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     Utah Code Sections Affected:
31     AMENDS:
32          11-44-201, as last amended by Laws of Utah 2018, Chapter 415
33          11-59-302, as enacted by Laws of Utah 2018, Chapter 388
34          11-59-304, as enacted by Laws of Utah 2018, Chapter 388
35          11-59-501, as enacted by Laws of Utah 2018, Chapter 388
36          17B-2a-818.5, as last amended by Laws of Utah 2018, Chapter 319
37          19-1-206, as last amended by Laws of Utah 2018, Chapter 319
38          26-18-402, as last amended by Laws of Utah 2018, Chapter 319
39          26-40-115, as last amended by Laws of Utah 2019, Chapter 393
40          51-11-102, as enacted by Laws of Utah 2018, Chapter 253
41          53B-2-109, as enacted by Laws of Utah 2005, Chapter 231
42          53B-2a-101, as last amended by Laws of Utah 2019, Chapter 482
43          53B-2a-117, as enacted by Laws of Utah 2019, Chapter 482
44          53B-22-201, as enacted by Laws of Utah 2019, Chapter 482
45          53B-22-204, as enacted by Laws of Utah 2019, Chapter 482
46          63A-1-112, as last amended by Laws of Utah 2015, Chapter 181
47          63B-1-304, as last amended by Laws of Utah 2010, Chapter 286
48          63B-2-301, as last amended by Laws of Utah 2013, Chapters 310 and 465
49          63B-4-201, as last amended by Laws of Utah 2016, Chapter 144
50          63B-9-103, as last amended by Laws of Utah 2014, Chapter 196
51          63B-16-201, as enacted by Laws of Utah 2007, Chapter 174
52          63B-16-202, as last amended by Laws of Utah 2012, Chapter 393
53          63B-16-301, as enacted by Laws of Utah 2007, Chapter 174
54          63B-17-201, as last amended by Laws of Utah 2009, Chapter 150
55          63B-17-202, as enacted by Laws of Utah 2008, Chapter 128
56          63B-17-301, as enacted by Laws of Utah 2008, Chapter 128
57          63B-23-101, as last amended by Laws of Utah 2019, Chapter 468
58          63B-25-101, as last amended by Laws of Utah 2019, Chapter 246

59          63C-9-403, as last amended by Laws of Utah 2018, Chapter 319
60          63G-6a-103, as last amended by Laws of Utah 2019, Chapters 136, 170, 314, and 456
61          63H-6-102, as last amended by Laws of Utah 2016, Chapter 301
62          63H-6-103, as last amended by Laws of Utah 2019, Chapters 370 and 456
63          63I-1-263, as last amended by Laws of Utah 2019, Chapters 89, 246, 311, 414, 468,
64     469, 482 and last amended by Coordination Clause, Laws of Utah 2019, Chapter
65     246
66          63J-1-201 (Superseded 07/01/20), as last amended by Laws of Utah 2019, Chapter 136
67          63J-1-201 (Effective 07/01/20), as last amended by Laws of Utah 2019, Chapters 136
68     and 464
69          63J-1-206, as last amended by Laws of Utah 2019, Chapters 182 and 468
70          63J-1-602.2, as last amended by Laws of Utah 2019, Chapters 136, 326, 468, and 469
71          63J-3-103, as last amended by Laws of Utah 2017, Chapter 382
72          65A-4-1, as last amended by Laws of Utah 2019, Chapter 195
73          72-6-107.5, as last amended by Laws of Utah 2018, Chapter 319
74          79-2-404, as last amended by Laws of Utah 2018, Chapter 319
75     ENACTS:
76          63A-5b-101, Utah Code Annotated 1953
77          63A-5b-102, Utah Code Annotated 1953
78          63A-5b-201, Utah Code Annotated 1953
79          63A-5b-202, Utah Code Annotated 1953
80          63A-5b-203, Utah Code Annotated 1953
81          63A-5b-303, Utah Code Annotated 1953
82          63A-5b-401, Utah Code Annotated 1953
83          63A-5b-402, Utah Code Annotated 1953
84          63A-5b-403, Utah Code Annotated 1953
85          63A-5b-404, Utah Code Annotated 1953
86          63A-5b-406, Utah Code Annotated 1953
87          63A-5b-501, Utah Code Annotated 1953
88          63A-5b-502, Utah Code Annotated 1953
89          63A-5b-601, Utah Code Annotated 1953

90          63A-5b-602, Utah Code Annotated 1953
91          63A-5b-603, Utah Code Annotated 1953
92          63A-5b-604, Utah Code Annotated 1953
93          63A-5b-606, Utah Code Annotated 1953
94          63A-5b-701, Utah Code Annotated 1953
95          63A-5b-702, Utah Code Annotated 1953
96          63A-5b-703, Utah Code Annotated 1953
97          63A-5b-801, Utah Code Annotated 1953
98          63A-5b-1001, Utah Code Annotated 1953
99          63A-5b-1101, Utah Code Annotated 1953
100          63A-5b-1103, Utah Code Annotated 1953
101          63A-5b-1104, Utah Code Annotated 1953
102          63A-5b-1105, Utah Code Annotated 1953
103     RENUMBERS AND AMENDS:
104          63A-5b-301, (Renumbered from 63A-5-201, as renumbered and amended by Laws of
105     Utah 1993, Chapter 212)
106          63A-5b-302, (Renumbered from 63A-5-203, as renumbered and amended by Laws of
107     Utah 1993, Chapter 212)
108          63A-5b-405, (Renumbered from 63A-5-228, as enacted by Laws of Utah 2019, Chapter
109     468)
110          63A-5b-503, (Renumbered from 63A-5-211, as last amended by Laws of Utah 2011,
111     Chapter 303)
112          63A-5b-605, (Renumbered from 63A-5-208, as last amended by Laws of Utah 2016,
113     Chapter 348)
114          63A-5b-607, (Renumbered from 63A-5-205.5, as enacted by Laws of Utah 2018,
115     Chapter 319)
116          63A-5b-608, (Renumbered from 63A-5-207, as last amended by Laws of Utah 2000,
117     Chapter 231)
118          63A-5b-609, (Renumbered from 63A-5-209, as last amended by Laws of Utah 2019,
119     Chapter 468)
120          63A-5b-610, (Renumbered from 63A-5-219, as last amended by Laws of Utah 2002,

121     Fifth Special Session, Chapter 20)
122          63A-5b-802, (Renumbered from 63A-5-302, as last amended by Laws of Utah 2012,
123     Chapter 347)
124          63A-5b-803, (Renumbered from 63A-5-303, as enacted by Laws of Utah 1995, Chapter
125     113)
126          63A-5b-804, (Renumbered from 63A-5-304, as enacted by Laws of Utah 1995, Chapter
127     113)
128          63A-5b-805, (Renumbered from 63A-5-305, as last amended by Laws of Utah 2016,
129     Chapter 240)
130          63A-5b-806, (Renumbered from 63A-5-401, as last amended by Laws of Utah 2019,
131     Chapter 195)
132          63A-5b-901, (Renumbered from 63A-5a-102, as enacted by Laws of Utah 2019,
133     Chapter 195)
134          63A-5b-902, (Renumbered from 63A-5a-103, as enacted by Laws of Utah 2019,
135     Chapter 195)
136          63A-5b-903, (Renumbered from 63A-5a-104, as enacted by Laws of Utah 2019,
137     Chapter 195)
138          63A-5b-904, (Renumbered from 63A-5a-201, as enacted by Laws of Utah 2019,
139     Chapter 195)
140          63A-5b-905, (Renumbered from 63A-5a-202, as enacted by Laws of Utah 2019,
141     Chapter 195)
142          63A-5b-906, (Renumbered from 63A-5a-203, as enacted by Laws of Utah 2019,
143     Chapter 195)
144          63A-5b-907, (Renumbered from 63A-5a-204, as enacted by Laws of Utah 2019,
145     Chapter 195)
146          63A-5b-908, (Renumbered from 63A-5a-205, as enacted by Laws of Utah 2019,
147     Chapter 195)
148          63A-5b-909, (Renumbered from 63A-5a-206, as enacted by Laws of Utah 2019,
149     Chapter 195)
150          63A-5b-910, (Renumbered from 63A-5-215, as last amended by Laws of Utah 2018,
151     Chapter 404)

152          63A-5b-911, (Renumbered from 63A-5-224, as enacted by Laws of Utah 2009, Chapter
153     53)
154          63A-5b-912, (Renumbered from 63A-5-226, as enacted by Laws of Utah 2016, Chapter
155     298)
156          63A-5b-1002, (Renumbered from 63A-5-701, as last amended by Laws of Utah 2015,
157     Chapter 181)
158          63A-5b-1003, (Renumbered from 63A-5-603, as last amended by Laws of Utah 2016,
159     Chapter 322)
160          63A-5b-1102, (Renumbered from 63A-5-801, as last amended by Laws of Utah 2008,
161     Chapter 360 and renumbered and amended by Laws of Utah 2008, Chapter 382)
162          63A-5b-1106, (Renumbered from 63A-5-222, as last amended by Laws of Utah 2009,
163     Chapters 53 and 344)
164          63A-5b-1107, (Renumbered from 63A-5-225, as last amended by Laws of Utah 2019,
165     Chapter 246)
166     REPEALS:
167          63A-5-100, as enacted by Laws of Utah 2017, Chapter 355
168          63A-5-101, as last amended by Laws of Utah 2017, Chapter 355
169          63A-5-101.5, as enacted by Laws of Utah 2017, Chapter 355
170          63A-5-102, as last amended by Laws of Utah 2012, Chapter 199
171          63A-5-103, as last amended by Laws of Utah 2019, Chapter 195
172          63A-5-104, as last amended by Laws of Utah 2019, Chapters 468 and 482
173          63A-5-202, as enacted by Laws of Utah 1993, Chapter 212
174          63A-5-204, as last amended by Laws of Utah 2019, Chapters 195 and 255
175          63A-5-205, as last amended by Laws of Utah 2018, Chapter 319
176          63A-5-206, as last amended by Laws of Utah 2019, Chapter 195
177          63A-5-216, as renumbered and amended by Laws of Utah 1993, Chapter 212
178          63A-5-223, as enacted by Laws of Utah 2009, Chapter 217
179          63A-5-301, as last amended by Laws of Utah 2007, Chapter 12
180          63A-5-501, as renumbered and amended by Laws of Utah 2008, Chapter 382
181          63A-5-502, as last amended by Laws of Utah 2018, Chapter 148
182          63A-5-601, as renumbered and amended by Laws of Utah 2008, Chapters 334 and 382

183          63A-5-602, as last amended by Laws of Utah 2017, Chapter 181
184          63A-5a-101, as enacted by Laws of Utah 2019, Chapter 195
185     

186     Be it enacted by the Legislature of the state of Utah:
187          Section 1. Section 11-44-201 is amended to read:
188          11-44-201. Political subdivision responsibilities -- State responsibilities.
189          (1) A political subdivision may:
190          (a) enter into a performance efficiency agreement;
191          (b) develop and administer a performance efficiency program;
192          (c) analyze energy consumption by the political subdivision;
193          (d) designate a staff member who is responsible for a performance efficiency program;
194     and
195          (e) provide the governing body of the political subdivision with information regarding
196     the performance efficiency program.
197          (2) The following entities may provide information, technical resources, and other
198     assistance to a political subdivision acting under this chapter:
199          (a) the Utah Geological Survey, created in Section 79-3-201;
200          (b) the State Board of Education;
201          (c) the Division of Purchasing and General Services, created in Section 63A-2-101;
202     and
203          (d) the Division of Facilities Construction and Management, created in Section
204     [63A-5-201] 63A-5b-301.
205          Section 2. Section 11-59-302 is amended to read:
206          11-59-302. Number of board members -- Appointment -- Vacancies -- Chairs.
207          (1) The board shall consist of 11 members as provided in Subsection (2).
208          (2) (a) The president of the Senate shall appoint two members of the Senate to serve as
209     members of the board.
210          (b) The speaker of the House of Representatives shall appoint two members of the
211     House of Representatives to serve as members of the board.
212          (c) The governor shall appoint four individuals to serve as members of the board:
213          (i) one of whom shall be a member of the board of or employed by the Governor's

214     Office of Economic Development, created in Section 63N-1-201; and
215          (ii) one of whom shall be an employee of the Division of Facilities Construction and
216     Management, created in Section [63A-5-201] 63A-5b-301.
217          (d) The Salt Lake County mayor shall appoint one board member, who shall be an
218     elected Salt Lake County government official.
219          (e) The mayor of Draper, or a member of the Draper city council that the mayor
220     designates, shall serve as a board member.
221          (f) The commissioner of higher education, appointed under Section 53B-1-105, or the
222     commissioner's designee, shall serve as a board member.
223          (3) (a) (i) Subject to Subsection (3)(a)(ii), a vacancy on the board shall be filled in the
224     same manner under this section as the appointment of the member whose vacancy is being
225     filled.
226          (ii) If the mayor of Draper or commissioner of higher education is removed as a board
227     member under Subsection (5), the mayor of Draper or commissioner of higher education, as the
228     case may be, shall designate an individual to serve as a member of the board, as provided in
229     Subsection (2)(e) or (f), respectively.
230          (b) Each person appointed or designated to fill a vacancy shall serve the remaining
231     unexpired term of the member whose vacancy the person is filling.
232          (4) A member of the board appointed by the governor, president of the Senate, or
233     speaker of the House of Representatives serves at the pleasure of and may be removed and
234     replaced at any time, with or without cause, by the governor, president of the Senate, or speaker
235     of the House of Representatives, respectively.
236          (5) A member of the board may be removed by a vote of two-thirds of all members of
237     the board.
238          (6) (a) The governor shall appoint one board member to serve as cochair of the board.
239          (b) The president of the Senate and speaker of the House of Representatives shall
240     jointly appoint one legislative member of the board to serve as cochair of the board.
241          Section 3. Section 11-59-304 is amended to read:
242          11-59-304. Staff and other support services -- Cooperation from state and local
243     government entities.
244          (1) As used in this section:

245          (a) "Division" means the Division of Facilities Construction and Management, created
246     in Section [63A-5-201] 63A-5b-301.
247          (b) "Office" means the Governor's Office of Economic Development, created in
248     Section 63N-1-201.
249          (2) If and as requested by the board:
250          (a) the division shall:
251          (i) provide staff support to the board; and
252          (ii) make available to the board existing division resources and expertise to assist the
253     board in the development, marketing, and disposition of the point of the mountain state land;
254     and
255          (b) the office shall cooperate with and provide assistance to the board in the board's:
256          (i) formulation of a development plan for the point of the mountain state land; and
257          (ii) management and implementation of a development plan, including the marketing
258     of property and recruitment of businesses and others to locate on the point of the mountain
259     state land.
260          (3) A department, division, or other agency of the state and a political subdivision of
261     the state shall cooperate with the authority and the board to the fullest extent possible to
262     provide whatever support, information, or other assistance the board requests that is reasonably
263     necessary to help the authority fulfill its duties and responsibilities under this chapter.
264          Section 4. Section 11-59-501 is amended to read:
265          11-59-501. Dissolution of authority -- Restrictions -- Publishing notice of
266     dissolution -- Authority records -- Dissolution expenses.
267          (1) The authority may not be dissolved unless:
268          (a) the authority board first receives approval from the Legislative Management
269     Committee of the Legislature to dissolve the authority; and
270          (b) the authority has no outstanding bonded indebtedness, other unpaid loans,
271     indebtedness, or advances, and no legally binding contractual obligations with persons or
272     entities other than the state.
273          (2) To dissolve the authority, the board shall:
274          (a) obtain the approval of the Legislative Management Committee of the Legislature;
275     and

276          (b) adopt a resolution dissolving the authority, to become effective as provided in the
277     resolution.
278          (3) Upon the dissolution of the authority:
279          (a) the Governor's Office of Economic Development shall publish a notice of
280     dissolution:
281          (i) in a newspaper of general circulation in the county in which the dissolved authority
282     is located; and
283          (ii) as required in Section 45-1-101; and
284          (b) all title to property owned by the authority vests in the Division of Facilities
285     Construction and Management, created in Section [63A-5-201] 63A-5b-301, for the benefit of
286     the state.
287          (4) The board shall deposit all books, documents, records, papers, and seal of the
288     dissolved authority with the state auditor for safekeeping and reference.
289          (5) The authority shall pay all expenses of the deactivation and dissolution.
290          Section 5. Section 17B-2a-818.5 is amended to read:
291          17B-2a-818.5. Contracting powers of public transit districts -- Health insurance
292     coverage.
293          (1) As used in this section:
294          (a) "Aggregate" means the sum of all contracts, change orders, and modifications
295     related to a single project.
296          (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
297          (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
298     "operative" who:
299          (i) works at least 30 hours per calendar week; and
300          (ii) meets employer eligibility waiting requirements for health care insurance, which
301     may not exceed the first day of the calendar month following 60 days after the day on which
302     the individual is hired.
303          (d) "Health benefit plan" means the same as that term is defined in Section 31A-1-301.
304          (e) "Qualified health insurance coverage" means the same as that term is defined in
305     Section 26-40-115.
306          (f) "Subcontractor" means the same as that term is defined in Section [63A-5-208]

307     63A-5b-605.
308          (2) Except as provided in Subsection (3), the requirements of this section apply to:
309          (a) a contractor of a design or construction contract entered into by the public transit
310     district on or after July 1, 2009, if the prime contract is in an aggregate amount equal to or
311     greater than $2,000,000; and
312          (b) a subcontractor of a contractor of a design or construction contract entered into by
313     the public transit district on or after July 1, 2009, if the subcontract is in an aggregate amount
314     equal to or greater than $1,000,000.
315          (3) The requirements of this section do not apply to a contractor or subcontractor
316     described in Subsection (2) if:
317          (a) the application of this section jeopardizes the receipt of federal funds;
318          (b) the contract is a sole source contract; or
319          (c) the contract is an emergency procurement.
320          (4) A person that intentionally uses change orders, contract modifications, or multiple
321     contracts to circumvent the requirements of this section is guilty of an infraction.
322          (5) (a) A contractor subject to the requirements of this section shall demonstrate to the
323     public transit district that the contractor has and will maintain an offer of qualified health
324     insurance coverage for the contractor's employees and the employee's dependents during the
325     duration of the contract by submitting to the public transit district a written statement that:
326          (i) the contractor offers qualified health insurance coverage that complies with Section
327     26-40-115;
328          (ii) is from:
329          (A) an actuary selected by the contractor or the contractor's insurer; or
330          (B) an underwriter who is responsible for developing the employer group's premium
331     rates; and
332          (iii) was created within one year before the day on which the statement is submitted.
333          (b) A contractor that is subject to the requirements of this section shall:
334          (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
335     is subject to the requirements of this section shall obtain and maintain an offer of qualified
336     health insurance coverage for the subcontractor's employees and the employees' dependents
337     during the duration of the subcontract; and

338          (ii) obtain from a subcontractor that is subject to the requirements of this section a
339     written statement that:
340          (A) the subcontractor offers qualified health insurance coverage that complies with
341     Section 26-40-115;
342          (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, or an
343     underwriter who is responsible for developing the employer group's premium rates; and
344          (C) was created within one year before the day on which the contractor obtains the
345     statement.
346          (c) (i) (A) A contractor that fails to maintain an offer of qualified health insurance
347     coverage as described in Subsection (5)(a) during the duration of the contract is subject to
348     penalties in accordance with an ordinance adopted by the public transit district under
349     Subsection (6).
350          (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
351     and maintain an offer of qualified health insurance coverage described in Subsection (5)(b)(i).
352          (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
353     insurance coverage described in Subsection (5)(b)(i) during the duration of the subcontract is
354     subject to penalties in accordance with an ordinance adopted by the public transit district under
355     Subsection (6).
356          (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
357     an offer of qualified health insurance coverage described in Subsection (5)(a).
358          (6) The public transit district shall adopt ordinances:
359          (a) in coordination with:
360          (i) the Department of Environmental Quality in accordance with Section 19-1-206;
361          (ii) the Department of Natural Resources in accordance with Section 79-2-404;
362          (iii) the State Building Board in accordance with Section [63A-5-205.5] 63A-5b-607;
363          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403; and
364          (v) the Department of Transportation in accordance with Section 72-6-107.5; and
365          (b) that establish:
366          (i) the requirements and procedures a contractor and a subcontractor shall follow to
367     demonstrate compliance with this section, including:
368          (A) that a contractor or subcontractor's compliance with this section is subject to an

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

400     enforce the provisions of this Subsection (7).
401          (8) Any penalties imposed and collected under this section shall be deposited into the
402     Medicaid Restricted Account created in Section 26-18-402.
403          (9) The failure of a contractor or subcontractor to provide qualified health insurance
404     coverage as required by this section:
405          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
406     or contractor under:
407          (i) Section 63G-6a-1602; or
408          (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
409          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
410     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
411     or construction.
412          Section 6. Section 19-1-206 is amended to read:
413          19-1-206. Contracting powers of department -- Health insurance coverage.
414          (1) As used in this section:
415          (a) "Aggregate" means the sum of all contracts, change orders, and modifications
416     related to a single project.
417          (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
418          (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
419     "operative" who:
420          (i) works at least 30 hours per calendar week; and
421          (ii) meets employer eligibility waiting requirements for health care insurance, which
422     may not exceed the first day of the calendar month following 60 days after the day on which
423     the individual is hired.
424          (d) "Health benefit plan" means the same as that term is defined in Section 31A-1-301.
425          (e) "Qualified health insurance coverage" means the same as that term is defined in
426     Section 26-40-115.
427          (f) "Subcontractor" means the same as that term is defined in Section [63A-5-208]
428     63A-5b-605.
429          (2) Except as provided in Subsection (3), the requirements of this section apply to:
430          (a) a contractor of a design or construction contract entered into by, or delegated to, the

431     department, or a division or board of the department, on or after July 1, 2009, if the prime
432     contract is in an aggregate amount equal to or greater than $2,000,000; and
433          (b) a subcontractor of a contractor of a design or construction contract entered into by,
434     or delegated to, the department, or a division or board of the department, on or after July 1,
435     2009, if the subcontract is in an aggregate amount equal to or greater than $1,000,000.
436          (3) This section does not apply to contracts entered into by the department or a division
437     or board of the department if:
438          (a) the application of this section jeopardizes the receipt of federal funds;
439          (b) the contract or agreement is between:
440          (i) the department or a division or board of the department; and
441          (ii) (A) another agency of the state;
442          (B) the federal government;
443          (C) another state;
444          (D) an interstate agency;
445          (E) a political subdivision of this state; or
446          (F) a political subdivision of another state;
447          (c) the executive director determines that applying the requirements of this section to a
448     particular contract interferes with the effective response to an immediate health and safety
449     threat from the environment; or
450          (d) the contract is:
451          (i) a sole source contract; or
452          (ii) an emergency procurement.
453          (4) A person that intentionally uses change orders, contract modifications, or multiple
454     contracts to circumvent the requirements of this section is guilty of an infraction.
455          (5) (a) A contractor subject to the requirements of this section shall demonstrate to the
456     executive director that the contractor has and will maintain an offer of qualified health
457     insurance coverage for the contractor's employees and the employees' dependents during the
458     duration of the contract by submitting to the executive director a written statement that:
459          (i) the contractor offers qualified health insurance coverage that complies with Section
460     26-40-115;
461          (ii) is from:

462          (A) an actuary selected by the contractor or the contractor's insurer; or
463          (B) an underwriter who is responsible for developing the employer group's premium
464     rates; and
465          (iii) was created within one year before the day on which the statement is submitted.
466          (b) A contractor that is subject to the requirements of this section shall:
467          (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
468     is subject to the requirements of this section shall obtain and maintain an offer of qualified
469     health insurance coverage for the subcontractor's employees and the employees' dependents
470     during the duration of the subcontract; and
471          (ii) obtain from a subcontractor that is subject to the requirements of this section a
472     written statement that:
473          (A) the subcontractor offers qualified health insurance coverage that complies with
474     Section 26-40-115;
475          (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, or an
476     underwriter who is responsible for developing the employer group's premium rates; and
477          (C) was created within one year before the day on which the contractor obtains the
478     statement.
479          (c) (i) (A) A contractor that fails to maintain an offer of qualified health insurance
480     coverage described in Subsection (5)(a) during the duration of the contract is subject to
481     penalties in accordance with administrative rules adopted by the department under Subsection
482     (6).
483          (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
484     and maintain an offer of qualified health insurance coverage described in Subsection (5)(b)(i).
485          (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
486     insurance coverage described in Subsection (5)(b) during the duration of the subcontract is
487     subject to penalties in accordance with administrative rules adopted by the department under
488     Subsection (6).
489          (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
490     an offer of qualified health insurance coverage described in Subsection (5)(a).
491          (6) The department shall adopt administrative rules:
492          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;

493          (b) in coordination with:
494          (i) a public transit district in accordance with Section 17B-2a-818.5;
495          (ii) the Department of Natural Resources in accordance with Section 79-2-404;
496          (iii) the State Building Board in accordance with Section [63A-5-205.5] 63A-5b-607;
497          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403;
498          (v) the Department of Transportation in accordance with Section 72-6-107.5; and
499          (vi) the Legislature's Administrative Rules Review Committee; and
500          (c) that establish:
501          (i) the requirements and procedures a contractor and a subcontractor shall follow to
502     demonstrate compliance with this section, including:
503          (A) that a contractor or subcontractor's compliance with this section is subject to an
504     audit by the department or the Office of the Legislative Auditor General;
505          (B) that a contractor that is subject to the requirements of this section shall obtain a
506     written statement described in Subsection (5)(a); and
507          (C) that a subcontractor that is subject to the requirements of this section shall obtain a
508     written statement described in Subsection (5)(b)(ii);
509          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
510     violates the provisions of this section, which may include:
511          (A) a three-month suspension of the contractor or subcontractor from entering into
512     future contracts with the state upon the first violation;
513          (B) a six-month suspension of the contractor or subcontractor from entering into future
514     contracts with the state upon the second violation;
515          (C) an action for debarment of the contractor or subcontractor in accordance with
516     Section 63G-6a-904 upon the third or subsequent violation; and
517          (D) notwithstanding Section 19-1-303, monetary penalties which may not exceed 50%
518     of the amount necessary to purchase qualified health insurance coverage for an employee and
519     the dependents of an employee of the contractor or subcontractor who was not offered qualified
520     health insurance coverage during the duration of the contract; and
521          (iii) a website on which the department shall post the commercially equivalent
522     benchmark, for the qualified health insurance coverage identified in Subsection (1)(e), that is
523     provided by the Department of Health, in accordance with Subsection 26-40-115(2).

524          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
525     or subcontractor who intentionally violates the provisions of this section is liable to the
526     employee for health care costs that would have been covered by qualified health insurance
527     coverage.
528          (ii) An employer has an affirmative defense to a cause of action under Subsection
529     (7)(a)(i) if:
530          (A) the employer relied in good faith on a written statement described in Subsection
531     (5)(a) or (5)(b)(ii); or
532          (B) the department determines that compliance with this section is not required under
533     the provisions of Subsection (3).
534          (b) An employee has a private right of action only against the employee's employer to
535     enforce the provisions of this Subsection (7).
536          (8) Any penalties imposed and collected under this section shall be deposited into the
537     Medicaid Restricted Account created in Section 26-18-402.
538          (9) The failure of a contractor or subcontractor to provide qualified health insurance
539     coverage as required by this section:
540          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
541     or contractor under:
542          (i) Section 63G-6a-1602; or
543          (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
544          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
545     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
546     or construction.
547          Section 7. Section 26-18-402 is amended to read:
548          26-18-402. Medicaid Restricted Account.
549          (1) There is created a restricted account in the General Fund known as the Medicaid
550     Restricted Account.
551          (2) (a) Except as provided in Subsection (3), the following shall be deposited into the
552     Medicaid Restricted Account:
553          (i) any general funds appropriated to the department for the state plan for medical
554     assistance or for the Division of Health Care Financing that are not expended by the

555     department in the fiscal year for which the general funds were appropriated and which are not
556     otherwise designated as nonlapsing shall lapse into the Medicaid Restricted Account;
557          (ii) any unused state funds that are associated with the Medicaid program, as defined in
558     Section 26-18-2, from the Department of Workforce Services and the Department of Human
559     Services; and
560          (iii) any penalties imposed and collected under:
561          (A) Section 17B-2a-818.5;
562          (B) Section 19-1-206;
563          (C) Section [63A-5-205.5] 63A-5b-607;
564          (D) Section 63C-9-403;
565          (E) Section 72-6-107.5; or
566          (F) Section 79-2-404.
567          (b) The account shall earn interest and all interest earned shall be deposited into the
568     account.
569          (c) The Legislature may appropriate money in the restricted account to fund programs
570     that expand medical assistance coverage and private health insurance plans to low income
571     persons who have not traditionally been served by Medicaid, including the Utah Children's
572     Health Insurance Program created in Chapter 40, Utah Children's Health Insurance Act.
573          (3) For fiscal years 2008-09, 2009-10, 2010-11, 2011-12, and 2012-13 the following
574     funds are nonlapsing:
575          (a) any general funds appropriated to the department for the state plan for medical
576     assistance, or for the Division of Health Care Financing that are not expended by the
577     department in the fiscal year in which the general funds were appropriated; and
578          (b) funds described in Subsection (2)(a)(ii).
579          Section 8. Section 26-40-115 is amended to read:
580          26-40-115. State contractor -- Employee and dependent health benefit plan
581     coverage.
582          (1) For purposes of Sections 17B-2a-818.5, 19-1-206, [63A-5-205.5] 63A-5b-607,
583     63C-9-403, 72-6-107.5, and 79-2-404, "qualified health insurance coverage" means, at the time
584     the contract is entered into or renewed:
585          (a) a health benefit plan and employer contribution level with a combined actuarial

586     value at least actuarially equivalent to the combined actuarial value of the benchmark plan
587     determined by the program under Subsection 26-40-106(1)(a), and a contribution level at
588     which the employer pays at least 50% of the premium for the employee and the dependents of
589     the employee who reside or work in the state; or
590          (b) a federally qualified high deductible health plan that, at a minimum:
591          (i) has a deductible that is:
592          (A) the lowest deductible permitted for a federally qualified high deductible health
593     plan; or
594          (B) a deductible that is higher than the lowest deductible permitted for a federally
595     qualified high deductible health plan, but includes an employer contribution to a health savings
596     account in a dollar amount at least equal to the dollar amount difference between the lowest
597     deductible permitted for a federally qualified high deductible plan and the deductible for the
598     employer offered federally qualified high deductible plan;
599          (ii) has an out-of-pocket maximum that does not exceed three times the amount of the
600     annual deductible; and
601          (iii) provides that the employer pays 60% of the premium for the employee and the
602     dependents of the employee who work or reside in the state.
603          (2) The department shall:
604          (a) on or before July 1, 2016:
605          (i) determine the commercial equivalent of the benchmark plan described in Subsection
606     (1)(a); and
607          (ii) post the commercially equivalent benchmark plan described in Subsection (2)(a)(i)
608     on the department's website, noting the date posted; and
609          (b) update the posted commercially equivalent benchmark plan annually and at the
610     time of any change in the benchmark.
611          Section 9. Section 51-11-102 is amended to read:
612          51-11-102. Definitions.
613          As used in this chapter:
614          (1) "Division" means the Division of Facilities Construction and Management created
615     in Section [63A-5-201] 63A-5b-301.
616          (2) "Fund" means the Winter Sports Venue Grant Fund.

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

648          (b) If a county or municipality requests a hearing under Subsection (3)(a), the
649     legislative body of the affected county or municipality and the institution shall jointly hold a
650     public hearing to provide information to the public and to allow the institution and the county
651     or municipality to receive input from the public about the proposed student housing
652     construction.
653          (c) A public hearing held under Subsection (3)(a) satisfies the public hearing
654     requirement of Subsection [63A-5-206(13)(b)] 63A-5b-1104(2) for the same proposed student
655     housing construction.
656          Section 11. Section 53B-2a-101 is amended to read:
657          53B-2a-101. Definitions.
658          As used in this chapter:
659          (1) "Board of trustees" means the UTech Board of Trustees.
660          (2) "Capital [developments] development" means the same as [that term is] capital
661     development project, as defined in Section [63A-5-104] 63A-5b-401.
662          (3) "Commissioner of technical education" means the UTech commissioner of
663     technical education.
664          (4) "Competency-based" means mastery of subject matter or skill level, as
665     demonstrated through business and industry approved standards and assessments, achieved
666     through participation in a hands-on learning environment, and which is tied to observable,
667     measurable performance objectives.
668          (5) "Dedicated project" means a capital development project for which state funds from
669     the Technical Colleges Capital Projects Fund created in Section 53B-2a-118 are requested or
670     used.
671          (6) "Nondedicated project" means a capital development project for which state funds
672     from a source other than the Technical Colleges Capital Projects Fund created in Section
673     53B-2a-118 are requested or used.
674          (7) "Open-entry, open-exit" means:
675          (a) a method of instructional delivery that allows for flexible scheduling in response to
676     individual student needs or requirements and demonstrated competency when knowledge and
677     skills have been mastered;
678          (b) students have the flexibility to begin or end study at any time, progress through

679     course material at their own pace, and demonstrate competency when knowledge and skills
680     have been mastered; and
681          (c) if competency is demonstrated in a program of study, a credential, certificate, or
682     diploma may be awarded.
683          (8) "State funds" means the same as that term is defined in Section [63A-5-104]
684     63A-5b-401.
685          (9) "UTech" means the Utah System of Technical Colleges described in Section
686     53B-1-102.
687          Section 12. Section 53B-2a-117 is amended to read:
688          53B-2a-117. Legislative approval -- Capital development projects --
689     Prioritization.
690          (1) As used in this section:
691          (a) "Consumer Price Index" means the Consumer Price Index for All Urban Consumers
692     as published by the Bureau of Labor Statistics of the United States Department of Labor.
693          (b) "Fund" means the Technical Colleges Capital Projects Fund created in Section
694     53B-2a-118.
695          (2) In accordance with this section, a technical college is required to receive legislative
696     approval in an appropriations act for a dedicated project or a nondedicated project.
697          (3) In accordance with Section 53B-2a-112, a technical college shall submit to the
698     board of trustees a proposal for a funding request for each dedicated project or nondedicated
699     project for which the technical college seeks legislative approval.
700          (4) The board of trustees shall:
701          (a) review each proposal submitted under Subsection (3) to ensure that the proposal
702     complies with Section 53B-2a-112;
703          (b) based on the results of the board of trustees' review under Subsection (4)(a), create:
704          (i) a list of approved dedicated projects, prioritized in accordance with Subsection (6);
705     and
706          (ii) a list of approved nondedicated projects, prioritized in accordance with Subsection
707     (6); and
708          (c) submit the lists described in Subsection (4)(b) to:
709          (i) the governor;

710          (ii) the Infrastructure and General Government Appropriations Subcommittee;
711          (iii) the Higher Education Appropriations Subcommittee; and
712          (iv) the State Building Board for the State Building Board's:
713          (A) recommendation, for the list described in Subsection (4)(b)(i); or
714          (B) recommendation and prioritization, for the list described in Subsection (4)(b)(ii).
715          (5) A dedicated project:
716          (a) is subject to the State Building Board's recommendation as described in Section
717     [63A-5-104] 63A-5b-403; and
718          (b) is not subject to the State Building Board's prioritization as described in Section
719     [63A-5-104] 63A-5b-403.
720          (6) (a) Subject to Subsection (7), the board of trustees shall prioritize funding requests
721     for capital development projects described in this section based on:
722          (i) growth and capacity;
723          (ii) effectiveness and support of critical programs;
724          (iii) cost effectiveness;
725          (iv) building deficiencies and life safety concerns; and
726          (v) alternative funding sources.
727          (b) On or before August 1, 2019, the board of trustees shall establish:
728          (i) how the board of trustees will measure each factor described in Subsection (6)(a);
729     and
730          (ii) procedures for prioritizing funding requests for capital development projects
731     described in this section.
732          (7) (a) Subject to Subsection (7)(b), and in accordance with Subsection (6), the board
733     of trustees may annually prioritize:
734          (i) up to three nondedicated projects if the ongoing appropriation to the fund is less
735     than $7,000,000;
736          (ii) up to two nondedicated projects if the ongoing appropriation to the fund is at least
737     $7,000,000 but less than $14,000,000; or
738          (iii) one nondedicated project if the ongoing appropriation to the fund is at least
739     $14,000,000.
740          (b) For each calendar year beginning on or after January 1, 2020, the dollar amounts

741     described in Subsection (7)(a) shall be adjusted by an amount equal to the percentage
742     difference between:
743          (i) the Consumer Price Index for the 2019 calendar year; and
744          (ii) the Consumer Price Index for the previous calendar year.
745          (8) (a) A technical college may request operations and maintenance funds for a capital
746     development project approved under this section.
747          (b) The Legislature shall consider a technical college's request described in Subsection
748     (8)(a).
749          Section 13. Section 53B-22-201 is amended to read:
750          53B-22-201. Definitions.
751          As used in this part:
752          (1) "Capital [developments] development" means the same as [that term is] capital
753     development project, as defined in Section [63A-5-104] 63A-5b-401.
754          (2) "Consumer Price Index" means the Consumer Price Index for All Urban
755     Consumers as published by the Bureau of Labor Statistics of the United States Department of
756     Labor.
757          (3) "Dedicated project" means a capital development project for which state funds from
758     an institution's allocation are requested or used.
759          (4) "Fund" means the Higher Education Capital Projects Fund created in Section
760     53B-22-202.
761          (5) "Institution" means a college or university that is part of the Utah System of Higher
762     Education described in Section 53B-1-102.
763          (6) "Institution's allocation" means the total amount of money in the fund that an
764     institution has been allocated in accordance with Section 53B-22-203.
765          (7) "Nondedicated project" means a capital development project for which state funds
766     from a source other than an institution's allocation are requested or used.
767          (8) "State funds" means the same as that term is defined in Section [63A-5-104]
768     63A-5b-401.
769          Section 14. Section 53B-22-204 is amended to read:
770          53B-22-204. Funding request for capital development project -- Legislative
771     approval -- Board prioritization, approval, and review.

772          (1) In accordance with this section, an institution is required to receive legislative
773     approval in an appropriations act for a dedicated project or a nondedicated project.
774          (2) An institution shall submit to the board a proposal for a funding request for each
775     dedicated project or nondedicated project for which the institution seeks legislative approval.
776          (3) The board shall:
777          (a) review each proposal submitted under Subsection (2) to ensure the proposal:
778          (i) is cost effective and an efficient use of resources;
779          (ii) is consistent with the institution's mission and master plan; and
780          (iii) fulfills a critical institutional facility need;
781          (b) based on the results of the board's review under Subsection (3)(a), create:
782          (i) a list of approved dedicated projects; and
783          (ii) a list of approved nondedicated projects, prioritized in accordance with Subsection
784     (5); and
785          (c) submit the lists described in Subsection (3)(b) to:
786          (i) the governor;
787          (ii) the Infrastructure and General Government Appropriations Subcommittee;
788          (iii) the Higher Education Appropriations Subcommittee; and
789          (iv) the State Building Board for the State Building Board's:
790          (A) recommendation, for the list described in Subsection (3)(b)(i); or
791          (B) recommendation and prioritization, for the list described in Subsection (3)(b)(ii).
792          (4) A dedicated project:
793          (a) is subject to the State Building Board's recommendation as described in Section
794     [63A-5-104] 63A-5b-403; and
795          (b) is not subject to the State Building Board's prioritization as described in Section
796     [63A-5-104] 63A-5b-403.
797          (5) (a) Subject to Subsection (6), the board shall prioritize institution requests for
798     funding for nondedicated projects based on:
799          (i) capital facility need;
800          (ii) utilization of facilities;
801          (iii) maintenance and condition of facilities; and
802          (iv) any other factor determined by the board.

803          (b) On or before August 1, 2019, the board shall establish how the board will prioritize
804     institution requests for funding for nondedicated projects, including:
805          (i) how the board will measure each factor described in Subsection (5)(a); and
806          (ii) procedures for prioritizing requests.
807          (6) (a) Subject to Subsection (6)(b), and in accordance with Subsection (5), the board
808     may annually prioritize:
809          (i) up to three nondedicated projects if the ongoing appropriation to the fund is less
810     than $50,000,000;
811          (ii) up to two nondedicated projects if the ongoing appropriation to the fund is at least
812     $50,000,000 but less than $100,000,000; or
813          (iii) one nondedicated project if the ongoing appropriation to the fund is at least
814     $100,000,000.
815          (b) For each calendar year beginning on or after January 1, 2020, the dollar amounts
816     described in Subsection (6)(a) shall be adjusted by an amount equal to the percentage
817     difference between:
818          (i) the Consumer Price Index for the 2019 calendar year; and
819          (ii) the Consumer Price Index for the previous calendar year.
820          (7) (a) An institution may request operations and maintenance funds for a capital
821     development project approved under this section.
822          (b) The Legislature shall consider an institution's request described in Subsection
823     (7)(a).
824          (8) After an institution completes a capital development project described in this
825     section, the board shall review the capital development project, including the costs and design
826     of the capital development project.
827          Section 15. Section 63A-1-112 is amended to read:
828          63A-1-112. Certificates of participation -- Legislative approval required --
829     Definition -- Exception.
830          (1) (a) Certificates of participation for either capital facilities or capital improvements
831     may not be issued by the department, its subdivisions, or any other state agency after July 1,
832     1985, without prior legislative approval.
833          (b) Nothing in this section affects the rights and obligations surrounding certificates of

834     participation that were issued prior to July 1, 1985.
835          (2) (a) As used in this section, "certificate of participation" means an instrument that
836     acts as evidence of the certificate holder's undivided interest in property being lease-purchased,
837     the payment on which is subject to appropriation by the Legislature.
838          (b) (i) As used in this Subsection (2)(b), "performance efficiency agreement" means the
839     same as that term is defined in Section [63A-5-701] 63A-5b-1001.
840          (ii) "Certificate of participation" does not include a performance efficiency agreement.
841          Section 16. Section 63A-5b-101 is enacted to read:
842     
CHAPTER 5b. ADMINISTRATION OF STATE FACILITIES

843     
Part 1. General Provisions

844          63A-5b-101. Title.
845          This chapter is known as "Administration of State Facilities."
846          Section 17. Section 63A-5b-102 is enacted to read:
847          63A-5b-102. Definitions.
848          As used in this chapter:
849          (1) "Board" means the state building board created in Section 63A-5b-201.
850          (2) "Board of Regents" means the State Board of Regents established in Section
851     53B-1-103.
852          (3) "Capitol hill facilities" means the same as that term is defined in Section
853     63C-9-102.
854          (4) "Capitol hill grounds" means the same as that term is defined in Section 63C-9-102.
855          (5) "Compliance agency" means the same as that term is defined in Section 15A-1-202.
856          (6) "Director" means the division director, appointed under Section 63A-5b-302.
857          (7) "Division" means the Division of Facilities Construction and Management created
858     in Section 63A-5b-301.
859          (8) "Institution of higher education" means an institution listed in Subsection
860     53B-2-101(1).
861          (9) "Trust lands administration" means the School and Institutional Trust Lands
862     Administration established in Section 53C-1-201.
863          (10) "UTech board" means the UTech Board of Trustees created in Section
864     53B-2a-103.

865          Section 18. Section 63A-5b-201 is enacted to read:
866     
Part 2. State Building Board

867          63A-5b-201. Creation of state building board -- Composition -- Appointment --
868     Per diem and expenses -- Board officers.
869          (1) There is created within the department the state building board.
870          (2) (a) The board is composed of eight members, seven of whom are voting members
871     appointed by the governor.
872          (b) The executive director of the Governor's Office of Management and Budget, or the
873     executive director's designee, is a nonvoting member of the board.
874          (3) The term of a voting board member is four years, except that the governor shall, at
875     the time of a member's appointment or reappointment, adjust the length of the member's term,
876     as necessary, to ensure that approximately half of the board is appointed every two years.
877          (4) When a vacancy occurs in the membership of the voting members of the board for
878     any reason, the governor shall appoint a replacement for the unexpired term of the member
879     who created the vacancy.
880          (5) (a) A voting board member shall hold office until a successor is appointed and
881     qualified.
882          (b) A voting board member may not serve more than two consecutive terms.
883          (6) The governor shall designate one board member as the board chair.
884          (7) A member of the board may not receive compensation or benefits for the member's
885     service on the board, but may receive per diem and travel expenses in accordance with:
886          (a) Sections 63A-3-106 and 63A-3-107; and
887          (b) rules made by the Division of Finance in accordance with Sections 63A-3-106 and
888     63A-3-107.
889          (8) A member of the board is not required to post a bond for the performance of the
890     member's official duties.
891          (9) The executive director or the executive director's designee shall serve as secretary
892     to the board and shall:
893          (a) manage scheduling for the board and the board's calendar;
894          (b) establish and manage the agenda for meetings of the board;
895          (c) keep the minutes of board meetings;

896          (d) assist the board in the board's obligation to comply with Title 52, Chapter 4, Utah
897     Open and Public Meetings Act;
898          (e) (i) assist the board in the board's obligation to comply with Title 63G, Chapter 2,
899     Government Records Access and Management Act; and
900          (ii) act as the board's records officer, as defined in Section 63G-2-103; and
901          (f) assist the board in the board's obligation to comply with Title 63G, Chapter 3, Utah
902     Administrative Rulemaking Act.
903          Section 19. Section 63A-5b-202 is enacted to read:
904          63A-5b-202. Board powers and duties.
905          (1) The board may, in accordance with Title 63G, Chapter 3, Utah Administrative
906     Rulemaking Act, make rules that are necessary to discharge the board's duties.
907          (2) The board shall:
908          (a) review and approve agency master plans of structures built or contemplated;
909          (b) submit capital development recommendations and priorities to the Legislature as
910     set forth in Section 63A-5b-402;
911          (c) submit recommendations for dedicated projects and prioritize nondedicated projects
912     as provided in Section 63A-5b-403;
913          (d) make a finding that the requirements of Section 53B-2a-112 are met before the
914     board may consider a funding request from the UTech board pertaining to new capital facilities
915     and land purchases; and
916          (e) fulfill the board's responsibilities under:
917          (i) Section 63A-5b-802, relating to the approval of leases with terms of more than 10
918     years;
919          (ii) Section 64A-5b-907, relating to vacant division-owned property; and
920          (iii) Section 63A-5b-1003, relating to the approval of loans from the state facility
921     energy efficiency fund.
922          (3) The board may:
923          (a) authorize capital development projects without Legislative approval only as
924     authorized in Section 63A-5b-404; and
925          (b) make rules relating to the categorical delegation of projects as provided in
926     Subsection 63A-5b-604(4).

927          Section 20. Section 63A-5b-203 is enacted to read:
928          63A-5b-203. Meetings of board -- Rules of procedure -- Quorum.
929          (1) The board shall meet quarterly and at other times at the call of the executive
930     director or at the request of the board chair.
931          (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
932     board shall adopt rules of procedure for the conduct of the board's meetings.
933          (3) Four members of the board constitute a quorum for the transaction of business.
934          (4) The board shall conduct all meetings of the board in accordance with Title 52,
935     Chapter 4, Open and Public Meetings Act.
936          Section 21. Section 63A-5b-301, which is renumbered from Section 63A-5-201 is
937     renumbered and amended to read:
938     
Part 3. Division of Facilities Construction and Management

939          [63A-5-201].      63A-5b-301. Creation -- Administration.
940          There is created within the department the Division of Facilities Construction and
941     Management, to be administered by a director.
942          Section 22. Section 63A-5b-302, which is renumbered from Section 63A-5-203 is
943     renumbered and amended to read:
944          [63A-5-203].      63A-5b-302. Director of division -- Appointment.
945          The executive director shall appoint the director of the division with the approval of the
946     governor.
947          Section 23. Section 63A-5b-303 is enacted to read:
948          63A-5b-303. Powers and duties of director.
949          (1) (a) The director shall:
950          (i) make forms, make policies, and, in accordance with Title 63G, Chapter 3, Utah
951     Administrative Rulemaking Act, make rules necessary for the division to perform the division's
952     duties;
953          (ii) supervise and control the allocation of space, in accordance with legislative
954     directive through annual appropriations acts or other specific legislation, to the various
955     agencies in all buildings or space owned, leased, or rented by or to the state, except capitol hill
956     facilities and capitol hill grounds and except as otherwise provided by law;
957          (iii) assure the efficient use of all building space;

958          (iv) as authorized by the Legislature through an appropriation act or other legislation,
959     subject to Subsection (1)(b), acquire title to all real property, buildings, fixtures, or
960     appurtenances for use by the state or an agency;
961          (v) except as otherwise provided by statute, hold title, in the name of the division, to all
962     real property, buildings, fixtures, or appurtenances owned by the state or an agency;
963          (vi) collect and maintain all deeds, abstracts of title, and all other documents
964     evidencing title to or an interest in property belonging to the state or any of the state's
965     departments, except institutions of higher education and the trust lands administration;
966          (vii) report all properties acquired by the state, except those acquired by institutions of
967     higher education and the trust lands administration, to the director of the Division of Finance
968     for inclusion in the state's financial records;
969          (viii) before charging a rate, fee, or other amount for a service provided by the
970     division's internal service fund to an executive branch agency, or to a service subscriber other
971     than an executive branch agency:
972          (A) submit an analysis of the proposed rate, fee, or other amount to the rate committee
973     created in Section 63A-1-114; and
974          (B) obtain the approval of the Legislature as required by Section 63J-1-410;
975          (ix) (A) periodically conduct a market analysis of proposed rates and fees; and
976          (B) include in the market analysis a comparison of the division's rates and fees with the
977     rates and fees of other public or private sector providers of comparable services, if rates and
978     fees for comparable services are reasonably available;
979          (x) implement the state building energy efficiency program under Section
980     63A-5b-1002;
981          (xi) convey, lease, or dispose of the real property, water rights, or water shares
982     associated with the Utah State Developmental Center if directed to do so by the Utah State
983     Developmental Center board, as provided in Subsection 62A-5-206.6(2);
984          (xii) after receiving the notice required under Subsection 10-2-419(3)(d), file a written
985     protest at or before the public hearing under Subsection 10-2-419(2)(b), if:
986          (A) it is in the best interest of the state to protest the boundary adjustment; or
987          (B) the Legislature instructs the director to protest the boundary adjustment; and
988          (xiii) take all other action necessary for carrying out the purposes of this chapter.

989          (b) Legislative approval is not required for an acquisition by the division that costs
990     $250,000 or less.
991          (2) (a) In making an allocation of space under Subsection (1)(a)(ii), the director shall:
992          (i) conduct studies to determine the actual needs of each agency; and
993          (ii) comply with the restrictions contained in this Subsection (2).
994          (b) The supervision and control of the legislative area is reserved to the Legislature.
995          (c) The supervision and control of the trial courts area is reserved to the judiciary.
996          (d) The director may not supervise or control the allocation of space for institutions of
997     higher education or entities in the public education system.
998          (e) The supervision and control of capitol hill facilities and capitol hill grounds is
999     reserved to the State Capitol Preservation Board.
1000          (3) The director may:
1001          (a) hire or otherwise procure assistance and services, professional, skilled, or
1002     otherwise, that are necessary to carry out the director's responsibilities, and may expend funds
1003     provided for that purpose either through annual operating budget appropriations or from
1004     nonlapsing project funds;
1005          (b) sue and be sued in the name of the division; and
1006          (c) hold, buy, lease, and acquire, by exchange or otherwise, as authorized by the
1007     Legislature, whatever real or personal property is necessary for the discharge of the director's
1008     duties.
1009          (4) Notwithstanding Subsection (1)(a)(iv), the following entities may hold title to any
1010     real property, buildings, fixtures, and appurtenances occupied by them for purposes other than
1011     administration:
1012          (a) the Department of Transportation;
1013          (b) the Division of Forestry, Fire, and State Lands;
1014          (c) the Department of Natural Resources;
1015          (d) the Utah National Guard;
1016          (e) any area vocational center or other institution administered by the State Board of
1017     Education;
1018          (f) the trust lands administration; and
1019          (g) any institution of higher education.

1020          Section 24. Section 63A-5b-401 is enacted to read:
1021     
Part 4. Development of Capital Facilities

1022          63A-5b-401. Definitions.
1023          As used in this part:
1024          (1) (a) "Capital development project" means:
1025          (i) a remodeling or site or utility improvement project with a total cost of $3,500,000 or
1026     more;
1027          (ii) a new facility with a construction cost of $500,000 or more; or
1028          (iii) a purchase of real property if an appropriation is requested and made for the
1029     purchase.
1030          (b) "Capital development project" does not include a project described in Subsection
1031     (2)(b).
1032          (2) "Capital improvement project" means:
1033          (a) a remodeling, alteration, replacement, repair, or site or utility improvement project:
1034          (i) with a total cost of less than $3,500,000; or
1035          (ii) (A) with a total cost of $3,500,000 or more; and
1036          (B) that will be paid for with funds that are not state funds;
1037          (b) a utility infrastructure improvement project that:
1038          (i) has a total cost of less than $7,000,000;
1039          (ii) consists of two or more projects that, if done separately, would each cost less than
1040     $3,500,000; and
1041          (iii) the division determines is more cost effective or feasible to be completed as a
1042     single project; or
1043          (c) a new facility with a total construction cost of less than $500,000.
1044          (3) (a) "New facility" means the construction of a new building on state property
1045     regardless of funding source.
1046          (b) "New facility" includes:
1047          (i) an addition to an existing building; and
1048          (ii) the enclosure of space that was not previously fully enclosed.
1049          (c) "New facility" does not include:
1050          (i) the replacement of state-owned space that is demolished or that is otherwise

1051     removed from state use, if the total construction cost of the replacement space is less than
1052     $3,500,000; or
1053          (ii) the construction of facilities that do not fully enclose a space.
1054          (4) "Replacement cost" means, as determined by the Division of Risk Management:
1055          (a) for state facilities, excluding auxiliary facilities as defined by the director, the cost
1056     to replace those facilities; and
1057          (b) for infrastructure, as defined by the director, the cost to replace the infrastructure.
1058          (5) "State funds" means public money appropriated by the Legislature.
1059          Section 25. Section 63A-5b-402 is enacted to read:
1060          63A-5b-402. Capital development process -- Approval requirements.
1061          (1) Except as provided in Section 63A-5b-404, the board shall, on behalf of all
1062     agencies, submit capital development project recommendations and priorities to the Legislature
1063     for approval and prioritization.
1064          (2) An agency that requests an appropriation for a capital development project shall
1065     submit to the division for transmission to the board a capital development project request and a
1066     feasibility study relating to the capital development project.
1067          (3) (a) The division shall, in consultation with the board and in accordance with Title
1068     63G, Chapter 3, Utah Administrative Rulemaking Act, make rules that establish standards and
1069     requirements for a capital development project request and feasibility study.
1070          (b) The rules shall include:
1071          (i) a deadline by which an agency is required to submit a capital development project
1072     request;
1073          (ii) conditions under which an agency may modify the agency's capital development
1074     project request after the agency submits the request, and requirements applicable to a
1075     modification; and
1076          (iii) requirements for the contents of a feasibility study, including:
1077          (A) the need for the capital development project;
1078          (B) the appropriateness of the scope of the capital development project;
1079          (C) any private funding for the capital development project; and
1080          (D) the economic and community impacts of the capital development project.
1081          (4) The division shall verify the completion and accuracy of a feasibility study that an

1082     agency submits under Subsection (2) prior to transmitting the feasibility study to the board.
1083          (5) Except as provided in Section 63A-5b-404, a capital development project may not
1084     be constructed on state property without legislative approval.
1085          Section 26. Section 63A-5b-403 is enacted to read:
1086          63A-5b-403. Institutions of higher education -- Capital development projects --
1087     dedicated and nondedicated projects -- recommendations and prioritization.
1088          (1) As used in this section:
1089          (a) "Dedicated project" has the same meaning as that term is defined in:
1090          (i) Section 53B-2a-101, for a capital development project under Title 53B, Chapter 2a,
1091     Utah System of Technical Colleges; or
1092          (ii) Section 53B-22-201, for a capital development project under Title 53B, Chapter 22,
1093     Higher Education Capital Projects.
1094          (b) "Nondedicated project" has the same meaning as that term is defined in:
1095          (i) Section 53B-2a-101, for a capital development project under Title 53B, Chapter 2a,
1096     Utah System of Technical Colleges; or
1097          (ii) Section 53B-22-201, for a capital development project under Title 53B, Chapter 22,
1098     Higher Education Capital Projects.
1099          (2) (a) The board shall submit recommendations to the Legislature in accordance with:
1100          (i) Section 53B-2a-117, for a dedicated project under Title 53B, Chapter 2a, Utah
1101     System of Technical Colleges; or
1102          (ii) Section 53B-22-204, for a dedicated project under Title 53B, Chapter 22, Higher
1103     Education Capital Projects.
1104          (b) A dedicated project is not subject to prioritization by the board.
1105          (3) (a) The board shall prioritize nondedicated projects in accordance with:
1106          (i) Section 63A-5b-402; and
1107          (ii) (A) Section 53B-2a-117, for a nondedicated project under Title 53B, Chapter 2a,
1108     Utah System of Technical Colleges; or
1109          (B) Section 53B-22-204, for a nondedicated project under Title 53B, Chapter 22,
1110     Higher Education Capital Projects.
1111          (b) In the board's scoring process for prioritizing nondedicated projects, the board shall
1112     give more weight to a request that is designated as a higher priority by the UTech board or

1113     Board of Regents than a request that is designated as a lower priority by the UTech board or
1114     Board of Regents only for determining the order of prioritization among requests submitted by
1115     the UTech board or Board of Regents, respectively.
1116          (4) The board shall require that an institution of higher education that submits a request
1117     for a capital development project address whether and how, as a result of the project, the
1118     institution of higher education will:
1119          (a) offer courses or other resources that will help meet demand for jobs, training, and
1120     employment in the current market and the projected market for the next five years;
1121          (b) respond to individual skilled and technical job demand over the next three, five,
1122     and 10 years;
1123          (c) respond to industry demands for trained workers;
1124          (d) help meet commitments made by the Governor's Office of Economic Development,
1125     including relating to training and incentives;
1126          (e) respond to changing needs in the economy; and
1127          (f) respond to demands for on-line or in-class instruction, based on demographics.
1128          (5) The division shall:
1129          (a) (i) assist institutions of higher education in providing the information required by
1130     Subsection (3); and
1131          (ii) verify the completion and accuracy of the information submitted by an institution
1132     of higher education under Subsection (3);
1133          (b) assist the UTech board to fulfill the requirements of Section 53B-2a-112 in
1134     connection with the finding that the board is required to make under Subsection
1135     53B-2a-112(5)(b); and
1136          (c) assist the Board of Regents in submitting a list of dedicated projects to the board for
1137     approval and nondedicated projects to the board for recommendation and prioritization
1138     pursuant to Section 53B-22-204.
1139          Section 27. Section 63A-5b-404 is enacted to read:
1140          63A-5b-404. Exceptions to requirement of legislative approval for capital
1141     development projects.
1142          (1) (a) Except as provided in this section, a capital development project may not be
1143     constructed on state property without legislative approval.

1144          (b) The board may authorize a capital development project on state property without
1145     legislative approval only as provided in this section.
1146          (2) (a) Legislative approval is not required for a capital development project that
1147     consists of the design or construction of a new facility if:
1148          (i) the board determines that the requesting agency has provided adequate assurance
1149     that state funds will not be used for the design or construction of the facility;
1150          (ii) the agency provides to the board a written document, signed by the head of the
1151     agency:
1152          (A) stating that funding or a revenue stream is in place, or will be in place before the
1153     project is completed, to ensure that increased state funding will not be required to cover the
1154     cost of operations and maintenance to the resulting facility or for immediate or future capital
1155     improvements; and
1156          (B) detailing the source of the funding that will be used for the cost of operations and
1157     maintenance and for immediate and future capital improvements to the resulting facility; and
1158          (iii) the board determines that the use of the state property:
1159          (A) is appropriate and consistent with the master plan for the property; and
1160          (B) will not create an adverse impact on the state.
1161          (b) For a facility constructed without legislative approval under Subsection (2)(a), an
1162     agency may not request:
1163          (i) increased state funds for operations and maintenance; or
1164          (ii) increased state capital improvement funding.
1165          (3) Legislative approval is not required for:
1166          (a) the renovation, remodeling, or retrofitting of an existing facility if:
1167          (i) the cost of the renovation, remodeling, or retrofitting is paid by funds other than
1168     state funds; and
1169          (ii) the renovation, remodeling, or retrofitting is approved by the board;
1170          (b) a facility:
1171          (i) to be built with funds other than state funds and owned by an entity other than a
1172     state entity; and
1173          (ii) that is within a research park area at the University of Utah or Utah State
1174     University;

1175          (c) a facility to be built at This is the Place State Park by the This is the Place
1176     Foundation with funds of the This is the Place Foundation or with donated services or materials
1177     and that may include grant money from the state;
1178          (d) a project that:
1179          (i) is funded by the Uintah Basin Revitalization Fund or the Navajo Revitalization
1180     Fund; and
1181          (ii) does not provide a new facility for an agency or institution of higher education; or
1182          (e) a project on school and institutional trust lands that:
1183          (i) is funded by the trust lands administration from the Land Grant Management Fund;
1184     and
1185          (ii) does not fund construction of a new facility for an agency or institution of higher
1186     education.
1187          (4) (a) Legislative approval is not required for a capital development project to be built
1188     for the Department of Transportation resulting from:
1189          (i) an exchange of real property under Section 72-5-111; or
1190          (ii) a sale or exchange of real property from a maintenance facility if the proceeds from
1191     the sale of the real property are used for, or the real property is exchanged for:
1192          (A) real property for another maintenance facility; or
1193          (B) another maintenance facility, including improvements for a maintenance facility.
1194          (b) If the Department of Transportation approves a sale or exchange under Subsection
1195     (4)(a) for a capital development project subject to the board's approval, the Department of
1196     Transportation shall notify the president of the Senate, the speaker of the House of
1197     Representatives, and the cochairs of the Infrastructure and General Government Appropriations
1198     Subcommittee of the Legislature's Joint Appropriations Committee about any new facilities to
1199     be built or improved.
1200          Section 28. Section 63A-5b-405, which is renumbered from Section 63A-5-228 is
1201     renumbered and amended to read:
1202          [63A-5-228].      63A-5b-405. Capital improvement projects.
1203          [(1) As used in this section:]
1204          [(a) "Building board" means the State Building Board created under Section
1205     63A-5-101.]

1206          [(b) "Capital improvement" means:]
1207          [(i) a remodeling, alteration, replacement, or repair project with a total cost of less than
1208     $3,500,000;]
1209          [(ii) a site or utility improvement with a total cost of less than $3,500,000;]
1210          [(iii) a utility infrastructure improvement project that:]
1211          [(A) has a total cost of less than $7,000,000;]
1212          [(B) consists of two or more projects that, if done separately, would each cost less than
1213     $3,500,000; and]
1214          [(C) the division determines is more cost effective or feasible to be completed as a
1215     single project; or]
1216          [(iv) a new facility with a total construction cost of less than $500,000.]
1217          [(c) "Capital improvements list" means the list that the division is required to submit to
1218     the Legislature under Subsection (2)(a).]
1219          [(2) (a) (i)] (1) (a) On or before January 15 of each year, the division shall, on behalf of
1220     all [state] agencies, submit a list of anticipated capital improvement project requirements to the
1221     Legislature.
1222          [(ii)] (b) The division shall ensure that the capital improvements project list identifies:
1223          [(A)] (i) each single capital improvement project that costs more than $1,000,000;
1224          [(B)] (ii) each multiple capital improvement project within a single building or facility
1225     that collectively costs more than $1,000,000;
1226          [(C)] (iii) each single capital improvement project that will be constructed over
1227     multiple years with a yearly cost of $1,000,000 or more and an aggregate cost of more than
1228     $3,500,000;
1229          [(D)] (iv) each multiple capital improvement project within a single building or facility
1230     with a yearly cost of $1,000,000 or more and an aggregate cost of more than $3,500,000;
1231          [(E)] (v) each single capital improvement project previously reported to the Legislature
1232     as a capital improvement project under $1,000,000 that, because of an increase in costs or
1233     scope of work, will now cost more than $1,000,000;
1234          [(F)] (vi) each multiple capital improvement project within a single building or facility
1235     previously reported to the Legislature as a capital improvement project under $1,000,000 that,
1236     because of an increase in costs or scope of work, will now cost more than $1,000,000; and

1237          [(G)] (vii) each capital improvement project described in Subsection [(1)(b)(iii)]
1238     63A-5b-401(3)(c).
1239          [(b)] (2) (a) Unless otherwise directed by the Legislature, the division shall prioritize
1240     capital [improvements] improvement projects on the capital [improvements] improvement
1241     project list up to the level of appropriation made by the Legislature.
1242          [(c)] (b) In prioritizing capital [improvements] improvement projects, the division shall
1243     consider the results of facility evaluations completed by an architect or engineer as stipulated
1244     by the [building board's] division's facilities maintenance standards.
1245          [(d)] (c) In prioritizing capital [improvements] improvement projects, the division shall
1246     allocate at least 90% of the funds that the Legislature appropriates for capital [improvements]
1247     improvement projects to:
1248          (i) capital improvement projects that address:
1249          (A) a structural issue;
1250          (B) fire safety;
1251          (C) a code violation; or
1252          (D) any issue that impacts health and safety;
1253          (ii) capital improvement projects that upgrade:
1254          (A) an HVAC system;
1255          (B) an electrical system;
1256          (C) essential equipment;
1257          (D) an essential building component; or
1258          (E) infrastructure, including a utility tunnel, water line, gas line, sewer line, roof,
1259     parking lot, or road; or
1260          (iii) capital improvement projects that demolish and replace an existing building that is
1261     in extensive disrepair and cannot be fixed by repair or maintenance.
1262          [(e)] (d) In prioritizing capital [improvements] improvement projects, the division may
1263     not allocate more than 10% of the funds that the Legislature appropriates for capital
1264     [improvements] improvement projects to:
1265          (i) remodeling and aesthetic upgrades to meet state programmatic needs; or
1266          (ii) construct an addition to an existing building or facility.
1267          [(f)] (3) The division may require an entity that benefits from a capital improvement

1268     project to repay the capital improvement funds from savings that result from the capital
1269     improvement project.
1270          [(g)] (4) The division may provide capital improvement project funding to a single
1271     project or to multiple projects within a single building or facility, even if the total cost of the
1272     project or multiple projects is $3,500,000 or more, if:
1273          [(i)] (a) the capital improvement project is a project described in Subsection
1274     [(1)(b)(iii)] 63A-5b-401(3)(c); and
1275          [(ii)] (b) the Legislature has not refused to fund the project with capital improvement
1276     project funds.
1277          [(h)] (5) In prioritizing and allocating capital improvement project funding, the
1278     division shall comply with the requirement in Subsection 63B-23-101(2)(f).
1279          [(i)] (6) (a) In developing the capital improvement project list and priorities, the
1280     division shall require each [state] agency that requests an appropriation for a capital
1281     improvement project to:
1282          (i) submit a capital improvement project request; and
1283          (ii) complete and submit a project scoping document.
1284          [(j)] (b) A project scoping document under Subsection [(2)(i)(ii)] (6)(a)(ii) shall
1285     address:
1286          (i) the need for the capital improvement project; and
1287          (ii) the appropriateness of the scope of the capital improvement project.
1288          [(k)] (c) The division shall verify the completion and accuracy of a project scoping
1289     document that [a state] an agency submits under Subsection [(2)(i)(ii)] (6)(a)(ii).
1290          [(3) (a) Beginning July 1, 2020, the division shall implement a program to charge state
1291     agencies, except institutions included within the state system of higher education under Section
1292     53B-1-102, lease payments for the agency's use and occupancy of space within a building.]
1293          [(b) Before July 1, 2020, the division shall:]
1294          [(i) conduct a market analysis of market lease rates for comparable space in buildings
1295     comparable to division-owned buildings; and]
1296          [(ii) establish lease rates for an agency's use and occupancy of a division-owned
1297     building.]
1298          [(c) The lease rates shall be:]

1299          [(i) consistent with market rates for comparable space in comparable buildings;]
1300          [(ii) calculated to cover:]
1301          [(A) an amortized amount for capital replacement;]
1302          [(B) an amount for capital improvements; and]
1303          [(C) operation and maintenance costs; and]
1304          [(iii) in proportion to legislative appropriations.]
1305          [(d) In making appropriations to cover lease payments under this Subsection (3), the
1306     Legislature shall create a line item, as defined in Section 63J-1-102, for each agency to fund the
1307     lease payments.]
1308          (7) Except for this Subsection (7), this section does not apply to a capital improvement
1309     project described in Subsection 63A-5b-401(2)(b)(ii).
1310          Section 29. Section 63A-5b-406 is enacted to read:
1311          63A-5b-406. Limitations on new projects.
1312          (1) The Legislature may authorize:
1313          (a) the total square footage to be occupied by each agency; and
1314          (b) the total square footage and total cost of lease space for each agency.
1315          (2) If construction of a new building or facility will require an immediate or future
1316     increase in state funding for operations and maintenance or for capital improvements, the
1317     Legislature may not authorize the new building or facility until the Legislature appropriates
1318     funds for:
1319          (a) the portion of operations and maintenance, if any, that will require an immediate or
1320     future increase in state funding; and
1321          (b) the portion of capital improvements, if any, that will require an immediate or future
1322     increase in state funding.
1323          (3) (a) Except as provided in Subsections (3)(b) and (c), the Legislature may not fund
1324     the design or construction of any new capital development project, except to complete the
1325     funding of a project for which partial funding has been previously provided, until the
1326     Legislature has appropriated 1.1% of the replacement cost of existing state facilities and
1327     infrastructure to capital improvements.
1328          (b) If the Legislature determines that there exists an Education Fund budget deficit, as
1329     defined in Section 63J-1-312, or a General Fund budget deficit, as defined in Section

1330     63J-1-312, the Legislature may, in eliminating the deficit, reduce the amount appropriated to
1331     capital improvements to 0.9% of the replacement cost of state buildings and infrastructure.
1332          (c) Subsection (3)(a) does not apply to a dedicated project as defined in Section
1333     63A-5a-403.
1334          (4) (a) (i) Except as provided in Subsection (4)(a)(ii), the Legislature may not fund the
1335     design and construction of a new facility in phases over more than one year unless the
1336     Legislature approves the funding for both the design and construction by a vote of two-thirds of
1337     all the members elected to each house.
1338          (ii) Subsection (4)(a)(i) does not apply to a dedicated project as defined in Section
1339     63A-5a-403.
1340          (b) An agency shall receive approval from the director before the agency begins
1341     programming for a new facility:
1342          (i) that requires legislative approval; or
1343          (ii) to be built under Subsection 65A-5b-404(2).
1344          (c) The division or an agency may fund the programming of a new facility before the
1345     Legislature makes an appropriation for the new facility under Subsection (4)(a).
1346          (5) (a) The director, with the approval of the Office of the Legislative Fiscal Analyst,
1347     shall develop standard forms to present capital development project and capital improvement
1348     project cost summary data.
1349          (b) The director shall:
1350          (i) within 30 days after the completion of each capital development project, submit cost
1351     summary data for the project on the standard form to the Office of the Legislative Fiscal
1352     Analyst; and
1353          (ii) upon request, submit cost summary data for a capital improvement project to the
1354     Office of the Legislative Fiscal Analyst on the standard form.
1355          (6) (a) After the Legislature approves capital development project priorities under
1356     Section 65A-5b-402 and capital improvement project priorities under Section 63A-5b-405, the
1357     director may reallocate capital development project or capital improvement project funds to
1358     address a critical need for a capital improvement project:
1359          (i) if an emergency arises that creates an unforeseen and critical need for the capital
1360     improvement project; and

1361          (ii) notwithstanding the requirements of Title 63J, Chapter 1, Budgetary Procedures
1362     Act.
1363          (b) The director shall report any changes the director makes in capital development
1364     project or capital improvement project allocations approved by the Legislature to:
1365          (i) the Office of the Legislative Fiscal Analyst within 30 days after the reallocation; and
1366          (ii) the Legislature at the Legislature's next annual general session.
1367          Section 30. Section 63A-5b-501 is enacted to read:
1368     
Part 5. Planning and Programming

1369          63A-5b-501. Five-year building plan.
1370          (1) The director shall:
1371          (a) in cooperation with agencies, prepare a master plan of structures built or
1372     contemplated;
1373          (b) submit to the governor and the Legislature a comprehensive five-year building plan
1374     for the state containing the information required by Subsection (2);
1375          (c) amend and keep current the five-year building plan that complies with the
1376     requirements described in Subsection (2), for submission to the governor and subsequent
1377     legislatures; and
1378          (d) as part of the long-range plan, recommend to the governor and Legislature any
1379     changes in the law that are necessary to ensure an effective, well-coordinated building program
1380     for all agencies.
1381          (2) (a) The director shall ensure that the five-year building plan required by Subsection
1382     (1)(b) includes:
1383          (i) a list that prioritizes construction of new buildings for all structures built or
1384     contemplated based upon each agency's present and future needs;
1385          (ii) information and space use data for all state-owned and leased facilities;
1386          (iii) substantiating data to support the adequacy of any projected plans;
1387          (iv) a summary of all statewide contingency reserve and project reserve balances as of
1388     the end of the most recent fiscal year;
1389          (v) a list of buildings that have completed a comprehensive facility evaluation by an
1390     architect or engineer or are scheduled to have an evaluation;
1391          (vi) for those buildings that have completed the evaluation, the estimated costs of

1392     needed improvements; and
1393          (vii) for projects recommended in the first two years of the five-year building plan:
1394          (A) detailed estimates of the cost of each project;
1395          (B) the estimated cost to operate and maintain the building or facility on an annual
1396     basis;
1397          (C) the cost of capital improvements to the building or facility, estimated at 1.1% of
1398     the replacement cost of the building or facility, on an annual basis;
1399          (D) the estimated number of new agency full-time employees expected to be housed in
1400     the building or facility;
1401          (E) the estimated cost of new or expanded programs and personnel expected to be
1402     housed in the building or facility;
1403          (F) the estimated lifespan of the building with associated costs for major component
1404     replacement over the life of the building; and
1405          (G) the estimated cost of any required support facilities.
1406          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1407     director may make rules prescribing the format for submitting the information required by this
1408     Subsection (2).
1409          (3) To provide adequate information to enable the director to make a recommendation
1410     described in Subsection (1), an agency requesting new full-time employees for the next fiscal
1411     year shall report those anticipated requests to the director at least 90 days before the annual
1412     general session in which the request is made.
1413          Section 31. Section 63A-5b-502 is enacted to read:
1414          63A-5b-502. Programming.
1415          (1) As used in this section:
1416          (a) "Program document" means a final document that contains programming
1417     information.
1418          (b) "Programming" means services to define the scope and purpose of an anticipated
1419     project, and may include:
1420          (i) researching criteria applicable to the scope and purpose of an anticipated project;
1421          (ii) identifying the scale of the project and the type of facilities and the level of
1422     specialized functions that will be required;

1423          (iii) identifying and prioritizing values and goals that will impact the project, including
1424     institutional purposes, growth objectives, and cultural, technological, temporal, aesthetic,
1425     symbolic, economic, environmental, safety, sustainability, and other relevant criteria;
1426          (iv) evaluating functional efficiency, user comfort, building economics, environmental
1427     sustainability, and visual quality;
1428          (v) identifying objectives for the project, including such elements as image,
1429     efficiencies, functionality, cost, and schedule;
1430          (vi) identifying and evaluating the constraints that will have an impact on the project
1431     such as legal requirements, financial constraints, location, access, visibility and building
1432     services;
1433          (vii) developing standards such as area allowances, space allocation, travel distances,
1434     and furniture and equipment requirements;
1435          (viii) establishing general space quality standards related to such elements as lighting
1436     levels, equipment performance, acoustical requirements, security, and aesthetics;
1437          (ix) identifying required spaces;
1438          (x) establishing sizes and relationships;
1439          (xi) establishing space efficiency factors or the ratio of net square footage to gross
1440     square footage; and
1441          (xii) documenting particular space requirements such as special HVAC, plumbing,
1442     power, lighting, acoustical, furnishings, equipment, or security needs.
1443          (2) A program document may:
1444          (a) incorporate written and graphic materials; and
1445          (b) include:
1446          (i) an executive summary;
1447          (ii) documentation of the methodology used to develop the programming;
1448          (iii) value and goal statements;
1449          (iv) relevant facts upon which the programming was based;
1450          (v) conclusions derived from data analysis;
1451          (vi) relationship diagrams;
1452          (vii) flow diagrams;
1453          (viii) matrices identifying space allocations and relationships;

1454          (ix) space listings by function and size; and
1455          (x) space program sheets, including standard requirements and special HVAC,
1456     plumbing, power, lighting, acoustical, furnishings, equipment, or security needs.
1457          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1458     director may make rules:
1459          (a) establishing the types of projects for which programming and a program document
1460     are required;
1461          (b) establishing the scope of programming required for defined categories of projects;
1462          (c) establishing the circumstances under which an agency must obtain authorization
1463     from the director to engage in programming;
1464          (d) governing the funding of programming;
1465          (e) relating to the administration of programming; and
1466          (f) regarding any restrictions that may be imposed on a person involved in
1467     programming from participating in the preparation of construction documents for a project that
1468     is the subject of the programming.
1469          Section 32. Section 63A-5b-503, which is renumbered from Section 63A-5-211 is
1470     renumbered and amended to read:
1471          [63A-5-211].      63A-5b-503. Planning Fund expenditures authorized --
1472     Ceiling on expenditures -- Recovery.
1473          (1) The Planning Fund shall be used to make payments for engineering, architectural,
1474     and other planning expenses necessary to make a meaningful cost estimate of any facility or
1475     improvement with a demonstrable or immediate need.
1476          (2) The director may make expenditures from the Planning Fund in order to provide
1477     planning information to the [State Building Board] board, the governor, and the Legislature, up
1478     to a maximum of $350,000 in outstanding Planning Fund commitments.
1479          (3) (a) The director shall authorize all payments made from the Planning Fund.
1480          (b) [These payments] Payments from the Planning Fund shall be a charge on the
1481     project for which they were drawn.
1482          (c) [The amount paid shall be credited to the Planning Fund when] If the Legislature
1483     appropriates money for [any] a building project for which planning costs have previously been
1484     paid from the Planning Fund, the director shall credit that amount to the Planning Fund.

1485          (4) (a) [Money may also be expended] The director may expend money from the
1486     Planning Fund for architectural and engineering services incident to the planning and
1487     preparation of applications for funds on construction financed by other than state sources,
1488     including federal grants.
1489          (b) [However, upon] Upon approval of [such] financing referred to in Subsection
1490     (4)(a), the director shall reimburse to the Planning Fund the money spent for architectural and
1491     engineering services [shall be returned as a reimbursement to the Planning Fund].
1492          Section 33. Section 63A-5b-601 is enacted to read:
1493     
Part 6. Design and Construction

1494          63A-5b-601. Definitions.
1495          As used in this part:
1496          (1) (a) "Facility" means any building, structure, or other improvement that is
1497     constructed:
1498          (i) on property owned by the state, the state's departments, commissions, institutions,
1499     or agencies; or
1500          (ii) by the state, the state's departments, commissions, institutions, or agencies on
1501     property not owned by the state.
1502          (b) "Facility" does not mean an unoccupied structure that is a component of the state
1503     highway system.
1504          (2) "Local government" means the county, municipality, or local school district that
1505     would have jurisdiction to act as the compliance agency if the division did not have jurisdiction
1506     to act as the compliance agency.
1507          Section 34. Section 63A-5b-602 is enacted to read:
1508          63A-5b-602. Design criteria, standards, and procedures.
1509          (1) The director shall establish design criteria, standards, and procedures for the
1510     planning, design, and construction of a new facility and for improvements to an existing
1511     facility, including life-cycle costing, cost-effectiveness studies, and other methods and
1512     procedures that address:
1513          (a) the need for the facility;
1514          (b) the effectiveness of the facility's design;
1515          (c) the efficiency of energy use; and

1516          (d) the usefulness of the facility over the facility's lifetime.
1517          (2) Before proceeding with construction, the director and the officials charged with the
1518     administration of the affairs of the particular agency shall approve the location, design, plans,
1519     and specifications.
1520          (3) The director shall prepare or have prepared by one or more private persons the
1521     designs, plans, and specifications for the projects administered by the division.
1522          (4) Before construction may begin, the director shall review the design of projects
1523     exempted from the division's administration under Section 63A-5b-604 to determine if the
1524     design:
1525          (a) complies with any restrictions placed on the project by the director; and
1526          (b) is appropriate for the purpose and setting of the project.
1527          (5) Notwithstanding the requirements of Title 63J, Chapter 1, Budgetary Procedures
1528     Act, the director may:
1529          (a) accelerate the design of a project funded by an appropriation act passed by the
1530     Legislature in the Legislature's annual general session;
1531          (b) use an unencumbered existing account balance to fund that design work; and
1532          (c) reimburse the account balance from the amount funded for the project when the
1533     appropriation act funding the project becomes effective.
1534          Section 35. Section 63A-5b-603 is enacted to read:
1535          63A-5b-603. Contracting powers of director -- Bids -- Retainage.
1536          (1) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, the director
1537     may enter into a contract for any work or professional service that the division or board may do
1538     or have done.
1539          (2) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1540     the director may make rules establishing circumstances under which bids may be modified
1541     when all bids for a construction project exceed available funds as determined by the director.
1542          (b) In making the rules described in Subsection (2)(a), the director shall provide for the
1543     fair and equitable treatment of bidders.
1544          (c) The judgment of the director as to the responsibility and qualifications of a bidder is
1545     conclusive, except in case of fraud or bad faith.
1546          (3) The division shall make all payments to the contractor for completed work in

1547     accordance with Section 15-6-2 and pay the interest specified in Section 15-6-3 on any
1548     payments that are late.
1549          (4) If the division retains or withholds a payment on a contract with a private contractor
1550     to do work for the division, the division shall retain or withhold and release the payment as
1551     provided in Section 13-8-5.
1552          Section 36. Section 63A-5b-604 is enacted to read:
1553          63A-5b-604. Construction, alteration, and repair of state facilities -- Powers of
1554     director -- Exceptions -- Expenditure of appropriations.
1555          (1) (a) Except as provided in this section and Section 65A-5b-1101, the director shall
1556     exercise direct supervision over the design and construction of all new facilities, and all
1557     alterations, repairs, and improvements to existing facilities, if the total project construction
1558     cost, regardless of the funding source, is greater than $100,000.
1559          (b) A state entity may exercise direct supervision over the design and construction of
1560     all new facilities, and over all alterations, repairs, and improvements to existing facilities, if:
1561          (i) the total project construction cost, regardless of the funding sources, is $100,000 or
1562     less; and
1563          (ii) the state entity assures compliance with the division's forms and contracts and the
1564     division's design, construction, alteration, repair, improvement, and code inspection standards.
1565          (2) The director may enter into a capital improvement partnering agreement with an
1566     institution of higher education that permits the institution of higher education to exercise direct
1567     supervision for a capital improvement project with oversight from the division.
1568          (3) (a) Subject to Subsection (3)(b), the director may delegate control over design,
1569     construction, and other aspects of any project to entities of state government on a
1570     project-by-project basis.
1571          (b) With respect to a delegation of control under Subsection (3)(a), the director may:
1572          (i) impose terms and conditions on the delegation that the director considers necessary
1573     or advisable to protect the interests of the state; and
1574          (ii) revoke the delegation and assume control of the design, construction, or other
1575     aspect of a delegated project if the director considers the revocation and assumption of control
1576     to be necessary to protect the interests of the state.
1577          (4) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,

1578     the board may delegate control over design, construction, and all other aspects of any project to
1579     entities of state government on a categorical basis for projects within a particular dollar range
1580     and a particular project type.
1581          (b) Rules adopted by the board under Subsection (4)(a) may:
1582          (i) impose the terms and conditions on categorical delegation that the board considers
1583     necessary or advisable to protect the interests of the state;
1584          (ii) provide for the revocation of the delegation on a categorical or project specific
1585     basis and for the division to assume control of the design, construction, or other aspect of a
1586     category of delegated projects or a specific delegated project if the board considers revocation
1587     of the delegation and assumption of control to be necessary to protect the interests of the state;
1588          (iii) require that a categorical delegation be renewed by the board on an annual basis;
1589     and
1590          (iv) require the division's oversight of delegated projects.
1591          (5) (a) A state entity to which project control is delegated under this section shall:
1592          (i) assume fiduciary control over project finances;
1593          (ii) assume all responsibility for project budgets and expenditures; and
1594          (iii) receive all funds appropriated for the project, including any contingency funds
1595     contained in the appropriated project budget.
1596          (b) Notwithstanding a delegation of project control under this section, a state entity to
1597     which control is delegated is required to comply with the division's codes and guidelines for
1598     design and construction.
1599          (c) A state entity to which project control is delegated under this section may not
1600     access, for the delegated project, the division's statewide contingency reserve and project
1601     reserve authorized in Section 63A-5b-609.
1602          (d) For a facility that will be owned, operated, maintained, and repaired by an entity
1603     that is not an agency and that is located on state property, the director may authorize the
1604     facility's owner to administer the design and construction of the project relating to that facility.
1605          (6) (a) A project for the construction of a new facility and a project for alterations,
1606     repairs, and improvements to an existing facility are not subject to Subsection (1) if the project:
1607          (i) occurs on property under the jurisdiction of the State Capitol Preservation Board;
1608          (ii) is within a designated research park at the University of Utah or Utah State

1609     University;
1610          (iii) occurs within the boundaries of This is the Place State Park and is administered by
1611     This is the Place Foundation; or
1612          (iv) is for the creation and installation of art under Title 9, Chapter 6, Part 4, Utah
1613     Percent-for-Art Act.
1614          (b) Notwithstanding Subsection (6)(a)(iii), the This is the Place Foundation may
1615     request the director to administer the design and construction of a project within the boundaries
1616     of This is the Place State Park.
1617          (7) (a) The role of compliance agency under Title 15A, State Construction and Fire
1618     Codes Act, shall be filled by:
1619          (i) the director, for a project administered by the division;
1620          (ii) the entity designated by the State Capitol Preservation Board, for a project under
1621     Subsection (6)(a)(i);
1622          (iii) the local government, for a project exempt from the division's administration
1623     under Subsection (6)(a)(iii) or administered by This is the Place Foundation under Subsection
1624     (6)(a)(iii);
1625          (iv) the individual or group designated by the director, for a project under Subsection
1626     (3) or Subsection (5); and
1627          (v) for the installation of art under Subsection (6)(a)(iv), the entity that is acting in this
1628     capacity for the balance of the project as provided in Subsection (6)(b).
1629          (b) A local government acting as the compliance agency under Subsection (5) may:
1630          (i) only review plans and inspect construction to enforce the state construction code or
1631     an approved code under Title 15A, State Construction and Fire Codes Act; and
1632          (ii) charge a building permit fee of no more than the amount the local government
1633     could have charged if the land upon which the improvements are located were not owned by
1634     the state.
1635          (8) (a) The zoning authority of a local government under Section 10-9a-305 or
1636     17-27a-305 does not apply to the use of state property or any improvements constructed on
1637     state property, including improvements constructed by an entity other than a state entity.
1638          (b) A state entity controlling the use of state property shall consider any input received
1639     from a local government in determining how the property is to be used.

1640          Section 37. Section 63A-5b-605, which is renumbered from Section 63A-5-208 is
1641     renumbered and amended to read:
1642          [63A-5-208].      63A-5b-605. Certain public construction bids to list
1643     subcontractors -- Changing subcontractors -- Bidders as subcontractors -- Dispute
1644     resolution process -- Penalties.
1645          (1) As used in this section:
1646          (a) "First-tier subcontractor" means a subcontractor who contracts directly with the
1647     prime contractor.
1648          (b) (i) "Subcontractor" means [any] a person [or entity] under contract with a
1649     contractor or another subcontractor to provide services or labor for the construction,
1650     installation, or repair of an improvement to real property.
1651          (ii) "Subcontractor" includes a trade contractor or specialty contractor.
1652          (iii) "Subcontractor" does not include [suppliers who provide] a supplier that provides
1653     only materials, equipment, or supplies to a contractor or subcontractor.
1654          (2) The director shall apply the provisions of this section to achieve fair and
1655     competitive bidding and to discourage bid-shopping by contractors.
1656          (3) (a) (i) (A) On [each] a public construction project, the director shall, except as
1657     provided in Subsection (3)(a)(ii), require the apparent lowest three bidders to submit a list of
1658     their first-tier subcontractors indicating each first-tier each subcontractor's name, bid amount,
1659     and other information required by rule.
1660          (B) [Other bidders who are] A bidder that is not one of the apparent lowest three
1661     bidders may also submit a list of [their] the bidder's first-tier subcontractors containing the
1662     information required by this Subsection (3).
1663          (ii) A bidder is not required to list a first-tier subcontractor if:
1664          (A) the bidder's total bid is less than $500,000 and the first-tier subcontractor's bid is
1665     less than $20,000; or
1666          (B) the bidder's total bid is $500,000 or more and the first-tier subcontractor's bid is
1667     less than $35,000.
1668          [(C) The director may not consider any bid submitted by a bidder if the bidder fails to
1669     submit a subcontractor list meeting the requirements of this section.]
1670          [(ii) On projects where the contractor's total bid is less than $500,000, subcontractors

1671     whose bid is less than $20,000 need not be listed.]
1672          [(iii) On projects where the contractor's total bid is $500,000 or more, subcontractors
1673     whose bid is less than $35,000 need not be listed.]
1674          (b) [(i) The bidders] A bidder shall submit [this] the list required under this section
1675     within 24 hours after the bid opening time, not including [Saturdays, Sundays, and state
1676     holidays] Saturday, Sunday, and any state holiday.
1677          [(ii)] (c) [This] A list submitted under this section does not limit the director's right to
1678     authorize a change in the listing of any subcontractor.
1679          (4) The director may not consider a bid submitted by a bidder that fails to submit a list
1680     meeting the requirements of this section.
1681          [(c)] (5) [The bidders] A bidder shall verify that all subcontractors listed as part of
1682     [their bids] the bidder's bid are licensed as required by state law.
1683          [(d)] (6) (a) [Twenty-four] After 24 hours after the bid opening, [the contractor] a
1684     bidder may change the [contractor's] bidder's subcontractors only after:
1685          (i) receiving permission from the director; and
1686          (ii) establishing [that]:
1687          (A) that the change is in the best interest of the state; and
1688          (B) the [contractor establishes] reasons for the change that meet the standards
1689     established by the [State Building Board] director.
1690          [(e)] (b) If the director approves [any changes] a change in subcontractors that [result]
1691     results in a net lower contract price for subcontracted work, the director may require the bidder
1692     to reduce the total of the prime contract [may be reduced] to reflect the [changes] change.
1693          [(4)] (7) (a) A bidder may list [himself] the bidder as a subcontractor [when] if:
1694          (i) the bidder is currently licensed to perform the portion of the work for which the
1695     bidder lists [himself] the bidder as a subcontractor [and:]; and
1696          [(i)] (ii) (A) the bidder intends to perform the work of a subcontractor [himself]; or
1697          [(ii)] (B) the bidder intends to obtain a subcontractor at a later day to perform the work
1698     [at a later date] because the bidder was unable to[: (A)] obtain a bid from a qualified
1699     subcontractor[; or (B) obtain a bid] or from a qualified subcontractor at a cost that the bidder
1700     considers to be reasonable.
1701          (b) (i) [When] If the bidder intends to perform the work of a subcontractor [himself],

1702     the director may, by written request, require that the bidder provide the director with
1703     information indicating the bidder's:
1704          (A) previous experience in the type of work to be performed; and
1705          (B) qualifications for performing the work.
1706          (ii) [The bidder must] A bidder shall respond in writing within five business days [of]
1707     after receiving the director's written request under Subsection (7)(b)(i).
1708          (iii) If the [bidder's submitted] information a bidder submits under Subsection (7)(b)(ii)
1709     causes the director to reasonably believe that [self-performance] the bidder's performance of
1710     the portion of the work [by the bidder] is likely to [yield] result in a substandard finished
1711     product, the director shall:
1712          (A) require the bidder to use a subcontractor for the portion of the work in question and
1713     obtain the subcontractor bid under the supervision of the director; or
1714          (B) reject the bidder's bid.
1715          [(c) (i)] (8) (a) [When the] If a bidder intends to obtain a subcontractor [to perform the
1716     work at a later date] at a later date to perform work described in the bidder's bid, the bidder
1717     shall provide documentation with the subcontractor list required under this section:
1718          (i) describing[: (A)] the bidder's efforts to obtain a bid of a qualified subcontractor at a
1719     reasonable cost; and
1720          [(B)] (ii) explaining why the bidder was unable to obtain a qualified subcontractor bid.
1721          [(ii)] (b) If [the] a bidder who intends to obtain a subcontractor at a later date to
1722     perform the work [at a later date] described in a bid is awarded a contract, the director:
1723          (i) shall supervise the bidder's efforts to obtain a qualified subcontractor bid[.]; and
1724          [(iii)] (ii) [The director] may not adjust the amount of the contract awarded in order to
1725     reflect the actual amount of the subcontractor's bid.
1726          [(5)] (9) The division may not disclose any subcontractor bid amounts obtained under
1727     this section until the division has awarded the project to a contractor.
1728          [(6) (a) The director shall, in consultation with the State Building Board, prepare draft
1729     rules establishing a process for resolving disputes involved with contracts under the division's
1730     procurement authority.]
1731          [(b) The director shall consider, and the rules may include:]
1732          [(i) requirements regarding preliminary resolution efforts between the parties directly

1733     involved with the dispute;]
1734          [(ii) requirements for the filing of claims, including notification, timeframes, and
1735     documentation;]
1736          [(iii) identification of the types of costs eligible for allocation and a method for
1737     allocating costs among the parties to the dispute;]
1738          [(iv) required time periods, not to exceed 60 days, for the resolution of the claim;]
1739          [(v) provision for an independent hearing officer, panel, or arbitrator to extend the time
1740     period for resolution of the claim by not to exceed 60 additional days for good cause;]
1741          [(vi) provision for the extension of required time periods if the claimant agrees;]
1742          [(vii) requirements that decisions be issued in writing;]
1743          [(viii) provisions for administrative appeals of the decision;]
1744          [(ix) provisions for the timely payment of claims after resolution of the dispute,
1745     including any appeals;]
1746          [(x) a requirement that the final determination resulting from the dispute resolution
1747     process provided for in the rules is a final agency action subject to judicial review as provided
1748     in Sections 63G-4-401 and 63G-4-402;]
1749          [(xi) a requirement that a claim or dispute that does not include a monetary claim
1750     against the division or its agents is not limited to the dispute resolution process provided for in
1751     this Subsection (6);]
1752          [(xii) requirements for claims and disputes to be eligible for this dispute resolution
1753     process;]
1754          [(xiii) the use of an independent hearing officer, panel, arbitration, or mediation; and]
1755          [(xiv) the circumstances under which a subcontractor may file a claim directly with the
1756     division.]
1757          [(c) Persons pursuing claims under the process required by this Subsection (6):]
1758          [(i) are bound by the decision reached under this process unless the decision is properly
1759     appealed; and]
1760          [(ii) may not pursue claims or disputes under the dispute resolution process established
1761     in Title 63G, Chapter 6a, Utah Procurement Code.]
1762          [(7)] (10) In addition to all other reasons allowed by [law] statute or rule, the director
1763     may reject all bids if [none] all of the bidders whose [bid is] bids are within the budget of the

1764     project fail to submit a subcontractor list [that meets the requirements of] as required under this
1765     section.
1766          [(8) Any violation of this section, or any fraudulent misrepresentation by a contractor,
1767     subcontractor, or supplier, may be grounds for:]
1768          [(a) the contractor, subcontractor, or supplier to be suspended or debarred by the
1769     director; or]
1770          [(b) the contractor or subcontractor to be disciplined by the Division of Professional
1771     and Occupational Licensing.]
1772          Section 38. Section 63A-5b-606 is enacted to read:
1773          63A-5b-606. Dispute resolution process -- Penalties.
1774          (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1775     director shall adopt rules for the division establishing a process for resolving disputes involved
1776     with contracts under the division's procurement authority.
1777          (2) The director shall consider, and the rules may include:
1778          (a) requirements regarding preliminary resolution efforts between the parties directly
1779     involved with the dispute;
1780          (b) requirements for the filing of a claim, including notification, time frames, and
1781     documentation;
1782          (c) identification of the types of costs eligible for allocation and a method for allocating
1783     costs among the parties to the dispute;
1784          (d) a required time period, not to exceed 60 days, for the resolution of the claim;
1785          (e) a provision for an independent hearing officer, panel, or arbitrator to extend the
1786     time period for resolution of the claim by not to exceed 60 additional days for good cause;
1787          (f) a provision for the extension of required time periods if the claimant agrees;
1788          (g) requirements that decisions be issued in writing;
1789          (h) provisions for an administrative appeal of a decision;
1790          (i) provisions for the timely payment of claims after resolution of the dispute, including
1791     any appeals;
1792          (j) a requirement that the final determination resulting from the dispute resolution
1793     process provided for in the rules is a final agency action subject to judicial review as provided
1794     in Sections 63G-4-401 and 63G-4-402;

1795          (k) a requirement that a claim or dispute that does not include a monetary claim against
1796     the division or the division's agents is not limited to the dispute resolution process provided for
1797     in this section;
1798          (l) requirements for claims and disputes to be eligible for the dispute resolution process
1799     under this section;
1800          (m) the use of an independent hearing officer or panel or the use of arbitration or
1801     mediation; and
1802          (n) the circumstances under which a subcontractor may file a claim directly with the
1803     division.
1804          (3) A person pursuing a claim under the process established as provided in this section:
1805          (a) is bound by the decision reached under this process, subject to any modification of
1806     the decision on appeal; and
1807          (b) may not pursue a claim or dispute under the dispute resolution process established
1808     in Title 63G, Chapter 6a, Utah Procurement Code.
1809          (4) A fraudulent misrepresentation made by or bad faith claim pursued by a contractor,
1810     subcontractor, or supplier, may be grounds for:
1811          (a) the director to suspend or debar the contractor, subcontractor, or supplier; or
1812          (b) the contractor, subcontractor, or supplier to be disciplined by the Division of
1813     Professional and Occupational Licensing.
1814          Section 39. Section 63A-5b-607, which is renumbered from Section 63A-5-205.5 is
1815     renumbered and amended to read:
1816          [63A-5-205.5].      63A-5b-607. Health insurance requirements -- Penalties.
1817          (1) As used in this section:
1818          (a) "Aggregate amount" means the dollar sum of all contracts, change orders, and
1819     modifications [related to] for a single project.
1820          (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
1821          (c) ["Employee] "Eligible employee" means an employee, as defined in Section
1822     34A-2-104, [an "employee," "worker," or "operative"] who:
1823          (i) works at least 30 hours per calendar week; and
1824          (ii) meets the employer eligibility waiting [requirements] period for qualified health
1825     [care insurance, which may not exceed the first day of the calendar month following 60 days

1826     after the day on which the individual is hired] insurance coverage provided by the employer.
1827          [(d) "Health benefit plan" means the same as that term is defined in Section
1828     31A-1-301.]
1829          [(e)] (d) "Qualified health insurance coverage" means the same as that term is defined
1830     in Section 26-40-115.
1831          [(f)] (e) "Subcontractor" means the same as that term is defined in Section [63A-5-208]
1832     63A-5b-605.
1833          (2) An employer's waiting period for an employee to become eligible for qualified
1834     health insurance coverage may not extend beyond the first day of the calendar month following
1835     60 days after the day on which the employee is hired.
1836          [(2)] (3) Except as provided in Subsection [(3)] (4), the requirements of this section
1837     apply to:
1838          (a) a contractor of a design or construction contract [entered into by] with the division
1839     [or the State Building Board on or after July 1, 2009,] if the prime contract is in an aggregate
1840     amount [equal to or greater than] of $2,000,000 or more; and
1841          (b) a subcontractor of a contractor of a design or construction contract [entered into by]
1842     with the division [or State Building Board on or after July 1, 2009,] if the subcontract is in an
1843     aggregate amount [equal to or greater than] of $1,000,000 or more.
1844          [(3)] (4) The requirements of this section do not apply to a contractor or subcontractor
1845     [described in Subsection (2)] if:
1846          (a) the application of this section jeopardizes the division's receipt of federal funds;
1847          (b) the contract is a sole source contract, as defined in Section 63G-6a-103; or
1848          (c) the contract is the result of an emergency procurement.
1849          [(4)] (5) A person [that] who intentionally uses a change [orders,] order, contract
1850     [modifications,] modification, or multiple contracts to circumvent the requirements of this
1851     section is guilty of an infraction.
1852          [(5)] (6) (a) A contractor that is subject to the requirements of this section shall
1853     [demonstrate to the director that the contractor has and will]:
1854          (i) make and maintain an offer of qualified health insurance coverage for the
1855     contractor's eligible employees and the eligible employees' dependents [by submitting]; and
1856          (ii) submit to the director a written statement [that:] demonstrating that the contractor

1857     is in compliance with Subsection (6)(a)(i).
1858          [(i) the contractor offers qualified health insurance coverage that complies with Section
1859     26-40-115;]
1860          [(ii) is from:]
1861          (b) A statement under Subsection (6)(a)(ii):
1862          (i) shall be from:
1863          (A) an actuary selected by the contractor or the contractor's insurer; or
1864          (B) an underwriter who is responsible for developing the employer group's premium
1865     rates; and
1866          [(iii) was] (ii) may not be created [within] more than one year before the day on which
1867     the [statement is submitted] contractor submits the statement to the director.
1868          [(b)] (7) (a) A contractor that is subject to the requirements of this section shall:
1869          (i) [place a requirement in each of the contractor's subcontracts that a subcontractor
1870     that is subject to the requirements of this section shall] ensure that each contract the contractor
1871     enters with a subcontractor that is subject to the requirements of this section requires the
1872     subcontractor to obtain and maintain an offer of qualified health insurance coverage for the
1873     subcontractor's eligible employees and the eligible employees' dependents during the duration
1874     of the subcontract; and
1875          (ii) obtain from a subcontractor [that is subject to the requirements of this section]
1876     referred to in Subsection (7)(a)(i) a written statement demonstrating that[:] the subcontractor
1877     offers qualified health insurance coverage to eligible employees and eligible employees'
1878     dependents.
1879          [(A) the subcontractor offers qualified health insurance coverage that complies with
1880     Section 26-40-115;]
1881          [(B)] (b) [is] A statement under Subsection (7)(a)(i):
1882          (i) shall be from:
1883          (A) an actuary selected by the subcontractor or the subcontractor's insurer[,]; or
1884          (B) an underwriter who is responsible for developing the employer group's premium
1885     rates; and
1886          [(C)] (ii) [was] may not be created [within] more than one year before the day on
1887     which the contractor obtains the statement from the subcontractor.

1888          [(c) (i) (A)] (8) (a) (i) A contractor that fails to maintain an offer of qualified health
1889     insurance coverage [described in Subsection (5)(a)] during the duration of the contract as
1890     required in this section is subject to penalties in accordance with administrative rules adopted
1891     by the division under [Subsection (6)] this section.
1892          [(B)] (ii) A contractor is not subject to penalties for the failure of a subcontractor to
1893     obtain and maintain an offer of qualified health insurance coverage [described in Subsection
1894     (5)(b)(i)] as required in this section.
1895          [(ii) (A)] (b) (i) A subcontractor that fails to obtain and maintain an offer of qualified
1896     health insurance coverage [described in Subsection (5)(b)(i)] during the duration of the
1897     subcontract as required in this section is subject to penalties in accordance with administrative
1898     rules adopted by the division under [Subsection (6)] this section.
1899          [(B)] (ii) A subcontractor is not subject to penalties for the failure of a contractor to
1900     maintain an offer of qualified health insurance coverage [described in Subsection (5)(a)] as
1901     required in this section.
1902          [(6)] (9) The division shall adopt administrative rules:
1903          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1904          (b) in coordination with:
1905          (i) the Department of Environmental Quality in accordance with Section 19-1-206;
1906          (ii) the Department of Natural Resources in accordance with Section 79-2-404;
1907          (iii) a public transit district in accordance with Section 17B-2a-818.5;
1908          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403;
1909          (v) the Department of Transportation in accordance with Section 72-6-107.5; and
1910          (vi) the Legislature's Administrative Rules Review Committee; and
1911          (c) that establish:
1912          (i) the requirements and procedures for a contractor and a subcontractor [shall follow]
1913     to demonstrate compliance with this section, including:
1914          (A) a provision that a contractor or subcontractor's compliance with this section is
1915     subject to an audit by the division or the Office of the Legislative Auditor General;
1916          (B) a provision that a contractor that is subject to the requirements of this section
1917     [shall] obtain a written statement [described in Subsection (5)(a)] as provided in Subsection
1918     (6); and

1919          (C) a provision that a subcontractor that is subject to the requirements of this section
1920     [shall] obtain a written statement [described in Subsection (5)(b)(ii)] as provided in Subsection
1921     (7);
1922          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
1923     violates the provisions of this section, which may include:
1924          (A) a three-month suspension of the contractor or subcontractor from entering into a
1925     future [contracts] contract with the state upon the first violation;
1926          (B) a six-month suspension of the contractor or subcontractor from entering into a
1927     future [contracts] contract with the state upon the second violation;
1928          (C) an action for debarment of the contractor or subcontractor in accordance with
1929     Section 63G-6a-904 upon the third or subsequent violation; and
1930          (D) monetary penalties which may not exceed 50% of the amount necessary to
1931     purchase qualified health insurance coverage for eligible employees and dependents of eligible
1932     employees of the contractor or subcontractor who were not offered qualified health insurance
1933     coverage during the duration of the contract; and
1934          (iii) a website [on which] for the department [shall] to post the commercially
1935     equivalent benchmark for the qualified health insurance coverage that is provided by the
1936     Department of Health in accordance with Subsection 26-40-115(2).
1937          [(7) (a)] (10) During the duration of a contract, the division may perform an audit to
1938     verify a contractor or subcontractor's compliance with this section.
1939          [(b)] (11) (a) Upon the division's request, a contractor or subcontractor shall provide
1940     the division:
1941          (i) a signed actuarial certification that the coverage the contractor or subcontractor
1942     offers is qualified health insurance coverage; or
1943          (ii) all relevant documents and information necessary for the division to determine
1944     compliance with this section.
1945          [(c)] (b) If a contractor or subcontractor provides the documents and information
1946     described in Subsection [(7)(b)(ii)] (11)(a)(i), the Insurance Department shall assist the division
1947     in determining if the coverage the contractor or subcontractor offers is qualified health
1948     insurance coverage.
1949          [(8)] (12) (a) (i) In addition to the penalties imposed under Subsection [(6)(c)(ii)] (8), a

1950     contractor or subcontractor that intentionally violates the provisions of this section is liable to
1951     [the] an eligible employee for health care costs that would have been covered by qualified
1952     health insurance coverage.
1953          (ii) An employer has an affirmative defense to a cause of action under Subsection [(8)]
1954     (12)(a)(i) if:
1955          (A) the employer relied in good faith on a written statement described in Subsection
1956     [(5)(a) or (5)(b)(ii)] (6) or (7); or
1957          (B) the department determines that compliance with this section is not required under
1958     the provisions of Subsection [(3)] (4).
1959          (b) An eligible employee has a private right of action [only] against the employee's
1960     employer [to enforce the provisions of this Subsection (8)] only as provided in this Subsection
1961     (12).
1962          [(9)] (13) [Any penalties imposed and collected] The director shall cause money
1963     collected from the imposition and collection of a penalty under this section [shall] to be
1964     deposited into the Medicaid Restricted Account created by Section 26-18-402.
1965          [(10)] (14) The failure of a contractor or subcontractor to provide qualified health
1966     insurance coverage as required by this section:
1967          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
1968     or contractor under:
1969          (i) Section 63G-6a-1602; or
1970          (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
1971          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
1972     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
1973     or construction.
1974          Section 40. Section 63A-5b-608, which is renumbered from Section 63A-5-207 is
1975     renumbered and amended to read:
1976          [63A-5-207].      63A-5b-608. Availability of appropriated funds -- Excessive
1977     obligations prohibited -- Exceptions.
1978          (1) [The] Unless otherwise specifically instructed by the terms of the appropriation for
1979     a particular project, the director shall assure[, unless otherwise specifically instructed by the
1980     terms of the appropriation of a particular project,] that no obligations beyond the authorized

1981     funding are incurred in the construction of any project authorized by the Legislature.
1982          (2) The director may expend appropriations for statewide projects from funds provided
1983     by the Legislature for the purposes and within the guidelines established by the Legislature.
1984          [(2)] (3) The director may consent to the drafting of a plan or the awarding of a
1985     contract that will exceed in cost the funding currently available for the project [in question]
1986     only if the Legislature has specifically provided for extending construction of a building or the
1987     completion of a project into future fiscal periods.
1988          Section 41. Section 63A-5b-609, which is renumbered from Section 63A-5-209 is
1989     renumbered and amended to read:
1990          [63A-5-209].      63A-5b-609. Building appropriations supervised by director
1991     -- Contingencies -- Disposition of project reserve funds -- Set aside for Utah
1992     Percent-for-Art Program.
1993          (1) The director shall:
1994          (a) (i) supervise the expenditure of funds in providing plans, engineering
1995     specifications, sites, and construction of the buildings for which legislative appropriations are
1996     made; and
1997          (ii) specifically allocate money appropriated [when] if more than one project is
1998     included in any single appropriation without legislative directive;
1999          (b) (i) expend the amount necessary from appropriations for planning, engineering, and
2000     architectural work; and
2001          (ii) (A) allocate amounts from appropriations necessary to cover expenditures
2002     previously made from the planning fund under Section [63A-5-211] 63A-5b-503 in the
2003     preparation of plans, engineering, and specifications; and
2004          (B) return the amounts described in Subsection (1)(b)(ii)(A) to the planning fund; and
2005          (c) hold in a statewide contingency reserve the amount budgeted for contingencies:
2006          (i) in appropriations for the construction or remodeling of facilities; and
2007          (ii) [which may be] that are over and above all amounts obligated by contract for
2008     planning, engineering, architectural work, sites, and construction contracts.
2009          (2) (a) The director shall base the amount budgeted for contingencies on a sliding scale
2010     percentage of the construction cost ranging from:
2011          (i) 4-1/2% to 6-1/2% for new construction; and

2012          (ii) 6% to 9-1/2% for remodeling projects.
2013          (b) The director shall hold the statewide contingency funds to cover:
2014          (i) costs of change orders; and
2015          (ii) unforeseen, necessary costs beyond those specifically budgeted for the project.
2016          (c) (i) The Legislature shall annually review the percentage and the amount held in the
2017     statewide contingency reserve.
2018          (ii) The Legislature may reappropriate to other building needs, including the cost of
2019     administering building projects, any amount from the statewide contingency reserve that is in
2020     excess of the reserve required to meet future contingency needs.
2021          (3) (a) The director shall hold in a separate project reserve [those] state appropriated
2022     funds accrued through bid savings and project residual [as a project reserve].
2023          (b) The director shall account for the funds accrued under Subsection (3)(a) in separate
2024     accounts as follows:
2025          (i) bid savings and project residual from a capital improvement project, as defined in
2026     Section [63A-5-104] 63A-5b-401; and
2027          (ii) bid savings and project residual from a capital development project, as defined in
2028     Section [63A-5-104] 63A-5b-401.
2029          (c) The [State Building Board may authorize the use of] director may use project
2030     reserve funds in the account described in Subsection (3)(b)(i) for a capital improvement
2031     project:
2032          (i) approved under Section [63A-5-104] 63A-5b-405; and
2033          (ii) for which funds are not allocated.
2034          (d) The director may:
2035          (i) authorize the use of project reserve funds in the accounts described in Subsection
2036     (3)(b) for the award of contracts in excess of a project's construction budget if the use is
2037     required to meet the intent of the project;
2038          (ii) transfer money from the account described in Subsection (3)(b)(i) to the account
2039     described in Subsection (3)(b)(ii) if a capital development project has exceeded its construction
2040     budget; and
2041          (iii) use project reserve funds for any emergency capital improvement project, whether
2042     or not the emergency capital improvement project is related to a project that has exceeded its

2043     construction budget.
2044          (e) The director shall report to the Office of the Legislative Fiscal Analyst within 30
2045     days:
2046          (i) an [authorization] expenditure under Subsection (3)(c); or
2047          (ii) a transfer under Subsection (3)(d).
2048          (f) The Legislature shall annually review the amount held in the project reserve for
2049     possible reallocation by the Legislature to other building needs, including the cost of
2050     administering building projects.
2051          (4) If any part of the appropriation for a building project, other than the part set aside
2052     for the Utah Percent-for-Art Program under Title 9, Chapter 6, Part 4, Utah Percent-for-Art
2053     Act, remains unencumbered after the award of construction and professional service contracts
2054     and establishing a reserve for fixed and moveable equipment, the balance of the appropriation
2055     is dedicated to the project reserve and does not revert to the General Fund.
2056          (5) (a) One percent of the amount appropriated for the construction of any new state
2057     building or facility may be appropriated and set aside for the Utah Percent-for-Art Program
2058     administered by the Division of Fine Arts under Title 9, Chapter 6, Part 4, Utah Percent-for-Art
2059     Act.
2060          (b) The director shall release to the Division of Fine Arts any funds included in an
2061     appropriation to the division that are designated by the Legislature for the Utah Percent-for-Art
2062     Program.
2063          (c) Funds from appropriations for [any] a state building or facility of which any part is
2064     derived from the issuance of bonds, to the extent it would jeopardize the federal income tax
2065     exemption otherwise allowed for interest paid on bonds, may not be set aside.
2066          Section 42. Section 63A-5b-610, which is renumbered from Section 63A-5-219 is
2067     renumbered and amended to read:
2068          [63A-5-219].      63A-5b-610. Transfer from project reserve money.
2069          (1) With the approval of and through an appropriation by the Legislature, the division
2070     shall transfer at least $100,000 annually from the project reserve money to the General Fund to
2071     pay for personal service expenses associated with the management of construction projects.
2072          (2) With the approval of and as directed by the Legislature, the division shall transfer
2073     additional money from the project reserve money to pay administrative costs associated with

2074     the management of construction projects and other division responsibilities.
2075          Section 43. Section 63A-5b-701 is enacted to read:
2076     
Part 7. Operations and Maintenance

2077          63A-5b-701. Operations and maintenance.
2078          (1) As used in this section, "maintenance functions" means all programs and activities
2079     related to the operation and maintenance of a state facility, including preventive maintenance
2080     and inspection.
2081          (2) (a) The director shall direct or delegate maintenance functions for an agency, except
2082     for:
2083          (i) the State Capitol Preservation Board; and
2084          (ii) an institution of higher education.
2085          (b) The director may delegate responsibility for maintenance functions to an agency
2086     only if:
2087          (i) the agency requests the responsibility; and
2088          (ii) the director determines that:
2089          (A) the agency has the necessary resources and skills to comply with maintenance
2090     functions standards approved by the director; and
2091          (B) the delegation would result in net cost savings to the state as a whole.
2092          (c) The State Capitol Preservation Board and an institution of higher education are
2093     exempt from division oversight of maintenance functions.
2094          (d) An institution of higher education shall comply with the division's facility
2095     maintenance functions standards.
2096          (3) (a) An institution of higher education shall annually report to the division, in a
2097     format required by the division, on the institution of higher education's compliance with the
2098     division's maintenance functions standards.
2099          (b) The division shall:
2100          (i) prescribe a standard format for reporting compliance with the division's
2101     maintenance functions standards;
2102          (ii) report to the Legislature on the compliance or noncompliance with the standards;
2103     and
2104          (iii) conduct periodic audits to ensure that institutions of higher education are

2105     complying with the standards and report the results of the audits to the Legislature.
2106          Section 44. Section 63A-5b-702 is enacted to read:
2107          63A-5b-702. Standards -- Operations and Maintenance -- Monitoring --
2108     Reporting -- Auditing.
2109          (1) As used in this section:
2110          (a) "Life cycle cost-effective" means the most prudent cost of owning, operating, and
2111     maintaining a facility, including the initial cost, energy costs, operation and maintenance costs,
2112     repair costs, and the costs of energy conservation and renewable energy systems.
2113          (b) "Renewable energy system" means a system designed to use solar, wind,
2114     geothermal power, wood, or other replenishable energy source to heat, cool, or provide
2115     electricity to a building.
2116          (2) The director shall, in accordance with Title 63G, Chapter 3, Utah Administrative
2117     Rulemaking Act, make rules:
2118          (a) that establish standards and requirements for determining whether a state facility
2119     project is life cycle cost-effective;
2120          (b) for the monitoring of an agency's operation and maintenance expenditures for a
2121     state-owned facility;
2122          (c) to establish standards and requirements for utility metering;
2123          (d) that create an operation and maintenance program for an agency's facilities;
2124          (e) that establish a methodology for determining reasonably anticipated inflationary
2125     costs for each operation and maintenance program described in Subsection (2)(d);
2126          (f) that require an agency to report the amount the agency receives and expends on
2127     operation and maintenance; and
2128          (g) that provide for determining the actual cost for operation and maintenance requests
2129     for a new facility.
2130          (3) The director shall:
2131          (a) ensure that state-owned facilities, except for facilities under the control of the State
2132     Capitol Preservation Board, are life cycle cost effective;
2133          (b) conduct ongoing facilities audits of state-owned facilities; and
2134          (c) monitor an agency's operation and maintenance expenditures for state-owned
2135     facilities as provided in rules made under Subsection (2)(b).

2136          (4) (a) An agency shall comply with the rules made under Subsection (2) for new
2137     facility requests submitted to the Legislature for a session of the Legislature after the 2017
2138     General Session.
2139          (b) Beginning on December 1, 2016, the Office of the Legislative Fiscal Analyst and
2140     the Governor's Office of Management and Budget shall, for each agency with operating and
2141     maintenance expenses, ensure that each required budget for the agency is adjusted in
2142     accordance with the rules described in Subsection (2)(e).
2143          Section 45. Section 63A-5b-703 is enacted to read:
2144          63A-5b-703. Agency lease payments.
2145          (1) (a) Beginning July 1, 2020, the division shall implement a program to charge
2146     agencies, except institutions of higher education, lease payments for the agency's use and
2147     occupancy of space within a building.
2148          (b) Before July 1, 2020, the division shall:
2149          (i) conduct a market analysis of market lease rates for comparable space in buildings
2150     comparable to division-owned buildings; and
2151          (ii) establish lease rates for an agency's use and occupancy of a division-owned
2152     building.
2153          (c) The lease rates shall be:
2154          (i) consistent with market rates for comparable space in comparable buildings;
2155          (ii) calculated to cover:
2156          (A) an amortized amount for capital replacement;
2157          (B) an amount for capital improvements; and
2158          (C) operation and maintenance costs; and
2159          (iii) in proportion to legislative appropriations.
2160          (2) In making appropriations to cover lease payments under this section, the
2161     Legislature shall create a line item, as defined in Section 63J-1-102, for each agency to fund the
2162     lease payments.
2163          Section 46. Section 63A-5b-801 is enacted to read:
2164     
Part 8. Acquisitions of Real Property Interests

2165          63A-5b-801. Definitions.
2166          As used in this part:

2167          (1) "Agency optional term" means an option that is exclusively exercisable by a leasing
2168     agency to extend the lease term.
2169          (2) "High-cost lease" means a real property lease that:
2170          (a) has an initial term including any agency optional term of 10 years or more; or
2171          (b) will require lease payments of more than $5,000,000 over the term of the lease,
2172     including any agency optional term.
2173          (3) (a) "Leasing agency" means a department, commission, board, council, agency,
2174     institution, officer, corporation, fund, division, office, committee, authority, laboratory, library,
2175     unit, bureau, panel, or other administrative unit of the state.
2176          (b) "Leasing agency" does not include:
2177          (i) the legislative branch;
2178          (ii) the judicial branch; and
2179          (iii) an institution of higher education.
2180          (4) "Significant lease terms" includes the duration of the lease, the frequency of the
2181     periodic payments, renewal clauses, purchase options, cancellation clauses, repair and
2182     maintenance clauses, and restrictions on use of the property.
2183          Section 47. Section 63A-5b-802, which is renumbered from Section 63A-5-302 is
2184     renumbered and amended to read:
2185          [63A-5-302].      63A-5b-802. Leasing responsibilities of the director.
2186          (1) The director shall:
2187          (a) prepare and submit a yearly request to the governor and Legislature for a designated
2188     amount of square footage by type of space to be leased by the division for that fiscal year;
2189          [(a)] (b) lease, in the name of the division, all real property space to be occupied by
2190     [an] a leasing agency;
2191          [(b)] (c) in leasing space[, comply with]:
2192          [(i) Title 63G, Chapter 6a, Utah Procurement Code; and]
2193          (i) use a process consistent with the best interest of the state, the requirements of the
2194     leasing agency, and the anticipated use of the property; and
2195          (ii) comply with any legislative mandates contained in the appropriations act or other
2196     [specific] legislation;
2197          [(c)] (d) apply the criteria contained in Subsection (1)[(e)](f) to prepare a report

2198     evaluating each high-cost lease at least 12 months before [it] the lease expires;
2199          [(d)] (e) evaluate each lease under the division's control and apply the criteria
2200     contained in Subsection [(1)(e), when appropriate, to evaluate those leases] (1)(f), as
2201     applicable, to evaluate the lease;
2202          [(e)] (f) in evaluating leases:
2203          (i) determine whether [or not] the lease is cost-effective when the needs of the leasing
2204     agency to be housed in the leased facilities are considered;
2205          (ii) determine whether [or not] another option such as construction, use of other
2206     state-owned space, or a lease-purchase agreement is more cost-effective than leasing;
2207          (iii) determine whether [or not] the significant lease terms are cost-effective and
2208     provide the state with sufficient flexibility and protection from liability;
2209          (iv) compare the proposed lease payments to the current market rates, and evaluate
2210     whether [or not] the proposed lease payments are reasonable under current market conditions;
2211          (v) compare proposed significant lease terms to the current market, and recommend
2212     whether [or not] these proposed terms are reasonable under current market conditions; and
2213          (vi) if applicable, recommend that the lease or modification to a lease be approved or
2214     disapproved;
2215          [(f)] (g) based upon the evaluation, include in the report recommendations that identify
2216     viable alternatives to:
2217          (i) make the lease cost-effective; or
2218          (ii) meet the leasing agency's needs when the lease expires; and
2219          [(g)] (h) upon request, provide the information included in the report to:
2220          (i) the leasing agency benefitted by the lease; and
2221          (ii) the Office of the Legislative Fiscal Analyst.
2222          (2) The director may:
2223          (a) subject to legislative appropriation, enter into a facility [leases with terms] lease
2224     with a term of up to 10 years [when] if the length of the lease's term is economically
2225     advantageous to the state; and
2226          (b) with the approval of the [State Building Board] board and subject to legislative
2227     appropriation, enter into a facility [leases with terms] lease with a term of more than 10 years
2228     [when] if the length of the lease's term is economically advantageous to the state.

2229          Section 48. Section 63A-5b-803, which is renumbered from Section 63A-5-303 is
2230     renumbered and amended to read:
2231          [63A-5-303].      63A-5b-803. Lease reporting and coordination.
2232          (1) The director shall:
2233          (a) prepare a standard form upon which [agencies and other state institutions and
2234     entities can report their] a leasing agency and another state institution or entity can report the
2235     current and proposed lease activity of the leasing agency, institution, or entity, including any
2236     lease [renewals] renewal; and
2237          (b) develop procedures and mechanisms within the division to:
2238          (i) obtain and share information about each leasing agency's real property needs; and
2239          (ii) provide oversight and review of lessors and lessees during the term of each lease.
2240          (2) Each leasing agency, the Judicial Council, and the Board of Regents, for each
2241     institution of higher education, shall report all current and proposed lease activity on the
2242     standard form prepared by the division to:
2243          (a) the [State Building Board] division; and
2244          (b) the Office of the Legislative Fiscal Analyst.
2245          Section 49. Section 63A-5b-804, which is renumbered from Section 63A-5-304 is
2246     renumbered and amended to read:
2247          [63A-5-304].      63A-5b-804. Leasing by the Judicial Council and the
2248     Administrative Office of the Courts -- Director's responsibilities.
2249          (1) Before executing [any] a high-cost lease or a modification to a lease that results in a
2250     high-cost lease, the Administrative Office of the Courts shall submit a draft of the new lease or
2251     modification to:
2252          (a) the Judicial Council; and
2253          (b) the director [of the Division of Facilities Construction and Management].
2254          (2) The director shall:
2255          (a) review the [drafts] draft submitted by the Administrative Office of the Courts; and
2256          (b) within 30 days after receiving the [drafts from the office] draft, submit a report on
2257     [those drafts] the draft to:
2258          (i) the Judicial Council; and
2259          (ii) the Office of the Legislative Fiscal Analyst.

2260          (3) [The] A report under Subsection (2)(b) shall contain:
2261          (a) the director's opinion about:
2262          (i) whether [or not] the lease or modification is cost-effective when the needs of the
2263     entity to be housed in the leased facility are considered;
2264          (ii) whether [or not] another option such as construction, use of other state-owned
2265     space, or a lease-purchase agreement is more cost-effective than leasing; and
2266          (iii) whether [or not] the significant lease terms are cost-effective and provide the state
2267     with sufficient flexibility and protection from liability;
2268          (b) a comparison of the proposed lease payments to the current market rates, and a
2269     recommendation as to whether [or not] the proposed lease payments are reasonable under
2270     current market conditions;
2271          (c) a comparison of proposed significant lease terms to the current market, and a
2272     recommendation as to whether [these] the proposed terms are reasonable under current market
2273     conditions; and
2274          (d) a recommendation from the director that the lease or modification to a lease be
2275     approved or disapproved.
2276          (4) (a) The Administrative Office of the Courts may not execute [any] a new high-cost
2277     [leases or modifications to any] lease or modification to an existing lease that will result in a
2278     high-cost lease unless [that lease or those modifications are] the lease or modification is
2279     approved by a majority vote of the Judicial Council.
2280          (b) The Judicial Council shall consider the recommendations of the director [of the
2281     division] in determining whether [or not] to approve a high-cost [leases and modifications]
2282     lease or modification resulting in a high-cost [leases] lease.
2283          Section 50. Section 63A-5b-805, which is renumbered from Section 63A-5-305 is
2284     renumbered and amended to read:
2285          [63A-5-305].      63A-5b-805. Leasing by higher education institutions.
2286          (1) The Board of Regents shall establish written policies and procedures governing
2287     leasing by an institution of higher education [institutions].
2288          (2) Except as provided in Sections 53B-2a-113 and 63M-2-602, [a] an institution of
2289     higher education [institution] shall comply with the procedures and requirements of the Board
2290     of Regents' policies before signing or renewing a lease.

2291          Section 51. Section 63A-5b-806, which is renumbered from Section 63A-5-401 is
2292     renumbered and amended to read:
2293          [63A-5-401].      63A-5b-806. Division rules on the value of property bought,
2294     sold, or exchanged -- Exception.
2295          (1) [If the division buys, sells, or exchanges real property, the] The division shall, in
2296     accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules to
2297     ensure that if the division buys or exchanges real property, the value of the real property is
2298     congruent with the proposed price and other terms of the purchase[, sale,] or exchange.
2299          (2) The rules:
2300          (a) shall establish procedures for determining the value of the real property;
2301          (b) may provide that an appraisal, as defined [under] in Section 61-2g-102,
2302     demonstrates the real property's value; and
2303          (c) may require that the appraisal be completed by a state-certified general appraiser, as
2304     defined [under] in Section 61-2g-102.
2305          (3) The rules adopted under Subsection (1) [does] do not apply to[: (a)] the purchase[,
2306     sale,] or exchange of real property, or [to] an interest in real property, with a value of less than
2307     [$100,000] $250,000, as estimated by the division[; or].
2308          [(b) a transfer of ownership or lease of vacant division-owned property, as defined in
2309     Section 63A-5a-102, at below fair market value under Chapter 5a, Division-Owned Real
2310     Property Act.]
2311          Section 52. Section 63A-5b-901, which is renumbered from Section 63A-5a-102 is
2312     renumbered and amended to read:
2313     
Part 9. Disposal of Division-Owned Property

2314          [63A-5a-102].      63A-5b-901. Definitions.
2315          As used in this [chapter] part:
2316          (1) "Applicant" means a person who submits a timely, qualified proposal to the
2317     division.
2318          [(2) "Board" means the State Building Board, created in Section 63A-5-101.]
2319          [(3)] (2) "Condemnee" means the same as that term is defined in Section 78B-6-520.3.
2320          [(4)] (3) "Convey" means:
2321          (a) to provide for a primary state agency's occupancy or use of vacant division-owned

2322     property; or
2323          (b) to effect a transfer of ownership or lease of vacant division-owned property to a
2324     secondary state agency, local government entity, public purpose nonprofit entity, or private
2325     party.
2326          [(5) "Director" means the division director, appointed under Section 63A-5-203.]
2327          [(6) "Division" means the Division of Facilities Construction and Management, created
2328     in Section 63A-5-201.]
2329          [(7)] (4) "Division-owned property" means real property, including an interest in real
2330     property, to which the division holds title, regardless of who occupies or uses the real property.
2331          [(8)] (5) "Local government entity" means a county, city, town, metro township, local
2332     district, special service district, community development and renewal agency, conservation
2333     district, school district, or other political subdivision of the state.
2334          [(9)] (6) "Primary state agency" means a state agency for which the division holds title
2335     to real property that the state agency occupies or uses, as provided in Subsection
2336     [63A-5-204(2)(a)(iv)] 63A-5b-303(1)(a)(iv).
2337          [(10)] (7) "Private party" means a person who is not a state agency, local government
2338     entity, or public purpose nonprofit entity.
2339          [(11)] (8) "Public purpose nonprofit entity" means a corporation, association,
2340     organization, or entity that:
2341          (a) is located within the state;
2342          (b) is not a state agency or local government entity;
2343          (c) is exempt from federal income taxation under Section 501(c)(3), Internal Revenue
2344     Code; and
2345          (d) operates to fulfill a public purpose.
2346          [(12)] (9) "Qualified proposal" means a written proposal that:
2347          (a) meets the criteria established by the division by rule under Section 63A-5b-903;
2348          (b) if submitted by a local government entity or public purpose nonprofit entity,
2349     explains the public purpose for which the local government entity or public purpose nonprofit
2350     entity seeks a transfer of ownership or lease of the vacant division-owned property; and
2351          (c) the director determines will, if accepted and implemented, provide a material
2352     benefit to the state.

2353          [(13)] (10) "Secondary state agency" means a state agency:
2354          (a) that is authorized to hold title to real property that the state agency occupies or uses,
2355     as provided in Subsection [63A-5-204(6)] 63A-5b-303(4); and
2356          (b) for which the division does not hold title to real property that the state agency
2357     occupies or uses.
2358          [(14)] (11) "State agency" means a department, division, office, entity, agency, or other
2359     unit of state government.
2360          [(15)] (12) "Transfer of ownership" includes a transfer of the ownership of vacant
2361     division-owned property that occurs as part of an exchange of the vacant division-owned
2362     property for another property.
2363          [(16)] (13) "Vacant division-owned property" means division-owned property that:
2364          (a) a primary state agency has discontinued to occupy or use; and
2365          (b) the director has determined should be made available for:
2366          (i) use or occupancy by a primary state agency; or
2367          (ii) a transfer of ownership or lease to a secondary state agency, local government
2368     entity, public purpose nonprofit entity, or private party.
2369          [(17)] (14) "Written proposal" means a brief statement in writing that explains:
2370          (a) the proposed use or occupancy, transfer of ownership, or lease of vacant
2371     division-owned property; and
2372          (b) how the state will benefit from the proposed use or occupancy, transfer of
2373     ownership, or lease.
2374          Section 53. Section 63A-5b-902, which is renumbered from Section 63A-5a-103 is
2375     renumbered and amended to read:
2376          [63A-5a-103].      63A-5b-902. Application of part.
2377          (1) The provisions of this [chapter] part, other than this section, do not apply to:
2378          (a) a conveyance, lease, or disposal under Subsection [63A-5-204(2)(a)(x)]
2379     63A-5b-303(1)(a)(x); or
2380          (b) the division's disposal or lease of division-owned property with a value under
2381     [$100,000] $250,000, as estimated by the division.
2382          (2) Nothing in Subsection (1)(b) may be construed to diminish or eliminate the
2383     division's responsibility to manage division-owned property in the best interests of the state.

2384          Section 54. Section 63A-5b-903, which is renumbered from Section 63A-5a-104 is
2385     renumbered and amended to read:
2386          [63A-5a-104].      63A-5b-903. Rules adopted by the division.
2387          The division may, in accordance with Title 63G, Chapter 3, Utah Administrative
2388     Rulemaking Act, make rules to:
2389          (1) establish criteria that a written proposal is required to satisfy in order to be a
2390     qualified proposal, including, if applicable, a minimum acceptable purchase price; and
2391          (2) define criteria that the director will consider in making a determination whether a
2392     proposed use or occupancy, transfer of ownership, or lease of vacant division-owned property
2393     provides a material benefit to the state.
2394          Section 55. Section 63A-5b-904, which is renumbered from Section 63A-5a-201 is
2395     renumbered and amended to read:
2396          [63A-5a-201].      63A-5b-904. Division authority with respect to vacant
2397     division-owned property -- Limitations.
2398          (1) Subject to Section [63A-5a-206] 63A-5b-909, the division may, as provided in this
2399     [chapter] part:
2400          (a) provide for a primary state agency's occupancy or use of vacant division-owned
2401     property;
2402          (b) effect a transfer of ownership or lease of vacant division-owned property to a
2403     secondary state agency, local government entity, public purpose nonprofit entity, or private
2404     party; or
2405          (c) refer vacant division-owned property to the Department of Transportation for sale
2406     by auction, as provided in Section [63A-5a-205] 63A-5b-908.
2407          (2) The division may not effect a transfer of ownership or lease of vacant
2408     division-owned property without receiving fair market value in return unless:
2409          (a) the director determines that the transfer of ownership or lease is in the best interests
2410     of the state;
2411          (b) for a proposed transfer of ownership or lease to a local government entity, public
2412     purpose nonprofit entity, or private party, the director determines that the local government
2413     entity, public purpose nonprofit entity, or private party intends to use the property to fulfill a
2414     public purpose;

2415          (c) the director requests and receives a recommendation on the proposed transfer of
2416     ownership or lease from the Legislative Executive Appropriations Committee;
2417          (d) the director communicates the Executive Appropriations Committee's
2418     recommendation to the executive director; and
2419          (e) the executive director approves the transfer of ownership or lease.
2420          (3) (a) If the division effects a transfer of ownership of vacant division-owned property
2421     without receiving fair market value in return, as provided in this [chapter] part, the division
2422     shall require the documents memorializing the transfer of ownership to preserve to the
2423     division:
2424          (i) in the case of a transfer of ownership of vacant division-owned property to a
2425     secondary state agency, local government entity, or public purpose nonprofit entity for no or
2426     nominal consideration, a right of reversion, providing for the ownership of the property to
2427     revert to the division if the property ceases to be used for the public benefit; or
2428          (ii) in the case of any other transfer of ownership of vacant division-owned property, a
2429     right of first refusal allowing the division to purchase the property from the transferee for the
2430     same price that the transferee paid to the division if the transferee wishes to transfer ownership
2431     of the former vacant division-owned property.
2432          (b) Subsection (3)(a) does not apply to the sale of vacant division-owned property at an
2433     auction under Section [63A-5a-205] 63A-5b-908.
2434          Section 56. Section 63A-5b-905, which is renumbered from Section 63A-5a-202 is
2435     renumbered and amended to read:
2436          [63A-5a-202].      63A-5b-905. Notice required before division may convey
2437     division-owned property.
2438          (1) Before the division may convey vacant division-owned property, the division shall
2439     give notice as provided in Subsection (2).
2440          (2) A notice required under Subsection (1) shall:
2441          (a) identify and describe the vacant division-owned property;
2442          (b) indicate the availability of the vacant division-owned property;
2443          (c) invite persons interested in the vacant division-owned property to submit a written
2444     proposal to the division;
2445          (d) indicate the deadline for submitting a written proposal;

2446          (e) be posted on the division's website for at least 60 consecutive days before the
2447     deadline for submitting a written proposal, in a location specifically designated for notices
2448     dealing with vacant division-owned property;
2449          (f) be posted on the Utah Public Notice Website created in Section 63F-1-701 for at
2450     least 60 consecutive days before the deadline for submitting a written proposal; and
2451          (g) be sent by email to each person who has previously submitted to the division a
2452     written request to receive notices under this section.
2453          Section 57. Section 63A-5b-906, which is renumbered from Section 63A-5a-203 is
2454     renumbered and amended to read:
2455          [63A-5a-203].      63A-5b-906. Submitting a written proposal for vacant
2456     division-owned property.
2457          (1) A person may submit to the division a written proposal:
2458          (a) in response to the division's notice under Section [63A-5a-202] 63A-5b-905; or
2459          (b) with respect to vacant division-owned property as to which the division has not
2460     given notice under Section [63A-5a-202] 63A-5b-905.
2461          (2) The division is not required to consider a written proposal or provide notice under
2462     Section [63A-5a-202] 63A-5b-905 if the director determines that the written proposal is not a
2463     qualified proposal.
2464          (3) If a person submits a qualified proposal to the division under Subsection (1)(b):
2465          (a) the division shall:
2466          (i) give notice as provided in Section [63A-5a-202] 63A-5b-905; and
2467          (ii) treat the qualified proposal as though it were submitted in response to the notice;
2468     and
2469          (b) the person may, within the time provided for the submission of written proposals,
2470     modify the qualified proposal to the extent necessary to address matters raised in the notice that
2471     were not addressed in the initial qualified proposal.
2472          (4) A person who fails to submit a qualified proposal to the division within 60 days
2473     after the date of the notice under Section [63A-5a-202] 63A-5b-905 may not be considered for
2474     the vacant division-owned property.
2475          Section 58. Section 63A-5b-907, which is renumbered from Section 63A-5a-204 is
2476     renumbered and amended to read:

2477          [63A-5a-204].      63A-5b-907. Priorities for vacant division-owned property --
2478     Division to convey vacant division-owned property.
2479          (1) (a) A state agency has priority for vacant division-owned property over a local
2480     government entity, a public purpose nonprofit entity, and a private party.
2481          (b) A local government entity and a public purpose nonprofit entity have:
2482          (i) priority for vacant division-owned property over a private party; and
2483          (ii) between them the same priority for vacant division-owned property.
2484          (2) If the division receives multiple timely qualified proposals from applicants with the
2485     highest and same priority, the division shall:
2486          (a) notify the board of:
2487          (i) the availability of the vacant division-owned property; and
2488          (ii) the applicants with the highest and same priority that have submitted qualified
2489     proposals; and
2490          (b) provide the board with a copy of the timely qualified proposals submitted by the
2491     applicants with the highest and same priority.
2492          (3) Within 30 days after being notified under Subsection (2), the board shall:
2493          (a) determine which applicant's qualified proposal is most likely to result in the highest
2494     and best public benefit; and
2495          (b) notify the division of the board's decision under Subsection (3)(a).
2496          (4) The division shall convey the vacant division-owned property to:
2497          (a) the applicant with the highest priority under Subsection (1), if the division receives
2498     a timely qualified proposal from a single applicant with the highest priority; or
2499          (b) the applicant whose qualified proposal was determined by the board under
2500     Subsection (3) to be most likely to result in the highest and best public benefit, if the division
2501     receives multiple timely qualified proposals from applicants with the highest and same priority.
2502          (5) (a) If the division leases vacant division-owned property to a private party, the
2503     division shall, within 30 days after a lease agreement is executed, provide written notice of the
2504     lease to:
2505          (i) the municipality in which the vacant division-owned property is located, if the
2506     vacant division-owned property is within a municipality; or
2507          (ii) the county in whose unincorporated area the vacant division-owned property is

2508     located, if the vacant division-owned property is not located within a municipality.
2509          (b) Nothing in this chapter may be used by a private party leasing division-owned
2510     property as a basis for not complying with applicable local land use ordinances and regulations.
2511          Section 59. Section 63A-5b-908, which is renumbered from Section 63A-5a-205 is
2512     renumbered and amended to read:
2513          [63A-5a-205].      63A-5b-908. Referring vacant division-owned property to
2514     the Department of Transportation for auction.
2515          (1) The division may refer vacant division-owned property to the Department of
2516     Transportation for a public auction if:
2517          (a) (i) the division has provided notice under Section [63A-5a-202] 63A-5b-905 with
2518     respect to the vacant division-owned property; and
2519          (ii) the division receives no qualified proposals in response to the notice under Section
2520     [63A-5a-202] 63A-5b-905;
2521          (b) the director determines that:
2522          (i) there is no reasonable likelihood that within the foreseeable future:
2523          (A) a primary state agency will use or occupy the vacant division-owned property; or
2524          (B) a secondary state agency, local government entity, or public purpose nonprofit
2525     entity will seek a transfer of ownership or lease of the vacant division-owned property; and
2526          (ii) disposing of the vacant division-owned property through a public auction is in the
2527     best interests of the state;
2528          (c) the director requests and receives a recommendation on the proposed public auction
2529     from the Legislative Executive Appropriations Committee;
2530          (d) the director communicates the Executive Appropriations Committee's
2531     recommendation to the executive director; and
2532          (e) the executive director approves the public auction.
2533          (2) If the division refers a vacant division-owned property to the Department of
2534     Transportation for public auction, the Department of Transportation shall publicly auction the
2535     vacant division-owned property under the same law and in the same manner that apply to a
2536     public auction of Department of Transportation property.
2537          (3) At a public auction conducted under Subsection (2), the Department of
2538     Transportation may, on behalf of the division, accept an offer to purchase the vacant

2539     division-owned property.
2540          (4) The division and the Department of Transportation shall coordinate together to:
2541          (a) manage the details of finalizing any sale of the vacant division-owned property at
2542     public auction; and
2543          (b) ensure that the buyer acquires proper title and that the division receives the net
2544     proceeds of the sale.
2545          (5) If a public auction under this section does not result in a sale of the vacant
2546     division-owned property, the Department of Transportation shall notify the division and refer
2547     the vacant division-owned property back to the division.
2548          Section 60. Section 63A-5b-909, which is renumbered from Section 63A-5a-206 is
2549     renumbered and amended to read:
2550          [63A-5a-206].      63A-5b-909. State real property subject to right of first
2551     refusal.
2552          (1) (a) If Section 78B-6-520.3 applies to vacant division-owned property, the division
2553     shall comply with Subsection 78B-6-520.3(3).
2554          (b) If a condemnee accepts the division's offer to sell the vacant division-owned
2555     property as provided in Section 78B-6-520.3, the division shall:
2556          (i) comply with the requirements of Section 78B-6-520.3; and
2557          (ii) terminate any process under this chapter to convey the vacant division-owned
2558     property.
2559          (c) A condemnee may waive rights and benefits afforded under Section 78B-6-520.3
2560     and instead seek a transfer of ownership or lease of vacant division-owned property under the
2561     provisions of this chapter in the same manner as any other person not entitled to the rights and
2562     benefits of Section 78B-6-520.3.
2563          (2) (a) If Section 78B-6-521 applies to the anticipated disposal of the vacant
2564     division-owned property, the division shall comply with the limitations and requirements of
2565     Subsection 78B-6-521(2).
2566          (b) If the original grantor or the original grantor's assignee accepts an offer for sale as
2567     provided in Subsection 78B-6-521(2)(a)(i), the division shall:
2568          (i) sell the vacant division-owned property to the original grantor or the original
2569     grantor's assignee, as provided in Section 78B-6-521; and

2570          (ii) terminate any process under this chapter to convey the vacant division-owned
2571     property.
2572          (c) An original grantor or the original grantor's assignee may waive rights afforded
2573     under Section 78B-6-521 and instead seek a transfer of ownership or lease of vacant
2574     division-owned property under the provisions of this chapter in the same manner as any other
2575     person seeking a transfer of ownership or lease of vacant division-owned property to which
2576     Section 78B-6-521 does not apply.
2577          Section 61. Section 63A-5b-910, which is renumbered from Section 63A-5-215 is
2578     renumbered and amended to read:
2579          [63A-5-215].      63A-5b-910. Disposition of proceeds received by division
2580     from sale of property.
2581          (1) (a) Except as provided in Section 62A-5-206.7, the division shall pay into the state
2582     treasury the money received [by the division from the sale or other disposition of property shall
2583     be paid into the state treasury and] from the transfer of ownership or lease of division-owned
2584     property.
2585          (b) Money paid into the state treasury under Subsection (1)(a):
2586          (i) becomes a part of the funds provided by law for carrying out the building program
2587     of the state[, and are]; and
2588          (ii) is appropriated for [that] the purpose described in Subsection (1)(b)(i).
2589          (2) The proceeds from [sales of] the transfer of ownership or lease of division-owned
2590     property belonging to or used by a particular state agency shall, to the extent practicable, be
2591     expended for the construction of buildings or in the performance of other work for the benefit
2592     of that state agency.
2593          Section 62. Section 63A-5b-911, which is renumbered from Section 63A-5-224 is
2594     renumbered and amended to read:
2595          [63A-5-224].      63A-5b-911. Authority to transfer land for commuter rail
2596     station and related development.
2597          The division may transfer title to a parcel of land it owns in a county of the first class to
2598     a public transit district for the purpose of facilitating the development of a commuter rail transit
2599     station and associated transit oriented development if:
2600          (1) the parcel is within one mile of the proposed commuter rail transit station and

2601     associated transit oriented development; and
2602          (2) the division receives in return fair and adequate consideration.
2603          Section 63. Section 63A-5b-912, which is renumbered from Section 63A-5-226 is
2604     renumbered and amended to read:
2605          [63A-5-226].      63A-5b-912. Report to Infrastructure and General
2606     Government Appropriations Subcommittee.
2607          The division shall, [beginning in 2016, and in every even-numbered year after 2016,] on
2608     or before the third Wednesday in November of every even-numbered year, present a written
2609     report to the Infrastructure and General Government Appropriations Subcommittee that
2610     identifies state land and buildings that are no longer needed and can be sold by the state.
2611          Section 64. Section 63A-5b-1001 is enacted to read:
2612     
Part 10. Energy Conservation and Efficiency

2613          63A-5b-1001. Definitions.
2614          As used in this part:
2615          (1) "Energy efficiency measure" means an action taken or initiated by an agency that:
2616          (a) reduces the agency's energy or fuel use or resource energy consumption, water or
2617     other resource consumption, operation and maintenance costs, or cost of energy, fuel, water, or
2618     other resource; or
2619          (b) increases the agency's energy or fuel efficiency or resource consumption efficiency.
2620          (2) "Energy efficiency program" means a program established under Section
2621     63A-5b-1002 for the purpose of improving energy efficiency measures and reducing the energy
2622     costs for state facilities.
2623          (3) "Fund" means the State Facility Energy Efficiency Fund created in Section
2624     63A-5b-1003.
2625          (4) "Performance efficiency agreement" means an agreement entered into by an agency
2626     whereby the agency implements one or more energy efficiency measures and finances the costs
2627     associated with implementation of performance efficiency measures using the stream of
2628     expected savings in costs resulting from implementation of the performance efficiency
2629     measures as a funding source for repayment.
2630          (5) (a) "State facility" means any building, structure, or other improvement that is
2631     constructed on property owned by the state, the state's departments, commissions, institutions,

2632     or agencies, or a state institution of higher education.
2633          (b) "State facility" does not include:
2634          (i) an unoccupied structure that is a component of the state highway system;
2635          (ii) a privately owned structure that is located on property owned by the state, the
2636     state's departments, commissions, institutions, or agencies, or a state institution of higher
2637     education; or
2638          (iii) a structure that is located on land administered by the trust lands administration
2639     under a lease, permit, or contract with the trust lands administration.
2640          Section 65. Section 63A-5b-1002, which is renumbered from Section 63A-5-701 is
2641     renumbered and amended to read:
2642          [63A-5-701].      63A-5b-1002. State Building Energy Efficiency Program.
2643          [(1) For purposes of this section:]
2644          [(a) "Division" means the Division of Facilities Construction and Management
2645     established in Section 63A-5-201.]
2646          [(b) "Energy efficiency measure" means an action taken or initiated by a state agency
2647     that:]
2648          [(i) reduces the state agency's energy or fuel use or resource energy consumption, water
2649     or other resource consumption, operation and maintenance costs, or cost of energy, fuel, water,
2650     or other resource; or]
2651          [(ii) increases the state agency's energy or fuel efficiency or resource consumption
2652     efficiency.]
2653          [(c) "Performance efficiency agreement" means an agreement entered into by a state
2654     agency whereby the state agency implements one or more energy efficiency measures and
2655     finances the costs associated with implementation of performance efficiency measures using
2656     the stream of expected savings in costs resulting from implementation of the performance
2657     efficiency measures as a funding source for repayment.]
2658          [(d) "State agency" means each executive, legislative, and judicial branch department,
2659     agency, board, commission, or division, and includes a state institution of higher education as
2660     defined in Section 53B-3-102.]
2661          [(e) "State Building Energy Efficiency Program" means a program established under
2662     this section for the purpose of improving energy efficiency measures and reducing the energy

2663     costs for state facilities.]
2664          [(f) (i) "State facility" means any building, structure, or other improvement that is
2665     constructed on property owned by the state, its departments, commissions, institutions, or
2666     agencies, or a state institution of higher education.]
2667          [(ii) "State facility" does not mean:]
2668          [(A) an unoccupied structure that is a component of the state highway system;]
2669          [(B) a privately owned structure that is located on property owned by the state, its
2670     departments, commissions, institutions, or agencies, or a state institution of higher education;
2671     or]
2672          [(C) a structure that is located on land administered by the School and Institutional
2673     Trust Lands Administration under a lease, permit, or contract with the School and Institutional
2674     Trust Lands Administration.]
2675          [(2)] (1) The division shall:
2676          (a) develop and administer the [state building] energy efficiency program, which shall
2677     include guidelines and procedures to improve energy efficiency in the maintenance and
2678     management of state facilities;
2679          (b) provide information and assistance to [state] agencies in their efforts to improve
2680     energy efficiency;
2681          (c) analyze energy consumption by [state] agencies to identify opportunities for
2682     improved energy efficiency;
2683          (d) establish an advisory group composed of representatives of [state] agencies to
2684     provide information and assistance in the development and implementation of the [state
2685     building] energy efficiency program; and
2686          (e) submit to the governor and to the Infrastructure and General Government
2687     Appropriations Subcommittee of the Legislature an annual report that:
2688          (i) identifies strategies for long-term improvement in energy efficiency;
2689          (ii) identifies goals for energy conservation for the upcoming year; and
2690          (iii) details energy management programs and strategies that were undertaken in the
2691     previous year to improve the energy efficiency of [state] agencies and the energy savings
2692     achieved.
2693          [(3)] (2) Each [state] agency shall:

2694          (a) designate a staff member that is responsible for coordinating energy efficiency
2695     efforts within the agency;
2696          (b) provide energy consumption and costs information to the division;
2697          (c) develop strategies for improving energy efficiency and reducing energy costs; and
2698          (d) provide the division with information regarding the agency's energy efficiency and
2699     reduction strategies.
2700          [(4) (a)] (3) [A state] An agency may enter into a performance efficiency agreement for
2701     a term of up to 20 years.
2702          (b) Before entering into a performance efficiency agreement, the [state] agency shall:
2703          (i) utilize the division to oversee the project unless the project is exempt from the
2704     division's oversight or the oversight is delegated to the agency under the provisions of Section
2705     [63A-5-206] 63A-5b-701;
2706          (ii) obtain the prior approval of the governor or the governor's designee; and
2707          (iii) provide the Office of the Legislative Fiscal Analyst with a copy of the proposed
2708     agreement before the agency enters into the agreement.
2709          (4) An agency may consult with the energy efficiency program manager within the
2710     division regarding:
2711          (a) the cost effectiveness of energy efficiency measures; and
2712          (b) ways to measure energy savings that take into account fluctuations in energy costs
2713     and temperature.
2714          (5) (a) Except as provided under Subsection (5)(b) and subject to future budget
2715     constraints, the Legislature may not remove energy savings from an agency's appropriation.
2716          (b) An agency shall use energy savings to:
2717          (i) fund the cost of the energy efficiency measures; and
2718          (ii) if funds are available after meeting the requirements of Subsection (5)(b)(i), fund
2719     and implement new energy efficiency measures.
2720          (c) The Legislature may remove energy savings if:
2721          (i) an agency has complied with Subsection (5)(b)(i); and
2722          (ii) no new cost-effective energy efficiency measure is available for implementation.
2723          Section 66. Section 63A-5b-1003, which is renumbered from Section 63A-5-603 is
2724     renumbered and amended to read:

2725          [63A-5-603].      63A-5b-1003. State Facility Energy Efficiency Fund --
2726     Contents -- Use of fund money.
2727          [(1) As used in this section:]
2728          [(a) "Board" means the State Building Board.]
2729          [(b) "Division" means the Division of Facilities Construction and Management.]
2730          [(c) "Fund" means the State Facility Energy Efficiency Fund created by this section.]
2731          [(2)] (1) There is created a revolving loan fund known as the "State Facility Energy
2732     Efficiency Fund."
2733          [(3) To capitalize the fund, the Division of Finance shall, at the end of fiscal year
2734     2007-08, transfer $3,650,000 from the Stripper Well-Petroleum Violation Escrow Fund to the
2735     fund.]
2736          [(4)] (2) The fund shall consist of:
2737          (a) money transferred [under Subsection (3)] from the Stripper Well-Petroleum
2738     Violation Escrow Fund;
2739          (b) money appropriated by the Legislature;
2740          (c) money received for the repayment of loans made from the fund; and
2741          (d) interest earned on the fund.
2742          [(5)] (3) The board shall make a loan from the fund to [a state] an agency to, wholly or
2743     in part, finance energy efficiency measures.
2744          [(6)] (4) (a) (i) [A state] An agency requesting a loan shall submit an application to the
2745     board in the form and containing the information that the board requires, including plans and
2746     specifications for the proposed energy efficiency measures.
2747          (ii) [A state] An agency may request a loan to fund all or part of the cost of energy
2748     efficiency measures.
2749          (b) If the board rejects the application, the board shall notify the applicant stating the
2750     reasons for the rejection.
2751          [(7)] (5) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
2752     Act, the board shall make rules establishing:
2753          (i) criteria to determine:
2754          (A) loan eligibility;
2755          (B) energy efficiency measures priority; and

2756          (C) ways to measure energy savings that take into account fluctuations in energy costs
2757     and temperature; and
2758          (ii) a method of monitoring actual savings resulting from energy efficiency measures
2759     implemented using loan money from the fund, using objective and verifiable post-construction
2760     measures, if available.
2761          (b) In making rules that establish prioritization criteria for energy efficiency measures,
2762     the board may consider:
2763          (i) possible additional sources of revenue;
2764          (ii) the feasibility and practicality of the energy efficiency measures;
2765          (iii) the energy savings attributable to eligible energy efficiency measures;
2766          (iv) the annual energy savings;
2767          (v) the projected energy cost payback of eligible energy efficiency measures;
2768          (vi) other benefits to the state attributable to eligible energy efficiency measures;
2769          (vii) the availability of federal funds for the energy efficiency measures; and
2770          (viii) whether to require [a state] an agency to provide matching funds for the energy
2771     efficiency measures.
2772          [(8)] (6) (a) In reviewing energy efficiency measures for possible funding, the board
2773     shall:
2774          (i) review the loan application and the plans and specifications for the energy
2775     efficiency measures;
2776          (ii) determine whether to grant the loan by applying the loan eligibility criteria; and
2777          (iii) if the loan is granted, prioritize funding of the energy efficiency measures by
2778     applying the prioritization criteria.
2779          (b) The board may condition approval of a loan application and the availability of
2780     funds on assurances from the [state] agency that the board considers necessary to ensure that
2781     the [state] agency:
2782          (i) uses the proceeds to pay the cost of the energy efficiency measures; and
2783          (ii) implements the energy efficiency measures.
2784          [(9)] (7) The division shall annually report to the Government Operations Interim
2785     Committee of the Legislature the actual savings resulting from energy efficiency measures
2786     implemented using loan money from the fund, as monitored pursuant to rules adopted under

2787     Subsection [(7)] (5)(a)(ii).
2788          [(10)] (8) The [State Building Energy Efficiency Program] manager of the energy
2789     efficiency program shall provide staff support when the board performs the duties established
2790     in this section.
2791          Section 67. Section 63A-5b-1101 is enacted to read:
2792     
Part 11. Miscellaneous Provisions

2793          63A-5b-1101. Gifts, grants, and donations.
2794          (1) (a) The state or the division may receive a gift, grant, or donation to further the
2795     purposes of this part.
2796          (b) A gift, grant, or donation described in Subsection (1)(a) may not revert to the
2797     General Fund.
2798          (2) (a) This Subsection (2) applies if:
2799          (i) a donor donates land to an institution of higher education and commits to construct
2800     a building or buildings on the land; and
2801          (ii) the institution of higher education:
2802          (A) agrees to provide funds for the operations and maintenance costs of the building or
2803     buildings from sources other than state funds; and
2804          (B) agrees that the building or buildings will not be eligible for state capital
2805     improvement funding.
2806          (b) Notwithstanding any other provision of this chapter, an institution of higher
2807     education that receives a donation described in Subsection (2)(a) may:
2808          (i) oversee and manage a construction project on the donated land without
2809     involvement, oversight, or management from the division; or
2810          (ii) arrange for oversight and management of the construction project by the division.
2811          (c) The role of compliance agency on a construction project on the donated land shall
2812     be provided by:
2813          (i) the institution of higher education, for a construction project that the institution of
2814     higher education oversees and manages under Subsection (2)(b)(ii); or
2815          (ii) the director, for a construction project that the division oversees and manages under
2816     Subsection (2)(b)(ii).
2817          Section 68. Section 63A-5b-1102, which is renumbered from Section 63A-5-801 is

2818     renumbered and amended to read:
2819          [63A-5-801].      63A-5b-1102. Memorials by the state or state agencies.
2820          (1) As used in this section:
2821          (a) ["State] "Authorizing agency" means any of the following of the state that holds
2822     title to state land:
2823          (i) a department;
2824          (ii) a division;
2825          (iii) a board;
2826          (iv) an institution of higher education; or
2827          (v) for the judicial branch, the state court administrator.
2828          (b) ["State] "Authorizing agency" does not mean a local district under Title 17B,
2829     Limited Purpose Local Government Entities - Local Districts, or a special service district under
2830     Title 17D, Chapter 1, Special Service District Act.
2831          (2) The Legislature, the governor, or [a state] an authorizing agency may authorize the
2832     use or donation of state land for the purpose of maintaining, erecting, or contributing to the
2833     erection or maintenance of a memorial to commemorate those individuals who have:
2834          (a) participated in or have given their lives in any of the one or more wars or military
2835     conflicts in which the United States of America has been a participant; or
2836          (b) given their lives in association with public service on behalf of the state, including
2837     firefighters, peace officers, highway patrol officers, or other public servants.
2838          (3) The use or donation of state land in relation to a memorial described in Subsection
2839     (2) may include:
2840          (a) using or appropriating public funds for the purchase, development, improvement, or
2841     maintenance of state land on which a memorial is located or established;
2842          (b) using or appropriating public funds for the erection, improvement, or maintenance
2843     of a memorial;
2844          (c) donating or selling state land for use in relation to a memorial; or
2845          (d) authorizing the use of state land for a memorial that is funded or maintained in part
2846     or in full by another public or private entity.
2847          (4) The Legislature, the governor, or [a state] an authorizing agency may specify the
2848     form, placement, and design of a memorial that is subject to this section if the Legislature, the

2849     governor, or the [state] authorizing agency holds title to, has authority over, or donates the land
2850     on which a memorial is established.
2851          (5) [Memorials] A memorial within the definition of a capital development project, as
2852     defined in Section [63A-5-104 must] 63A-5b-401, is required to be approved as provided for in
2853     Section [63A-5-104] 63A-5b-402.
2854          (6) Nothing in this section [shall] may be construed as a prohibition of [memorials] a
2855     memorial, including [those for purposes] a memorial for a purpose not covered by this section,
2856     [which have been] that:
2857          (a) is erected within the approval requirements in effect at the time of [their] the
2858     memorial's erection; or
2859          (b) [which] may be duly authorized through other legal means.
2860          Section 69. Section 63A-5b-1103 is enacted to read:
2861          63A-5b-1103. Making keys to buildings of state, political subdivisions, or colleges
2862     and universities without permission prohibited.
2863          (1) As used in this section:
2864          (a) "Applicable government entity" means a state agency, a political subdivision of the
2865     state, the Board of Regents, or any college or university supported in whole or in part by the
2866     state.
2867          (b) "Government facility" means a building, laboratory, facility, room, dormitory, hall,
2868     or other structure owned, licensed as a licensee, leased as a tenant, or lawfully occupied by an
2869     applicable government entity.
2870          (2) An individual may not knowingly make or cause to be made any key or duplicate
2871     key for a government facility without the prior written consent of the applicable government
2872     entity.
2873          (3) A person who violates this section is guilty of a class B misdemeanor.
2874          Section 70. Section 63A-5b-1104 is enacted to read:
2875          63A-5b-1104. Notification to local governments for construction or modification
2876     of certain facilities.
2877          (1) (a) The director, the director's designee, or the state entity to which control has been
2878     delegated under Section 63A-5b-604, shall notify in writing the elected representatives of a
2879     local government entity directly and substantively affected by any diagnostic, treatment, parole,

2880     probation, or other secured facility project exceeding $250,000, if:
2881          (i) the nature of the project has been significantly altered since an earlier notification;
2882          (ii) the project would significantly change the nature of the functions presently
2883     conducted at the location; or
2884          (iii) the project is new construction.
2885          (b) At the request of the state entity or the local government entity, representatives
2886     from the state entity and the affected local entity shall conduct or participate in a local public
2887     hearing or hearings to discuss the issues described in Subsection (1)(a).
2888          (2) (a) (i) Before beginning the construction of student housing on property owned by
2889     the state or an institution of higher education, the director shall provide written notice of the
2890     proposed construction, as provided in Subsection (2)(a)(ii), if any of the proposed student
2891     housing buildings are within 300 feet of privately owned residential property.
2892          (ii) Each notice under Subsection (2)(a)(i) shall be provided to the legislative body and,
2893     if applicable, the mayor of:
2894          (A) the county in whose unincorporated area the privately owned residential property is
2895     located; or
2896          (B) the municipality in whose boundary the privately owned residential property is
2897     located.
2898          (b) (i) Within 21 days after receiving the notice required by Subsection (2)(a)(i), a
2899     county or municipality entitled to the notice may submit a written request to the director for a
2900     public hearing on the proposed student housing construction.
2901          (ii) If a county or municipality requests a hearing under Subsection (2)(b)(i), the
2902     director and the county or municipality shall jointly hold a public hearing to provide
2903     information to the public and to allow the director and the county or municipality to receive
2904     input from the public about the proposed student housing construction.
2905          Section 71. Section 63A-5b-1105 is enacted to read:
2906          63A-5b-1105. Testing and inspection firm requirements.
2907          The director shall ensure that any person performing testing and inspection work
2908     governed by the American Society for Testing Materials Standard E-329 on a public building
2909     under the director's supervision:
2910          (1) fully complies with the American Society for Testing Materials standard

2911     specifications for an agency engaged in the testing and inspection of materials known as ASTM
2912     E-329; and
2913          (2) carries a minimum of $1,000,000 of errors and omissions insurance.
2914          Section 72. Section 63A-5b-1106, which is renumbered from Section 63A-5-222 is
2915     renumbered and amended to read:
2916          [63A-5-222].      63A-5b-1106. Critical land near state prison -- Definitions --
2917     Preservation as open land -- Management and use of land -- Restrictions on transfer --
2918     Wetlands development -- Conservation easement.
2919          (1) For purposes of this section:
2920          (a) "Corrections" means the Department of Corrections created under Section 64-13-2.
2921          (b) "Critical land" means:
2922          (i) a parcel of approximately 250 acres of land owned by the division and located on
2923     the east edge of the Jordan River between about 12300 South and 14600 South in Salt Lake
2924     County, approximately the southern half of whose eastern boundary abuts the Denver and Rio
2925     Grande Western Railroad right-of-way; and
2926          (ii) any parcel acquired in a transaction authorized under Subsection (3)(c) as a
2927     replacement for a portion of the parcel described in Subsection (1)(b)(i) that is conveyed as part
2928     of the transaction.
2929          (c) (i) "Open land" means land that is:
2930          (A) preserved in or restored to a predominantly natural, open, and undeveloped
2931     condition; and
2932          (B) used for:
2933          (I) wildlife habitat;
2934          (II) cultural or recreational use;
2935          (III) watershed protection; or
2936          (IV) another use consistent with the preservation of the land in or restoration of the
2937     land to a predominantly natural, open, and undeveloped condition.
2938          (ii) (A) "Open land" does not include land whose predominant use is as a developed
2939     facility for active recreational activities, including baseball, tennis, soccer, golf, or other
2940     sporting or similar activity.
2941          (B) The condition of land does not change from a natural, open, and undeveloped

2942     condition because of the development or presence on the land of facilities, including trails,
2943     waterways, and grassy areas, that:
2944          (I) enhance the natural, scenic, or aesthetic qualities of the land; or
2945          (II) facilitate the public's access to or use of the land for the enjoyment of its natural,
2946     scenic, or aesthetic qualities and for compatible recreational activities.
2947          (2) (a) (i) The critical land shall be preserved in perpetuity as open land.
2948          (ii) The long-term ownership and management of the critical land should eventually be
2949     turned over to the Department of Natural Resources created under Section 79-2-201 or another
2950     agency or entity that is able to accomplish the purposes and intent of this section.
2951          (b) Notwithstanding Subsection (2)(a)(i) and as funding is available, certain actions
2952     should be taken on or with respect to the critical land, including:
2953          (i) the development and implementation of a program to eliminate noxious vegetation
2954     and restore and facilitate the return of natural vegetation on the critical land;
2955          (ii) the development of a system of trails through the critical land that is compatible
2956     with the preservation of the critical land as open land;
2957          (iii) the development and implementation of a program to restore the natural features of
2958     and improve the flows of the Jordan River as it crosses the critical land;
2959          (iv) the preservation of the archeological site discovered on the critical land and the
2960     development of an interpretive site in connection with the archeological discovery;
2961          (v) in restoring features on the critical land, the adoption of methods and plans that will
2962     enhance the critical land's function as a wildlife habitat;
2963          (vi) taking measures to reduce safety risks on the critical land; and
2964          (vii) the elimination or rehabilitation of a prison dump site on the critical land.
2965          (3) (a) Except as provided in Subsections (3)(b) and (c), no interest in the critical land
2966     may be sold, assigned, leased, or otherwise transferred unless measures are taken to ensure that
2967     the critical land that is transferred will be preserved as open land in perpetuity.
2968          (b) Notwithstanding Subsection (3)(a), exchanges of property may be undertaken to
2969     resolve boundary disputes with adjacent property owners and easements may be granted for
2970     trails and other purposes consistent with Subsection (2)(b) and with the preservation of the
2971     critical land as open land.
2972          (c) The Department of Natural Resources may transfer title to a portion of the critical

2973     land described in Subsection (1)(b)(i) in exchange for a parcel of land if:
2974          (i) the parcel being acquired is:
2975          (A) open land; and
2976          (B) located within one mile of the portion of critical land being transferred; and
2977          (ii) the purpose of the exchange is to facilitate the development of a commuter rail
2978     transit station and associated transit oriented development.
2979          (4) The division shall use the funds remaining from the appropriation under Laws of
2980     Utah 1998, Chapter 399, for the purposes of:
2981          (a) determining the boundaries and legal description of the critical land;
2982          (b) determining the boundaries and legal description of the adjacent property owned by
2983     the division;
2984          (c) fencing the critical land and adjacent land owned by the division where appropriate
2985     and needed; and
2986          (d) assisting to carry out the intent of this section.
2987          (5) (a) Notwithstanding Subsection (2)(a)(i), the division or its successor in title to the
2988     critical land may develop or allow a public agency or private entity to develop more wetlands
2989     on the critical land than exist naturally or existed previously.
2990          (b) (i) Subject to Subsections (3)(a) and (5)(b)(ii), the division or its successor in title
2991     may transfer jurisdiction of all or a portion of the critical land to a public agency or private
2992     entity to provide for the development and management of wetlands and designated wetland
2993     buffer areas.
2994          (ii) Before transferring jurisdiction of any part of the critical land under Subsection
2995     (5)(b)(i), the division or its successor in title shall assure that reasonable efforts are made to
2996     obtain approval from the appropriate federal agency to allow mitigation credits in connection
2997     with the critical land to be used for impacts occurring anywhere along the Wasatch Front.
2998          (6) Notwithstanding any other provision of this section, corrections shall have access to
2999     the cooling pond located on the critical land as long as that access to and use of the cooling
3000     pond are not inconsistent with the preservation of the critical land as open land.
3001          (7) [The Department of] Corrections, the division, and all other state departments,
3002     divisions, or agencies shall cooperate together to carry out the intent of this section.
3003          (8) In order to ensure that the land referred to in this section is preserved as open land,

3004     the division shall, as soon as practicable, place the land under a perpetual conservation
3005     easement in favor of an independent party such as a reputable land conservation organization or
3006     a state or local government agency with experience in conservation easements.
3007          Section 73. Section 63A-5b-1107, which is renumbered from Section 63A-5-225 is
3008     renumbered and amended to read:
3009          [63A-5-225].      63A-5b-1107. Development of new correctional facilities.
3010          (1) As used in this section:
3011          (a) "Committee" means the Legislative Management Committee created in Section
3012     36-12-6.
3013          (b) "New correctional facilities" means a new prison and related facilities to be
3014     constructed to replace the state prison located in Draper.
3015          (c) "Prison project" means all aspects of a project for the design and construction of
3016     new correctional facilities on the selected site, including:
3017          (i) the acquisition of land, interests in land, easements, or rights-of-way;
3018          (ii) site improvement; and
3019          (iii) the acquisition, construction, equipping, or furnishing of facilities, structures,
3020     infrastructure, roads, parking facilities, utilities, and improvements, whether on or off the
3021     selected site, that are necessary, incidental, or convenient to the development of new
3022     correctional facilities on the selected site.
3023          (d) "Selected site" means the site selected [under Subsection 63C-15-203(2)] as the site
3024     for new correctional facilities.
3025          (2) In consultation with the committee, the division shall oversee the prison project, as
3026     provided in this section.
3027          (3) (a) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, and this
3028     section, the division shall:
3029          (i) enter into contracts with persons providing professional and construction services
3030     for the prison project;
3031          (ii) provide reports to the committee regarding the prison project, as requested by the
3032     [commission] committee; and
3033          (iii) consider input from the committee on the prison project, subject to Subsection
3034     (3)(b).

3035          (b) The division may not consult with or receive input from the committee regarding:
3036          (i) the evaluation of proposals from persons seeking to provide professional and
3037     construction services for the prison project; or
3038          (ii) the selection of persons to provide professional and construction services for the
3039     prison project.
3040          (c) A contract with a project manager or person with a comparable position on the
3041     prison project shall include a provision that requires the project manager or other person to
3042     provide reports to the committee regarding the prison project, as requested by the committee.
3043          (4) All contracts associated with the design or construction of new correctional
3044     facilities shall be awarded and managed by the division in accordance with Title 63G, Chapter
3045     6a, Utah Procurement Code, and this section.
3046          (5) The division shall coordinate with the Department of Corrections, created in
3047     Section 64-13-2, and the State Commission on Criminal and Juvenile Justice, created in
3048     Section 63M-7-201, during the prison project to help ensure that the design and construction of
3049     new correctional facilities are conducive to and consistent with, and help to implement any
3050     reforms of or changes to, the state's corrections system and corrections programs.
3051          (6) (a) There is created within the General Fund a restricted account known as the
3052     "Prison Development Restricted Account."
3053          (b) The account created in Subsection (6)(a) is funded by legislative appropriations.
3054          (c) (i) The account shall earn interest or other earnings.
3055          (ii) The Division of Finance shall deposit interest or other earnings derived from the
3056     investment of account funds into the account.
3057          (d) Upon appropriation from the Legislature, money from the account shall be used to
3058     fund the Prison Project Fund created in Subsection (7).
3059          (7) (a) There is created a capital projects fund known as the "Prison Project Fund."
3060          (b) The fund consists of:
3061          (i) money appropriated to the fund by the Legislature; and
3062          (ii) proceeds from the issuance of bonds authorized in Section 63B-25-101 to provide
3063     funding for the prison project.
3064          (c) (i) The fund shall earn interest or other earnings.
3065          (ii) The Division of Finance shall deposit interest or other earnings derived from the

3066     investment of fund money into the fund.
3067          (d) Money in the fund shall be used by the division to fund the prison project.
3068          Section 74. Section 63B-1-304 is amended to read:
3069          63B-1-304. State Building Ownership Authority created -- Members --
3070     Compensation -- Location in Department of Administrative Services.
3071          (1) There is created a body politic and corporate to be known as the State Building
3072     Ownership Authority composed of:
3073          (a) the governor;
3074          (b) the state treasurer; and
3075          (c) the chair of the [State Building Board] state building board created under Section
3076     [63A-5-101] 63A-5b-201.
3077          (2) A member may not receive compensation or benefits for the member's service, but
3078     may receive per diem and travel expenses in accordance with:
3079          (a) Section 63A-3-106;
3080          (b) Section 63A-3-107; and
3081          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
3082     63A-3-107.
3083          (3) (a) Upon request, the division shall provide staff support to the State Building
3084     Ownership Authority.
3085          (b) The State Building Ownership Authority may seek and obtain independent financial
3086     advice, support, and information from the state financial advisor created under Section
3087     67-4-16.
3088          Section 75. Section 63B-2-301 is amended to read:
3089          63B-2-301. Legislative intent -- Additional projects.
3090          It is the intent of the Legislature that:
3091          (1) The Department of Employment Security use money in the special administrative
3092     fund to plan, design, and construct a Davis County facility under the supervision of the director
3093     of the Division of Facilities Construction and Management unless supervisory authority is
3094     delegated by him as authorized by Section [63A-5-206] 63A-5b-604.
3095          (2) The University of Utah may use donated funds to plan, design, and construct the
3096     Nora Eccles Harrison addition under the supervision of the director of the Division of Facilities

3097     Construction and Management unless supervisory authority is delegated by him as authorized
3098     by Section [63A-5-206] 63A-5b-604.
3099          (3) The University of Utah may use hospital funds to plan, design, and construct the
3100     West Patient Services Building under the supervision of the director of the Division of
3101     Facilities Construction and Management unless supervisory authority is delegated by him as
3102     authorized by Section [63A-5-206] 63A-5b-604.
3103          (4) The University of Utah may use federal funds to plan, design, and construct the
3104     Computational Science Building under the supervision of the director of the Division of
3105     Facilities Construction and Management unless supervisory authority is delegated by him as
3106     authorized by Section [63A-5-206] 63A-5b-604.
3107          (5) The Board of Regents may issue revenue bonds to provide:
3108          (a) $6,700,000 to plan, design, and construct single student housing at Utah State
3109     University under the supervision of the director of the Division of Facilities Construction and
3110     Management unless supervisory authority is delegated by him as authorized by Section
3111     [63A-5-206] 63A-5b-604; and
3112          (b) additional money necessary to:
3113          (i) pay costs incident to the issuance and sale of the bonds;
3114          (ii) pay interest on the bonds that accrues during construction and acquisition of the
3115     project and for up to one year after construction is completed; and
3116          (iii) fund any reserve requirements for the bonds.
3117          (6) Utah State University may use federal funds to plan, design, and construct the
3118     Natural Resources Lab addition under the supervision of the director of the Division of
3119     Facilities Construction and Management unless supervisory authority is delegated by him as
3120     authorized by Section [63A-5-206] 63A-5b-604.
3121          (7) Utah State University may use funds derived from property sales to plan, design,
3122     and construct emergency relocation facilities for the Farmington Botanical Gardens under the
3123     supervision of the director of the Division of Facilities Construction and Management unless
3124     supervisory authority is delegated by him as authorized by Section [63A-5-206] 63A-5b-604.
3125          (8) Utah State University may use institutional funds to plan, design, and construct an
3126     institutional residence for the president under the supervision of the director of the Division of
3127     Facilities Construction and Management unless supervisory authority is delegated by him as

3128     authorized by Section [63A-5-206] 63A-5b-604.
3129          (9) Weber State University may use discretionary funds to construct a remodel and
3130     expansion of the stores building and mail service facilities under the supervision of the director
3131     of the Division of Facilities Construction and Management unless supervisory authority is
3132     delegated by him as authorized by Section [63A-5-206] 63A-5b-604.
3133          (10) Weber State University may use fees and auxiliary revenue to plan, design, and
3134     construct a remodel and expansion of the Shepherd Student Union Building under the
3135     supervision of the director of the Division of Facilities Construction and Management unless
3136     supervisory authority is delegated by him as authorized by Section [63A-5-206] 63A-5b-604.
3137          (11) Southern Utah University may use donated funds to plan, design, and construct an
3138     alumni house under the supervision of the director of the Division of Facilities Construction
3139     and Management unless supervisory authority is delegated by him as authorized by Section
3140     [63A-5-206] 63A-5b-604.
3141          (12) Utah State University Eastern may use auxiliary revenues and other fees to:
3142          (a) make lease or other payments;
3143          (b) redeem revenue bonds or repay loans issued on behalf of the college; and
3144          (c) plan, design, and construct a 200 person residence hall under the supervision of the
3145     director of the Division of Facilities Construction and Management unless supervisory
3146     authority is delegated by him as authorized by Section [63A-5-206] 63A-5b-604.
3147          (13) The Sevier Valley Applied Technology Center may use private and Community
3148     Impact Board funds, if approved, to plan, design, and construct a performing arts/multi-use
3149     facility under the supervision of the director of the Division of Facilities Construction and
3150     Management unless supervisory authority is delegated by him as authorized by Section
3151     [63A-5-206] 63A-5b-604.
3152          (14) Ogden City and Weber County may have offices and related space for their
3153     attorneys included in the Ogden Courts building if the city and county are able to provide
3154     upfront funding to cover all costs associated with the design and construction of that space. In
3155     addition, the city and county shall cover their proportionate share of all operations and
3156     maintenance costs of their facility, including future major repairs to the building.
3157          (15) If the Legislature authorizes the Division of Facilities Construction and
3158     Management to enter into a lease purchase agreement for the Department of Human Services

3159     facility at 1385 South State Street in Salt Lake City or for the State Board of Education facility
3160     and adjacent space in Salt Lake City, or for both of those facilities, the State Building
3161     Ownership Authority, at the reasonable rates and amounts it may determine, and with technical
3162     assistance from the state treasurer, the director of the Division of Finance, and the executive
3163     director of the Governor's Office of Management and Budget, may seek out the most cost
3164     effective lease purchase plans available to the state and may, pursuant to Title 63B, Chapter 1,
3165     Part 3, State Building Ownership Authority Act, certificate out interests in, or obligations of the
3166     authority pertaining to:
3167          (a) the lease purchase obligation; or
3168          (b) lease rental payments under the lease purchase obligation.
3169          (16) Salt Lake Community College may use donated funds to plan, design, and
3170     construct an amphitheater under the supervision of the director of the Division of Facilities
3171     Construction and Management unless supervisory authority is delegated by him as authorized
3172     by Section [63A-5-206] 63A-5b-604.
3173          (17) For the Tax Commission building, that:
3174          (a) All costs associated with the construction and furnishing of the Tax Commission
3175     building that are incurred before the issuance of the 1993 general obligation bonds be
3176     reimbursed by bond proceeds.
3177          (b) The maximum amount of cost that may be reimbursed from the 1993 general
3178     obligation bond proceeds for the Tax Commission building and furnishings may not exceed
3179     $14,230,000.
3180          (c) This intent statement for Subsection (17) constitutes a declaration of official intent
3181     under Section 1.103-18 of the U.S. Treasury Regulations.
3182          Section 76. Section 63B-4-201 is amended to read:
3183          63B-4-201. Legislative intent statements -- Capital facilities.
3184          (1) (a) It is the intent of the Legislature that the University of Utah use institutional and
3185     other funds to plan, design, and construct two campus child care centers under the supervision
3186     of the director of the Division of Facilities Construction and Management unless supervisory
3187     authority is delegated by the director.
3188          (b) The university shall work with Salt Lake City and the surrounding neighborhood to
3189     ensure site compatibility for future recreational development by the city.

3190          (2) It is the intent of the Legislature that the University of Utah use institutional funds
3191     to plan, design, and construct:
3192          (a) the Union Parking structure under the supervision of the director of the Division of
3193     Facilities Construction and Management unless supervisory authority is delegated by the
3194     director;
3195          (b) the stadium renovation under the supervision of the director of the Division of
3196     Facilities Construction and Management unless supervisory authority is delegated by the
3197     director;
3198          (c) the Huntsman Cancer Institute under the supervision of the director of the Division
3199     of Facilities Construction and Management unless supervisory authority is delegated by the
3200     director;
3201          (d) the Business Case Method Building under the supervision of the director of the
3202     Division of Facilities Construction and Management unless supervisory authority is delegated
3203     by the director; and
3204          (e) the Fine Arts Museum expansion under the supervision of the director of the
3205     Division of Facilities Construction and Management unless supervisory authority is delegated
3206     by the director.
3207          (3) It is the intent of the Legislature that Utah State University use institutional funds to
3208     plan, design, and construct:
3209          (a) a student health services facility under the supervision of the director of the
3210     Division of Facilities Construction and Management unless supervisory authority is delegated
3211     by the director;
3212          (b) a women's softball field under the supervision of the director of the Division of
3213     Facilities Construction and Management unless supervisory authority is delegated by the
3214     director;
3215          (c) an addition to the Nutrition and Food Services Building under the supervision of
3216     the director of the Division of Facilities Construction and Management unless supervisory
3217     authority is delegated by the director; and
3218          (d) a Human Resource Research Center under the supervision of the director of the
3219     Division of Facilities Construction and Management unless supervisory authority is delegated
3220     by the director.

3221          (4) It is the intent of the Legislature that Weber State University use institutional funds
3222     to plan, design, and construct:
3223          (a) a track renovation under the supervision of the director of the Division of Facilities
3224     Construction and Management unless supervisory authority is delegated by the director; and
3225          (b) the Dee Events Center offices under the supervision of the director of the Division
3226     of Facilities Construction and Management unless supervisory authority is delegated by the
3227     director.
3228          (5) It is the intent of the Legislature that Southern Utah University use:
3229          (a) institutional funds to plan, design, and construct an institutional residence under the
3230     supervision of the director of the Division of Facilities Construction and Management unless
3231     supervisory authority is delegated by the director; and
3232          (b) project revenues and other funds to plan, design, and construct the Shakespearean
3233     Festival support facilities under the supervision of the director of the Division of Facilities
3234     Construction and Management unless supervisory authority is delegated by the director.
3235          (6) It is the intent of the Legislature that Dixie College use institutional funds to plan,
3236     design, and construct an institutional residence under the supervision of the director of the
3237     Division of Facilities Construction and Management unless supervisory authority is delegated
3238     by the director.
3239          (7) It is the intent of the Legislature that the Division of Forestry, Fire, and State Lands
3240     use federal and other funds to plan, design, and construct a wetlands enhancement facility
3241     under the supervision of the director of the Division of Facilities Construction and
3242     Management unless supervisory authority is delegated by the director.
3243          (8) (a) As provided in Subsection [63A-5-209(2)] 63A-5b-609(2), the funds
3244     appropriated to the Project Reserve Fund may only be used for the award of contracts in excess
3245     of the construction budget if these funds are required to meet the intent of the project.
3246          (b) It is the intent of the Legislature that:
3247          (i) up to $2,000,000 of the amount may be used to award the construction contract for
3248     the Ogden Court Building; and
3249          (ii) the need for any funds remaining as of December 31, 1995 be reviewed by the 1996
3250     Legislature.
3251          (9) (a) It is the intent of the Legislature that the State Building Ownership Authority,

3252     under authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act, issue
3253     or execute obligations or enter into or arrange for a lease purchase agreement in which
3254     participation interests may be created to provide up to $539,700 for the purchase and
3255     demolition of the Keyston property and construction of parking facilities adjacent to the State
3256     Board of Education building in Salt Lake City, with additional amounts necessary to:
3257          (i) pay costs of issuance;
3258          (ii) pay capitalized interest; and
3259          (iii) fund any debt service reserve requirements.
3260          (b) It is the intent of the Legislature that the authority seek out the most cost effective
3261     and prudent lease purchase plan available with technical assistance from the state treasurer, the
3262     director of the Division of Finance, and the executive director of the Governor's Office of
3263     Management and Budget.
3264          (10) (a) It is the intent of the Legislature that the money appropriated for Phase One of
3265     the Remodeling/Life Safety Upgrades of the Browning Fine Arts Center at Weber State
3266     University is to include design of full code compliance, life safety, space necessary to maintain
3267     required programs, and seismic upgrades.
3268          (b) The design shall identify the full scope and cost of Phase Two of the remodeling for
3269     funding consideration in the fiscal year 1997 budget cycle.
3270          (11) It is the intent of the Legislature that:
3271          (a) the fiscal year 1996 appropriation for the Davis County Higher Education land
3272     purchase includes up to $250,000 for planning purposes;
3273          (b) the Division of Facilities Construction and Management, the Board of Regents, and
3274     the assigned institution of higher education work jointly to ensure the following elements are
3275     part of the planning process:
3276          (i) projections of student enrollment and programmatic needs for the next 10 years;
3277          (ii) review and make recommendations for better use of existing space, current
3278     technologies, public/private partnerships, and other alternatives as a means to reduce the need
3279     for new facilities and still accommodate the projected student needs; and
3280          (iii) use of a master plan that includes issues of utilities, access, traffic circulation,
3281     drainage, rights of way, future developments, and other infrastructure items considered
3282     appropriate; and

3283          (c) every effort is used to minimize expenditures for this part until a definitive decision
3284     has been made by BRACC relative to Hill Air Force Base.
3285          (12) (a) It is the intent of the Legislature that the State Building Ownership Authority,
3286     under authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act, issue
3287     or execute obligations or enter into or arrange for a lease purchase agreement in which
3288     participation interests may be created, to provide up to $7,400,000 for the acquisition and
3289     improvement of the Human Services Building located at 120 North 200 West, Salt Lake City,
3290     Utah, with associated parking for the Department of Human Services together with additional
3291     amounts necessary to:
3292          (i) pay costs of issuance;
3293          (ii) pay capitalized interest; and
3294          (iii) fund any debt service reserve requirements.
3295          (b) It is the intent of the Legislature that the authority seek out the most cost effective
3296     and prudent lease purchase plan available with technical assistance from the state treasurer, the
3297     director of the Division of Finance, and the executive director of the Governor's Office of
3298     Management and Budget.
3299          (13) (a) It is the intent of the Legislature that the State Building Ownership Authority,
3300     under authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act, issue
3301     or execute obligations or enter into or arrange for a lease purchase agreement in which
3302     participation interests may be created to provide up to $63,218,600 for the construction of a
3303     Salt Lake Courts Complex together with additional amounts necessary to:
3304          (i) pay costs of issuance;
3305          (ii) pay capitalized interest; and
3306          (iii) fund any debt service reserve requirements.
3307          (b) It is the intent of the Legislature that the authority seek out the most cost effective
3308     and prudent lease purchase plan available with technical assistance from the state treasurer, the
3309     director of the Division of Finance, and the executive director of the Governor's Office of
3310     Management and Budget.
3311          (c) It is the intent of the Legislature that the Division of Facilities Construction and
3312     Management lease land to the State Building Ownership Authority for the construction of a
3313     Salt Lake Courts Complex.

3314          (14) It is the intent of the Legislature that:
3315          (a) the Board of Regents use the higher education design project money to design no
3316     more than two higher education projects from among the following projects:
3317          (i) Utah State University Eastern - Student Center;
3318          (ii) Snow College - Noyes Building;
3319          (iii) University of Utah - Gardner Hall;
3320          (iv) Utah State University - Widtsoe Hall; or
3321          (v) Southern Utah University - Physical Education Building; and
3322          (b) the higher education institutions that receive approval from the Board of Regents to
3323     design projects under this chapter design those projects under the supervision of the director of
3324     the Division of Facilities Construction and Management unless supervisory authority is
3325     delegated by the director.
3326          (15) It is the intent of the Legislature that:
3327          (a) the Board of Regents may authorize the University of Utah to use institutional
3328     funds and donated funds to design Gardner Hall; and
3329          (b) if authorized by the Board of Regents, the University of Utah may use institutional
3330     funds and donated funds to design Gardner Hall under the supervision of the director of the
3331     Division of Facilities Construction and Management unless supervisory authority is delegated
3332     by the director.
3333          (16) It is the intent of the Legislature that the Division of Facilities Construction and
3334     Management use up to $250,000 of the capital improvement money to fund the site
3335     improvements required at the San Juan campus of the Utah State University Eastern.
3336          Section 77. Section 63B-9-103 is amended to read:
3337          63B-9-103. Other capital facility authorizations and intent language.
3338          (1) It is the intent of the Legislature that:
3339          (a) Utah State University use institutional funds to plan, design, and construct a
3340     renovation and expansion of the Edith Bowen School under the direction of the director of the
3341     Division of Facilities Construction and Management unless supervisory authority has been
3342     delegated;
3343          (b) no state funds be used for any portion of this project; and
3344          (c) the university may request state funds for operations and maintenance to the extent

3345     that the university is able to demonstrate to the Board of Regents that the facility meets
3346     approved academic and training purposes under Board of Regents policy R710.
3347          (2) It is the intent of the Legislature that:
3348          (a) the University of Utah use institutional funds to plan, design, and construct a
3349     College of Science Math Center under the direction of the director of the Division of Facilities
3350     Construction and Management unless supervisory authority has been delegated;
3351          (b) no state funds be used for any portion of this project; and
3352          (c) the university may request state funds for operations and maintenance to the extent
3353     that the university is able to demonstrate to the Board of Regents that the facility meets
3354     approved academic and training purposes under Board of Regents policy R710.
3355          (3) It is the intent of the Legislature that:
3356          (a) the University of Utah use institutional funds to plan, design, and construct a
3357     Burbidge Athletics and Academics Building under the direction of the director of the Division
3358     of Facilities Construction and Management unless supervisory authority has been delegated;
3359          (b) no state funds be used for any portion of this project; and
3360          (c) the university may not request state funds for operations and maintenance.
3361          (4) It is the intent of the Legislature that:
3362          (a) the University of Utah use institutional funds to plan, design, and construct an
3363     expansion to the bookstore under the direction of the director of the Division of Facilities
3364     Construction and Management unless supervisory authority has been delegated;
3365          (b) no state funds be used for any portion of this project; and
3366          (c) the university may not request state funds for operations and maintenance.
3367          (5) It is the intent of the Legislature that:
3368          (a) the University of Utah use institutional funds to plan, design, and construct a Health
3369     Sciences/Basic Sciences Building under the direction of the director of the Division of
3370     Facilities Construction and Management unless supervisory authority has been delegated;
3371          (b) no state funds be used for any portion of this project; and
3372          (c) the university may request state funds for operations and maintenance to the extent
3373     that the university is able to demonstrate to the Board of Regents that the facility meets
3374     approved academic and training purposes under Board of Regents policy R710.
3375          (6) It is the intent of the Legislature that:

3376          (a) Weber State University use institutional funds to plan, design, and construct an
3377     expansion to the stadium under the direction of the director of the Division of Facilities
3378     Construction and Management unless supervisory authority has been delegated;
3379          (b) no state funds be used for any portion of this project; and
3380          (c) the university may not request state funds for operations and maintenance.
3381          (7) It is the intent of the Legislature that:
3382          (a) Utah Valley State College use institutional funds to plan, design, and construct a
3383     baseball stadium under the direction of the director of the Division of Facilities Construction
3384     and Management unless supervisory authority has been delegated;
3385          (b) no state funds be used for any portion of this project; and
3386          (c) the college may not request state funds for operations and maintenance.
3387          (8) It is the intent of the Legislature that:
3388          (a) Southern Utah University use institutional funds to plan, design, and construct a
3389     weight training room under the direction of the director of the Division of Facilities
3390     Construction and Management unless supervisory authority has been delegated;
3391          (b) no state funds be used for any portion of this project; and
3392          (c) the university may not request state funds for operations and maintenance.
3393          (9) It is the intent of the Legislature that:
3394          (a) Snow College may lease land at the Snow College Richfield campus to a private
3395     developer for the construction and operation of student housing;
3396          (b) the oversight and inspection of the construction comply with Section [63A-5-206]
3397     63A-5b-604;
3398          (c) no state funds be used for any portion of this project; and
3399          (d) the college may not request state funds for operations and maintenance.
3400          (10) It is the intent of the Legislature that:
3401          (a) Salt Lake Community College may lease land at the Jordan campus to Jordan
3402     School District for the construction and operation of an Applied Technology Education Center;
3403          (b) the oversight and inspection of the construction comply with Section [63A-5-206]
3404     63A-5b-604;
3405          (c) no state funds be used for any portion of this project; and
3406          (d) the college may not request state funds for operations and maintenance.

3407          (11) It is the intent of the Legislature that:
3408          (a) the Department of Transportation exchange its maintenance station at Kimball
3409     Junction for property located near Highway 40 in Summit County; and
3410          (b) the Department of Transportation use federal funds, rent paid by the Salt Lake
3411     Organizing Committee for the use of the maintenance station, and any net proceeds resulting
3412     from the exchange of property to construct a replacement facility under the direction of the
3413     director of the Division of Facilities Construction and Management unless supervisory
3414     authority has been delegated.
3415          (12) It is the intent of the Legislature that:
3416          (a) the Department of Transportation sell surplus property in Utah County;
3417          (b) the Department of Transportation use funds from that sale to remodel existing
3418     space and add an addition to the Region 3 Complex; and
3419          (c) the project cost not exceed the funds received through sale of property.
3420          (13) It is the intent of the Legislature that the Department of Workforce Services use
3421     proceeds from property sales to purchase additional property adjacent to its state-owned facility
3422     in Logan.
3423          (14) (a) It is the intent of the Legislature that, because only partial funding is provided
3424     for the Heat Plant/Infrastructure Project at Utah State University, the balance necessary to
3425     complete this project be addressed by future Legislatures, either through appropriations or
3426     through the issuance of bonds.
3427          (b) (i) In compliance with Section [63A-5-207] 63A-5b-608, the division may enter
3428     into contracts for amounts not to exceed the anticipated full project funding but may not allow
3429     work to be performed on those contracts in excess of the funding already authorized by the
3430     Legislature.
3431          (ii) Those contracts shall contain a provision for termination of the contract for the
3432     convenience of the state.
3433          (c) It is also the intent of the Legislature that this authorization to the division does not
3434     bind future Legislatures to fund the Heat Plant/Infrastructure Project at Utah State University.
3435          Section 78. Section 63B-16-201 is amended to read:
3436          63B-16-201. Revenue bond authorizations -- State Building Ownership
3437     Authority.

3438          (1) It is the intent of the Legislature that:
3439          (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
3440     1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
3441     into or arrange for a lease-purchase agreement in which participation interests may be created,
3442     to provide up to $5,662,000 for the acquisition and construction of three stores for the
3443     Department of Alcoholic Beverage Control, together with additional amounts necessary to pay
3444     costs of issuance, pay capitalized interest, and fund any debt service reserve requirements;
3445          (b) the stores to be addressed through this authorization are:
3446          (i) expansion of the North Temple store in Salt Lake County;
3447          (ii) expansion of the Taylorsville store in Salt Lake County; and
3448          (iii) reconstruction of the Bountiful store in Davis County;
3449          (c) increased sales revenues be used as the primary revenue source for repayment of
3450     any obligation created under authority of this section; and
3451          (d) the Department of Alcoholic Beverage Control may request operation and
3452     maintenance funding from sales revenues.
3453          (2) 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 $1,476,000 for the acquisition and construction of a production warehouse for
3458     Utah Correctional Industries, together with additional amounts necessary to pay costs of
3459     issuance, pay capitalized interest, and fund any debt service reserve requirements;
3460          (b) Utah Correctional Industries' revenues be used as the primary revenue source for
3461     repayment of any obligation created under authority of this section;
3462          (c) Utah Correctional Industries may plan, design, and construct the production
3463     warehouse subject to requirements in Section [63A-5-206] 63A-5b-604; and
3464          (d) Utah Correctional Industries may not request state funds for operation and
3465     maintenance costs or capital improvements.
3466          Section 79. Section 63B-16-202 is amended to read:
3467          63B-16-202. Revenue bond authorizations -- Board of Regents.
3468          (1) It is the intent of the Legislature that:

3469          (a) when the University of Utah certifies to the Board of Regents that the university has
3470     obtained reliable commitments, convertible to cash, of $10,000,000 or more in nonstate funds
3471     to construct an on-campus student life center, the Board of Regents, on behalf of the University
3472     of Utah, may issue, sell, and deliver revenue bonds or other evidences of indebtedness of the
3473     University of Utah to borrow money on the credit, revenues, and reserves of the University of
3474     Utah, other than appropriations from the Legislature, to finance the cost of constructing an
3475     on-campus student life center;
3476          (b) student recreation fees and non-student fees be used as the primary revenue source
3477     for repayment of any obligation created under authority of this section;
3478          (c) the University of Utah may increase student recreation fees to not more than $60
3479     per semester for not more than 20 years, and use those revenues, together with the $15,000,000
3480     collected under Subsection (1)(a), to service the student life center revenue bond debt;
3481          (d) the bonds or other evidences of indebtedness authorized by this section may
3482     provide up to $42,500,000, together with other amounts necessary to pay costs of issuance, pay
3483     capitalized interest, and fund any debt service reserve requirements;
3484          (e) the University of Utah may plan, design, and construct the on-campus student life
3485     center subject to requirements in Section [63A-5-206] 63A-5b-604; and
3486          (f) the university may not request state funds for operation and maintenance costs or
3487     capital improvements.
3488          (2) It is the intent of the Legislature that:
3489          (a) the Board of Regents, on behalf of Southern Utah University, may issue, sell, and
3490     deliver revenue bonds or other evidences of indebtedness of Southern Utah University to
3491     borrow money on the credit, revenues, and reserves of Southern Utah University, other than
3492     appropriations of the Legislature, to finance the cost of constructing on-campus student
3493     dormitories;
3494          (b) student housing rental fees be used as the primary revenue source for repayment of
3495     any obligation created under authority of this section;
3496          (c) the bonds or other evidences of indebtedness authorized by this section may provide
3497     up to $17,500,000, together with other amounts necessary to pay costs of issuance, pay
3498     capitalized interest, and fund any debt service reserve requirements;
3499          (d) Southern Utah University may plan, design, and construct the on-campus student

3500     dormitories subject to requirements in Section [63A-5-206] 63A-5b-604; and
3501          (e) the university may not request state funds for operation and maintenance costs or
3502     capital improvements.
3503          Section 80. Section 63B-16-301 is amended to read:
3504          63B-16-301. Authorizations to construct capital facilities using institutional or
3505     agency funds.
3506          (1) It is the intent of the Legislature that:
3507          (a) Utah State University may, subject to requirements in Section [63A-5-206]
3508     63A-5b-604, plan, design, and construct a classroom building funded and owned by Tooele
3509     County on the university's Tooele campus;
3510          (b) no state funds be used for any portion of this project, including for future purchase
3511     or otherwise acquiring the building from Tooele County;
3512          (c) the university may not request state funds for operation and maintenance costs or
3513     capital improvements while the building is not owned by the university; and
3514          (d) the university may request state funds for operations and maintenance costs and
3515     capital improvements if the building is donated to the university and if the university is able to
3516     demonstrate to the Board of Regents that the facility meets approved academic and training
3517     purposes under Board of Regents policy R710.
3518          (2) It is the intent of the Legislature that:
3519          (a) Weber State University may, subject to requirements in Section [63A-5-206]
3520     63A-5b-604, use donations and other institutional funds to plan, design, and construct a
3521     Lifelong Learning Center;
3522          (b) no state funds be used for any portion of this project; and
3523          (c) the university may request state funds for operations and maintenance costs and
3524     capital improvements to the extent that the university is able to demonstrate to the Board of
3525     Regents that the facility meets approved academic and training purposes under Board of
3526     Regents policy R710.
3527          (3) It is the intent of the Legislature that:
3528          (a) Salt Lake Community College may, subject to requirements in Section [63A-5-206]
3529     63A-5b-604, use institutional funds to plan, design, and construct a Facilities/Security/Parking
3530     Services Building;

3531          (b) no state funds be used for any portion of this project; and
3532          (c) the college may request state funds for operations and maintenance costs and capital
3533     improvements to the extent that the college is able to demonstrate to the Board of Regents that
3534     the facility meets approved academic and training purposes under Board of Regents policy
3535     R710.
3536          Section 81. Section 63B-17-201 is amended to read:
3537          63B-17-201. Revenue bond authorizations -- State Building Ownership
3538     Authority.
3539          (1) The Legislature intends that:
3540          (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
3541     1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
3542     into or arrange for a lease purchase agreement in which participation interests may be created,
3543     to provide up to $90,000,000 for the acquisition and construction of phase II-B of a cancer
3544     clinical research hospital facility adjacent to the University of Utah Medical Center, together
3545     with additional amounts necessary to pay costs of issuance, pay capitalized interest, and fund
3546     any debt service reserve requirements;
3547          (b) the University of Utah use institutional funds as the primary revenue source for
3548     repayment of any obligation created under authority of this section;
3549          (c) the university may plan, design, and construct phase II-B of a cancer clinical
3550     research hospital facility subject to the requirements of Section [63A-5-206] 63A-5b-604; and
3551          (d) the university may not request state funds for operation and maintenance costs or
3552     capital improvements.
3553          (2) The Legislature intends that:
3554          (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
3555     1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
3556     into or arrange for a lease-purchase agreement in which participation interests may be created,
3557     to provide up to $23,700,000 for the acquisition and construction of five stores for the
3558     Department of Alcoholic Beverage Control, together with additional amounts necessary to pay
3559     costs of issuance, pay capitalized interest, and fund any debt service reserve requirements;
3560          (b) the stores to be addressed through this authorization are:
3561          (i) the replacement of a liquor store in Cedar City;

3562          (ii) a new Utah County North liquor store;
3563          (iii) a new Utah County South liquor store;
3564          (iv) a new Washington County South liquor store; and
3565          (v) a new Wasatch County Heber/Midway liquor store;
3566          (c) the Department of Alcoholic Beverage Control use increased sales revenues as the
3567     primary revenue source for repayment of any obligation created under authority of this section;
3568     and
3569          (d) the Department of Alcoholic Beverage Control may request operation and
3570     maintenance funding from sales revenues.
3571          Section 82. Section 63B-17-202 is amended to read:
3572          63B-17-202. Revenue bond authorizations -- Board of Regents.
3573          (1) The Legislature intends that:
3574          (a) the Board of Regents, on behalf of the University of Utah, may issue, sell, and
3575     deliver revenue bonds or other evidences of indebtedness of the University of Utah to borrow
3576     money on the credit, revenues, and reserves of the university, other than appropriations of the
3577     Legislature, to finance the cost of constructing a northwest campus parking structure;
3578          (b) the University of Utah use parking fees and donations as the primary revenue
3579     source for repayment of any obligation created under authority of this section;
3580          (c) the maximum amount of revenue bonds or other evidences of indebtedness
3581     authorized by this section is $21,280,000, together with other amounts necessary to pay costs
3582     of issuance, pay capitalized interest, and fund any debt service reserve requirements;
3583          (d) the university may plan, design, and construct the northwest campus parking
3584     structure subject to the requirements of Section [63A-5-206] 63A-5b-604; and
3585          (e) the university may not request state funds for operation and maintenance costs or
3586     capital improvements.
3587          (2) The Legislature intends that:
3588          (a) the Board of Regents, on behalf of Utah State University, may issue, sell, and
3589     deliver revenue bonds or other evidences of indebtedness of Utah State University to borrow
3590     money on the credit, revenues, and reserves of the university, other than appropriations of the
3591     Legislature, to finance the cost of constructing an early childhood education research center;
3592          (b) Utah State University use institutional funds as the primary revenue source for

3593     repayment of any obligation created under authority of this section;
3594          (c) the maximum amount of revenue bonds or other evidences of indebtedness
3595     authorized by this section is $15,828,000, together with other amounts necessary to pay costs
3596     of issuance, pay capitalized interest, and fund any debt service reserve requirements;
3597          (d) the university may plan, design, and construct the early childhood education
3598     research center subject to the requirements of Section [63A-5-206] 63A-5b-604; and
3599          (e) the university may request state funds for operation and maintenance costs and
3600     capital improvements to the extent that the university is able to demonstrate to the Board of
3601     Regents that the facility meets approved academic and training purposes under Board of
3602     Regents policy R710.
3603          (3) It is the intent of the Legislature that:
3604          (a) the Board of Regents, on behalf of Southern Utah University, may issue, sell, and
3605     deliver revenue bonds or other evidences of indebtedness of Southern Utah University to
3606     borrow money on the credit, revenues, and reserves of the university, other than appropriations
3607     of the Legislature, to finance the cost of constructing a Shakespearean theater;
3608          (b) Southern Utah University institutional funds be used as the primary revenue source
3609     for repayment of any obligation created under authority of this section;
3610          (c) the bonds or other evidences of indebtedness authorized by this section may provide
3611     up to $5,000,000, together with other amounts necessary to pay costs of issuance, pay
3612     capitalized interest, and fund any debt service reserve requirements;
3613          (d) the university may plan, design, and construct the theater subject to the
3614     requirements of Section [63A-5-206] 63A-5b-604; and
3615          (e) the university may request state funds for operation and maintenance costs and
3616     capital improvements to the extent that the university is able to demonstrate to the Board of
3617     Regents that the facility meets approved academic and training purposes under Board of
3618     Regents policy R710.
3619          Section 83. Section 63B-17-301 is amended to read:
3620          63B-17-301. Authorizations to construct capital facilities using institutional or
3621     agency funds.
3622          (1) The Legislature intends that:
3623          (a) the University of Utah may, subject to requirements in Section [63A-5-206]

3624     63A-5b-604, use clinical fees and donations to plan, design, and construct a neuropsychiatric
3625     institute expansion;
3626          (b) no state funds be used for any portion of this project; and
3627          (c) the university may not request state funds for operation and maintenance costs or
3628     capital improvements.
3629          (2) The Legislature intends that:
3630          (a) the University of Utah may, subject to the requirements of Section [63A-5-206]
3631     63A-5b-604, use donations to plan, design, and construct an arboretum visitor center addition;
3632          (b) no state funds be used for any portion of this project; and
3633          (c) the university may request state funds for operation and maintenance costs and
3634     capital improvements to the extent that the university is able to demonstrate to the Board of
3635     Regents that the facility meets approved academic and training purposes under Board of
3636     Regents policy R710.
3637          (3) The Legislature intends that:
3638          (a) Utah State University may, subject to the requirements of Section [63A-5-206]
3639     63A-5b-604, use donations to plan, design, and construct a business building addition;
3640          (b) no state funds be used for any portion of this project; and
3641          (c) the university may request state funds for operation and maintenance costs and
3642     capital improvements to the extent that the university is able to demonstrate to the Board of
3643     Regents that the facility meets approved academic and training purposes under Board of
3644     Regents policy R710.
3645          (4) The Legislature intends that:
3646          (a) Utah State University may, subject to the requirements of Section [63A-5-206]
3647     63A-5b-604, use donations to plan, design, and construct a Vernal entrepreneurship and energy
3648     research center;
3649          (b) no state funds be used for any portion of this project; and
3650          (c) the university may request state funds for operation and maintenance costs and
3651     capital improvements to the extent that the university is able to demonstrate to the Board of
3652     Regents that the facility meets approved academic and training purposes under Board of
3653     Regents policy R710.
3654          (5) The Legislature intends that:

3655          (a) Utah State University may, subject to the requirements of Section [63A-5-206]
3656     63A-5b-604, use research grants and other institutional funds to plan, design, and construct a
3657     hydraulics laboratory addition to the water laboratory;
3658          (b) no state funds be used for any portion of this project; and
3659          (c) the university may not request state funds for operation and maintenance costs or
3660     capital improvements.
3661          (6) The Legislature intends that:
3662          (a) Utah State University may, subject to the requirements of Section [63A-5-206]
3663     63A-5b-604, use insurance claim funds and other institutional funds to plan, design, and
3664     construct a structures laboratory enclosure;
3665          (b) no state funds be used for any portion of this project; and
3666          (c) the university may not request state funds for operation and maintenance costs or
3667     capital improvements.
3668          (7) The Legislature intends that:
3669          (a) Utah Valley University may, subject to the requirements of Section [63A-5-206]
3670     63A-5b-604, use donations to plan, design, and construct a children's theater;
3671          (b) no state funds be used for any portion of this project; and
3672          (c) the university may request state funds for operation and maintenance costs and
3673     capital improvements to the extent that the university is able to demonstrate to the Board of
3674     Regents that the facility meets approved academic and training purposes under Board of
3675     Regents policy R710.
3676          (8) The Legislature intends that:
3677          (a) Southern Utah University may, subject to the requirements of Section [63A-5-206]
3678     63A-5b-604, use donations to plan and design a science center addition;
3679          (b) this authorization and the existence of plans and designs do not guarantee nor
3680     improve the chances for legislative approval of the remainder of the building in any subsequent
3681     year; and
3682          (c) no state funds be used for any portion of this planning and design.
3683          Section 84. Section 63B-23-101 is amended to read:
3684          63B-23-101. Revenue bond authorizations -- Board of Regents.
3685          (1) The Legislature intends that:

3686          (a) the Board of Regents, on behalf of the University of Utah, may issue, sell, and
3687     deliver revenue bonds or other evidences of indebtedness of the University of Utah to borrow
3688     money on the credit, revenues, and reserves of the university, other than appropriations of the
3689     Legislature, to finance the cost of constructing the Lassonde Living Center;
3690          (b) the University of Utah use student fees and rents as the primary revenue sources for
3691     repayment of any obligation created under authority of this Subsection (1);
3692          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
3693     this Subsection (1) is $45,238,000, together with other amounts necessary to pay costs of
3694     issuance, pay capitalized interest, and fund any debt service reserve requirements;
3695          (d) the university shall plan, design, and construct the Lassonde Living Center subject
3696     to the requirements of Title 63A, Chapter 5, State Building Board - Division of Facilities
3697     Construction and Management; and
3698          (e) the university may not request state funds for operation and maintenance costs or
3699     capital improvements.
3700          (2) 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, except as provided in Subsection
3704     (2)(f), other than appropriations of the Legislature, to finance the cost of replacing the
3705     University of Utah's utility distribution infrastructure;
3706          (b) the University of Utah impose a power bill surcharge as the primary revenue source
3707     for the repayment of any obligation created under authority of this Subsection (2);
3708          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
3709     this Subsection (2) is $32,000,000 together with other amounts necessary to pay costs of
3710     issuance, pay capitalized interest, and fund any debt service reserve requirements;
3711          (d) the revenue bonds or evidences of indebtedness authorized by this Subsection (2)
3712     may not mature later than 10 years after the date of issuance;
3713          (e) the university shall plan, design, and construct the University of Utah's replacement
3714     utility distribution infrastructure subject to the requirements of Title 63A, Chapter 5, State
3715     Building Board - Division of Facilities Construction and Management; and
3716          (f) until July 1, 2024, the Division of Facilities Construction and Management annually

3717     allocate up to $1,500,000 of the capital improvement funding allocation given to the University
3718     of Utah under Section [63A-5-228] 63A-5b-405 to be used to pay the debt service on the bonds
3719     authorized under this Subsection (2).
3720          Section 85. Section 63B-25-101 is amended to read:
3721          63B-25-101. General obligation bonds for prison project -- Maximum amount --
3722     Use of proceeds.
3723          (1) As used in this section:
3724          (a) "Prison project" means the same as that term is defined in Section [63A-5-225]
3725     63A-5b-1107.
3726          (b) "Prison project fund" means the capital projects fund created in Subsection
3727     [63A-5-225(7)] 63A-5b-1107(7).
3728          (2) The commission may issue general obligation bonds as provided in this section.
3729          (3) (a) The total amount of bonds to be issued under this section may not exceed
3730     $570,000,000 for acquisition and construction proceeds, plus additional amounts necessary to
3731     pay costs of issuance, to pay capitalized interest, and to fund any existing debt service reserve
3732     requirements, with the total amount of the bonds not to exceed $575,700,000.
3733          (b) The maturity of bonds issued under this section may not exceed 10 years.
3734          (4) The commission shall ensure that proceeds from the issuance of bonds under this
3735     section are deposited into the Prison Project Fund for use by the division to pay all or part of
3736     the cost of the prison project, including:
3737          (a) interest estimated to accrue on the bonds authorized in this section until the
3738     completion of construction of the prison project, plus a period of 12 months after the end of
3739     construction; and
3740          (b) all related engineering, architectural, and legal fees.
3741          (5) (a) The division may enter into agreements related to the prison project before the
3742     receipt of proceeds of bonds issued under this section.
3743          (b) The division shall make those expenditures from unexpended and unencumbered
3744     building funds already appropriated to the Prison Project Fund.
3745          (c) The division shall reimburse the Prison Project Fund upon receipt of the proceeds
3746     of bonds issued under this chapter.
3747          (d) The state intends to use proceeds of tax-exempt bonds to reimburse itself for

3748     expenditures for costs of the prison project.
3749          (6) Before issuing bonds authorized under this section, the commission shall request
3750     and consider a recommendation from the Legislative Management Committee, created in
3751     Section 36-12-6, regarding the timing and amount of the issuance.
3752          Section 86. Section 63C-9-403 is amended to read:
3753          63C-9-403. Contracting power of executive director -- Health insurance coverage.
3754          (1) As used in this section:
3755          (a) "Aggregate" means the sum of all contracts, change orders, and modifications
3756     related to a single project.
3757          (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
3758          (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
3759     "operative" who:
3760          (i) works at least 30 hours per calendar week; and
3761          (ii) meets employer eligibility waiting requirements for health care insurance, which
3762     may not exceed the first of the calendar month following 60 days after the day on which the
3763     individual is hired.
3764          (d) "Health benefit plan" means the same as that term is defined in Section 31A-1-301.
3765          (e) "Qualified health insurance coverage" means the same as that term is defined in
3766     Section 26-40-115.
3767          (f) "Subcontractor" means the same as that term is defined in Section [63A-5-208]
3768     63A-5b-605.
3769          (2) Except as provided in Subsection (3), the requirements of this section apply to:
3770          (a) a contractor of a design or construction contract entered into by the board, or on
3771     behalf of the board, on or after July 1, 2009, if the prime contract is in an aggregate amount
3772     equal to or greater than $2,000,000; and
3773          (b) a subcontractor of a contractor of a design or construction contract entered into by
3774     the board, or on behalf of the board, on or after July 1, 2009, if the subcontract is in an
3775     aggregate amount equal to or greater than $1,000,000.
3776          (3) The requirements of this section do not apply to a contractor or subcontractor
3777     described in Subsection (2) if:
3778          (a) the application of this section jeopardizes the receipt of federal funds;

3779          (b) the contract is a sole source contract; or
3780          (c) the contract is an emergency procurement.
3781          (4) A person that intentionally uses change orders, contract modifications, or multiple
3782     contracts to circumvent the requirements of this section is guilty of an infraction.
3783          (5) (a) A contractor subject to the requirements of this section shall demonstrate to the
3784     executive director that the contractor has and will maintain an offer of qualified health
3785     insurance coverage for the contractor's employees and the employees' dependents during the
3786     duration of the contract by submitting to the executive director a written statement that:
3787          (i) the contractor offers qualified health insurance coverage that complies with Section
3788     26-40-115;
3789          (ii) is from:
3790          (A) an actuary selected by the contractor or the contractor's insurer; or
3791          (B) an underwriter who is responsible for developing the employer group's premium
3792     rates; and
3793          (iii) was created within one year before the day on which the statement is submitted.
3794          (b) A contractor that is subject to the requirements of this section shall:
3795          (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
3796     is subject to the requirements of this section shall obtain and maintain an offer of qualified
3797     health insurance coverage for the subcontractor's employees and the employees' dependents
3798     during the duration of the subcontract; and
3799          (ii) obtain from a subcontractor that is subject to the requirements of this section a
3800     written statement that:
3801          (A) the subcontractor offers qualified health insurance coverage that complies with
3802     Section 26-40-115;
3803          (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, or an
3804     underwriter who is responsible for developing the employer group's premium rates; and
3805          (C) was created within one year before the day on which the contractor obtains the
3806     statement.
3807          (c) (i) (A) A contractor that fails to maintain an offer of qualified health insurance
3808     coverage as described in Subsection (5)(a) during the duration of the contract is subject to
3809     penalties in accordance with administrative rules adopted by the division under Subsection (6).

3810          (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
3811     and maintain an offer of qualified health insurance coverage described in Subsection (5)(b)(i).
3812          (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
3813     insurance coverage described in Subsection (5)(b)(i) during the duration of the subcontract is
3814     subject to penalties in accordance with administrative rules adopted by the department under
3815     Subsection (6).
3816          (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
3817     an offer of qualified health insurance coverage described in Subsection (5)(a).
3818          (6) The department shall adopt administrative rules:
3819          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
3820          (b) in coordination with:
3821          (i) the Department of Environmental Quality in accordance with Section 19-1-206;
3822          (ii) the Department of Natural Resources in accordance with Section 79-2-404;
3823          (iii) the State Building Board in accordance with Section [63A-5-205.5] 63A-5b-607;
3824          (iv) a public transit district in accordance with Section 17B-2a-818.5;
3825          (v) the Department of Transportation in accordance with Section 72-6-107.5; and
3826          (vi) the Legislature's Administrative Rules Review Committee; and
3827          (c) that establish:
3828          (i) the requirements and procedures a contractor and a subcontractor shall follow to
3829     demonstrate compliance with this section, including:
3830          (A) that a contractor or subcontractor's compliance with this section is subject to an
3831     audit by the department or the Office of the Legislative Auditor General;
3832          (B) that a contractor that is subject to the requirements of this section shall obtain a
3833     written statement described in Subsection (5)(a); and
3834          (C) that a subcontractor that is subject to the requirements of this section shall obtain a
3835     written statement described in Subsection (5)(b)(ii);
3836          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
3837     violates the provisions of this section, which may include:
3838          (A) a three-month suspension of the contractor or subcontractor from entering into
3839     future contracts with the state upon the first violation;
3840          (B) a six-month suspension of the contractor or subcontractor from entering into future

3841     contracts with the state upon the second violation;
3842          (C) an action for debarment of the contractor or subcontractor in accordance with
3843     Section 63G-6a-904 upon the third or subsequent violation; and
3844          (D) monetary penalties which may not exceed 50% of the amount necessary to
3845     purchase qualified health insurance coverage for employees and dependents of employees of
3846     the contractor or subcontractor who were not offered qualified health insurance coverage
3847     during the duration of the contract; and
3848          (iii) a website on which the department shall post the commercially equivalent
3849     benchmark, for the qualified health insurance coverage identified in Subsection (1)(e), that is
3850     provided by the Department of Health, in accordance with Subsection 26-40-115(2).
3851          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
3852     or subcontractor who intentionally violates the provisions of this section is liable to the
3853     employee for health care costs that would have been covered by qualified health insurance
3854     coverage.
3855          (ii) An employer has an affirmative defense to a cause of action under Subsection
3856     (7)(a)(i) if:
3857          (A) the employer relied in good faith on a written statement described in Subsection
3858     (5)(a) or (5)(b)(ii); or
3859          (B) the department determines that compliance with this section is not required under
3860     the provisions of Subsection (3).
3861          (b) An employee has a private right of action only against the employee's employer to
3862     enforce the provisions of this Subsection (7).
3863          (8) Any penalties imposed and collected under this section shall be deposited into the
3864     Medicaid Restricted Account created in Section 26-18-402.
3865          (9) The failure of a contractor or subcontractor to provide qualified health insurance
3866     coverage as required by this section:
3867          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
3868     or contractor under:
3869          (i) Section 63G-6a-1602; or
3870          (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
3871          (b) may not be used by the procurement entity or a prospective bidder, offeror, or

3872     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
3873     or construction.
3874          Section 87. Section 63G-6a-103 is amended to read:
3875          63G-6a-103. Definitions.
3876          As used in this chapter:
3877          (1) "Applicable rulemaking authority" means:
3878          (a) for a legislative procurement unit, the Legislative Management Committee;
3879          (b) for a judicial procurement unit, the Judicial Council;
3880          (c) (i) only to the extent of the procurement authority expressly granted to the
3881     procurement unit by statute:
3882          (A) for the building board or the Division of Facilities Construction and Management,
3883     created in Section [63A-5-201] 63A-5b-301, the building board;
3884          (B) for the Office of the Attorney General, the attorney general; and
3885          (C) for the Department of Transportation created in Section 72-1-201, the executive
3886     director of the Department of Transportation; and
3887          (ii) for each other executive branch procurement unit, the board;
3888          (d) for a local government procurement unit:
3889          (i) the legislative body of the local government procurement unit; or
3890          (ii) an individual or body designated by the legislative body of the local government
3891     procurement unit;
3892          (e) for a school district or a public school, the board, except to the extent of a school
3893     district's own nonadministrative rules that do not conflict with the provisions of this chapter;
3894          (f) for a state institution of higher education described in:
3895          (i) Subsections 53B-1-102(1)(a) and (c), the State Board of Regents; or
3896          (ii) Subsection 53B-1-102(1)(b), the Utah System of Technical Colleges Board of
3897     Trustees;
3898          (g) for the State Board of Education or the Utah Schools for the Deaf and the Blind, the
3899     State Board of Education;
3900          (h) for a public transit district, the chief executive of the public transit district;
3901          (i) for a local district other than a public transit district or for a special service district:
3902          (i) before January 1, 2015, the board of trustees of the local district or the governing

3903     body of the special service district; or
3904          (ii) on or after January 1, 2015, the board, except to the extent that the board of trustees
3905     of the local district or the governing body of the special service district makes its own rules:
3906          (A) with respect to a subject addressed by board rules; or
3907          (B) that are in addition to board rules;
3908          (j) for the Utah Educational Savings Plan, created in Section 53B-8a-103, the board of
3909     directors of the Utah Educational Savings Plan;
3910          (k) for the School and Institutional Trust Lands Administration, created in Section
3911     53C-1-201, the School and Institutional Trust Lands Board of Trustees;
3912          (l) for the School and Institutional Trust Fund Office, created in Section 53D-1-201,
3913     the School and Institutional Trust Fund Board of Trustees;
3914          (m) for the Utah Communications Authority, established in Section 63H-7a-201, the
3915     Utah Communications Authority Board, created in Section 63H-7a-203; or
3916          (n) for any other procurement unit, the board.
3917          (2) "Approved vendor" means a person who has been approved for inclusion on an
3918     approved vendor list through the approved vendor list process.
3919          (3) "Approved vendor list" means a list of approved vendors established under Section
3920     63G-6a-507.
3921          (4) "Approved vendor list process" means the procurement process described in
3922     Section 63G-6a-507.
3923          (5) "Bidder" means a person who submits a bid or price quote in response to an
3924     invitation for bids.
3925          (6) "Bidding process" means the procurement process described in Part 6, Bidding.
3926          (7) "Board" means the Utah State Procurement Policy Board, created in Section
3927     63G-6a-202.
3928          (8) "Building board" means the State Building Board, created in Section [63A-5-101]
3929     63A-5b-201.
3930          (9) "Change directive" means a written order signed by the procurement officer that
3931     directs the contractor to suspend work or make changes, as authorized by contract, without the
3932     consent of the contractor.
3933          (10) "Change order" means a written alteration in specifications, delivery point, rate of

3934     delivery, period of performance, price, quantity, or other provisions of a contract, upon mutual
3935     agreement of the parties to the contract.
3936          (11) "Chief procurement officer" means the chief procurement officer appointed under
3937     Subsection 63G-6a-302(1).
3938          (12) "Conducting procurement unit" means a procurement unit that conducts all
3939     aspects of a procurement:
3940          (a) except:
3941          (i) reviewing a solicitation to verify that it is in proper form; and
3942          (ii) causing the publication of a notice of a solicitation; and
3943          (b) including:
3944          (i) preparing any solicitation document;
3945          (ii) appointing an evaluation committee;
3946          (iii) conducting the evaluation process, except as provided in Subsection
3947     63G-6a-707(6)(b) relating to scores calculated for costs of proposals;
3948          (iv) selecting and recommending the person to be awarded a contract;
3949          (v) negotiating the terms and conditions of a contract, subject to the issuing
3950     procurement unit's approval; and
3951          (vi) contract administration.
3952          (13) "Conservation district" means the same as that term is defined in Section
3953     17D-3-102.
3954          (14) "Construction":
3955          (a) means services, including work, and supplies for a project for the construction,
3956     renovation, alteration, improvement, or repair of a public facility on real property; and
3957          (b) does not include services and supplies for the routine, day-to-day operation, repair,
3958     or maintenance of an existing public facility.
3959          (15) "Construction manager/general contractor":
3960          (a) means a contractor who enters into a contract:
3961          (i) for the management of a construction project; and
3962          (ii) that allows the contractor to subcontract for additional labor and materials that are
3963     not included in the contractor's cost proposal submitted at the time of the procurement of the
3964     contractor's services; and

3965          (b) does not include a contractor whose only subcontract work not included in the
3966     contractor's cost proposal submitted as part of the procurement of the contractor's services is to
3967     meet subcontracted portions of change orders approved within the scope of the project.
3968          (16) "Construction subcontractor":
3969          (a) means a person under contract with a contractor or another subcontractor to provide
3970     services or labor for the design or construction of a construction project;
3971          (b) includes a general contractor or specialty contractor licensed or exempt from
3972     licensing under Title 58, Chapter 55, Utah Construction Trades Licensing Act; and
3973          (c) does not include a supplier who provides only materials, equipment, or supplies to a
3974     contractor or subcontractor for a construction project.
3975          (17) "Contract" means an agreement for a procurement.
3976          (18) "Contract administration" means all functions, duties, and responsibilities
3977     associated with managing, overseeing, and carrying out a contract between a procurement unit
3978     and a contractor, including:
3979          (a) implementing the contract;
3980          (b) ensuring compliance with the contract terms and conditions by the conducting
3981     procurement unit and the contractor;
3982          (c) executing change orders;
3983          (d) processing contract amendments;
3984          (e) resolving, to the extent practicable, contract disputes;
3985          (f) curing contract errors and deficiencies;
3986          (g) terminating a contract;
3987          (h) measuring or evaluating completed work and contractor performance;
3988          (i) computing payments under the contract; and
3989          (j) closing out a contract.
3990          (19) "Contractor" means a person who is awarded a contract with a procurement unit.
3991          (20) "Cooperative procurement" means procurement conducted by, or on behalf of:
3992          (a) more than one procurement unit; or
3993          (b) a procurement unit and a cooperative purchasing organization.
3994          (21) "Cooperative purchasing organization" means an organization, association, or
3995     alliance of purchasers established to combine purchasing power in order to obtain the best

3996     value for the purchasers by engaging in procurements in accordance with Section 63G-6a-2105.
3997          (22) "Cost-plus-a-percentage-of-cost contract" means a contract under which the
3998     contractor is paid a percentage of the total actual expenses or costs in addition to the
3999     contractor's actual expenses or costs.
4000          (23) "Cost-reimbursement contract" means a contract under which a contractor is
4001     reimbursed for costs which are allowed and allocated in accordance with the contract terms and
4002     the provisions of this chapter, and a fee, if any.
4003          (24) "Days" means calendar days, unless expressly provided otherwise.
4004          (25) "Definite quantity contract" means a fixed price contract that provides for a
4005     specified amount of supplies over a specified period, with deliveries scheduled according to a
4006     specified schedule.
4007          (26) "Design professional" means:
4008          (a) an individual licensed as an architect under Title 58, Chapter 3a, Architects
4009     Licensing Act;
4010          (b) an individual licensed as a professional engineer or professional land surveyor
4011     under Title 58, Chapter 22, Professional Engineers and Professional Land Surveyors Licensing
4012     Act; or
4013          (c) an individual certified as a commercial interior designer under Title 58, Chapter 86,
4014     State Certification of Commercial Interior Designers Act.
4015          (27) "Design professional procurement process" means the procurement process
4016     described in Part 15, Design Professional Services.
4017          (28) "Design professional services" means:
4018          (a) professional services within the scope of the practice of architecture as defined in
4019     Section 58-3a-102;
4020          (b) professional engineering as defined in Section 58-22-102;
4021          (c) master planning and programming services; or
4022          (d) services within the scope of the practice of commercial interior design, as defined
4023     in Section 58-86-102.
4024          (29) "Design-build" means the procurement of design professional services and
4025     construction by the use of a single contract.
4026          (30) "Director" means the director of the division.

4027          (31) "Division" means the Division of Purchasing and General Services, created in
4028     Section 63A-2-101.
4029          (32) "Educational procurement unit" means:
4030          (a) a school district;
4031          (b) a public school, including a local school board or a charter school;
4032          (c) the Utah Schools for the Deaf and the Blind;
4033          (d) the Utah Education and Telehealth Network;
4034          (e) an institution of higher education of the state described in Section 53B-1-102; or
4035          (f) the State Board of Education.
4036          (33) "Established catalogue price" means the price included in a catalogue, price list,
4037     schedule, or other form that:
4038          (a) is regularly maintained by a manufacturer or contractor;
4039          (b) is published or otherwise available for inspection by customers; and
4040          (c) states prices at which sales are currently or were last made to a significant number
4041     of any category of buyers or buyers constituting the general buying public for the supplies or
4042     services involved.
4043          (34) "Executive branch procurement unit" means a department, division, office,
4044     bureau, agency, or other organization within the state executive branch.
4045          (35) "Fixed price contract" means a contract that provides a price, for each
4046     procurement item obtained under the contract, that is not subject to adjustment except to the
4047     extent that:
4048          (a) the contract provides, under circumstances specified in the contract, for an
4049     adjustment in price that is not based on cost to the contractor; or
4050          (b) an adjustment is required by law.
4051          (36) "Fixed price contract with price adjustment" means a fixed price contract that
4052     provides for an upward or downward revision of price, precisely described in the contract, that:
4053          (a) is based on the consumer price index or another commercially acceptable index,
4054     source, or formula; and
4055          (b) is not based on a percentage of the cost to the contractor.
4056          (37) "Grant" means an expenditure of public funds or other assistance, or an agreement
4057     to expend public funds or other assistance, for a public purpose authorized by law, without

4058     acquiring a procurement item in exchange.
4059          (38) "Head of a procurement unit" means:
4060          (a) for a legislative procurement unit, any person designated by rule made by the
4061     applicable rulemaking authority;
4062          (b) for an executive branch procurement unit:
4063          (i) the director of the division; or
4064          (ii) any other person designated by the board, by rule;
4065          (c) for a judicial procurement unit:
4066          (i) the Judicial Council; or
4067          (ii) any other person designated by the Judicial Council, by rule;
4068          (d) for a local government procurement unit:
4069          (i) the legislative body of the local government procurement unit; or
4070          (ii) any other person designated by the local government procurement unit;
4071          (e) for a local district other than a public transit district, the board of trustees of the
4072     local district or a designee of the board of trustees;
4073          (f) for a special service district, the governing body of the special service district or a
4074     designee of the governing body;
4075          (g) for a local building authority, the board of directors of the local building authority
4076     or a designee of the board of directors;
4077          (h) for a conservation district, the board of supervisors of the conservation district or a
4078     designee of the board of supervisors;
4079          (i) for a public corporation, the board of directors of the public corporation or a
4080     designee of the board of directors;
4081          (j) for a school district or any school or entity within a school district, the board of the
4082     school district, or the board's designee;
4083          (k) for a charter school, the individual or body with executive authority over the charter
4084     school, or the individual's or body's designee;
4085          (l) for an institution of higher education described in Section 53B-2-101, the president
4086     of the institution of higher education, or the president's designee;
4087          (m) for a public transit district, the board of trustees or a designee of the board of
4088     trustees;

4089          (n) for the State Board of Education, the State Board of Education or a designee of the
4090     State Board of Education; or
4091          (o) for the Utah Communications Authority, established in Section 63H-7a-201, the
4092     executive director of the Utah Communications Authority or a designee of the executive
4093     director.
4094          (39) "Immaterial error":
4095          (a) means an irregularity or abnormality that is:
4096          (i) a matter of form that does not affect substance; or
4097          (ii) an inconsequential variation from a requirement of a solicitation that has no, little,
4098     or a trivial effect on the procurement process and that is not prejudicial to other vendors; and
4099          (b) includes:
4100          (i) a missing signature, missing acknowledgment of an addendum, or missing copy of a
4101     professional license, bond, or insurance certificate;
4102          (ii) a typographical error;
4103          (iii) an error resulting from an inaccuracy or omission in the solicitation; and
4104          (iv) any other error that the chief procurement officer or the head of a procurement unit
4105     with independent procurement authority reasonably considers to be immaterial.
4106          (40) "Indefinite quantity contract" means a fixed price contract that:
4107          (a) is for an indefinite amount of procurement items to be supplied as ordered by a
4108     procurement unit; and
4109          (b) (i) does not require a minimum purchase amount; or
4110          (ii) provides a maximum purchase limit.
4111          (41) "Independent procurement authority" means authority granted to a procurement
4112     unit under Subsection 63G-6a-106(4)(a).
4113          (42) "Invitation for bids":
4114          (a) means a document used to solicit:
4115          (i) bids to provide a procurement item to a procurement unit; or
4116          (ii) quotes for a price of a procurement item to be provided to a procurement unit; and
4117          (b) includes all documents attached to or incorporated by reference in a document
4118     described in Subsection (42)(a).
4119          (43) "Issuing procurement unit" means a procurement unit that:

4120          (a) reviews a solicitation to verify that it is in proper form;
4121          (b) causes the notice of a solicitation to be published; and
4122          (c) negotiates and approves the terms and conditions of a contract.
4123          (44) "Judicial procurement unit" means:
4124          (a) the Utah Supreme Court;
4125          (b) the Utah Court of Appeals;
4126          (c) the Judicial Council;
4127          (d) a state judicial district; or
4128          (e) an office, committee, subcommittee, or other organization within the state judicial
4129     branch.
4130          (45) "Labor hour contract" is a contract under which:
4131          (a) the supplies and materials are not provided by, or through, the contractor; and
4132          (b) the contractor is paid a fixed rate that includes the cost of labor, overhead, and
4133     profit for a specified number of labor hours or days.
4134          (46) "Legislative procurement unit" means:
4135          (a) the Legislature;
4136          (b) the Senate;
4137          (c) the House of Representatives;
4138          (d) a staff office of the Legislature, the Senate, or the House of Representatives; or
4139          (e) a committee, subcommittee, commission, or other organization:
4140          (i) within the state legislative branch; or
4141          (ii) (A) that is created by statute to advise or make recommendations to the Legislature;
4142          (B) the membership of which includes legislators; and
4143          (C) for which the Office of Legislative Research and General Counsel provides staff
4144     support.
4145          (47) "Local building authority" means the same as that term is defined in Section
4146     17D-2-102.
4147          (48) "Local district" means the same as that term is defined in Section 17B-1-102.
4148          (49) "Local government procurement unit" means:
4149          (a) a county or municipality, and each office or agency of the county or municipality,
4150     unless the county or municipality adopts its own procurement code by ordinance;

4151          (b) a county or municipality that has adopted this entire chapter by ordinance, and each
4152     office or agency of that county or municipality; or
4153          (c) a county or municipality that has adopted a portion of this chapter by ordinance, to
4154     the extent that a term in the ordinance is used in the adopted portion of this chapter, and each
4155     office or agency of that county or municipality.
4156          (50) "Multiple award contracts" means the award of a contract for an indefinite
4157     quantity of a procurement item to more than one person.
4158          (51) "Multiyear contract" means a contract that extends beyond a one-year period,
4159     including a contract that permits renewal of the contract, without competition, beyond the first
4160     year of the contract.
4161          (52) "Municipality" means a city, town, or metro township.
4162          (53) "Nonadopting local government procurement unit" means:
4163          (a) a county or municipality that has not adopted Part 16, Protests, Part 17,
4164     Procurement Appeals Board, Part 18, Appeals to Court and Court Proceedings, and Part 19,
4165     General Provisions Related to Protest or Appeal; and
4166          (b) each office or agency of a county or municipality described in Subsection (53)(a).
4167          (54) "Offeror" means a person who submits a proposal in response to a request for
4168     proposals.
4169          (55) "Preferred bidder" means a bidder that is entitled to receive a reciprocal preference
4170     under the requirements of this chapter.
4171          (56) "Procure" means to acquire a procurement item through a procurement.
4172          (57) "Procurement":
4173          (a) means a procurement unit's acquisition of a procurement item through an
4174     expenditure of public funds, or an agreement to expend public funds, including an acquisition
4175     through a public-private partnership;
4176          (b) includes all functions that pertain to the acquisition of a procurement item,
4177     including:
4178          (i) preparing and issuing a solicitation; and
4179          (ii) (A) conducting a standard procurement process; or
4180          (B) conducting a procurement process that is an exception to a standard procurement
4181     process under Part 8, Exceptions to Procurement Requirements; and

4182          (c) does not include a grant.
4183          (58) "Procurement item" means a supply, a service, or construction.
4184          (59) "Procurement officer" means:
4185          (a) for a procurement unit with independent procurement authority:
4186          (i) the head of the procurement unit;
4187          (ii) a designee of the head of the procurement unit; or
4188          (iii) a person designated by rule made by the applicable rulemaking authority; or
4189          (b) for the division or a procurement unit without independent procurement authority,
4190     the chief procurement officer.
4191          (60) "Procurement unit":
4192          (a) means:
4193          (i) a legislative procurement unit;
4194          (ii) an executive branch procurement unit;
4195          (iii) a judicial procurement unit;
4196          (iv) an educational procurement unit;
4197          (v) the Utah Communications Authority, established in Section 63H-7a-201;
4198          (vi) a local government procurement unit;
4199          (vii) a local district;
4200          (viii) a special service district;
4201          (ix) a local building authority;
4202          (x) a conservation district;
4203          (xi) a public corporation; or
4204          (xii) a public transit district; and
4205          (b) does not include a political subdivision created under Title 11, Chapter 13,
4206     Interlocal Cooperation Act.
4207          (61) "Professional service" means labor, effort, or work that requires an elevated
4208     degree of specialized knowledge and discretion, including labor, effort, or work in the field of:
4209          (a) accounting;
4210          (b) administrative law judge service;
4211          (c) architecture;
4212          (d) construction design and management;

4213          (e) engineering;
4214          (f) financial services;
4215          (g) information technology;
4216          (h) the law;
4217          (i) medicine;
4218          (j) psychiatry; or
4219          (k) underwriting.
4220          (62) "Protest officer" means:
4221          (a) for the division or a procurement unit with independent procurement authority:
4222          (i) the head of the procurement unit;
4223          (ii) the head of the procurement unit's designee who is an employee of the procurement
4224     unit; or
4225          (iii) a person designated by rule made by the applicable rulemaking authority; or
4226          (b) for a procurement unit without independent procurement authority, the chief
4227     procurement officer or the chief procurement officer's designee who is an employee of the
4228     division .
4229          (63) "Public corporation" means the same as that term is defined in Section 63E-1-102.
4230          (64) "Public entity" means any government entity of the state or political subdivision of
4231     the state, including:
4232          (a) a procurement unit;
4233          (b) a municipality or county, regardless of whether the municipality or county has
4234     adopted this chapter or any part of this chapter; and
4235          (c) any other government entity located in the state that expends public funds.
4236          (65) "Public facility" means a building, structure, infrastructure, improvement, or other
4237     facility of a public entity.
4238          (66) "Public funds" means money, regardless of its source, including from the federal
4239     government, that is owned or held by a procurement unit.
4240          (67) "Public transit district" means a public transit district organized under Title 17B,
4241     Chapter 2a, Part 8, Public Transit District Act.
4242          (68) "Public-private partnership" means an arrangement or agreement, occurring on or
4243     after January 1, 2017, between a procurement unit and one or more contractors to provide for a

4244     public need through the development or operation of a project in which the contractor or
4245     contractors share with the procurement unit the responsibility or risk of developing, owning,
4246     maintaining, financing, or operating the project.
4247          (69) "Qualified vendor" means a vendor who:
4248          (a) is responsible; and
4249          (b) submits a responsive statement of qualifications under Section 63G-6a-410 that
4250     meets the minimum mandatory requirements, evaluation criteria, and any applicable score
4251     thresholds set forth in the request for statement of qualifications.
4252          (70) "Real property" means land and any building, fixture, improvement, appurtenance,
4253     structure, or other development that is permanently affixed to land.
4254          (71) "Request for information" means a nonbinding process through which a
4255     procurement unit requests information relating to a procurement item.
4256          (72) "Request for proposals" means a document used to solicit proposals to provide a
4257     procurement item to a procurement unit, including all other documents that are attached to that
4258     document or incorporated in that document by reference.
4259          (73) "Request for proposals process" means the procurement process described in Part
4260     7, Request for Proposals.
4261          (74) "Request for statement of qualifications" means a document used to solicit
4262     information about the qualifications of a person interested in responding to a potential
4263     procurement, including all other documents attached to that document or incorporated in that
4264     document by reference.
4265          (75) "Requirements contract" means a contract:
4266          (a) under which a contractor agrees to provide a procurement unit's entire requirements
4267     for certain procurement items at prices specified in the contract during the contract period; and
4268          (b) that:
4269          (i) does not require a minimum purchase amount; or
4270          (ii) provides a maximum purchase limit.
4271          (76) "Responsible" means being capable, in all respects, of:
4272          (a) meeting all the requirements of a solicitation; and
4273          (b) fully performing all the requirements of the contract resulting from the solicitation,
4274     including being financially solvent with sufficient financial resources to perform the contract.

4275          (77) "Responsive" means conforming in all material respects to the requirements of a
4276     solicitation.
4277          (78) "Sealed" means manually or electronically secured to prevent disclosure.
4278          (79) "Service":
4279          (a) means labor, effort, or work to produce a result that is beneficial to a procurement
4280     unit;
4281          (b) includes a professional service; and
4282          (c) does not include labor, effort, or work provided under an employment agreement or
4283     a collective bargaining agreement.
4284          (80) "Small purchase process" means the procurement process described in Section
4285     63G-6a-506.
4286          (81) "Sole source contract" means a contract resulting from a sole source procurement.
4287          (82) "Sole source procurement" means a procurement without competition pursuant to
4288     a determination under Subsection 63G-6a-802(1)(a) that there is only one source for the
4289     procurement item.
4290          (83) "Solicitation" means an invitation for bids, request for proposals, request for
4291     statement of qualifications, or request for information.
4292          (84) "Solicitation response" means:
4293          (a) a bid submitted in response to an invitation for bids;
4294          (b) a proposal submitted in response to a request for proposals; or
4295          (c) a statement of qualifications submitted in response to a request for statement of
4296     qualifications.
4297          (85) "Special service district" means the same as that term is defined in Section
4298     17D-1-102.
4299          (86) "Specification" means any description of the physical or functional characteristics
4300     or of the nature of a procurement item included in an invitation for bids or a request for
4301     proposals, or otherwise specified or agreed to by a procurement unit, including a description of:
4302          (a) a requirement for inspecting or testing a procurement item; or
4303          (b) preparing a procurement item for delivery.
4304          (87) "Standard procurement process" means:
4305          (a) the bidding process;

4306          (b) the request for proposals process;
4307          (c) the approved vendor list process;
4308          (d) the small purchase process; or
4309          (e) the design professional procurement process.
4310          (88) "State cooperative contract" means a contract awarded by the division for and in
4311     behalf of all public entities.
4312          (89) "Statement of qualifications" means a written statement submitted to a
4313     procurement unit in response to a request for statement of qualifications.
4314          (90) "Subcontractor":
4315          (a) means a person under contract to perform part of a contractual obligation under the
4316     control of the contractor, whether the person's contract is with the contractor directly or with
4317     another person who is under contract to perform part of a contractual obligation under the
4318     control of the contractor; and
4319          (b) includes a supplier, distributor, or other vendor that furnishes supplies or services
4320     to a contractor.
4321          (91) "Supply" means a good, material, technology, piece of equipment, or any other
4322     item of personal property.
4323          (92) "Tie bid" means that the lowest responsive bids of responsible bidders are
4324     identical in price.
4325          (93) "Time and materials contract" means a contract under which the contractor is paid:
4326          (a) the actual cost of direct labor at specified hourly rates;
4327          (b) the actual cost of materials and equipment usage; and
4328          (c) an additional amount, expressly described in the contract, to cover overhead and
4329     profit, that is not based on a percentage of the cost to the contractor.
4330          (94) "Transitional costs":
4331          (a) means the costs of changing:
4332          (i) from an existing provider of a procurement item to another provider of that
4333     procurement item; or
4334          (ii) from an existing type of procurement item to another type;
4335          (b) includes:
4336          (i) training costs;

4337          (ii) conversion costs;
4338          (iii) compatibility costs;
4339          (iv) costs associated with system downtime;
4340          (v) disruption of service costs;
4341          (vi) staff time necessary to implement the change;
4342          (vii) installation costs; and
4343          (viii) ancillary software, hardware, equipment, or construction costs; and
4344          (c) does not include:
4345          (i) the costs of preparing for or engaging in a procurement process; or
4346          (ii) contract negotiation or drafting costs.
4347          (95) "Trial use contract" means a contract for a procurement item that the procurement
4348     unit acquires for a trial use or testing to determine whether the procurement item will benefit
4349     the procurement unit.
4350          (96) "Vendor":
4351          (a) means a person who is seeking to enter into a contract with a procurement unit to
4352     provide a procurement item; and
4353          (b) includes:
4354          (i) a bidder;
4355          (ii) an offeror;
4356          (iii) an approved vendor;
4357          (iv) a design professional; and
4358          (v) a person who submits an unsolicited proposal under Section 63G-6a-712.
4359          Section 88. Section 63H-6-102 is amended to read:
4360          63H-6-102. Definitions.
4361          As used in this chapter:
4362          (1) "Board" means the board of directors of the corporation.
4363          (2) "Business related experience" means at least three years of professional experience
4364     in business administration, marketing, advertising, economic development, or a related field.
4365          (3) "Capital [developments] development" means the same as [that term is] capital
4366     development project, as defined in Section [63A-5-104] 63A-5b-401.
4367          (4) "Capital improvements" means the same as that term is defined in Section

4368     [63A-5-104] 63A-5b-401.
4369          (5) "Corporation" means the Utah State Fair Corporation created by this chapter.
4370          (6) "Corporation bond" means a bond issued by the corporation in accordance with Part
4371     2, Bonding Authority.
4372          (7) "Division" means the Division of Facilities Construction and Management created
4373     in Section [63A-5-201] 63A-5b-301.
4374          (8) "Executive director" means the executive director hired by the board in accordance
4375     with Section 63H-6-105.
4376          (9) (a) "State fair park" means the property owned by the state located at:
4377          (i) 155 North 1000 West, Salt Lake City, Utah, consisting of approximately 50 acres;
4378          (ii) 1139 West North Temple, Salt Lake City, Utah, consisting of approximately 10.5
4379     acres; and
4380          (iii) 1220 West North Temple, Salt Lake City, Utah, consisting of approximately two
4381     acres.
4382          (b) "State fair park" includes each building and each improvement on the property
4383     described in Subsection (9)(a) that is owned by the state.
4384          Section 89. Section 63H-6-103 is amended to read:
4385          63H-6-103. Utah State Fair Corporation -- Legal status -- Powers.
4386          (1) There is created an independent public nonprofit corporation known as the "Utah
4387     State Fair Corporation."
4388          (2) The board shall file articles of incorporation for the corporation with the Division
4389     of Corporations and Commercial Code.
4390          (3) The corporation, subject to this chapter, has all powers and authority permitted
4391     nonprofit corporations by law.
4392          (4) The corporation shall:
4393          (a) manage, supervise, and control:
4394          (i) all activities relating to the annual exhibition described in Subsection (4)(j); and
4395          (ii) except as otherwise provided by statute, all state expositions, including setting the
4396     time, place, and purpose of any state exposition;
4397          (b) for public entertainment, displays, and exhibits or similar events:
4398          (i) provide, sponsor, or arrange the events;

4399          (ii) publicize and promote the events; and
4400          (iii) secure funds to cover the cost of the exhibits from:
4401          (A) private contributions;
4402          (B) public appropriations;
4403          (C) admission charges; and
4404          (D) other lawful means;
4405          (c) acquire and designate exposition sites;
4406          (d) use generally accepted accounting principles in accounting for the corporation's
4407     assets, liabilities, and operations;
4408          (e) seek corporate sponsorships for the state fair park or for individual buildings or
4409     facilities within the fair park;
4410          (f) work with county and municipal governments, the Salt Lake Convention and
4411     Visitor's Bureau, the Utah Travel Council, and other entities to develop and promote
4412     expositions and the use of the state fair park;
4413          (g) develop and maintain a marketing program to promote expositions and the use of
4414     the state fair park;
4415          (h) in accordance with provisions of this part, operate and maintain the state fair park,
4416     including the physical appearance and structural integrity of the state fair park and the
4417     buildings located at the state fair park;
4418          (i) prepare an economic development plan for the state fair park;
4419          (j) hold an annual exhibition that:
4420          (i) is called the state fair or a similar name;
4421          (ii) promotes and highlights agriculture throughout the state;
4422          (iii) includes expositions of livestock, poultry, agricultural, domestic science,
4423     horticultural, floricultural, mineral and industrial products, manufactured articles, and domestic
4424     animals that, in the corporation's opinion will best stimulate agricultural, industrial, artistic, and
4425     educational pursuits and the sharing of talents among the people of Utah;
4426          (iv) includes the award of premiums for the best specimens of the exhibited articles
4427     and animals;
4428          (v) permits competition by livestock exhibited by citizens of other states and territories
4429     of the United States; and

4430          (vi) is arranged according to plans approved by the board;
4431          (k) fix the conditions of entry to the annual exhibition described in Subsection (4)(j);
4432     and
4433          (l) publish a list of premiums that will be awarded at the annual exhibition described in
4434     Subsection (4)(j) for the best specimens of exhibited articles and animals.
4435          (5) In addition to the annual exhibition described in Subsection (4)(j), the corporation
4436     may hold other exhibitions of livestock, poultry, agricultural, domestic science, horticultural,
4437     floricultural, mineral and industrial products, manufactured articles, and domestic animals that,
4438     in the corporation's opinion, will best stimulate agricultural, industrial, artistic, and educational
4439     pursuits and the sharing of talents among the people of Utah.
4440          (6) The corporation may:
4441          (a) employ advisers, consultants, and agents, including financial experts and
4442     independent legal counsel, and fix their compensation;
4443          (b) (i) participate in the state's Risk Management Fund created under Section
4444     63A-4-201; or
4445          (ii) procure insurance against any loss in connection with the corporation's property
4446     and other assets, including mortgage loans;
4447          (c) receive and accept aid or contributions of money, property, labor, or other things of
4448     value from any source, including any grants or appropriations from any department, agency, or
4449     instrumentality of the United States or Utah;
4450          (d) hold, use, loan, grant, and apply that aid and those contributions to carry out the
4451     purposes of the corporation, subject to the conditions, if any, upon which the aid and
4452     contributions were made;
4453          (e) enter into management agreements with any person or entity for the performance of
4454     the corporation's functions or powers;
4455          (f) establish whatever accounts and procedures as necessary to budget, receive, and
4456     disburse, account for, and audit all funds received, appropriated, or generated;
4457          (g) subject to Subsection (8), lease any of the facilities at the state fair park;
4458          (h) sponsor events as approved by the board; and
4459          (i) enter into one or more agreements to develop the state fair park.
4460          (7) (a) Except as provided in Subsection (7)(c), as an independent agency of Utah, the

4461     corporation is exempt from:
4462          (i) Title 51, Chapter 5, Funds Consolidation Act;
4463          (ii) Title 51, Chapter 7, State Money Management Act;
4464          (iii) Title 63A, Utah Administrative Services Code;
4465          (iv) Title 63J, Chapter 1, Budgetary Procedures Act; and
4466          (v) Title 67, Chapter 19, Utah State Personnel Management Act.
4467          (b) The board shall adopt policies parallel to and consistent with:
4468          (i) Title 51, Chapter 5, Funds Consolidation Act;
4469          (ii) Title 51, Chapter 7, State Money Management Act;
4470          (iii) Title 63A, Utah Administrative Services Code; and
4471          (iv) Title 63J, Chapter 1, Budgetary Procedures Act.
4472          (c) The corporation shall comply with:
4473          (i) Title 52, Chapter 4, Open and Public Meetings Act;
4474          (ii) Title 63G, Chapter 2, Government Records Access and Management Act;
4475          (iii) the provisions of Title 63A, Chapter 1, Part 2, Utah Public Finance Website;
4476          (iv) Title 63G, Chapter 6a, Utah Procurement Code, except for a procurement for:
4477          (A) entertainment provided at the state fair park;
4478          (B) judges for competitive exhibits; or
4479          (C) sponsorship of an event at the state fair park; and
4480          (v) the legislative approval requirements for new facilities established in Subsection
4481     [63A-5-104(3)] 63A-5b-404(3).
4482          (8) (a) Before the corporation executes a lease described in Subsection (6)(g) with a
4483     term of 10 or more years, the corporation shall:
4484          (i) submit the proposed lease to the State Building Board for the State Building Board's
4485     approval or rejection; and
4486          (ii) if the State Building Board approves the proposed lease, submit the proposed lease
4487     to the Executive Appropriations Committee for the Executive Appropriation Committee's
4488     review and recommendation in accordance with Subsection (8)(b).
4489          (b) The Executive Appropriations Committee shall review a proposed lease submitted
4490     in accordance with Subsection (8)(a) and recommend to the corporation that the corporation:
4491          (i) execute the proposed sublease; or

4492          (ii) reject the proposed sublease.
4493          Section 90. Section 63I-1-263 is amended to read:
4494          63I-1-263. Repeal dates, Titles 63A to 63N.
4495          (1) In relation to the Utah Transparency Advisory Board, on January 1, 2025:
4496          (a) Subsection 63A-1-201(1) is repealed;
4497          (b) Subsection 63A-1-202(2)(c), the language that states "using criteria established by
4498     the board" is repealed;
4499          (c) Section 63A-1-203 is repealed;
4500          (d) Subsections 63A-1-204(1) and (2), the language that states "After consultation with
4501     the board, and" is repealed; and
4502          (e) Subsection 63A-1-204(1)(b), the language that states "using the standards provided
4503     in Subsection 63A-1-203(3)(c)" is repealed.
4504          (2) Subsection [63A-5-228(2)(h)] 63A-5b-405(5), relating to prioritizing and allocating
4505     capital improvement funding, is repealed on July 1, 2024.
4506          (3) Section [63A-5-603] 63A-5b-1003, State Facility Energy Efficiency Fund, is
4507     repealed July 1, 2023.
4508          (4) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
4509     1, 2028.
4510          (5) Title 63C, Chapter 6, Utah Seismic Safety Commission, is repealed January 1,
4511     2025.
4512          (6) Title 63C, Chapter 16, Prison Development Commission Act, is repealed July 1,
4513     2020.
4514          (7) Title 63C, Chapter 17, Point of the Mountain Development Commission Act, is
4515     repealed July 1, 2021.
4516          (8) Title 63C, Chapter 18, Mental Health Crisis Line Commission, is repealed July 1,
4517     2023.
4518          (9) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1,
4519     2025.
4520          (10) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
4521     2020.
4522          (11) In relation to the State Fair Corporation Board of Directors, on January 1, 2025:

4523          (a) Subsection 63H-6-104(2)(c), related to a Senate appointment, is repealed;
4524          (b) Subsection 63H-6-104(2)(d), related to a House appointment, is repealed;
4525          (c) in Subsection 63H-6-104(2)(e), the language that states ", of whom only one may
4526     be a legislator, in accordance with Subsection (3)(e)," is repealed;
4527          (d) Subsection 63H-6-104(3)(a)(i) is amended to read:
4528          "(3)(a)(i) Except as provided in Subsection (3)(a)(ii), a board member appointed under
4529     Subsection (2)(e) or (f) shall serve a term that expires on the December 1 four years after the
4530     year that the board member was appointed.";
4531          (e) in Subsections 63H-6-104(3)(a)(ii), (c)(ii), and (d), the language that states "the
4532     president of the Senate, the speaker of the House, the governor," is repealed and replaced with
4533     "the governor"; and
4534          (f) Subsection 63H-6-104(3)(e), related to limits on the number of legislators, is
4535     repealed.
4536          (12) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.
4537          (13) Section 63M-7-212 is repealed on December 31, 2019.
4538          (14) On July 1, 2025:
4539          (a) in Subsection 17-27a-404(3)(c)(ii), the language that states "the Resource
4540     Development Coordinating Committee," is repealed;
4541          (b) Subsection 23-14-21(2)(c) is amended to read "(c) provide notification of proposed
4542     sites for the transplant of species to local government officials having jurisdiction over areas
4543     that may be affected by a transplant.";
4544          (c) in Subsection 23-14-21(3), the language that states "and the Resource Development
4545     Coordinating Committee" is repealed;
4546          (d) in Subsection 23-21-2.3(1), the language that states "the Resource Development
4547     Coordinating Committee created in Section 63J-4-501 and" is repealed;
4548          (e) in Subsection 23-21-2.3(2), the language that states "the Resource Development
4549     Coordinating Committee and" is repealed;
4550          (f) Subsection 63J-4-102(1) is repealed and the remaining subsections are renumbered
4551     accordingly;
4552          (g) Subsections 63J-4-401(5)(a) and (c) are repealed;
4553          (h) Subsection 63J-4-401(5)(b) is renumbered to Subsection 63J-4-401(5)(a) and the

4554     word "and" is inserted immediately after the semicolon;
4555          (i) Subsection 63J-4-401(5)(d) is renumbered to Subsection 63J-4-401(5)(b);
4556          (j) Sections 63J-4-501, 63J-4-502, 63J-4-503, 63J-4-504, and 63J-4-505 are repealed;
4557     and
4558          (k) Subsection 63J-4-603(1)(e)(iv) is repealed and the remaining subsections are
4559     renumbered accordingly.
4560          (15) Subsection 63J-1-602.1(13), Nurse Home Visiting Restricted Account is repealed
4561     July 1, 2026.
4562          (16) Subsection 63J-1-602.2(4), referring to dedicated credits to the Utah Marriage
4563     Commission, is repealed July 1, 2023.
4564          (17) Subsection 63J-1-602.2(5), referring to the Trip Reduction Program, is repealed
4565     July 1, 2022.
4566          (18) (a) Subsection 63J-1-602.1(53), relating to the Utah Statewide Radio System
4567     Restricted Account, is repealed July 1, 2022.
4568          (b) When repealing Subsection 63J-1-602.1(53), the Office of Legislative Research and
4569     General Counsel shall, in addition to the office's authority under Subsection 36-12-12(3), make
4570     necessary changes to subsection numbering and cross references.
4571          (19) Subsection 63J-1-602.2(23), related to the Utah Seismic Safety Commission, is
4572     repealed January 1, 2025.
4573          (20) Subsection 63J-4-708(1), in relation to the Talent Ready Utah Board, on January
4574     1, 2023, is amended to read:
4575          "(1) On or before October 1, the board shall provide an annual written report to the
4576     Social Services Appropriations Subcommittee and the Economic Development and Workforce
4577     Services Interim Committee.".
4578          (21) In relation to the Utah Substance Use and Mental Health Advisory Council, on
4579     January 1, 2023:
4580          (a) Sections 63M-7-301, 63M-7-302, 63M-7-303, 63M-7-304, and 63M-7-306 are
4581     repealed;
4582          (b) Section 63M-7-305, the language that states "council" is replaced with
4583     "commission";
4584          (c) Subsection 63M-7-305(1) is repealed and replaced with:

4585          "(1) "Commission" means the Commission on Criminal and Juvenile Justice."; and
4586          (d) Subsection 63M-7-305(2) is repealed and replaced with:
4587          "(2) The commission shall:
4588          (a) provide ongoing oversight of the implementation, functions, and evaluation of the
4589     Drug-Related Offenses Reform Act; and
4590          (b) coordinate the implementation of Section 77-18-1.1 and related provisions in
4591     Subsections 77-18-1(5)(b)(iii) and (iv).".
4592          (22) The Crime Victim Reparations and Assistance Board, created in Section
4593     63M-7-504, is repealed July 1, 2027.
4594          (23) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2021.
4595          (24) Subsection 63N-1-301(4)(c), related to the Talent Ready Utah Board, is repealed
4596     on January 1, 2023.
4597          (25) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
4598          (26) (a) Title 63N, Chapter 2, Part 4, Recycling Market Development Zone Act, is
4599     repealed January 1, 2021.
4600          (b) Subject to Subsection (26)(c), Sections 59-7-610 and 59-10-1007 regarding tax
4601     credits for certain persons in recycling market development zones, are repealed for taxable
4602     years beginning on or after January 1, 2021.
4603          (c) A person may not claim a tax credit under Section 59-7-610 or 59-10-1007:
4604          (i) for the purchase price of machinery or equipment described in Section 59-7-610 or
4605     59-10-1007, if the machinery or equipment is purchased on or after January 1, 2021; or
4606          (ii) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), if
4607     the expenditure is made on or after January 1, 2021.
4608          (d) Notwithstanding Subsections (26)(b) and (c), a person may carry forward a tax
4609     credit in accordance with Section 59-7-610 or 59-10-1007 if:
4610          (i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007; and
4611          (ii) (A) for the purchase price of machinery or equipment described in Section
4612     59-7-610 or 59-10-1007, the machinery or equipment is purchased on or before December 31,
4613     2020; or
4614          (B) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), the
4615     expenditure is made on or before December 31, 2020.

4616          (27) Section 63N-2-512 is repealed on July 1, 2021.
4617          (28) (a) Title 63N, Chapter 2, Part 6, Utah Small Business Jobs Act, is repealed
4618     January 1, 2021.
4619          (b) Section 59-9-107 regarding tax credits against premium taxes is repealed for
4620     calendar years beginning on or after January 1, 2021.
4621          (c) Notwithstanding Subsection (28)(b), an entity may carry forward a tax credit in
4622     accordance with Section 59-9-107 if:
4623          (i) the person is entitled to a tax credit under Section 59-9-107 on or before December
4624     31, 2020; and
4625          (ii) the qualified equity investment that is the basis of the tax credit is certified under
4626     Section 63N-2-603 on or before December 31, 2023.
4627          (29) Subsections 63N-3-109(2)(e) and 63N-3-109(2)(f)(i) are repealed July 1, 2023.
4628          (30) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed
4629     July 1, 2023.
4630          (31) Title 63N, Chapter 9, Part 2, Outdoor Recreational Infrastructure Grant Program,
4631     is repealed January 1, 2023.
4632          (32) In relation to the Pete Suazo Utah Athletic Commission, on January 1, 2021:
4633          (a) Subsection 63N-10-201(2)(a) is amended to read:
4634          "(2) (a) The governor shall appoint five commission members with the advice and
4635     consent of the Senate.";
4636          (b) Subsection 63N-10-201(2)(b), related to legislative appointments, is repealed;
4637          (c) in Subsection 63N-10-201(3)(a), the language that states ", president, or speaker,
4638     respectively," is repealed; and
4639          (d) Subsection 63N-10-201(3)(d) is amended to read:
4640          "(d) The governor may remove a commission member for any reason and replace the
4641     commission member in accordance with this section.".
4642          (33) In relation to the Talent Ready Utah Board, on January 1, 2023:
4643          (a) Subsection 9-22-102(16) is repealed;
4644          (b) in Subsection 9-22-114(2), the language that states "Talent Ready Utah," is
4645     repealed; and
4646          (c) in Subsection 9-22-114(5), the language that states "representatives of Talent Ready

4647     Utah," is repealed.
4648          (34) Title 63N, Chapter 12, Part 5, Talent Ready Utah Center, is repealed January 1,
4649     2023.
4650          Section 91. Section 63J-1-201 (Superseded 07/01/20) is amended to read:
4651          63J-1-201 (Superseded 07/01/20). Governor's proposed budget to Legislature --
4652     Contents -- Preparation -- Appropriations based on current tax laws and not to exceed
4653     estimated revenues.
4654          (1) The governor shall deliver, not later than 30 days before the date the Legislature
4655     convenes in the annual general session, a confidential draft copy of the governor's proposed
4656     budget recommendations to the Office of the Legislative Fiscal Analyst according to the
4657     requirements of this section.
4658          (2) (a) When submitting a proposed budget, the governor shall, within the first three
4659     days of the annual general session of the Legislature, submit to the presiding officer of each
4660     house of the Legislature:
4661          (i) a proposed budget for the ensuing fiscal year;
4662          (ii) a schedule for all of the proposed changes to appropriations in the proposed budget,
4663     with each change clearly itemized and classified; and
4664          (iii) as applicable, a document showing proposed changes in estimated revenues that
4665     are based on changes in state tax laws or rates.
4666          (b) The proposed budget shall include:
4667          (i) a projection of:
4668          (A) estimated revenues by major tax type;
4669          (B) 15-year trends for each major tax type;
4670          (C) estimated receipts of federal funds;
4671          (D) 15-year trends for federal fund receipts; and
4672          (E) appropriations for the next fiscal year;
4673          (ii) the source of changes to all direct, indirect, and in-kind matching funds for all
4674     federal grants or assistance programs included in the budget;
4675          (iii) changes to debt service;
4676          (iv) a plan of proposed changes to appropriations and estimated revenues for the next
4677     fiscal year that is based upon the current fiscal year state tax laws and rates and considers

4678     projected changes in federal grants or assistance programs included in the budget;
4679          (v) an itemized estimate of the proposed changes to appropriations for:
4680          (A) the Legislative Department as certified to the governor by the president of the
4681     Senate and the speaker of the House;
4682          (B) the Executive Department;
4683          (C) the Judicial Department as certified to the governor by the state court
4684     administrator;
4685          (D) changes to salaries payable by the state under the Utah Constitution or under law
4686     for lease agreements planned for the next fiscal year; and
4687          (E) all other changes to ongoing or one-time appropriations, including dedicated
4688     credits, restricted funds, nonlapsing balances, grants, and federal funds;
4689          (vi) for each line item, the average annual dollar amount of staff funding associated
4690     with all positions that were vacant during the last fiscal year;
4691          (vii) deficits or anticipated deficits;
4692          (viii) the recommendations for each state agency for new full-time employees for the
4693     next fiscal year, which shall also be provided to the [State Building Board] director of the
4694     Division of Facilities Construction and Management as required by Subsection [63A-5-103(5)]
4695     63A-5b-501(3);
4696          (ix) a written description and itemized report submitted by a state agency to the
4697     Governor's Office of Management and Budget under Section 63J-1-220, including:
4698          (A) a written description and an itemized report provided at least annually detailing the
4699     expenditure of the state money, or the intended expenditure of any state money that has not
4700     been spent; and
4701          (B) a final written itemized report when all the state money is spent;
4702          (x) any explanation that the governor may desire to make as to the important features
4703     of the budget and any suggestion as to methods for the reduction of expenditures or increase of
4704     the state's revenue; and
4705          (xi) information detailing certain fee increases as required by Section 63J-1-504.
4706          (3) For the purpose of preparing and reporting the proposed budget:
4707          (a) The governor shall require the proper state officials, including all public and higher
4708     education officials, all heads of executive and administrative departments and state institutions,

4709     bureaus, boards, commissions, and agencies expending or supervising the expenditure of the
4710     state money, and all institutions applying for state money and appropriations, to provide
4711     itemized estimates of changes in revenues and appropriations.
4712          (b) The governor may require the persons and entities subject to Subsection (3)(a) to
4713     provide other information under these guidelines and at times as the governor may direct,
4714     which may include a requirement for program productivity and performance measures, where
4715     appropriate, with emphasis on outcome indicators.
4716          (c) The governor may require representatives of public and higher education, state
4717     departments and institutions, and other institutions or individuals applying for state
4718     appropriations to attend budget meetings.
4719          (4) (a) The Governor's Office of Management and Budget shall provide to the Office of
4720     Legislative Fiscal Analyst, as soon as practicable, but no later than 30 days before the date the
4721     Legislature convenes in the annual general session, data, analysis, or requests used in preparing
4722     the governor's budget recommendations, notwithstanding the restrictions imposed on such
4723     recommendations by available revenue.
4724          (b) The information under Subsection (4)(a) shall include:
4725          (i) actual revenues and expenditures for the fiscal year ending the previous June 30;
4726          (ii) estimated or authorized revenues and expenditures for the current fiscal year;
4727          (iii) requested revenues and expenditures for the next fiscal year;
4728          (iv) detailed explanations of any differences between the amounts appropriated by the
4729     Legislature in the current fiscal year and the amounts reported under Subsections (4)(b)(ii) and
4730     (iii);
4731          (v) a statement of agency and program objectives, effectiveness measures, and program
4732     size indicators; and
4733          (vi) other budgetary information required by the Legislature in statute.
4734          (c) The budget information under Subsection (4)(a) shall cover:
4735          (i) all items of appropriation, funds, and accounts included in appropriations acts for
4736     the current and previous fiscal years; and
4737          (ii) any new appropriation, fund, or account items requested for the next fiscal year.
4738          (d) The information provided under Subsection (4)(a) may be provided as a shared
4739     record under Section 63G-2-206 as considered necessary by the Governor's Office of

4740     Management and Budget.
4741          (5) (a) In submitting the budget for the Department of Public Safety, the governor shall
4742     include a separate recommendation in the governor's budget for maintaining a sufficient
4743     number of alcohol-related law enforcement officers to maintain the enforcement ratio equal to
4744     or below the number specified in Subsection 32B-1-201(2).
4745          (b) If the governor does not include in the governor's budget an amount sufficient to
4746     maintain the number of alcohol-related law enforcement officers described in Subsection
4747     (5)(a), the governor shall include a message to the Legislature regarding the governor's reason
4748     for not including that amount.
4749          (6) (a) The governor may revise all estimates, except those relating to the Legislative
4750     Department, the Judicial Department, and those providing for the payment of principal and
4751     interest to the state debt and for the salaries and expenditures specified by the Utah
4752     Constitution or under the laws of the state.
4753          (b) The estimate for the Judicial Department, as certified by the state court
4754     administrator, shall also be included in the budget without revision, but the governor may make
4755     separate recommendations on the estimate.
4756          (7) The total appropriations requested for expenditures authorized by the budget may
4757     not exceed the estimated revenues from taxes, fees, and all other sources for the next ensuing
4758     fiscal year.
4759          (8) If any item of the budget as enacted is held invalid upon any ground, the invalidity
4760     does not affect the budget itself or any other item in it.
4761          Section 92. Section 63J-1-201 (Effective 07/01/20) is amended to read:
4762          63J-1-201 (Effective 07/01/20). Governor's proposed budget to Legislature --
4763     Contents -- Preparation -- Appropriations based on current tax laws and not to exceed
4764     estimated revenues.
4765          (1) The governor shall deliver, not later than 30 days before the date the Legislature
4766     convenes in the annual general session, a confidential draft copy of the governor's proposed
4767     budget recommendations to the Office of the Legislative Fiscal Analyst according to the
4768     requirements of this section.
4769          (2) (a) When submitting a proposed budget, the governor shall, within the first three
4770     days of the annual general session of the Legislature, submit to the presiding officer of each

4771     house of the Legislature:
4772          (i) a proposed budget for the ensuing fiscal year;
4773          (ii) a schedule for all of the proposed changes to appropriations in the proposed budget,
4774     with each change clearly itemized and classified; and
4775          (iii) as applicable, a document showing proposed changes in estimated revenues that
4776     are based on changes in state tax laws or rates.
4777          (b) The proposed budget shall include:
4778          (i) a projection of:
4779          (A) estimated revenues by major tax type;
4780          (B) 15-year trends for each major tax type;
4781          (C) estimated receipts of federal funds;
4782          (D) 15-year trends for federal fund receipts; and
4783          (E) appropriations for the next fiscal year;
4784          (ii) the source of changes to all direct, indirect, and in-kind matching funds for all
4785     federal grants or assistance programs included in the budget;
4786          (iii) changes to debt service;
4787          (iv) a plan of proposed changes to appropriations and estimated revenues for the next
4788     fiscal year that is based upon the current fiscal year state tax laws and rates and considers
4789     projected changes in federal grants or assistance programs included in the budget;
4790          (v) an itemized estimate of the proposed changes to appropriations for:
4791          (A) the Legislative Department as certified to the governor by the president of the
4792     Senate and the speaker of the House;
4793          (B) the Executive Department;
4794          (C) the Judicial Department as certified to the governor by the state court
4795     administrator;
4796          (D) changes to salaries payable by the state under the Utah Constitution or under law
4797     for lease agreements planned for the next fiscal year; and
4798          (E) all other changes to ongoing or one-time appropriations, including dedicated
4799     credits, restricted funds, nonlapsing balances, grants, and federal funds;
4800          (vi) for each line item, the average annual dollar amount of staff funding associated
4801     with all positions that were vacant during the last fiscal year;

4802          (vii) deficits or anticipated deficits;
4803          (viii) the recommendations for each state agency for new full-time employees for the
4804     next fiscal year, which shall also be provided to the [State Building Board] director of the
4805     Division of Facilities Construction and Management as required by Subsection [63A-5-103(5)]
4806     63A-5b-501(3);
4807          (ix) a written description and itemized report submitted by a state agency to the
4808     Governor's Office of Management and Budget under Section 63J-1-220, including:
4809          (A) a written description and an itemized report provided at least annually detailing the
4810     expenditure of the state money, or the intended expenditure of any state money that has not
4811     been spent; and
4812          (B) a final written itemized report when all the state money is spent;
4813          (x) any explanation that the governor may desire to make as to the important features
4814     of the budget and any suggestion as to methods for the reduction of expenditures or increase of
4815     the state's revenue; and
4816          (xi) information detailing certain fee increases as required by Section 63J-1-504.
4817          (3) For the purpose of preparing and reporting the proposed budget:
4818          (a) The governor shall require the proper state officials, including all public and higher
4819     education officials, all heads of executive and administrative departments and state institutions,
4820     bureaus, boards, commissions, and agencies expending or supervising the expenditure of the
4821     state money, and all institutions applying for state money and appropriations, to provide
4822     itemized estimates of changes in revenues and appropriations.
4823          (b) The governor may require the persons and entities subject to Subsection (3)(a) to
4824     provide other information under these guidelines and at times as the governor may direct,
4825     which may include a requirement for program productivity and performance measures, where
4826     appropriate, with emphasis on outcome indicators.
4827          (c) The governor may require representatives of public and higher education, state
4828     departments and institutions, and other institutions or individuals applying for state
4829     appropriations to attend budget meetings.
4830          (4) (a) The Governor's Office of Management and Budget shall provide to the Office of
4831     Legislative Fiscal Analyst, as soon as practicable, but no later than 30 days before the date the
4832     Legislature convenes in the annual general session, data, analysis, or requests used in preparing

4833     the governor's budget recommendations, notwithstanding the restrictions imposed on such
4834     recommendations by available revenue.
4835          (b) The information under Subsection (4)(a) shall include:
4836          (i) actual revenues and expenditures for the fiscal year ending the previous June 30;
4837          (ii) estimated or authorized revenues and expenditures for the current fiscal year;
4838          (iii) requested revenues and expenditures for the next fiscal year;
4839          (iv) detailed explanations of any differences between the amounts appropriated by the
4840     Legislature in the current fiscal year and the amounts reported under Subsections (4)(b)(ii) and
4841     (iii);
4842          (v) a statement of:
4843          (A) agency and program objectives, effectiveness measures, and program size
4844     indicators;
4845          (B) the final status of the program objectives, effectiveness measures, and program size
4846     indicators included in the appropriations act for the fiscal year ending the previous June 30; and
4847          (C) the current status of the program objectives, effectiveness measures, and program
4848     size indicators included in the appropriations act for the current fiscal year; and
4849          (vi) other budgetary information required by the Legislature in statute.
4850          (c) The budget information under Subsection (4)(a) shall cover:
4851          (i) all items of appropriation, funds, and accounts included in appropriations acts for
4852     the current and previous fiscal years; and
4853          (ii) any new appropriation, fund, or account items requested for the next fiscal year.
4854          (d) The information provided under Subsection (4)(a) may be provided as a shared
4855     record under Section 63G-2-206 as considered necessary by the Governor's Office of
4856     Management and Budget.
4857          (5) (a) In submitting the budget for the Department of Public Safety, the governor shall
4858     include a separate recommendation in the governor's budget for maintaining a sufficient
4859     number of alcohol-related law enforcement officers to maintain the enforcement ratio equal to
4860     or below the number specified in Subsection 32B-1-201(2).
4861          (b) If the governor does not include in the governor's budget an amount sufficient to
4862     maintain the number of alcohol-related law enforcement officers described in Subsection
4863     (5)(a), the governor shall include a message to the Legislature regarding the governor's reason

4864     for not including that amount.
4865          (6) (a) The governor may revise all estimates, except those relating to the Legislative
4866     Department, the Judicial Department, and those providing for the payment of principal and
4867     interest to the state debt and for the salaries and expenditures specified by the Utah
4868     Constitution or under the laws of the state.
4869          (b) The estimate for the Judicial Department, as certified by the state court
4870     administrator, shall also be included in the budget without revision, but the governor may make
4871     separate recommendations on the estimate.
4872          (7) The total appropriations requested for expenditures authorized by the budget may
4873     not exceed the estimated revenues from taxes, fees, and all other sources for the next ensuing
4874     fiscal year.
4875          (8) If any item of the budget as enacted is held invalid upon any ground, the invalidity
4876     does not affect the budget itself or any other item in it.
4877          Section 93. Section 63J-1-206 is amended to read:
4878          63J-1-206. Appropriations governed by chapter -- Restrictions on expenditures --
4879     Transfer of funds -- Exclusion.
4880          (1) (a) Except as provided in Subsections (1)(b) and (2)(e), or where expressly
4881     exempted in the appropriating act:
4882          (i) all money appropriated by the Legislature is appropriated upon the terms and
4883     conditions set forth in this chapter; and
4884          (ii) any department, agency, or institution that accepts money appropriated by the
4885     Legislature does so subject to the requirements of this chapter.
4886          (b) This section does not apply to:
4887          (i) the Legislature and its committees; and
4888          (ii) the Investigation Account of the Water Resources Construction Fund, which is
4889     governed by Section 73-10-8.
4890          (2) (a) Each item of appropriation is to be expended subject to any schedule of
4891     programs and any restriction attached to the item of appropriation, as designated by the
4892     Legislature.
4893          (b) Each schedule of programs or restriction attached to an appropriation item:
4894          (i) is a restriction or limitation upon the expenditure of the respective appropriation

4895     made;
4896          (ii) does not itself appropriate any money; and
4897          (iii) is not itself an item of appropriation.
4898          (c) (i) Except as provided in Subsection (2)(c)(ii), an appropriation or any surplus of
4899     any appropriation may not be diverted from any department, agency, institution, division, or
4900     line item to any other department, agency, institution, division, or line item.
4901          (ii) The state superintendent may transfer money appropriated for the Minimum School
4902     Program between line items in accordance with Section 53F-2-205.
4903          (iii) If the money appropriated to an agency to pay lease payments under the program
4904     established in [Subsection 63A-5-228(3)] Section 63A-5b-703 exceeds the amount required for
4905     the agency's lease payments to the Division of Facilities Construction and Management, the
4906     agency may:
4907          (A) transfer money from the lease payments line item to other line items within the
4908     agency; and
4909          (B) retain and use the excess money for other purposes.
4910          (d) The money appropriated subject to a schedule of programs or restriction may be
4911     used only for the purposes authorized.
4912          (e) In order for a department, agency, or institution to transfer money appropriated to it
4913     from one program to another program within a line item, the department, agency, or institution
4914     shall revise its budget execution plan as provided in Section 63J-1-209.
4915          (f) (i) The procedures for transferring money between programs within a line item as
4916     provided by Subsection (2)(e) do not apply to money appropriated to the State Board of
4917     Education for the Minimum School Program or capital outlay programs created in Title 53F,
4918     Chapter 3, State Funding -- Capital Outlay Programs.
4919          (ii) The state superintendent may transfer money appropriated for the programs
4920     specified in Subsection (2)(f)(i) only as provided by Section 53F-2-205.
4921          Section 94. Section 63J-1-602.2 is amended to read:
4922          63J-1-602.2. List of nonlapsing appropriations to programs.
4923          Appropriations made to the following programs are nonlapsing:
4924          (1) The Legislature and its committees.
4925          (2) The Percent-for-Art Program created in Section 9-6-404.

4926          (3) The LeRay McAllister Critical Land Conservation Program created in Section
4927     11-38-301.
4928          (4) Dedicated credits accrued to the Utah Marriage Commission as provided under
4929     Subsection 17-16-21(2)(d)(ii).
4930          (5) The Trip Reduction Program created in Section 19-2a-104.
4931          (6) The Division of Wildlife Resources for the appraisal and purchase of lands under
4932     the Pelican Management Act, as provided in Section 23-21a-6.
4933          (7) The primary care grant program created in Section 26-10b-102.
4934          (8) Sanctions collected as dedicated credits from Medicaid provider under Subsection
4935     26-18-3(7).
4936          (9) The Utah Health Care Workforce Financial Assistance Program created in Section
4937     26-46-102.
4938          (10) The Rural Physician Loan Repayment Program created in Section 26-46a-103.
4939          (11) The Opiate Overdose Outreach Pilot Program created in Section 26-55-107.
4940          (12) Funds that the Department of Alcoholic Beverage Control retains in accordance
4941     with Subsection 32B-2-301(7)(a) or (b).
4942          (13) The General Assistance program administered by the Department of Workforce
4943     Services, as provided in Section 35A-3-401.
4944          (14) A new program or agency that is designated as nonlapsing under Section
4945     36-24-101.
4946          (15) The Utah National Guard, created in Title 39, Militia and Armories.
4947          (16) The State Tax Commission under Section 41-1a-1201 for the:
4948          (a) purchase and distribution of license plates and decals; and
4949          (b) administration and enforcement of motor vehicle registration requirements.
4950          (17) The Search and Rescue Financial Assistance Program, as provided in Section
4951     53-2a-1102.
4952          (18) The Motorcycle Rider Education Program, as provided in Section 53-3-905.
4953          (19) The State Board of Regents for teacher preparation programs, as provided in
4954     Section 53B-6-104.
4955          (20) The Medical Education Program administered by the Medical Education Council,
4956     as provided in Section 53B-24-202.

4957          (21) The State Board of Education, as provided in Section 53F-2-205.
4958          (22) The Division of Services for People with Disabilities, as provided in Section
4959     62A-5-102.
4960          (23) The Division of Fleet Operations for the purpose of upgrading underground
4961     storage tanks under Section 63A-9-401.
4962          (24) The Utah Seismic Safety Commission, as provided in Section 63C-6-104.
4963          (25) Appropriations to the Department of Technology Services for technology
4964     innovation as provided under Section 63F-4-202.
4965          (26) The Office of Administrative Rules for publishing, as provided in Section
4966     63G-3-402.
4967          (27) The Utah Science Technology and Research Initiative created in Section
4968     63M-2-301.
4969          (28) The Governor's Office of Economic Development to fund the Enterprise Zone
4970     Act, as provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act.
4971          (29) Appropriations to fund the Governor's Office of Economic Development's Rural
4972     Employment Expansion Program, as described in Title 63N, Chapter 4, Part 4, Rural
4973     Employment Expansion Program.
4974          (30) The Department of Human Resource Management user training program, as
4975     provided in Section 67-19-6.
4976          (31) A public safety answering point's emergency telecommunications service fund, as
4977     provided in Section 69-2-301.
4978          (32) The Traffic Noise Abatement Program created in Section 72-6-112.
4979          (33) The Judicial Council for compensation for special prosecutors, as provided in
4980     Section 77-10a-19.
4981          (34) A state rehabilitative employment program, as provided in Section 78A-6-210.
4982          (35) The Utah Geological Survey, as provided in Section 79-3-401.
4983          (36) The Bonneville Shoreline Trail Program created under Section 79-5-503.
4984          (37) Adoption document access as provided in Sections 78B-6-141, 78B-6-144, and
4985     78B-6-144.5.
4986          (38) Indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah Indigent
4987     Defense Commission.

4988          (39) The program established by the Division of Facilities Construction and
4989     Management under [Subsection 63A-5-228(3)] Section 63A-5b-703 under which state agencies
4990     receive an appropriation and pay lease payments for the use and occupancy of buildings owned
4991     by the Division of Facilities Construction and Management.
4992          Section 95. Section 63J-3-103 is amended to read:
4993          63J-3-103. Definitions.
4994          As used in this chapter:
4995          (1) (a) "Appropriations" means actual unrestricted capital and operating appropriations
4996     from unrestricted General Fund and Education Fund sources.
4997          (b) "Appropriations" includes appropriations that are contingent upon available
4998     surpluses in the General Fund and Education Fund.
4999          (c) "Appropriations" does not mean:
5000          (i) public education expenditures;
5001          (ii) Utah Education and Telehealth Network expenditures in support of public
5002     education;
5003          (iii) Utah System of Technical Colleges expenditures in support of public education;
5004          (iv) State Tax Commission expenditures related to collection of income taxes in
5005     support of public education;
5006          (v) debt service expenditures;
5007          (vi) emergency expenditures;
5008          (vii) expenditures from all other fund or subfund sources;
5009          (viii) transfers or appropriations from the Education Fund to the Uniform School Fund;
5010          (ix) transfers into, or appropriations made to, the General Fund Budget Reserve
5011     Account established in Section 63J-1-312;
5012          (x) transfers into, or appropriations made to, the Education Budget Reserve Account
5013     established in Section 63J-1-313;
5014          (xi) transfers in accordance with Section 63J-1-314 into, or appropriations made to the
5015     Wildland Fire Suppression Fund created in Section 65A-8-204 or the State Disaster Recovery
5016     Restricted Account created in Section 53-2a-603;
5017          (xii) money appropriated to fund the total one-time project costs for the construction of
5018     capital [developments] development projects as defined in Section [63A-5-104] 63A-5b-401;

5019          (xiii) transfers or deposits into or appropriations made to the Centennial Highway Fund
5020     created by Section 72-2-118;
5021          (xiv) transfers or deposits into or appropriations made to the Transportation Investment
5022     Fund of 2005 created by Section 72-2-124;
5023          (xv) transfers or deposits into or appropriations made to:
5024          (A) the Department of Transportation from any source; or
5025          (B) any transportation-related account or fund from any source; or
5026          (xvi) supplemental appropriations from the General Fund to the Division of Forestry,
5027     Fire, and State Lands to provide money for wildland fire control expenses incurred during the
5028     current or previous fire years.
5029          (2) "Base year real per capita appropriations" means the result obtained for the state by
5030     dividing the fiscal year 1985 actual appropriations of the state less debt money by:
5031          (a) the state's July 1, 1983 population; and
5032          (b) the fiscal year 1983 inflation index divided by 100.
5033          (3) "Calendar year" means the time period beginning on January 1 of any given year
5034     and ending on December 31 of the same year.
5035          (4) "Fiscal emergency" means an extraordinary occurrence requiring immediate
5036     expenditures and includes the settlement under Laws of Utah 1988, Fourth Special Session,
5037     Chapter 4.
5038          (5) "Fiscal year" means the time period beginning on July 1 of any given year and
5039     ending on June 30 of the subsequent year.
5040          (6) "Fiscal year 1985 actual base year appropriations" means fiscal year 1985 actual
5041     capital and operations appropriations from General Fund and non-Uniform School Fund
5042     income tax revenue sources, less debt money.
5043          (7) "Inflation index" means the change in the general price level of goods and services
5044     as measured by the Gross National Product Implicit Price Deflator of the Bureau of Economic
5045     Analysis, U.S. Department of Commerce calculated as provided in Section 63J-3-202.
5046          (8) (a) "Maximum allowable appropriations limit" means the appropriations that could
5047     be, or could have been, spent in any given year under the limitations of this chapter.
5048          (b) "Maximum allowable appropriations limit" does not mean actual appropriations
5049     spent or actual expenditures.

5050          (9) "Most recent fiscal year's inflation index" means the fiscal year inflation index two
5051     fiscal years previous to the fiscal year for which the maximum allowable inflation and
5052     population appropriations limit is being computed under this chapter.
5053          (10) "Most recent fiscal year's population" means the fiscal year population two fiscal
5054     years previous to the fiscal year for which the maximum allowable inflation and population
5055     appropriations limit is being computed under this chapter.
5056          (11) "Population" means the number of residents of the state as of July 1 of each year
5057     as calculated by the Governor's Office of Management and Budget according to the procedures
5058     and requirements of Section 63J-3-202.
5059          (12) "Revenues" means the revenues of the state from every tax, penalty, receipt, and
5060     other monetary exaction and interest connected with it that are recorded as unrestricted revenue
5061     of the General Fund and from non-Uniform School Fund income tax revenues, except as
5062     specifically exempted by this chapter.
5063          (13) "Security" means any bond, note, warrant, or other evidence of indebtedness,
5064     whether or not the bond, note, warrant, or other evidence of indebtedness is or constitutes an
5065     "indebtedness" within the meaning of any provision of the constitution or laws of this state.
5066          Section 96. Section 65A-4-1 is amended to read:
5067          65A-4-1. Acquisition and disposition of land by state agencies.
5068          (1) All state agencies may acquire land by gift, devise, bequest, exchange,
5069     compensation for public resource value loss, or in satisfaction of a debt and are authorized to
5070     sell, lease, or otherwise dispose of land no longer needed for public purposes, unless otherwise
5071     provided by law.
5072          (2) The proceeds from the sale, lease, or other disposition of land shall go to the state
5073     agency using or holding the land unless:
5074          (a) the governor or the Legislature order its deposit in the fund from which the state
5075     agency receives its appropriations; or
5076          (b) the use or disposition of the proceeds is specified elsewhere in law.
5077          (3) Subsections (1) and (2) do not apply to division-owned property, as defined in
5078     Section [63A-5a-102] 63A-5b-901.
5079          Section 97. Section 72-6-107.5 is amended to read:
5080          72-6-107.5. Construction of improvements of highway -- Contracts -- Health

5081     insurance coverage.
5082          (1) As used in this section:
5083          (a) "Aggregate" means the sum of all contracts, change orders, and modifications
5084     related to a single project.
5085          (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
5086          (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
5087     "operative" who:
5088          (i) works at least 30 hours per calendar week; and
5089          (ii) meets employer eligibility waiting requirements for health care insurance, which
5090     may not exceed the first day of the calendar month following 60 days after the day on which
5091     the individual is hired.
5092          (d) "Health benefit plan" means the same as that term is defined in Section 31A-1-301.
5093          (e) "Qualified health insurance coverage" means the same as that term is defined in
5094     Section 26-40-115.
5095          (f) "Subcontractor" means the same as that term is defined in Section [63A-5-208]
5096     63A-5b-605.
5097          (2) Except as provided in Subsection (3), the requirements of this section apply to:
5098          (a) a contractor of a design or construction contract entered into by the department on
5099     or after July 1, 2009, if the prime contract is in an aggregate amount equal to or greater than
5100     $2,000,000; and
5101          (b) a subcontractor of a contractor of a design or construction contract entered into by
5102     the department on or after July 1, 2009, if the subcontract is in an aggregate amount equal to or
5103     greater than $1,000,000.
5104          (3) The requirements of this section do not apply to a contractor or subcontractor
5105     described in Subsection (2) if:
5106          (a) the application of this section jeopardizes the receipt of federal funds;
5107          (b) the contract is a sole source contract; or
5108          (c) the contract is an emergency procurement.
5109          (4) A person that intentionally uses change orders, contract modifications, or multiple
5110     contracts to circumvent the requirements of this section is guilty of an infraction.
5111          (5) (a) A contractor subject to the requirements of this section shall demonstrate to the

5112     department that the contractor has and will maintain an offer of qualified health insurance
5113     coverage for the contractor's employees and the employees' dependents during the duration of
5114     the contract by submitting to the department a written statement that:
5115          (i) the contractor offers qualified health insurance coverage that complies with Section
5116     26-40-115;
5117          (ii) is from:
5118          (A) an actuary selected by the contractor or the contractor's insurer; or
5119          (B) an underwriter who is responsible for developing the employer group's premium
5120     rates; and
5121          (iii) was created within one year before the day on which the statement is submitted.
5122          (b) A contractor that is subject to the requirements of this section shall:
5123          (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
5124     is subject to the requirements of this section shall obtain and maintain an offer of qualified
5125     health insurance coverage for the subcontractor's employees and the employees' dependents
5126     during the duration of the subcontract; and
5127          (ii) obtain from a subcontractor that is subject to the requirements of this section a
5128     written statement that:
5129          (A) the subcontractor offers qualified health insurance coverage that complies with
5130     Section 26-40-115;
5131          (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, or an
5132     underwriter who is responsible for developing the employer group's premium rates; and
5133          (C) was created within one year before the day on which the contractor obtains the
5134     statement.
5135          (c) (i) (A) A contractor that fails to maintain an offer of qualified health insurance
5136     coverage described in Subsection (5)(a) during the duration of the contract is subject to
5137     penalties in accordance with administrative rules adopted by the department under Subsection
5138     (6).
5139          (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
5140     and maintain an offer of qualified health insurance coverage described in Subsection (5)(b)(i).
5141          (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
5142     insurance coverage described in Subsection (5)(b) during the duration of the subcontract is

5143     subject to penalties in accordance with administrative rules adopted by the department under
5144     Subsection (6).
5145          (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
5146     an offer of qualified health insurance coverage described in Subsection (5)(a).
5147          (6) The department shall adopt administrative rules:
5148          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
5149          (b) in coordination with:
5150          (i) the Department of Environmental Quality in accordance with Section 19-1-206;
5151          (ii) the Department of Natural Resources in accordance with Section 79-2-404;
5152          (iii) the State Building Board in accordance with Section [63A-5-205.5] 63A-5b-607;
5153          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403;
5154          (v) a public transit district in accordance with Section 17B-2a-818.5; and
5155          (vi) the Legislature's Administrative Rules Review Committee; and
5156          (c) that establish:
5157          (i) the requirements and procedures a contractor and a subcontractor shall follow to
5158     demonstrate compliance with this section, including:
5159          (A) that a contractor or subcontractor's compliance with this section is subject to an
5160     audit by the department or the Office of the Legislative Auditor General;
5161          (B) that a contractor that is subject to the requirements of this section shall obtain a
5162     written statement described in Subsection (5)(a); and
5163          (C) that a subcontractor that is subject to the requirements of this section shall obtain a
5164     written statement described in Subsection (5)(b)(ii);
5165          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
5166     violates the provisions of this section, which may include:
5167          (A) a three-month suspension of the contractor or subcontractor from entering into
5168     future contracts with the state upon the first violation;
5169          (B) a six-month suspension of the contractor or subcontractor from entering into future
5170     contracts with the state upon the second violation;
5171          (C) an action for debarment of the contractor or subcontractor in accordance with
5172     Section 63G-6a-904 upon the third or subsequent violation; and
5173          (D) monetary penalties which may not exceed 50% of the amount necessary to

5174     purchase qualified health insurance coverage for an employee and a dependent of the employee
5175     of the contractor or subcontractor who was not offered qualified health insurance coverage
5176     during the duration of the contract; and
5177          (iii) a website on which the department shall post the commercially equivalent
5178     benchmark, for the qualified health insurance coverage identified in Subsection (1)(e), that is
5179     provided by the Department of Health, in accordance with Subsection 26-40-115(2).
5180          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
5181     or subcontractor who intentionally violates the provisions of this section is liable to the
5182     employee for health care costs that would have been covered by qualified health insurance
5183     coverage.
5184          (ii) An employer has an affirmative defense to a cause of action under Subsection
5185     (7)(a)(i) if:
5186          (A) the employer relied in good faith on a written statement described in Subsection
5187     (5)(a) or (5)(b)(ii); or
5188          (B) the department determines that compliance with this section is not required under
5189     the provisions of Subsection (3).
5190          (b) An employee has a private right of action only against the employee's employer to
5191     enforce the provisions of this Subsection (7).
5192          (8) Any penalties imposed and collected under this section shall be deposited into the
5193     Medicaid Restricted Account created in Section 26-18-402.
5194          (9) The failure of a contractor or subcontractor to provide qualified health insurance
5195     coverage as required by this section:
5196          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
5197     or contractor under:
5198          (i) Section 63G-6a-1602; or
5199          (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
5200          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
5201     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
5202     or construction.
5203          Section 98. Section 79-2-404 is amended to read:
5204          79-2-404. Contracting powers of department -- Health insurance coverage.

5205          (1) As used in this section:
5206          (a) "Aggregate" means the sum of all contracts, change orders, and modifications
5207     related to a single project.
5208          (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
5209          (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
5210     "operative" who:
5211          (i) works at least 30 hours per calendar week; and
5212          (ii) meets employer eligibility waiting requirements for health care insurance, which
5213     may not exceed the first day of the calendar month following 60 days after the day on which
5214     the individual is hired.
5215          (d) "Health benefit plan" means the same as that term is defined in Section 31A-1-301.
5216          (e) "Qualified health insurance coverage" means the same as that term is defined in
5217     Section 26-40-115.
5218          (f) "Subcontractor" means the same as that term is defined in Section [63A-5-208]
5219     63A-5b-605.
5220          (2) Except as provided in Subsection (3), the requirements of this section apply to:
5221          (a) a contractor of a design or construction contract entered into by, or delegated to, the
5222     department or a division, board, or council of the department on or after July 1, 2009, if the
5223     prime contract is in an aggregate amount equal to or greater than $2,000,000; and
5224          (b) a subcontractor of a contractor of a design or construction contract entered into by,
5225     or delegated to, the department or a division, board, or council of the department on or after
5226     July 1, 2009, if the subcontract is in an aggregate amount equal to or greater than $1,000,000.
5227          (3) This section does not apply to contracts entered into by the department or a
5228     division, board, or council of the department if:
5229          (a) the application of this section jeopardizes the receipt of federal funds;
5230          (b) the contract or agreement is between:
5231          (i) the department or a division, board, or council of the department; and
5232          (ii) (A) another agency of the state;
5233          (B) the federal government;
5234          (C) another state;
5235          (D) an interstate agency;

5236          (E) a political subdivision of this state; or
5237          (F) a political subdivision of another state; or
5238          (c) the contract or agreement is:
5239          (i) for the purpose of disbursing grants or loans authorized by statute;
5240          (ii) a sole source contract; or
5241          (iii) an emergency procurement.
5242          (4) A person that intentionally uses change orders, contract modifications, or multiple
5243     contracts to circumvent the requirements of this section is guilty of an infraction.
5244          (5) (a) A contractor subject to the requirements of this section shall demonstrate to the
5245     department that the contractor has and will maintain an offer of qualified health insurance
5246     coverage for the contractor's employees and the employees' dependents during the duration of
5247     the contract by submitting to the department a written statement that:
5248          (i) the contractor offers qualified health insurance coverage that complies with Section
5249     26-40-115;
5250          (ii) is from:
5251          (A) an actuary selected by the contractor or the contractor's insurer; or
5252          (B) an underwriter who is responsible for developing the employer group's premium
5253     rates; and
5254          (iii) was created within one year before the day on which the statement is submitted.
5255          (b) A contractor that is subject to the requirements of this section shall:
5256          (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
5257     is subject to the requirements of this section shall obtain and maintain an offer of qualified
5258     health insurance coverage for the subcontractor's employees and the employees' dependents
5259     during the duration of the subcontract; and
5260          (ii) obtain from a subcontractor that is subject to the requirements of this section a
5261     written statement that:
5262          (A) the subcontractor offers qualified health insurance coverage that complies with
5263     Section 26-40-115;
5264          (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, or an
5265     underwriter who is responsible for developing the employer group's premium rates; and
5266          (C) was created within one year before the day on which the contractor obtains the

5267     statement.
5268          (c) (i) (A) A contractor that fails to maintain an offer of qualified health insurance
5269     coverage described in Subsection (5)(a) during the duration of the contract is subject to
5270     penalties in accordance with administrative rules adopted by the department under Subsection
5271     (6).
5272          (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
5273     and maintain an offer of qualified health insurance coverage described in Subsection (5)(b)(i).
5274          (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
5275     insurance coverage described in Subsection (5)(b) during the duration of the subcontract is
5276     subject to penalties in accordance with administrative rules adopted by the department under
5277     Subsection (6).
5278          (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
5279     an offer of qualified health insurance coverage described in Subsection (5)(a).
5280          (6) The department shall adopt administrative rules:
5281          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
5282          (b) in coordination with:
5283          (i) the Department of Environmental Quality in accordance with Section 19-1-206;
5284          (ii) a public transit district in accordance with Section 17B-2a-818.5;
5285          (iii) the State Building Board in accordance with Section [63A-5-205.5] 63A-5b-607;
5286          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403;
5287          (v) the Department of Transportation in accordance with Section 72-6-107.5; and
5288          (vi) the Legislature's Administrative Rules Review Committee; and
5289          (c) that establish:
5290          (i) the requirements and procedures a contractor and a subcontractor shall follow to
5291     demonstrate compliance with this section, including:
5292          (A) that a contractor or subcontractor's compliance with this section is subject to an
5293     audit by the department or the Office of the Legislative Auditor General;
5294          (B) that a contractor that is subject to the requirements of this section shall obtain a
5295     written statement described in Subsection (5)(a); and
5296          (C) that a subcontractor that is subject to the requirements of this section shall obtain a
5297     written statement described in Subsection (5)(b)(ii);

5298          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
5299     violates the provisions of this section, which may include:
5300          (A) a three-month suspension of the contractor or subcontractor from entering into
5301     future contracts with the state upon the first violation;
5302          (B) a six-month suspension of the contractor or subcontractor from entering into future
5303     contracts with the state upon the second violation;
5304          (C) an action for debarment of the contractor or subcontractor in accordance with
5305     Section 63G-6a-904 upon the third or subsequent violation; and
5306          (D) monetary penalties which may not exceed 50% of the amount necessary to
5307     purchase qualified health insurance coverage for an employee and a dependent of an employee
5308     of the contractor or subcontractor who was not offered qualified health insurance coverage
5309     during the duration of the contract; and
5310          (iii) a website on which the department shall post the commercially equivalent
5311     benchmark, for the qualified health insurance coverage identified in Subsection (1)(e),
5312     provided by the Department of Health, in accordance with Subsection 26-40-115(2).
5313          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
5314     or subcontractor who intentionally violates the provisions of this section is liable to the
5315     employee for health care costs that would have been covered by qualified health insurance
5316     coverage.
5317          (ii) An employer has an affirmative defense to a cause of action under Subsection
5318     (7)(a)(i) if:
5319          (A) the employer relied in good faith on a written statement described in Subsection
5320     (5)(a) or (5)(b)(ii); or
5321          (B) the department determines that compliance with this section is not required under
5322     the provisions of Subsection (3).
5323          (b) An employee has a private right of action only against the employee's employer to
5324     enforce the provisions of this Subsection (7).
5325          (8) Any penalties imposed and collected under this section shall be deposited into the
5326     Medicaid Restricted Account created in Section 26-18-402.
5327          (9) The failure of a contractor or subcontractor to provide qualified health insurance
5328     coverage as required by this section:

5329          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
5330     or contractor under:
5331          (i) Section 63G-6a-1602; or
5332          (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
5333          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
5334     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
5335     or construction.
5336          Section 99. Repealer.
5337          This bill repeals:
5338          Section 63A-5-100, Definitions.
5339          Section 63A-5-101, Creation -- Composition -- Appointment -- Per diem and
5340     expenses -- Administrative services.
5341          Section 63A-5-101.5, State Building Board composition -- Appointment -- Per diem
5342     and expenses -- Administrative services.
5343          Section 63A-5-102, Meetings of board -- Rules of procedure -- Quorum.
5344          Section 63A-5-103, Board -- Powers.
5345          Section 63A-5-104, Definitions -- Capital development and capital improvement
5346     process -- Approval requirements -- Limitations on new projects -- Emergencies.
5347          Section 63A-5-202, Definitions.
5348          Section 63A-5-204, Specific powers and duties of director.
5349          Section 63A-5-205, Contracting powers of director -- Retainage.
5350          Section 63A-5-206, Construction, alteration, and repair of state facilities -- Powers
5351     of director -- Exceptions -- Expenditure of appropriations -- Notification to local
5352     governments for construction or modification of certain facilities.
5353          Section 63A-5-216, Gifts, grants, and donations to division.
5354          Section 63A-5-223, Contracts -- Certain indemnification provisions forbidden.
5355          Section 63A-5-301, Definitions.
5356          Section 63A-5-501, Making keys to buildings of state, political subdivisions or
5357     colleges and universities without permission prohibited.
5358          Section 63A-5-502, Violation -- Misdemeanor.
5359          Section 63A-5-601, Legislative findings and policy.

5360          Section 63A-5-602, Appropriation for energy efficiency measures.
5361          Section 63A-5a-101, Title.
5362          Section 100. Effective date.
5363          This bill takes effect on May 12, 2020, except that the amendments to Section
5364     63J-1-201 (Effective 07/01/20) take effect on July 1, 2020.