstrate compliance with this section, including:
5174          (A) that a contractor or subcontractor's compliance with this section is subject to an
5175     audit by the department or the Office of the Legislative Auditor General;
5176          (B) that a contractor that is subject to the requirements of this section shall obtain a
5177     written statement described in Subsection (5)(a); and
5178          (C) that a subcontractor that is subject to the requirements of this section shall obtain a
5179     written statement described in Subsection (5)(b)(ii);
5180          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
5181     violates the provisions of this section, which may include:
5182          (A) a three-month suspension of the contractor or subcontractor from entering into
5183     future contracts with the state upon the first violation;
5184          (B) a six-month suspension of the contractor or subcontractor from entering into future
5185     contracts with the state upon the second violation;

5186          (C) an action for debarment of the contractor or subcontractor in accordance with
5187     Section 63G-6a-904 upon the third or subsequent violation; and
5188          (D) monetary penalties which may not exceed 50% of the amount necessary to
5189     purchase qualified health insurance coverage for an employee and a dependent of the employee
5190     of the contractor or subcontractor who was not offered qualified health insurance coverage
5191     during the duration of the contract; and
5192          (iii) a website on which the department shall post the commercially equivalent
5193     benchmark, for the qualified health insurance coverage identified in Subsection (1)(e), that is
5194     provided by the Department of Health, in accordance with Subsection 26-40-115(2).
5195          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
5196     or subcontractor who intentionally violates the provisions of this section is liable to the
5197     employee for health care costs that would have been covered by qualified health insurance
5198     coverage.
5199          (ii) An employer has an affirmative defense to a cause of action under Subsection
5200     (7)(a)(i) if:
5201          (A) the employer relied in good faith on a written statement described in Subsection
5202     (5)(a) or (5)(b)(ii); or
5203          (B) the department determines that compliance with this section is not required under
5204     the provisions of Subsection (3).
5205          (b) An employee has a private right of action only against the employee's employer to
5206     enforce the provisions of this Subsection (7).
5207          (8) Any penalties imposed and collected under this section shall be deposited into the
5208     Medicaid Restricted Account created in Section 26-18-402.
5209          (9) The failure of a contractor or subcontractor to provide qualified health insurance
5210     coverage as required by this section:
5211          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
5212     or contractor under:

5213          (i) Section 63G-6a-1602; or
5214          (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
5215          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
5216     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
5217     or construction.
5218          Section 100. Section 79-2-404 is amended to read:
5219          79-2-404. Contracting powers of department -- Health insurance coverage.
5220          (1) As used in this section:
5221          (a) "Aggregate" means the sum of all contracts, change orders, and modifications
5222     related to a single project.
5223          (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
5224          (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
5225     "operative" who:
5226          (i) works at least 30 hours per calendar week; and
5227          (ii) meets employer eligibility waiting requirements for health care insurance, which
5228     may not exceed the first day of the calendar month following 60 days after the day on which
5229     the individual is hired.
5230          (d) "Health benefit plan" means the same as that term is defined in Section 31A-1-301.
5231          (e) "Qualified health insurance coverage" means the same as that term is defined in
5232     Section 26-40-115.
5233          (f) "Subcontractor" means the same as that term is defined in Section [63A-5-208]
5234     63A-5b-605.
5235          (2) Except as provided in Subsection (3), the requirements of this section apply to:
5236          (a) a contractor of a design or construction contract entered into by, or delegated to, the
5237     department or a division, board, or council of the department on or after July 1, 2009, if the
5238     prime contract is in an aggregate amount equal to or greater than $2,000,000; and
5239          (b) a subcontractor of a contractor of a design or construction contract entered into by,

5240     or delegated to, the department or a division, board, or council of the department on or after
5241     July 1, 2009, if the subcontract is in an aggregate amount equal to or greater than $1,000,000.
5242          (3) This section does not apply to contracts entered into by the department or a
5243     division, board, or council of the department if:
5244          (a) the application of this section jeopardizes the receipt of federal funds;
5245          (b) the contract or agreement is between:
5246          (i) the department or a division, board, or council of the department; and
5247          (ii) (A) another agency of the state;
5248          (B) the federal government;
5249          (C) another state;
5250          (D) an interstate agency;
5251          (E) a political subdivision of this state; or
5252          (F) a political subdivision of another state; or
5253          (c) the contract or agreement is:
5254          (i) for the purpose of disbursing grants or loans authorized by statute;
5255          (ii) a sole source contract; or
5256          (iii) an emergency procurement.
5257          (4) A person that intentionally uses change orders, contract modifications, or multiple
5258     contracts to circumvent the requirements of this section is guilty of an infraction.
5259          (5) (a) A contractor subject to the requirements of this section shall demonstrate to the
5260     department that the contractor has and will maintain an offer of qualified health insurance
5261     coverage for the contractor's employees and the employees' dependents during the duration of
5262     the contract by submitting to the department a written statement that:
5263          (i) the contractor offers qualified health insurance coverage that complies with Section
5264     26-40-115;
5265          (ii) is from:
5266          (A) an actuary selected by the contractor or the contractor's insurer; or

5267          (B) an underwriter who is responsible for developing the employer group's premium
5268     rates; and
5269          (iii) was created within one year before the day on which the statement is submitted.
5270          (b) A contractor that is subject to the requirements of this section shall:
5271          (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
5272     is subject to the requirements of this section shall obtain and maintain an offer of qualified
5273     health insurance coverage for the subcontractor's employees and the employees' dependents
5274     during the duration of the subcontract; and
5275          (ii) obtain from a subcontractor that is subject to the requirements of this section a
5276     written statement that:
5277          (A) the subcontractor offers qualified health insurance coverage that complies with
5278     Section 26-40-115;
5279          (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, or an
5280     underwriter who is responsible for developing the employer group's premium rates; and
5281          (C) was created within one year before the day on which the contractor obtains the
5282     statement.
5283          (c) (i) (A) A contractor that fails to maintain an offer of qualified health insurance
5284     coverage described in Subsection (5)(a) during the duration of the contract is subject to
5285     penalties in accordance with administrative rules adopted by the department under Subsection
5286     (6).
5287          (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
5288     and maintain an offer of qualified health insurance coverage described in Subsection (5)(b)(i).
5289          (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
5290     insurance coverage described in Subsection (5)(b) during the duration of the subcontract is
5291     subject to penalties in accordance with administrative rules adopted by the department under
5292     Subsection (6).
5293          (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain

5294     an offer of qualified health insurance coverage described in Subsection (5)(a).
5295          (6) The department shall adopt administrative rules:
5296          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
5297          (b) in coordination with:
5298          (i) the Department of Environmental Quality in accordance with Section 19-1-206;
5299          (ii) a public transit district in accordance with Section 17B-2a-818.5;
5300          (iii) the State Building Board in accordance with Section [63A-5-205.5] 63A-5b-607;
5301          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403;
5302          (v) the Department of Transportation in accordance with Section 72-6-107.5; and
5303          (vi) the Legislature's Administrative Rules Review Committee; and
5304          (c) that establish:
5305          (i) the requirements and procedures a contractor and a subcontractor shall follow to
5306     demonstrate compliance with this section, including:
5307          (A) that a contractor or subcontractor's compliance with this section is subject to an
5308     audit by the department or the Office of the Legislative Auditor General;
5309          (B) that a contractor that is subject to the requirements of this section shall obtain a
5310     written statement described in Subsection (5)(a); and
5311          (C) that a subcontractor that is subject to the requirements of this section shall obtain a
5312     written statement described in Subsection (5)(b)(ii);
5313          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
5314     violates the provisions of this section, which may include:
5315          (A) a three-month suspension of the contractor or subcontractor from entering into
5316     future contracts with the state upon the first violation;
5317          (B) a six-month suspension of the contractor or subcontractor from entering into future
5318     contracts with the state upon the second violation;
5319          (C) an action for debarment of the contractor or subcontractor in accordance with
5320     Section 63G-6a-904 upon the third or subsequent violation; and

5321          (D) monetary penalties which may not exceed 50% of the amount necessary to
5322     purchase qualified health insurance coverage for an employee and a dependent of an employee
5323     of the contractor or subcontractor who was not offered qualified health insurance coverage
5324     during the duration of the contract; and
5325          (iii) a website on which the department shall post the commercially equivalent
5326     benchmark, for the qualified health insurance coverage identified in Subsection (1)(e),
5327     provided by the Department of Health, in accordance with Subsection 26-40-115(2).
5328          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
5329     or subcontractor who intentionally violates the provisions of this section is liable to the
5330     employee for health care costs that would have been covered by qualified health insurance
5331     coverage.
5332          (ii) An employer has an affirmative defense to a cause of action under Subsection
5333     (7)(a)(i) if:
5334          (A) the employer relied in good faith on a written statement described in Subsection
5335     (5)(a) or (5)(b)(ii); or
5336          (B) the department determines that compliance with this section is not required under
5337     the provisions of Subsection (3).
5338          (b) An employee has a private right of action only against the employee's employer to
5339     enforce the provisions of this Subsection (7).
5340          (8) Any penalties imposed and collected under this section shall be deposited into the
5341     Medicaid Restricted Account created in Section 26-18-402.
5342          (9) The failure of a contractor or subcontractor to provide qualified health insurance
5343     coverage as required by this section:
5344          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
5345     or contractor under:
5346          (i) Section 63G-6a-1602; or
5347          (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and

5348          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
5349     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
5350     or construction.
5351          Section 101. Repealer.
5352          This bill repeals:
5353          Section 63A-5-100, Definitions.
5354          Section 63A-5-101, Creation -- Composition -- Appointment -- Per diem and
5355     expenses -- Administrative services.
5356          Section 63A-5-101.5, State Building Board composition -- Appointment -- Per diem
5357     and expenses -- Administrative services.
5358          Section 63A-5-102, Meetings of board -- Rules of procedure -- Quorum.
5359          Section 63A-5-103, Board -- Powers.
5360          Section 63A-5-104, Definitions -- Capital development and capital improvement
5361     process -- Approval requirements -- Limitations on new projects -- Emergencies.
5362          Section 63A-5-202, Definitions.
5363          Section 63A-5-204, Specific powers and duties of director.
5364          Section 63A-5-205, Contracting powers of director -- Retainage.
5365          Section 63A-5-206, Construction, alteration, and repair of state facilities -- Powers
5366     of director -- Exceptions -- Expenditure of appropriations -- Notification to local
5367     governments for construction or modification of certain facilities.
5368          Section 63A-5-216, Gifts, grants, and donations to division.
5369          Section 63A-5-223, Contracts -- Certain indemnification provisions forbidden.
5370          Section 63A-5-301, Definitions.
5371          Section 63A-5-501, Making keys to buildings of state, political subdivisions or
5372     colleges and universities without permission prohibited.
5373          Section 63A-5-502, Violation -- Misdemeanor.
5374          Section 63A-5-601, Legislative findings and policy.

5375          Section 63A-5-602, Appropriation for energy efficiency measures.
5376          Section 63A-5a-101, Title.
5377          Section 102. Effective date.
5378          This bill takes effect on May 12, 2020, except that the amendments to Section
5379     63J-1-201 (Effective 07/01/20) take effect on July 1, 2020.
5380          Section 103. Coordinating H.B. 451 with H.B. 37 -- Superseding substantive and
5381     technical amendments.
5382          If H.B. 451 and H.B. 37, Insurance Amendments, both pass and become law, it is the
5383     intent of the Legislature that when the Office of Legislative Research and General Counsel
5384     prepares the Utah Code database for publication:
5385          (1) the amendments in H.B. 37 to Subsection 63A-5-205.5(1)(d), defining "health
5386     benefit plan," supersede the amendments in H.B. 451 to Subsection 63A-5-205.5(1)(d),
5387     renumbered in H.B. 451 to Subsection 63A-5b-607(1)(d), defining "health benefit plan";
5388          (2) (a) the amendments in H.B. 451 to Subsections 63A-5b-607(6)(a)(ii) and (b)
5389     supersede the amendments in H.B. 37 to Subsection 63A-5-205.5(5)(c)(ii); and
5390          (b) Subsections 63A-5b-607(6)(a)(ii) and (b) shall be amended to read:
5391          "(ii) obtain from a subcontractor [that is subject to the requirements of this section]
5392     referred to in Subsection (6)(a)(i) a written statement demonstrating that[:] the subcontractor
5393     offers qualified health coverage to eligible employees and eligible employees' dependents.
5394          [(A) the subcontractor offers qualified health insurance coverage that complies with
5395     Section 26-40-115;]
5396          [(B) is] (b) A statement under Subsection (6)(a)(ii):
5397          (i) shall be from:
5398          (A) an actuary selected by the subcontractor or the subcontractor's insurer[, or];
5399          (B) an underwriter who is responsible for developing the employer group's premium
5400     rates; [and] or
5401          (C) if the subcontractor provides a health benefit plan described in Subsection

5402     (1)(d)(ii), an actuary or underwriter selected by an administrator; and
5403          [(C) was] (ii) may not be created [within] more than one year before the day on which
5404     the contractor obtains the statement from the subcontractor";
5405          (3) the amendments in H.B. 451 to Subsection 63A-5b-607(11)(a)(ii)(A) supersede the
5406     amendments in H.B. 37 to Subsection 63A-5-205.5(8)(a)(ii)(A); and
5407          (4) the phrase "qualified health insurance coverage" in Subsection 63A-5b-607(14)
5408     shall be amended to read "qualified health coverage."