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NEW STATE CONSTRUCTION SET-ASIDE FOR ART

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AMENDMENTS

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2020 GENERAL SESSION

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STATE OF UTAH

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Chief Sponsor: Don L. Ipson

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House Sponsor: Francis D. Gibson

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8     LONG TITLE
9     General Description:
10          This bill modifies a provision relating to a new state construction set aside for art.
11     Highlighted Provisions:
12          This bill:
13          ▸     limits the amount that may be set aside from the amount appropriated for the
14     construction of any new state building or facility; and
15          ▸     modifies a provision relating to artists the Division of Arts and Museums considers
16     and gives preference to in the percent-for-art program.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          This bill provides a special effective date.
21     Utah Code Sections Affected:
22     AMENDS:
23          9-6-405, as last amended by Laws of Utah 2010, Chapter 378
24          63A-5-209, as last amended by Laws of Utah 2019, Chapter 468
25     

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 9-6-405 is amended to read:
28          9-6-405. Procedures, guidelines, and rules.

29          (1) The division shall follow these guidelines in administering the program:
30          (a) Works of art shall be acquired under the program for use only with respect to those
31     buildings or facilities that the division determines have significant public use or access,
32     especially where the design and technical construction of the building or facility lend
33     themselves to works of art. All funds set aside and administered by the program from
34     appropriations for any state building or facility of which any part is obtained from the issuance
35     of bonds shall be used only to acquire works of art that will be placed in or at, and remain a
36     part of, that building or facility, to the extent necessary to preserve the federal income tax
37     exemption otherwise allowed for interest paid on the bonds.
38          (b) The goal of the division in administering the program is to fairly distribute works of
39     art throughout the various social, economic, and geographic communities of the state.
40          (c) The division:
41          (i) shall give first preference to Utah artists[,]; and
42          (ii) may consider artists from other states and give preference to artists from other
43     states [which] that have similar percent-for-art programs and demonstrate a reciprocal
44     preference for Utah artists.
45          (d) The division shall involve the director of the Division of Facilities Construction
46     and Management, or the director's designee, and the project architect in the process of
47     screening or selecting works of art or artists to create works of art for each project and shall
48     involve in that process representatives from the project's principal user or contracting agency,
49     the community in which the project is located, and the art profession. The project's principal
50     user or contracting agency shall have representation at least equal to any other entity on the
51     selection committee, as designated by the project's president or director. Any selection and
52     placement of art shall be by a majority decision of the user agency representatives on the
53     committee and a majority decision of the entire committee. The selection and placement shall
54     be approved by the president or director of the principal user.
55          (e) Any relocation of art placed under this program shall be done with the participation

56     from the division and the Division of Facilities Construction and Management and with
57     approval from the president or director of the principal user.
58          (f) The costs of administering the program and conserving and maintaining all works
59     of art placed under the program are limited to 15% of the funds deposited in the Utah
60     Percent-for-Art Account.
61          (2) The division shall adopt procedures, guidelines, and rules as necessary to
62     implement this chapter and administer the program.
63          Section 2. Section 63A-5-209 is amended to read:
64          63A-5-209. Building appropriations supervised by director -- Contingencies --
65     Disposition of project reserve funds -- Set aside for Utah Percent-for-Art Program.
66          (1) The director shall:
67          (a) (i) supervise the expenditure of funds in providing plans, engineering
68     specifications, sites, and construction of the buildings for which legislative appropriations are
69     made; and
70          (ii) specifically allocate money appropriated when more than one project is included in
71     any single appropriation without legislative directive;
72          (b) (i) expend the amount necessary from appropriations for planning, engineering, and
73     architectural work; and
74          (ii) (A) allocate amounts from appropriations necessary to cover expenditures
75     previously made from the planning fund under Section 63A-5-211 in the preparation of plans,
76     engineering, and specifications; and
77          (B) return the amounts described in Subsection (1)(b)(ii)(A) to the planning fund; and
78          (c) hold in a statewide contingency reserve the amount budgeted for contingencies:
79          (i) in appropriations for the construction or remodeling of facilities; and
80          (ii) which may be over and above all amounts obligated by contract for planning,
81     engineering, architectural work, sites, and construction contracts.
82          (2) (a) The director shall base the amount budgeted for contingencies on a sliding scale

83     percentage of the construction cost ranging from:
84          (i) 4-1/2% to 6-1/2% for new construction; and
85          (ii) 6% to 9-1/2% for remodeling projects.
86          (b) The director shall hold the statewide contingency funds to cover:
87          (i) costs of change orders; and
88          (ii) unforeseen, necessary costs beyond those specifically budgeted for the project.
89          (c) (i) The Legislature shall annually review the percentage and the amount held in the
90     statewide contingency reserve.
91          (ii) The Legislature may reappropriate to other building needs, including the cost of
92     administering building projects, any amount from the statewide contingency reserve that is in
93     excess of the reserve required to meet future contingency needs.
94          (3) (a) The director shall hold in a separate reserve those state appropriated funds
95     accrued through bid savings and project residual as a project reserve.
96          (b) The director shall account for the funds accrued under Subsection (3)(a) in separate
97     accounts as follows:
98          (i) bid savings and project residual from a capital improvement project, as defined in
99     Section 63A-5-104; and
100          (ii) bid savings and project residual from a capital development project, as defined in
101     Section 63A-5-104.
102          (c) The State Building Board may authorize the use of project reserve funds in the
103     account described in Subsection (3)(b)(i) for a capital improvement project:
104          (i) approved under Section 63A-5-104; and
105          (ii) for which funds are not allocated.
106          (d) The director may:
107          (i) authorize the use of project reserve funds in the accounts described in Subsection
108     (3)(b) for the award of contracts in excess of a project's construction budget if the use is
109     required to meet the intent of the project;

110          (ii) transfer money from the account described in Subsection (3)(b)(i) to the account
111     described in Subsection (3)(b)(ii) if a capital development project has exceeded its construction
112     budget; and
113          (iii) use project reserve funds for any emergency capital improvement project, whether
114     or not the emergency capital improvement project is related to a project that has exceeded its
115     construction budget.
116          (e) The director shall report to the Office of the Legislative Fiscal Analyst within 30
117     days:
118          (i) an authorization under Subsection (3)(c); or
119          (ii) a transfer under Subsection (3)(d).
120          (f) The Legislature shall annually review the amount held in the project reserve for
121     possible reallocation by the Legislature to other building needs, including the cost of
122     administering building projects.
123          (4) If any part of the appropriation for a building project, other than the part set aside
124     for the Utah Percent-for-Art Program under Title 9, Chapter 6, Part 4, Utah Percent-for-Art
125     Act, remains unencumbered after the award of construction and professional service contracts
126     and establishing a reserve for fixed and moveable equipment, the balance of the appropriation
127     is dedicated to the project reserve and does not revert to the General Fund.
128          (5) (a) (i) One percent of the amount appropriated for the construction of any new state
129     building or facility may be appropriated and set aside for the Utah Percent-for-Art Program
130     administered by the Division of Fine Arts under Title 9, Chapter 6, Part 4, Utah Percent-for-Art
131     Act.
132          (ii) The total amount appropriated under Subsection (5)(a)(i) may not exceed $200,000.
133          (b) The director shall release to the Division of Fine Arts any funds included in an
134     appropriation to the division that are designated by the Legislature for the Utah Percent-for-Art
135     Program.
136          (c) Funds from appropriations for any state building or facility of which any part is

137     derived from the issuance of bonds, to the extent it would jeopardize the federal income tax
138     exemption otherwise allowed for interest paid on bonds, may not be set aside.
139          Section 3. Effective date.
140          If approved by two-thirds of all the members elected to each house, this bill takes effect
141     upon approval by the governor, or the day following the constitutional time limit of Utah
142     Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
143     the date of veto override.