Senator David G. Buxton proposes the following substitute bill:


1     
STATE FACILITIES MANAGEMENT AMENDMENTS

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: David G. Buxton

5     
House Sponsor: Brady Brammer

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions relating to the management of state facilities.
10     Highlighted Provisions:
11          This bill:
12          ▸     eliminates the State Building Board;
13          ▸     gives duties of the former State Building Board to the Division of Facilities
14     Construction and Management and the Department of Government Operations;
15          ▸     increases the limit of the value of property that the Division of Facilities
16     Construction and Management may acquire without legislative approval from
17     $250,000 to $500,000;
18          ▸     with respect to code provisions dealing with the disposal of property owned by the
19     Division of Facilities Construction and Management, increases the limit of the value
20     of property not subject to those code provisions from $250,000 to $500,000;
21          ▸     modifies provisions relating to the supervision and control of the allocation of space
22     for institutions of higher education and courts;
23          ▸     provides that the disposition of property owned by the Division of Facilities
24     Construction and Management in connection with the establishment of a state liquor
25     store or the construction of student housing is not subject to provisions otherwise

26     applicable to the disposition of division-owned property;
27          ▸     for a diagnostic, treatment, parole, probation, or other secured facility project,
28     increases the threshold for that project from $250,000 to $500,000 to trigger a
29     requirement for the director of the Division of Facilities Construction and
30     Management to notify a local government entity affected by the project; and
31          ▸     makes technical and conforming changes.
32     Money Appropriated in this Bill:
33          None
34     Other Special Clauses:
35          This bill provides a special effective date.
36     Utah Code Sections Affected:
37     AMENDS:
38          17B-2a-818.5, as last amended by Laws of Utah 2020, Chapters 32 and 152
39          19-1-206, as last amended by Laws of Utah 2020, Chapters 32 and 152
40          26-29-1, as last amended by Laws of Utah 2001, Chapter 73
41          26-29-3, as last amended by Laws of Utah 2001, Chapter 73
42          39-2-1, as last amended by Laws of Utah 2010, Chapter 286
43          53B-2a-112 (Superseded 07/01/22), as last amended by Laws of Utah 2020, Chapter
44     365
45          53B-2a-112 (Effective 07/01/22), as last amended by Laws of Utah 2021, Second
46     Special Session, Chapter 1
47          53B-2a-113, as last amended by Laws of Utah 2020, Chapter 365
48          53B-2a-117, as last amended by Laws of Utah 2020, Chapters 152 and 365
49          53B-7-101, as last amended by Laws of Utah 2020, Chapter 365
50          53B-7-103, as last amended by Laws of Utah 2021, Chapter 187
51          53B-21-104, as last amended by Laws of Utah 2020, Chapter 365
52          53B-22-204, as last amended by Laws of Utah 2020, Chapter 152
53          53E-3-706, as last amended by Laws of Utah 2019, Chapter 186
54          63A-5b-102, as last amended by Laws of Utah 2021, Chapter 187
55          63A-5b-303, as enacted by Laws of Utah 2020, Chapter 152
56          63A-5b-402, as enacted by Laws of Utah 2020, Chapter 152

57          63A-5b-403, as last amended by Laws of Utah 2021, Chapter 187
58          63A-5b-404, as enacted by Laws of Utah 2020, Chapter 152
59          63A-5b-503, as renumbered and amended by Laws of Utah 2020, Chapter 152
60          63A-5b-601, as enacted by Laws of Utah 2020, Chapter 152
61          63A-5b-603, as enacted by Laws of Utah 2020, Chapter 152
62          63A-5b-604, as enacted by Laws of Utah 2020, Chapter 152
63          63A-5b-802, as renumbered and amended by Laws of Utah 2020, Chapter 152
64          63A-5b-803, as last amended by Laws of Utah 2020, Chapter 365
65          63A-5b-806, as renumbered and amended by Laws of Utah 2020, Chapter 152
66          63A-5b-901, as renumbered and amended by Laws of Utah 2020, Chapter 152
67          63A-5b-902, as renumbered and amended by Laws of Utah 2020, Chapter 152
68          63A-5b-904, as renumbered and amended by Laws of Utah 2020, Chapter 152
69          63A-5b-905, as last amended by Laws of Utah 2021, Chapters 84 and 345
70          63A-5b-907, as renumbered and amended by Laws of Utah 2020, Chapter 152
71          63A-5b-910, as renumbered and amended by Laws of Utah 2020, Chapter 152
72          63A-5b-1001, as enacted by Laws of Utah 2020, Chapter 152
73          63A-5b-1003, as renumbered and amended by Laws of Utah 2020, Chapter 152
74          63A-5b-1104, as enacted by Laws of Utah 2020, Chapter 152
75          63B-1-101, as last amended by Laws of Utah 2003, Chapter 2
76          63B-1-304, as last amended by Laws of Utah 2020, Chapter 152
77          63C-9-403, as last amended by Laws of Utah 2020, Chapters 32 and 152
78          63G-6a-103, as last amended by Laws of Utah 2021, Chapters 179, 179, 344, and 345
79          63G-6a-109, as last amended by Laws of Utah 2020, Chapter 257
80          63G-6a-204, as last amended by Laws of Utah 2020, Chapters 257 and 354
81          63G-6a-303, as last amended by Laws of Utah 2021, Chapter 344
82          63G-6a-1302, as last amended by Laws of Utah 2020, Chapter 257
83          63H-6-103, as last amended by Laws of Utah 2021, Chapters 33, 84, and 345
84          63H-6-108, as last amended by Laws of Utah 2016, Third Special Session, Chapter 2
85          63J-4-401, as last amended by Laws of Utah 2021, Chapter 382
86          72-6-107.5, as last amended by Laws of Utah 2020, Chapters 32 and 152
87          78A-5-111, as renumbered and amended by Laws of Utah 2008, Chapter 3

88          79-2-404, as last amended by Laws of Utah 2020, Chapters 32 and 152
89     ENACTS:
90          63A-5b-907.5, Utah Code Annotated 1953
91     REPEALS:
92          63A-5b-201, as last amended by Laws of Utah 2021, Chapter 382
93          63A-5b-202, as last amended by Laws of Utah 2021, Chapters 187 and 344
94          63A-5b-203, as enacted by Laws of Utah 2020, Chapter 152
95     

96     Be it enacted by the Legislature of the state of Utah:
97          Section 1. Section 17B-2a-818.5 is amended to read:
98          17B-2a-818.5. Contracting powers of public transit districts -- Health insurance
99     coverage.
100          (1) As used in this section:
101          (a) "Aggregate" means the sum of all contracts, change orders, and modifications
102     related to a single project.
103          (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
104          (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
105     "operative" who:
106          (i) works at least 30 hours per calendar week; and
107          (ii) meets employer eligibility waiting requirements for health care insurance, which
108     may not exceed the first day of the calendar month following 60 days after the day on which
109     the individual is hired.
110          (d) "Health benefit plan" means:
111          (i) the same as that term is defined in Section 31A-1-301; or
112          (ii) an employee welfare benefit plan:
113          (A) established under the Employee Retirement Income Security Act of 1974, 29
114     U.S.C. Sec. 1001 et seq.;
115          (B) for an employer with 100 or more employees; and
116          (C) in which the employer establishes a self-funded or partially self-funded group
117     health plan to provide medical care for the employer's employees and dependents of the
118     employees.

119          (e) "Qualified health coverage" means the same as that term is defined in Section
120     26-40-115.
121          (f) "Subcontractor" means the same as that term is defined in Section 63A-5b-605.
122          (g) "Third party administrator" or "administrator" means the same as that term is
123     defined in Section 31A-1-301.
124          (2) Except as provided in Subsection (3), the requirements of this section apply to:
125          (a) a contractor of a design or construction contract entered into by the public transit
126     district on or after July 1, 2009, if the prime contract is in an aggregate amount equal to or
127     greater than $2,000,000; and
128          (b) a subcontractor of a contractor of a design or construction contract entered into by
129     the public transit district on or after July 1, 2009, if the subcontract is in an aggregate amount
130     equal to or greater than $1,000,000.
131          (3) The requirements of this section do not apply to a contractor or subcontractor
132     described in Subsection (2) if:
133          (a) the application of this section jeopardizes the receipt of federal funds;
134          (b) the contract is a sole source contract; or
135          (c) the contract is an emergency procurement.
136          (4) A person that intentionally uses change orders, contract modifications, or multiple
137     contracts to circumvent the requirements of this section is guilty of an infraction.
138          (5) (a) A contractor subject to the requirements of this section shall demonstrate to the
139     public transit district that the contractor has and will maintain an offer of qualified health
140     coverage for the contractor's employees and the employee's dependents during the duration of
141     the contract by submitting to the public transit district a written statement that:
142          (i) the contractor offers qualified health coverage that complies with Section
143     26-40-115;
144          (ii) is from:
145          (A) an actuary selected by the contractor or the contractor's insurer;
146          (B) an underwriter who is responsible for developing the employer group's premium
147     rates; or
148          (C) if the contractor provides a health benefit plan described in Subsection (1)(d)(ii),
149     an actuary or underwriter selected by a third party administrator; and

150          (iii) was created within one year before the day on which the statement is submitted.
151          (b) (i) A contractor that provides a health benefit plan described in Subsection (1)(d)(ii)
152     shall provide the actuary or underwriter selected by an administrator, as described in
153     Subsection (5)(a)(ii)(C), sufficient information to determine whether the contractor's
154     contribution to the health benefit plan and the actuarial value of the health benefit plan meet the
155     requirements of qualified health coverage.
156          (ii) A contractor may not make a change to the contractor's contribution to the health
157     benefit plan, unless the contractor provides notice to:
158          (A) the actuary or underwriter selected by an administrator as described in Subsection
159     (5)(a)(ii)(C), for the actuary or underwriter to update the written statement described in
160     Subsection (5)(a) in compliance with this section; and
161          (B) the public transit district.
162          (c) A contractor that is subject to the requirements of this section shall:
163          (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
164     is subject to the requirements of this section shall obtain and maintain an offer of qualified
165     health coverage for the subcontractor's employees and the employees' dependents during the
166     duration of the subcontract; and
167          (ii) obtain from a subcontractor that is subject to the requirements of this section a
168     written statement that:
169          (A) the subcontractor offers qualified health coverage that complies with Section
170     26-40-115;
171          (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, an
172     underwriter who is responsible for developing the employer group's premium rates, or if the
173     subcontractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or
174     underwriter selected by an administrator; and
175          (C) was created within one year before the day on which the contractor obtains the
176     statement.
177          (d) (i) (A) A contractor that fails to maintain an offer of qualified health coverage as
178     described in Subsection (5)(a) during the duration of the contract is subject to penalties in
179     accordance with an ordinance adopted by the public transit district under Subsection (6).
180          (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain

181     and maintain an offer of qualified health coverage described in Subsection (5)(c)(i).
182          (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
183     coverage described in Subsection (5)(c)(i) during the duration of the subcontract is subject to
184     penalties in accordance with an ordinance adopted by the public transit district under
185     Subsection (6).
186          (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
187     an offer of qualified health coverage described in Subsection (5)(a).
188          (6) The public transit district shall adopt ordinances:
189          (a) in coordination with:
190          (i) the Department of Environmental Quality in accordance with Section 19-1-206;
191          (ii) the Department of Natural Resources in accordance with Section 79-2-404;
192          (iii) the [State Building Board] Division of Facilities Construction and Management in
193     accordance with Section 63A-5b-607;
194          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403; and
195          (v) the Department of Transportation in accordance with Section 72-6-107.5; and
196          (b) that establish:
197          (i) the requirements and procedures a contractor and a subcontractor shall follow to
198     demonstrate compliance with this section, including:
199          (A) that a contractor or subcontractor's compliance with this section is subject to an
200     audit by the public transit district or the Office of the Legislative Auditor General;
201          (B) that a contractor that is subject to the requirements of this section shall obtain a
202     written statement described in Subsection (5)(a); and
203          (C) that a subcontractor that is subject to the requirements of this section shall obtain a
204     written statement described in Subsection (5)(c)(ii);
205          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
206     violates the provisions of this section, which may include:
207          (A) a three-month suspension of the contractor or subcontractor from entering into
208     future contracts with the public transit district upon the first violation;
209          (B) a six-month suspension of the contractor or subcontractor from entering into future
210     contracts with the public transit district upon the second violation;
211          (C) an action for debarment of the contractor or subcontractor in accordance with

212     Section 63G-6a-904 upon the third or subsequent violation; and
213          (D) monetary penalties which may not exceed 50% of the amount necessary to
214     purchase qualified health coverage for employees and dependents of employees of the
215     contractor or subcontractor who were not offered qualified health coverage during the duration
216     of the contract; and
217          (iii) a website on which the district shall post the commercially equivalent benchmark,
218     for the qualified health coverage identified in Subsection (1)(e), that is provided by the
219     Department of Health, in accordance with Subsection 26-40-115(2).
220          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(b)(ii), a contractor
221     or subcontractor who intentionally violates the provisions of this section is liable to the
222     employee for health care costs that would have been covered by qualified health coverage.
223          (ii) An employer has an affirmative defense to a cause of action under Subsection
224     (7)(a)(i) if:
225          (A) the employer relied in good faith on a written statement described in Subsection
226     (5)(a) or (5)(c)(ii); or
227          (B) a department or division determines that compliance with this section is not
228     required under the provisions of Subsection (3).
229          (b) An employee has a private right of action only against the employee's employer to
230     enforce the provisions of this Subsection (7).
231          (8) Any penalties imposed and collected under this section shall be deposited into the
232     Medicaid Restricted Account created in Section 26-18-402.
233          (9) The failure of a contractor or subcontractor to provide qualified health coverage as
234     required by this section:
235          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
236     or contractor under:
237          (i) Section 63G-6a-1602; or
238          (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
239          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
240     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
241     or construction.
242          (10) An administrator, including an administrator's actuary or underwriter, who

243     provides a written statement under Subsection (5)(a) or (c) regarding the qualified health
244     coverage of a contractor or subcontractor who provides a health benefit plan described in
245     Subsection (1)(d)(ii):
246          (a) subject to Subsection (10)(b), is not liable for an error in the written statement,
247     unless the administrator commits gross negligence in preparing the written statement;
248          (b) is not liable for any error in the written statement if the administrator relied in good
249     faith on information from the contractor or subcontractor; and
250          (c) may require as a condition of providing the written statement that a contractor or
251     subcontractor hold the administrator harmless for an action arising under this section.
252          Section 2. Section 19-1-206 is amended to read:
253          19-1-206. Contracting powers of department -- Health insurance coverage.
254          (1) As used in this section:
255          (a) "Aggregate" means the sum of all contracts, change orders, and modifications
256     related to a single project.
257          (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
258          (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
259     "operative" who:
260          (i) works at least 30 hours per calendar week; and
261          (ii) meets employer eligibility waiting requirements for health care insurance, which
262     may not exceed the first day of the calendar month following 60 days after the day on which
263     the individual is hired.
264          (d) "Health benefit plan" means:
265          (i) the same as that term is defined in Section 31A-1-301; or
266          (ii) an employee welfare benefit plan:
267          (A) established under the Employee Retirement Income Security Act of 1974, 29
268     U.S.C. Sec. 1001 et seq.;
269          (B) for an employer with 100 or more employees; and
270          (C) in which the employer establishes a self-funded or partially self-funded group
271     health plan to provide medical care for the employer's employees and dependents of the
272     employees.
273          (e) "Qualified health coverage" means the same as that term is defined in Section

274     26-40-115.
275          (f) "Subcontractor" means the same as that term is defined in Section 63A-5b-605.
276          (g) "Third party administrator" or "administrator" means the same as that term is
277     defined in Section 31A-1-301.
278          (2) Except as provided in Subsection (3), the requirements of this section apply to:
279          (a) a contractor of a design or construction contract entered into by, or delegated to, the
280     department, or a division or board of the department, on or after July 1, 2009, if the prime
281     contract is in an aggregate amount equal to or greater than $2,000,000; and
282          (b) a subcontractor of a contractor of a design or construction contract entered into by,
283     or delegated to, the department, or a division or board of the department, on or after July 1,
284     2009, if the subcontract is in an aggregate amount equal to or greater than $1,000,000.
285          (3) This section does not apply to contracts entered into by the department or a division
286     or board of the department if:
287          (a) the application of this section jeopardizes the receipt of federal funds;
288          (b) the contract or agreement is between:
289          (i) the department or a division or board of the department; and
290          (ii) (A) another agency of the state;
291          (B) the federal government;
292          (C) another state;
293          (D) an interstate agency;
294          (E) a political subdivision of this state; or
295          (F) a political subdivision of another state;
296          (c) the executive director determines that applying the requirements of this section to a
297     particular contract interferes with the effective response to an immediate health and safety
298     threat from the environment; or
299          (d) the contract is:
300          (i) a sole source contract; or
301          (ii) an emergency procurement.
302          (4) A person that intentionally uses change orders, contract modifications, or multiple
303     contracts to circumvent the requirements of this section is guilty of an infraction.
304          (5) (a) A contractor subject to the requirements of this section shall demonstrate to the

305     executive director that the contractor has and will maintain an offer of qualified health
306     coverage for the contractor's employees and the employees' dependents during the duration of
307     the contract by submitting to the executive director a written statement that:
308          (i) the contractor offers qualified health coverage that complies with Section
309     26-40-115;
310          (ii) is from:
311          (A) an actuary selected by the contractor or the contractor's insurer;
312          (B) an underwriter who is responsible for developing the employer group's premium
313     rates; or
314          (C) if the contractor provides a health benefit plan described in Subsection (1)(d)(ii),
315     an actuary or underwriter selected by a third party administrator; and
316          (iii) was created within one year before the day on which the statement is submitted.
317          (b) (i) A contractor that provides a health benefit plan described in Subsection (1)(d)(ii)
318     shall provide the actuary or underwriter selected by an administrator, as described in
319     Subsection (5)(a)(ii)(C), sufficient information to determine whether the contractor's
320     contribution to the health benefit plan and the actuarial value of the health benefit plan meet the
321     requirements of qualified health coverage.
322          (ii) A contractor may not make a change to the contractor's contribution to the health
323     benefit plan, unless the contractor provides notice to:
324          (A) the actuary or underwriter selected by an administrator, as described in Subsection
325     (5)(a)(ii)(C), for the actuary or underwriter to update the written statement described in
326     Subsection (5)(a) in compliance with this section; and
327          (B) the department.
328          (c) A contractor that is subject to the requirements of this section shall:
329          (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
330     is subject to the requirements of this section shall obtain and maintain an offer of qualified
331     health coverage for the subcontractor's employees and the employees' dependents during the
332     duration of the subcontract; and
333          (ii) obtain from a subcontractor that is subject to the requirements of this section a
334     written statement that:
335          (A) the subcontractor offers qualified health coverage that complies with Section

336     26-40-115;
337          (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, an
338     underwriter who is responsible for developing the employer group's premium rates, or if the
339     subcontractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or
340     underwriter selected by an administrator; and
341          (C) was created within one year before the day on which the contractor obtains the
342     statement.
343          (d) (i) (A) A contractor that fails to maintain an offer of qualified health coverage
344     described in Subsection (5)(a) during the duration of the contract is subject to penalties in
345     accordance with administrative rules adopted by the department under Subsection (6).
346          (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
347     and maintain an offer of qualified health coverage described in Subsection (5)(c)(i).
348          (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
349     coverage described in Subsection (5)(c) during the duration of the subcontract is subject to
350     penalties in accordance with administrative rules adopted by the department under Subsection
351     (6).
352          (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
353     an offer of qualified health coverage described in Subsection (5)(a).
354          (6) The department shall adopt administrative rules:
355          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
356          (b) in coordination with:
357          (i) a public transit district in accordance with Section 17B-2a-818.5;
358          (ii) the Department of Natural Resources in accordance with Section 79-2-404;
359          (iii) the [State Building Board] Division of Facilities Construction and Management in
360     accordance with Section 63A-5b-607;
361          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403;
362          (v) the Department of Transportation in accordance with Section 72-6-107.5; and
363          (vi) the Legislature's Administrative Rules Review Committee; and
364          (c) that establish:
365          (i) the requirements and procedures a contractor and a subcontractor shall follow to
366     demonstrate compliance with this section, including:

367          (A) that a contractor or subcontractor's compliance with this section is subject to an
368     audit by the department or the Office of the Legislative Auditor General;
369          (B) that a contractor that is subject to the requirements of this section shall obtain a
370     written statement described in Subsection (5)(a); and
371          (C) that a subcontractor that is subject to the requirements of this section shall obtain a
372     written statement described in Subsection (5)(c)(ii);
373          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
374     violates the provisions of this section, which may include:
375          (A) a three-month suspension of the contractor or subcontractor from entering into
376     future contracts with the state upon the first violation;
377          (B) a six-month suspension of the contractor or subcontractor from entering into future
378     contracts with the state upon the second violation;
379          (C) an action for debarment of the contractor or subcontractor in accordance with
380     Section 63G-6a-904 upon the third or subsequent violation; and
381          (D) notwithstanding Section 19-1-303, monetary penalties which may not exceed 50%
382     of the amount necessary to purchase qualified health coverage for an employee and the
383     dependents of an employee of the contractor or subcontractor who was not offered qualified
384     health coverage during the duration of the contract; and
385          (iii) a website on which the department shall post the commercially equivalent
386     benchmark, for the qualified health coverage identified in Subsection (1)(e), that is provided by
387     the Department of Health, in accordance with Subsection 26-40-115(2).
388          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
389     or subcontractor who intentionally violates the provisions of this section is liable to the
390     employee for health care costs that would have been covered by qualified health coverage.
391          (ii) An employer has an affirmative defense to a cause of action under Subsection
392     (7)(a)(i) if:
393          (A) the employer relied in good faith on a written statement described in Subsection
394     (5)(a) or (5)(c)(ii); or
395          (B) the department determines that compliance with this section is not required under
396     the provisions of Subsection (3).
397          (b) An employee has a private right of action only against the employee's employer to

398     enforce the provisions of this Subsection (7).
399          (8) Any penalties imposed and collected under this section shall be deposited into the
400     Medicaid Restricted Account created in Section 26-18-402.
401          (9) The failure of a contractor or subcontractor to provide qualified health coverage as
402     required by this section:
403          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
404     or contractor under:
405          (i) Section 63G-6a-1602; or
406          (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
407          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
408     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
409     or construction.
410          (10) An administrator, including an administrator's actuary or underwriter, who
411     provides a written statement under Subsection (5)(a) or (c) regarding the qualified health
412     coverage of a contractor or subcontractor who provides a health benefit plan described in
413     Subsection (1)(d)(ii):
414          (a) subject to Subsection (10)(b), is not liable for an error in the written statement,
415     unless the administrator commits gross negligence in preparing the written statement;
416          (b) is not liable for any error in the written statement if the administrator relied in good
417     faith on information from the contractor or subcontractor; and
418          (c) may require as a condition of providing the written statement that a contractor or
419     subcontractor hold the administrator harmless for an action arising under this section.
420          Section 3. Section 26-29-1 is amended to read:
421          26-29-1. Buildings and facilities to which chapter applies -- Standards available
422     to interested parties -- Division of Facilities Construction and Management staff to
423     advise, review, and approve plans when possible.
424          (1) (a) The standards in this chapter apply to all buildings and facilities used by the
425     public that are constructed or remodeled in whole or in part by the use of state funds, or the
426     funds of any political subdivision of the state.
427          (b) All of those buildings and facilities constructed in Utah after May 12, 1981, shall
428     conform to the standard prescribed in this chapter except buildings, facilities, or portions of

429     them, not intended for public use, including:
430          (i) caretaker dwellings;
431          (ii) service buildings; and
432          (iii) heating plants.
433          (2) This chapter applies to temporary or emergency construction as well as permanent
434     buildings.
435          (3) (a) The standards established in this chapter apply to the remodeling or alteration of
436     any existing building or facility within the jurisdictions set forth in this chapter where the
437     remodeling or alteration will affect an area of the building or facility in which there are
438     architectural barriers for persons with a physical disability.
439          (b) If the remodeling involves less than 50% of the space of the building or facility,
440     only the areas being remodeled need comply with the standards.
441          (c) If remodeling involves 50% or more of the space of the building or facility, the
442     entire building or facility shall be brought into compliance with the standards.
443          (4) (a) All individuals and organizations are encouraged to apply the standards
444     prescribed in this chapter to all buildings used by the public, but that are financed from other
445     than public funds.
446          (b) The [State Building Board] Division of Facilities Construction and Management
447     shall:
448          (i) make the standards established by this chapter available to interested individuals
449     and organizations; and
450          (ii) upon request and to the extent possible, make available the services of the [building
451     board] Division of Facilities Construction and Management staff to advise, review, and
452     approve plans and specifications in order to comply with the standards of this chapter.
453          Section 4. Section 26-29-3 is amended to read:
454          26-29-3. Basis for standards.
455          The standards of this chapter are the current edition of planning and design criteria to
456     prevent architectural barriers for the aged and persons with a physical disability, as
457     promulgated by the [State Building Board] Division of Facilities Construction and
458     Management.
459          Section 5. Section 39-2-1 is amended to read:

460          39-2-1. Members -- A body corporate -- Powers -- Expenses.
461          (1) [(a)] The State Armory Board:
462          (a) shall consist of the governor, the [chair of the State Building Board,] executive
463     director of the Department of Government Operations, and the adjutant general[.];
464          (b) [It shall be] is a body corporate with perpetual succession[.];
465          (c) [It] may have and use a common seal, and under the name [aforesaid] of the State
466     Armory Board, may sue and be sued, and contract and be contracted with[.];
467          (d) [It] may take and hold by purchase, gift, devise, grant, or bequest real and personal
468     property required for [its use.] the use of the State Armory Board;
469          (e) [It may also] may convert property received by gift, devise, or bequest, and not
470     suitable for [its] the uses of the State Armory Board, into other property so available, or into
471     money[.]; and
472          (f) is a public corporation whose property is exempt from taxes and assessments.
473          (2) (a) The board [shall have power to] may:
474          [(a)] (i) borrow money for the purpose of erecting arsenals and armories upon the sole
475     credit of the real property to which [it] the State Armory Board has the legal title; and
476          [(b)] (ii) [may secure such loans] secure loans described in Subsection (2)(a)(i) by
477     mortgage upon [such property:] property to which the State Armory Board has legal title.
478          (b) (i) [the mortgaged property] Property mortgaged for a loan as provided in
479     Subsection (2)(a) shall be the sole security for [such loan; and] the loan.
480          (ii) [no] No deficiency judgment shall be made, rendered, or entered against the board
481     upon the foreclosure of [the mortgage; provided, however, that] a mortgage under Subsection
482     (2)(a).
483          (iii) The board may not mortgage property in one city [shall not be mortgaged] for the
484     purpose of obtaining money for the erection of armories in any other place. [Said board shall
485     be deemed a public corporation, and its property shall be exempt from all taxes and
486     assessments.]
487          (3) A member may not receive compensation or benefits for the member's service, but
488     may receive per diem and travel expenses in accordance with:
489          (a) Section 63A-3-106;
490          (b) Section 63A-3-107; and

491          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
492     63A-3-107.
493          Section 6. Section 53B-2a-112 (Superseded 07/01/22) is amended to read:
494          53B-2a-112 (Superseded 07/01/22). Technical colleges -- Relationships with other
495     public and higher education institutions -- Agreements -- Priorities -- New capital
496     facilities.
497          (1) As used in this section, "higher education institution" means:
498          (a) Utah State University for:
499          (i) Bridgerland Technical College;
500          (ii) Tooele Technical College; and
501          (iii) Uintah Basin Technical College;
502          (b) Weber State University for:
503          (i) Ogden-Weber Technical College; and
504          (ii) Davis Technical College;
505          (c) Utah Valley University for Mountainland Technical College;
506          (d) Southern Utah University for Southwest Technical College; and
507          (e) Dixie State University for Dixie Technical College.
508          (2) A technical college may enter into agreements:
509          (a) with other higher education institutions to cultivate cooperative relationships; or
510          (b) with other public and higher education institutions to enhance career and technical
511     education within the technical college's region.
512          (3) Before a technical college develops new instructional facilities, the technical
513     college shall give priority to:
514          (a) maintaining the technical college's existing instructional facilities for both
515     secondary and adult students;
516          (b) coordinating with the president of the technical college's higher education
517     institution and entering into any necessary agreements to provide career and technical
518     education to secondary and adult students that:
519          (i) maintain and support existing higher education career and technical education
520     programs; and
521          (ii) maximize the use of existing higher education facilities; and

522          (c) developing cooperative agreements with school districts, charter schools, other
523     higher education institutions, businesses, industries, and community and private agencies to
524     maximize the availability of career and technical education instructional facilities for both
525     secondary and adult students.
526          (4) (a) Before submitting a funding request pertaining to new capital facilities and land
527     purchases to the board, a technical college shall:
528          (i) ensure that all available instructional facilities are maximized in accordance with
529     Subsections (3)(a) through (c); and
530          (ii) coordinate the request with the president of the technical college's higher education
531     institution, if applicable.
532          (b) The [State Building Board] Division of Facilities Construction and Management
533     shall make a finding that the requirements of this section are met before the [State Building
534     Board] Division of Facilities Construction and Management may consider a funding request
535     from the board pertaining to new capital facilities and land purchases for a technical college.
536          (c) A technical college may not construct, approve the construction of, plan for the
537     design or construction of, or consent to the construction of a career and technical education
538     facility without approval of the Legislature.
539          (5) Before acquiring new fiscal and administrative support structures, a technical
540     college shall:
541          (a) review the use of existing public or higher education administrative and accounting
542     systems, financial record systems, and student and financial aid systems for the delivery of
543     career and technical education in the region;
544          (b) determine the feasibility of using existing systems; and
545          (c) with the approval of the technical college board of trustees and the board, use the
546     existing systems.
547          Section 7. Section 53B-2a-112 (Effective 07/01/22) is amended to read:
548          53B-2a-112 (Effective 07/01/22). Technical colleges -- Relationships with other
549     public and higher education institutions -- Agreements -- Priorities -- New capital
550     facilities.
551          (1) As used in this section, "higher education institution" means:
552          (a) Utah State University for:

553          (i) Bridgerland Technical College;
554          (ii) Tooele Technical College; and
555          (iii) Uintah Basin Technical College;
556          (b) Weber State University for:
557          (i) Ogden-Weber Technical College; and
558          (ii) Davis Technical College;
559          (c) Utah Valley University for Mountainland Technical College;
560          (d) Southern Utah University for Southwest Technical College; and
561          (e) Utah Tech University for Dixie Technical College.
562          (2) A technical college may enter into agreements:
563          (a) with other higher education institutions to cultivate cooperative relationships; or
564          (b) with other public and higher education institutions to enhance career and technical
565     education within the technical college's region.
566          (3) Before a technical college develops new instructional facilities, the technical
567     college shall give priority to:
568          (a) maintaining the technical college's existing instructional facilities for both
569     secondary and adult students;
570          (b) coordinating with the president of the technical college's higher education
571     institution and entering into any necessary agreements to provide career and technical
572     education to secondary and adult students that:
573          (i) maintain and support existing higher education career and technical education
574     programs; and
575          (ii) maximize the use of existing higher education facilities; and
576          (c) developing cooperative agreements with school districts, charter schools, other
577     higher education institutions, businesses, industries, and community and private agencies to
578     maximize the availability of career and technical education instructional facilities for both
579     secondary and adult students.
580          (4) (a) Before submitting a funding request pertaining to new capital facilities and land
581     purchases to the board, a technical college shall:
582          (i) ensure that all available instructional facilities are maximized in accordance with
583     Subsections (3)(a) through (c); and

584          (ii) coordinate the request with the president of the technical college's higher education
585     institution, if applicable.
586          (b) The [State Building Board] Division of Facilities Construction and Management
587     shall make a finding that the requirements of this section are met before the [State Building
588     Board] Division of Facilities Construction and Management may consider a funding request
589     from the board pertaining to new capital facilities and land purchases for a technical college.
590          (c) A technical college may not construct, approve the construction of, plan for the
591     design or construction of, or consent to the construction of a career and technical education
592     facility without approval of the Legislature.
593          (5) Before acquiring new fiscal and administrative support structures, a technical
594     college shall:
595          (a) review the use of existing public or higher education administrative and accounting
596     systems, financial record systems, and student and financial aid systems for the delivery of
597     career and technical education in the region;
598          (b) determine the feasibility of using existing systems; and
599          (c) with the approval of the technical college board of trustees and the board, use the
600     existing systems.
601          Section 8. Section 53B-2a-113 is amended to read:
602          53B-2a-113. Technical colleges -- Leasing authority -- Lease-purchase agreements
603     -- Report.
604          (1) A technical college may enter into a lease with other higher education institutions,
605     school districts, charter schools, state agencies, or business and industry for a term of:
606          (a) one year or less with the approval of the technical college board of trustees; or
607          (b) more than one year with the approval of the board if:
608          (i) the Legislature approves funding for the lease prior to a technical college entering
609     into the lease; or
610          (ii) the lease agreement includes language that allows termination of the lease without
611     penalty.
612          (2) (a) A technical college may enter into a lease-purchase agreement if:
613          (i) there is a long-term benefit to the state;
614          (ii) the project is included in the technical college master plan;

615          (iii) the lease-purchase agreement includes language that allows termination of the
616     lease;
617          (iv) the lease-purchase agreement is approved by the technical college board of trustees
618     and the board; and
619          (v) the lease-purchase agreement is:
620          (A) reviewed by the Division of Facilities Construction and Management; and
621          [(B) reviewed by the State Building Board; and]
622          [(C)] (B) approved by the Legislature.
623          (b) An approval under Subsection (2)(a) shall include a recognition of:
624          (i) all parties, dates, and elements of the agreement;
625          (ii) the equity or collateral component that creates the benefit; and
626          (iii) the options dealing with the sale and division of equity.
627          (3) (a) Each technical college shall provide an annual lease report to the board that
628     details each of the technical college's leases, annual costs, location, square footage, and
629     recommendations for lease continuation.
630          (b) The board shall compile and distribute an annual combined lease report for all
631     technical colleges to the Division of Facilities Construction and Management and to others
632     upon request.
633          (4) The board shall use the annual combined lease report in determining planning,
634     utilization, and budget requests.
635          Section 9. Section 53B-2a-117 is amended to read:
636          53B-2a-117. Legislative approval -- Capital development projects --
637     Prioritization.
638          (1) As used in this section:
639          (a) "Consumer Price Index" means the Consumer Price Index for All Urban Consumers
640     as published by the Bureau of Labor Statistics of the United States Department of Labor.
641          (b) "Fund" means the Technical Colleges Capital Projects Fund created in Section
642     53B-2a-118.
643          (2) In accordance with this section, a technical college is required to receive legislative
644     approval in an appropriations act for a dedicated project or a nondedicated project.
645          (3) In accordance with Section 53B-2a-112, a technical college shall submit to the

646     board a proposal for a funding request for each dedicated project or nondedicated project for
647     which the technical college seeks legislative approval.
648          (4) The board shall:
649          (a) review each proposal submitted under Subsection (3) to ensure that the proposal
650     complies with Section 53B-2a-112;
651          (b) based on the results of the board's review under Subsection (4)(a), create:
652          (i) a list of approved dedicated projects, prioritized in accordance with Subsection (6);
653     and
654          (ii) a list of approved nondedicated projects, prioritized in accordance with Subsection
655     (6); and
656          (c) submit the lists described in Subsection (4)(b) to:
657          (i) the governor;
658          (ii) the Infrastructure and General Government Appropriations Subcommittee;
659          (iii) the Higher Education Appropriations Subcommittee; and
660          [(iv) the State Building Board for the State Building Board's:]
661          (iv) the Division of Facilities Construction and Management for a:
662          (A) recommendation, for the list described in Subsection (4)(b)(i); or
663          (B) recommendation and prioritization, for the list described in Subsection (4)(b)(ii).
664          (5) A dedicated project:
665          (a) is subject to the [State Building Board's] recommendation of the Division of
666     Facilities Construction and Management as described in Section 63A-5b-403; and
667          (b) is not subject to the [State Building Board's] prioritization of the Division of
668     Facilities Construction and Management as described in Section 63A-5b-403.
669          (6) (a) Subject to Subsection (7), the board shall prioritize funding requests for capital
670     development projects described in this section based on:
671          (i) growth and capacity;
672          (ii) effectiveness and support of critical programs;
673          (iii) cost effectiveness;
674          (iv) building deficiencies and life safety concerns; and
675          (v) alternative funding sources.
676          (b) The board shall establish:

677          (i) how the board will measure each factor described in Subsection (6)(a); and
678          (ii) procedures for prioritizing funding requests for capital development projects
679     described in this section.
680          (7) (a) Subject to Subsection (7)(b), and in accordance with Subsection (6), the board
681     may annually prioritize:
682          (i) up to three nondedicated projects if the ongoing appropriation to the fund is less
683     than $7,000,000;
684          (ii) up to two nondedicated projects if the ongoing appropriation to the fund is at least
685     $7,000,000 but less than $14,000,000; or
686          (iii) one nondedicated project if the ongoing appropriation to the fund is at least
687     $14,000,000.
688          (b) For each calendar year beginning on or after January 1, 2020, the dollar amounts
689     described in Subsection (7)(a) shall be adjusted by an amount equal to the percentage
690     difference between:
691          (i) the Consumer Price Index for the 2019 calendar year; and
692          (ii) the Consumer Price Index for the previous calendar year.
693          (8) (a) A technical college may request operations and maintenance funds for a capital
694     development project approved under this section.
695          (b) The Legislature shall consider a technical college's request described in Subsection
696     (8)(a).
697          Section 10. Section 53B-7-101 is amended to read:
698          53B-7-101. Combined requests for appropriations -- Board review of operating
699     budgets -- Submission of budgets -- Recommendations -- Hearing request --
700     Appropriation formulas -- Allocations -- Dedicated credits -- Financial affairs.
701          (1) As used in this section:
702          (a) "Higher education institution" or "institution" means an institution of higher
703     education listed in Section 53B-1-102.
704          (b) "Research university" means the University of Utah or Utah State University.
705          (2) (a) Subject to Subsection (3), the board shall recommend a combined appropriation
706     for the operating budgets of higher education institutions for inclusion in a state appropriations
707     act.

708          (b) The board's combined budget recommendation shall include:
709          (i) employee compensation;
710          (ii) mandatory costs, including building operations and maintenance, fuel, and power;
711          (iii) performance funding described in Part 7, Performance Funding;
712          (iv) statewide and institutional priorities, including scholarships, financial aid, and
713     technology infrastructure; and
714          (v) enrollment growth.
715          (c) The board's recommendations shall be available for presentation to the governor
716     and to the Legislature at least 30 days before the convening of the Legislature, and shall include
717     schedules showing the recommended amounts for each institution, including separately funded
718     programs or divisions.
719          (d) The recommended appropriations shall be determined by the board only after the
720     board has reviewed the proposed institutional operating budgets, and has consulted with the
721     various institutions and board staff in order to make appropriate adjustments.
722          (3) In the combined request for appropriation, the board shall differentiate between
723     appropriations requested for academic education and appropriations requested for technical
724     education.
725          (4) (a) Institutional operating budgets shall be submitted to the board at least 90 days
726     before the convening of the Legislature in accordance with procedures established by the board.
727          (b) Except as provided in Sections 53B-2a-117 and 53B-22-204, funding requests
728     pertaining to capital facilities and land purchases shall be submitted in accordance with
729     procedures prescribed by the [State Building Board] Division of Facilities Construction and
730     Management.
731          (5) (a) The budget recommendations of the board shall be accompanied by full
732     explanations and supporting data.
733          (b) The appropriations recommended by the board shall be made with the dual
734     objective of:
735          (i) justifying for higher education institutions appropriations consistent with their
736     needs, and consistent with the financial ability of the state; and
737          (ii) determining an equitable distribution of funds among the respective institutions in
738     accordance with the aims and objectives of the statewide master plan for higher education.

739          (6) (a) The board shall request a hearing with the governor on the recommended
740     appropriations.
741          (b) After the governor delivers his budget message to the Legislature, the board shall
742     request hearings on the recommended appropriations with the Higher Education
743     Appropriations Subcommittee.
744          (c) If either the total amount of the state appropriations or its allocation among the
745     institutions as proposed by the Legislature or the Higher Education Appropriations
746     Subcommittee is substantially different from the recommendations of the board, the board may
747     request further hearings with the Legislature or the Higher Education Appropriations
748     Subcommittee to reconsider both the total amount and the allocation.
749          (7) The board may devise, establish, periodically review, and revise formulas for the
750     board's use and for the use of the governor and the Higher Education Appropriations
751     Subcommittee in making appropriation recommendations.
752          (8) (a) The board shall recommend to each session of the Legislature the minimum
753     tuitions, resident and nonresident, for each institution which it considers necessary to
754     implement the budget recommendations.
755          (b) The board may fix the tuition, fees, and charges for each institution at levels the
756     board finds necessary to meet budget requirements.
757          (9) Money allocated to each institution by legislative appropriation may be budgeted in
758     accordance with institutional work programs approved by the board, provided that the
759     expenditures funded by appropriations for each institution are kept within the appropriations
760     for the applicable period.
761          (10) The dedicated credits, including revenues derived from tuitions, fees, federal
762     grants, and proceeds from sales received by the institutions are appropriated to the respective
763     institutions to be used in accordance with institutional work programs.
764          (11) An institution may do the institution's own purchasing, issue the institution's own
765     payrolls, and handle the institution's own financial affairs under the general supervision of the
766     board.
767          (12) If the Legislature appropriates money in accordance with this section, the money
768     shall be distributed to the board and higher education institutions to fund the items described in
769     Subsection (2)(b).

770          Section 11. Section 53B-7-103 is amended to read:
771          53B-7-103. Board designated state educational agent for federal contracts and
772     aid -- Individual research grants -- Powers of institutions or foundations under
773     authorized programs.
774          (1) (a) The board is the designated state educational agency authorized to negotiate and
775     contract with the federal government and to accept financial or other assistance from the
776     federal government or any of its agencies in the name of and in behalf of the state of Utah,
777     under terms and conditions as may be prescribed by congressional enactment designed to
778     further higher education.
779          (b) Nothing in this chapter alters or limits the authority of the [State Building Board]
780     Division of Facilities Construction and Management to act as the designated state agency to
781     administer programs on behalf of and accept funds from federal, state, and other sources, for
782     capital facilities for the benefit of higher education.
783          (2) (a) Subject to policies and procedures established by the board, an institution of
784     higher education and the institution of higher education's employees may apply for and receive
785     grants or research and development contracts within the educational role of the recipient
786     institution.
787          (b) A program described in Subsection (2)(a) may be conducted by and through the
788     institution, or by and through any foundation or organization that is established for the purpose
789     of assisting the institution in the accomplishment of the institution's purposes.
790          (3) An institution or the institution's foundation or organization engaged in a program
791     authorized by the board may do the following:
792          (a) enter into contracts with federal, state, or local governments or their subsidiary
793     agencies or departments, with private organizations, companies, firms, or industries, or with
794     individuals for conducting the authorized programs;
795          (b) subject to the approval of the controlling state agency, conduct authorized programs
796     within any of the penal, corrective, or custodial institutions of this state and engage the
797     voluntary participation of inmates in those programs;
798          (c) accept contributions, grants, or gifts from, and enter into contracts and cooperative
799     agreements with, any private organization, company, firm, industry, or individual, or any
800     governmental agency or department, for support of authorized programs within the educational

801     role of the recipient institution, and may agree to provide matching funds with respect to those
802     programs from resources available to the institution; and
803          (d) retain, accumulate, invest, commit, and expend the funds and proceeds from
804     programs funded under Subsection (3)(c), including the acquisition of real and personal
805     property reasonably required for their accomplishment, except that no portion of the funds and
806     proceeds may be diverted from or used for purposes other than those authorized or undertaken
807     under Subsection (3)(c), or may ever become a charge upon or obligation of the state of Utah or
808     the general funds appropriated for the normal operations of the institution unless otherwise
809     permitted by law.
810          (4) (a) Except as provided in Subsection (4)(b), all contracts and research or
811     development grants or contracts requiring the use or commitment of facilities, equipment, or
812     personnel under the control of an institution of higher education are subject to the approval of
813     the board.
814          (b) (i) The board may delegate the approval of a contract or grant described in
815     Subsection (4)(a) to an institution of higher education board of trustees.
816          (ii) If the board makes a delegation described in Subsection (4)(b)(i), the board of
817     trustees shall annually report to the board on all approved contracts or grants.
818          Section 12. Section 53B-21-104 is amended to read:
819          53B-21-104. Deposit of bond proceeds -- Division of Facilities Construction and
820     Management responsibilities and approval.
821          (1) The board treasurer or other fiscal officer, with the approval of the state treasurer,
822     deposits the proceeds from the sale of bonds under this chapter into a special Construction
823     Trust Fund Account established in compliance with the State Money Management Act of 1974.
824          (2) The proceeds are credited to the board on behalf of the institution of higher
825     education for which the bonds were issued.
826          (3) The proceeds are kept in a separate fund and used solely for the purpose for which
827     they were authorized by the board.
828          (4) The [State Building Board] Division of Facilities Construction and Management
829     makes all contracts and executes all instruments which it considers necessary to provide for the
830     projects referred to in Section 53B-21-101.
831          (5) The proceeds in the special Construction Trust Fund Account shall be disbursed

832     only upon receipt of written statements supported by itemized estimates and claims presented
833     to the Division of Facilities Construction and Management as provided in the resolution
834     authorizing the issuance of the bonds.
835          Section 13. Section 53B-22-204 is amended to read:
836          53B-22-204. Funding request for capital development project -- Legislative
837     approval -- Board prioritization, approval, and review.
838          (1) In accordance with this section, an institution is required to receive legislative
839     approval in an appropriations act for a dedicated project or a nondedicated project.
840          (2) An institution shall submit to the board a proposal for a funding request for each
841     dedicated project or nondedicated project for which the institution seeks legislative approval.
842          (3) The board shall:
843          (a) review each proposal submitted under Subsection (2) to ensure the proposal:
844          (i) is cost effective and an efficient use of resources;
845          (ii) is consistent with the institution's mission and master plan; and
846          (iii) fulfills a critical institutional facility need;
847          (b) based on the results of the board's review under Subsection (3)(a), create:
848          (i) a list of approved dedicated projects; and
849          (ii) a list of approved nondedicated projects, prioritized in accordance with Subsection
850     (5); and
851          (c) submit the lists described in Subsection (3)(b) to:
852          (i) the governor;
853          (ii) the Infrastructure and General Government Appropriations Subcommittee;
854          (iii) the Higher Education Appropriations Subcommittee; and
855          [(iv) the State Building Board for the State Building Board's:]
856          (iv) the Division of Facilities Construction and Management for a:
857          (A) recommendation, for the list described in Subsection (3)(b)(i); or
858          (B) recommendation and prioritization, for the list described in Subsection (3)(b)(ii).
859          (4) A dedicated project:
860          (a) is subject to the [State Building Board's] recommendation of the Division of
861     Facilities Construction and Management as described in Section 63A-5b-403; and
862          (b) is not subject to the [State Building Board's] prioritization of the Division of

863     Facilities Construction and Management as described in Section 63A-5b-403.
864          (5) (a) Subject to Subsection (6), the board shall prioritize institution requests for
865     funding for nondedicated projects based on:
866          (i) capital facility need;
867          (ii) utilization of facilities;
868          (iii) maintenance and condition of facilities; and
869          (iv) any other factor determined by the board.
870          (b) On or before August 1, 2019, the board shall establish how the board will prioritize
871     institution requests for funding for nondedicated projects, including:
872          (i) how the board will measure each factor described in Subsection (5)(a); and
873          (ii) procedures for prioritizing requests.
874          (6) (a) Subject to Subsection (6)(b), and in accordance with Subsection (5), the board
875     may annually prioritize:
876          (i) up to three nondedicated projects if the ongoing appropriation to the fund is less
877     than $50,000,000;
878          (ii) up to two nondedicated projects if the ongoing appropriation to the fund is at least
879     $50,000,000 but less than $100,000,000; or
880          (iii) one nondedicated project if the ongoing appropriation to the fund is at least
881     $100,000,000.
882          (b) For each calendar year beginning on or after January 1, 2020, the dollar amounts
883     described in Subsection (6)(a) shall be adjusted by an amount equal to the percentage
884     difference between:
885          (i) the Consumer Price Index for the 2019 calendar year; and
886          (ii) the Consumer Price Index for the previous calendar year.
887          (7) (a) An institution may request operations and maintenance funds for a capital
888     development project approved under this section.
889          (b) The Legislature shall consider an institution's request described in Subsection
890     (7)(a).
891          (8) After an institution completes a capital development project described in this
892     section, the board shall review the capital development project, including the costs and design
893     of the capital development project.

894          Section 14. Section 53E-3-706 is amended to read:
895          53E-3-706. Enforcement of part by state superintendent -- Employment of
896     personnel -- School districts and charter schools -- Certificate of inspection verification.
897          (1) The state superintendent shall enforce this part.
898          (2) The state superintendent may employ architects or other qualified personnel, or
899     contract with the [State Building Board] Division of Facilities Construction and Management,
900     the state fire marshal, or a local governmental entity to:
901          (a) examine the plans and specifications of any school building or alteration submitted
902     under this part;
903          (b) verify the inspection of any school building during or following construction; and
904          (c) perform other functions necessary to ensure compliance with this part.
905          (3) (a) (i) If a local school board uses the school district's building inspector under
906     Subsection 10-9a-305(6)(a)(ii) or 17-27a-305(6)(a)(ii) and issues its own certificate authorizing
907     permanent occupancy of the school building, the local school board shall file a certificate of
908     inspection verification with the local governmental entity's building official and the state board,
909     advising those entities that the school district has complied with the inspection provisions of
910     this part.
911          (ii) If a charter school uses a school district building inspector under Subsection
912     10-9a-305(6)(a)(ii) or 17-27a-305(6)(a)(ii) and the school district issues to the charter school a
913     certificate authorizing permanent occupancy of the school building, the charter school shall file
914     with the state board a certificate of inspection verification.
915          (iii) If a local school board or charter school uses a local governmental entity's building
916     inspector under Subsection 10-9a-305(6)(a)(i) or 17-27a-305(6)(a)(i) and the local
917     governmental entity issues the local school board or charter school a certificate authorizing
918     permanent occupancy of the school building, the local school board or charter school shall file
919     with the state board a certificate of inspection verification.
920          (iv) (A) If a local school board or charter school uses an independent, certified building
921     inspector under Subsection 10-9a-305(6)(a)(iii) or 17-27a-305(6)(a)(iii), the local school board
922     or charter school shall, upon completion of all required inspections of the school building, file
923     with the state board a certificate of inspection verification and a request for the issuance of a
924     certificate authorizing permanent occupancy of the school building.

925          (B) Upon the local school board's or charter school's filing of the certificate and request
926     as provided in Subsection (3)(a)(iv)(A), the school district or charter school shall be entitled to
927     temporary occupancy of the school building that is the subject of the request for a period of 90
928     days, beginning the date the request is filed, if the school district or charter school has
929     complied with all applicable fire and life safety code requirements.
930          (C) Within 30 days after the local school board or charter school files a request under
931     Subsection (3)(a)(iv)(A) for a certificate authorizing permanent occupancy of the school
932     building, the state superintendent shall:
933          (I) (Aa) issue to the local school board or charter school a certificate authorizing
934     permanent occupancy of the school building; or
935          (Bb) deliver to the local school board or charter school a written notice indicating
936     deficiencies in the school district's or charter school's compliance with the inspection
937     provisions of this part; and
938          (II) mail a copy of the certificate authorizing permanent occupancy or the notice of
939     deficiency to the building official of the local governmental entity in which the school building
940     is located.
941          (D) Upon the local school board or charter school remedying the deficiencies indicated
942     in the notice under Subsection (3)(a)(iv)(C)(I)(Bb) and notifying the state superintendent that
943     the deficiencies have been remedied, the state superintendent shall issue a certificate
944     authorizing permanent occupancy of the school building and mail a copy of the certificate to
945     the building official of the local governmental entity in which the school building is located.
946          (E) (I) The state superintendent may charge the school district or charter school a fee
947     for an inspection that the state superintendent considers necessary to enable the state
948     superintendent to issue a certificate authorizing permanent occupancy of the school building.
949          (II) A fee under Subsection (3)(a)(iv)(E)(I) may not exceed the actual cost of
950     performing the inspection.
951          (b) For purposes of this Subsection (3):
952          (i) "local governmental entity" means either a municipality, for a school building
953     located within a municipality, or a county, for a school building located within an
954     unincorporated area in the county; and
955          (ii) "certificate of inspection verification" means a standard inspection form developed

956     by the state superintendent in consultation with local school boards and charter schools to
957     verify that inspections by qualified inspectors have occurred.
958          Section 15. Section 63A-5b-102 is amended to read:
959          63A-5b-102. Definitions.
960          As used in this chapter:
961          [(1) "Board" means the state building board created in Section 63A-5b-201.]
962          [(2)] (1) "Capitol hill facilities" means the same as that term is defined in Section
963     63C-9-102.
964          [(3)] (2) "Capitol hill grounds" means the same as that term is defined in Section
965     63C-9-102.
966          [(4)] (3) "Compliance agency" means the same as that term is defined in Section
967     15A-1-202.
968          [(5)] (4) "Director" means the division director, appointed under Section 63A-5b-302.
969          [(6)] (5) "Division" means the Division of Facilities Construction and Management
970     created in Section 63A-5b-301.
971          [(7)] (6) "Institution of higher education" means an institution listed in Subsection
972     53B-2-101(1).
973          [(8)] (7) "Trust lands administration" means the School and Institutional Trust Lands
974     Administration established in Section 53C-1-201.
975          [(9)] (8) "Utah Board of Higher Education" means the Utah Board of Higher Education
976     established in Section 53B-1-402.
977          Section 16. Section 63A-5b-303 is amended to read:
978          63A-5b-303. Duties and authority of division.
979          (1) (a) The division shall:
980          (i) subject to Subsection (1)(b), supervise and control the allocation of space, in
981     accordance with legislative directive through annual appropriations acts, other legislation, or
982     statute, to agencies in all buildings or space owned, leased, or rented by or to the state, except
983     as provided in Subsection (3) or as otherwise provided by statute;
984          (ii) assure the efficient use of all building space under the division's supervision and
985     control;
986          (iii) acquire title to all real property, buildings, fixtures, and appurtenances for use by

987     the state or an agency, as authorized by the Legislature through an appropriation act, other
988     legislation, or statute, subject to Subsection (1)(c);
989          (iv) except as otherwise provided by statute, hold title to all real property, buildings,
990     fixtures, and appurtenances owned by the state or an agency;
991          (v) collect and maintain all deeds, abstracts of title, and all other documents evidencing
992     title to or an interest in property belonging to the state or [of] to the state's departments, except
993     institutions of higher education and the trust lands administration;
994          (vi) (A) periodically conduct a market analysis of proposed rates and fees; and
995          (B) include in a market analysis a comparison of the division's rates and fees with the
996     rates and fees of other public or private sector providers of comparable services, if rates and
997     fees for comparable services are reasonably available;
998          (vii) fulfill the division's responsibilities under Part 10, Energy Conservation and
999     Efficiency, including responsibilities:
1000          (A) to implement the state building energy efficiency program under Section
1001     63A-5b-1002; and
1002          (B) related to the approval of loans from the State Facility Energy Efficiency Fund
1003     under Section 63A-5a-1003;
1004          (viii) convey, lease, or dispose of the real property, water rights, or water shares
1005     associated with the Utah State Developmental Center if directed to do so by the Utah State
1006     Developmental Center board, as provided in Subsection 62A-5-206.6(2); and
1007          (ix) take all other action that the division is required to do under this chapter or other
1008     applicable statute.
1009          (b) In making an allocation of space under Subsection (1)(a)(i), the division shall
1010     conduct one or more studies to determine the actual needs of each agency.
1011          (c) The division may, without legislative approval, acquire title to real property for use
1012     by the state or an agency if the acquisition cost does not exceed [$250,000] $500,000.
1013          (2) The division may:
1014          (a) sue and be sued;
1015          (b) as authorized by the Legislature, buy, lease, or otherwise acquire, by exchange or
1016     otherwise, and hold real or personal property necessary for the discharge of the division's
1017     duties; and

1018          (c) take all other action necessary for carrying out the purposes of this chapter.
1019          (3) (a) The division may not supervise or control the allocation of space for [an
1020     institution of higher education or] an entity in the public education system.
1021          (b) The supervision and control of the legislative area is reserved to the Legislature.
1022          [(c) The supervision and control of the trial courts area is reserved to the judiciary.]
1023          [(d)] (c) The supervision and control of capitol hill facilities and capitol hill grounds is
1024     reserved to the State Capitol Preservation Board.
1025          (d) (i) Subject to Subsection (3)(d)(ii), the supervision and control of the allocation of
1026     space for an institution of higher education is reserved to the Utah Board of Higher Education.
1027          (ii) The Utah Board of Higher Education shall consult and cooperate with the division
1028     in the establishment and enforcement of standards for the supervision and control of the
1029     allocation of space for an institution of higher education.
1030          (e) (i) Subject to Subsection (3)(e)(ii), the supervision and control of the allocation of
1031     space for the courts of record listed in Subsection 78A-1-101(1) is reserved to the
1032     Administrative Office of the Courts referred to in Subsection 78A-2-108(3).
1033          (ii) The Administrative Office of the Courts shall consult and cooperate with the
1034     division in the establishment and enforcement of standards for the supervision and control of
1035     the allocation of space for the courts of record listed in Subsection 78A-1-101(1).
1036          (4) Before the division charges a rate, fee, or other amount for a service provided by
1037     the division's internal service fund to an executive branch agency, or to a service subscriber
1038     other than an executive branch agency, the division shall:
1039          (a) submit an analysis of the proposed rate, fee, or other amount to the rate committee
1040     created in Section 63A-1-114; and
1041          (b) obtain the approval of the Legislature as required by Section 63J-1-410.
1042          Section 17. Section 63A-5b-402 is amended to read:
1043          63A-5b-402. Capital development process -- Approval requirements.
1044          (1) Except as provided in Section 63A-5b-404, the [board] division shall, on behalf of
1045     all agencies, submit capital development project recommendations and priorities to the
1046     Legislature for approval and prioritization.
1047          (2) An agency that requests an appropriation for a capital development project shall
1048     submit to the division for transmission to the [board] Legislature a capital development project

1049     request and a feasibility study relating to the capital development project.
1050          (3) (a) The division shall, [in consultation with the board and] in accordance with Title
1051     63G, Chapter 3, Utah Administrative Rulemaking Act, make rules that establish standards and
1052     requirements for a capital development project request and feasibility study.
1053          (b) The rules shall include:
1054          (i) a deadline by which an agency is required to submit a capital development project
1055     request;
1056          (ii) conditions under which an agency may modify the agency's capital development
1057     project request after the agency submits the request, and requirements applicable to a
1058     modification; and
1059          (iii) requirements for the contents of a feasibility study, including:
1060          (A) the need for the capital development project;
1061          (B) the appropriateness of the scope of the capital development project;
1062          (C) any private funding for the capital development project; and
1063          (D) the economic and community impacts of the capital development project.
1064          (4) The division shall verify the completion and accuracy of a feasibility study that an
1065     agency submits under Subsection (2) prior to [transmitting the feasibility study to the board]
1066     submitting capital development project recommendations and priorities under Subsection (1).
1067          Section 18. Section 63A-5b-403 is amended to read:
1068          63A-5b-403. Institutions of higher education -- Capital development projects --
1069     Dedicated and nondedicated projects -- Recommendations and prioritization.
1070          (1) As used in this section:
1071          (a) "Dedicated project" has the same meaning as that term is defined in:
1072          (i) Section 53B-2a-101, for a capital development project under Title 53B, Chapter 2a,
1073     Technical Education; or
1074          (ii) Section 53B-22-201, for a capital development project under Title 53B, Chapter 22,
1075     Higher Education Capital Projects.
1076          (b) "Nondedicated project" has the same meaning as that term is defined in:
1077          (i) Section 53B-2a-101, for a capital development project under Title 53B, Chapter 2a,
1078     Technical Education; or
1079          (ii) Section 53B-22-201, for a capital development project under Title 53B, Chapter 22,

1080     Higher Education Capital Projects.
1081          (2) (a) The [board] division shall submit recommendations to the Legislature in
1082     accordance with:
1083          (i) Section 53B-2a-117, for a dedicated project under Title 53B, Chapter 2a, Technical
1084     Education; or
1085          (ii) Section 53B-22-204, for a dedicated project under Title 53B, Chapter 22, Higher
1086     Education Capital Projects.
1087          (b) A dedicated project is not subject to prioritization by the [board] division.
1088          (3) (a) The [board] division shall prioritize nondedicated projects in accordance with:
1089          (i) Section 63A-5b-402; and
1090          (ii) (A) Section 53B-2a-117, for a nondedicated project under Title 53B, Chapter 2a,
1091     Technical Education; or
1092          (B) Section 53B-22-204, for a nondedicated project under Title 53B, Chapter 22,
1093     Higher Education Capital Projects.
1094          (b) In the [board's] division's scoring process for prioritizing nondedicated projects, the
1095     [board] division shall give more weight to a request that is designated as a higher priority by
1096     the Utah Board of Higher Education than a request that is designated as a lower priority by the
1097     Utah Board of Higher Education only for determining the order of prioritization among
1098     requests submitted by the Utah Board of Higher Education.
1099          (4) The [board] division shall require that an institution of higher education that
1100     submits a request for a capital development project address whether and how, as a result of the
1101     project, the institution of higher education will:
1102          (a) offer courses or other resources that will help meet demand for jobs, training, and
1103     employment in the current market and the projected market for the next five years;
1104          (b) respond to individual skilled and technical job demand over the next three, five,
1105     and 10 years;
1106          (c) respond to industry demands for trained workers;
1107          (d) help meet commitments made by the Governor's Office of Economic Opportunity,
1108     including relating to training and incentives;
1109          (e) respond to changing needs in the economy; and
1110          (f) respond to demands for online or in-class instruction, based on demographics.

1111          (5) The division shall:
1112          (a) (i) assist institutions of higher education in providing the information required by
1113     Subsection [(3)] (4); and
1114          (ii) verify the completion and accuracy of the information submitted by an institution
1115     of higher education under Subsection [(3)] (4);
1116          (b) assist the Utah Board of Higher Education to fulfill the requirements of Section
1117     53B-2a-112 in connection with the finding that the [technical college] division is required to
1118     make under Subsection 53B-2a-112[(5)](4)(b); and
1119          (c) assist the Utah Board of Higher Education in submitting a list of dedicated projects
1120     to the [board] division for approval and nondedicated projects to the [board] division for
1121     recommendation and prioritization pursuant to Section 53B-22-204.
1122          Section 19. Section 63A-5b-404 is amended to read:
1123          63A-5b-404. Exceptions to requirement of legislative approval for capital
1124     development projects.
1125          (1) (a) Except as provided in this section, a capital development project may not be
1126     constructed on state property without legislative approval.
1127          (b) The [board] division may authorize a capital development project on state property
1128     without legislative approval only as provided in this section.
1129          (2) (a) Legislative approval is not required for a capital development project that
1130     consists of the design or construction of a new facility if:
1131          (i) the [board] division determines that the requesting agency has provided adequate
1132     assurance that state funds will not be used for the design or construction of the facility;
1133          (ii) the agency provides to the [board] division a written document, signed by the head
1134     of the agency:
1135          (A) stating that funding or a revenue stream is in place, or will be in place before the
1136     project is completed, to ensure that increased state funding will not be required to cover the
1137     cost of operations and maintenance for the resulting facility or for immediate or future capital
1138     improvements; and
1139          (B) detailing the source of the funding that will be used for the cost of operations and
1140     maintenance and for immediate and future capital improvements to the resulting facility; and
1141          (iii) the [board] division determines that the use of the state property:

1142          (A) is appropriate and consistent with the master plan for the property; and
1143          (B) will not create an adverse impact on the state.
1144          (b) For a facility constructed without legislative approval under Subsection (2)(a), an
1145     agency may not request:
1146          (i) increased state funds for operations and maintenance; or
1147          (ii) increased state capital improvement funding.
1148          (3) Legislative approval is not required for:
1149          (a) a facility:
1150          (i) to be built with funds other than state funds and owned by an entity other than a
1151     state entity; and
1152          (ii) that is within a research park area at the University of Utah or Utah State
1153     University;
1154          (b) a facility to be built at This is the Place State Park by the This is the Place
1155     Foundation with funds of the This is the Place Foundation or with donated services or materials
1156     and that may include grant money from the state;
1157          (c) a project that:
1158          (i) is funded by the Uintah Basin Revitalization Fund or the Navajo Revitalization
1159     Fund; and
1160          (ii) does not provide a new facility for an agency or institution of higher education; or
1161          (d) a project on school and institutional trust lands that:
1162          (i) is funded by the trust lands administration from the Land Grant Management Fund;
1163     and
1164          (ii) does not fund construction of a new facility for an agency or institution of higher
1165     education.
1166          (4) (a) Legislative approval is not required for a capital development project to be built
1167     for the Department of Transportation resulting from:
1168          (i) an exchange of real property under Section 72-5-111; or
1169          (ii) a sale or exchange of real property from a maintenance facility if the proceeds from
1170     the sale of the real property are used for, or the real property is exchanged for:
1171          (A) real property for another maintenance facility; or
1172          (B) another maintenance facility, including improvements for a maintenance facility.

1173          (b) If the Department of Transportation approves a sale or exchange under Subsection
1174     (4)(a) for a capital development project subject to the board's approval, the Department of
1175     Transportation shall notify the president of the Senate, the speaker of the House of
1176     Representatives, and the cochairs of the Infrastructure and General Government Appropriations
1177     Subcommittee of the Legislature's Joint Appropriations Committee about any new facilities to
1178     be built or improved.
1179          Section 20. Section 63A-5b-503 is amended to read:
1180          63A-5b-503. Planning Fund expenditures authorized -- Ceiling on expenditures --
1181     Recovery.
1182          (1) The Planning Fund shall be used to make payments for engineering, architectural,
1183     and other planning expenses necessary to make a meaningful cost estimate of any facility or
1184     improvement with a demonstrable or immediate need.
1185          (2) The director may make expenditures from the Planning Fund in order to provide
1186     planning information to [the board,] the governor[,] and the Legislature, up to a maximum of
1187     $350,000 in outstanding Planning Fund commitments.
1188          (3) (a) The director shall authorize all payments made from the Planning Fund.
1189          (b) Payments from the Planning Fund shall be a charge on the project for which they
1190     were drawn.
1191          (c) If the Legislature appropriates money for a building project for which planning
1192     costs have previously been paid from the Planning Fund, the director shall credit that amount to
1193     the Planning Fund.
1194          (4) (a) The director may expend money from the Planning Fund for architectural and
1195     engineering services incident to the planning and preparation of applications for funds on
1196     construction financed by other than state sources, including federal grants.
1197          (b) Upon approval of financing referred to in Subsection (4)(a), the director shall
1198     reimburse to the Planning Fund the money spent for architectural and engineering services.
1199          Section 21. Section 63A-5b-601 is amended to read:
1200          63A-5b-601. Definitions.
1201          As used in this part:
1202          (1) (a) "Facility" means any building, structure, or other improvement that is
1203     constructed:

1204          (i) on property [owned by] that the state[,] or any of the state's departments,
1205     commissions, institutions, or agencies owns; or
1206          (ii) by the state[,] or any of the state's departments, commissions, institutions, or
1207     agencies on property [not owned by] that the state does not own.
1208          (b) "Facility" does not mean an unoccupied structure that is a component of the state
1209     highway system.
1210          (2) "Local government" means the county, municipality, or local school district that
1211     would have jurisdiction to act as the compliance agency if the division did not have jurisdiction
1212     to act as the compliance agency.
1213          Section 22. Section 63A-5b-603 is amended to read:
1214          63A-5b-603. Contracting powers of director -- Bids -- Retainage.
1215          (1) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, the director
1216     may enter into a contract for any work or professional service that the division [or board] may
1217     do or have done.
1218          (2) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1219     the director may make rules establishing circumstances under which bids may be modified
1220     when all bids for a construction project exceed available funds as determined by the director.
1221          (b) In making the rules described in Subsection (2)(a), the director shall provide for the
1222     fair and equitable treatment of bidders.
1223          (c) The judgment of the director as to the responsibility and qualifications of a bidder is
1224     conclusive, except in case of fraud or bad faith.
1225          (3) The division shall make all payments to the contractor for completed work in
1226     accordance with Section 15-6-2 and pay the interest specified in Section 15-6-3 on any
1227     payments that are late.
1228          (4) If the division retains or withholds a payment on a contract with a private contractor
1229     to do work for the division, the division shall retain or withhold and release the payment as
1230     provided in Section 13-8-5.
1231          Section 23. Section 63A-5b-604 is amended to read:
1232          63A-5b-604. Construction, alteration, and repair of state facilities -- Powers of
1233     director -- Exceptions -- Expenditure of appropriations -- Compliance agency role.
1234          (1) (a) Except as provided in this section and Section 63A-5b-1101, the director shall

1235     exercise direct supervision over the design and construction of all new facilities, and all
1236     alterations, repairs, and improvements to existing facilities, if the total project construction
1237     cost, regardless of the funding source, is greater than $100,000.
1238          (b) A state entity may exercise direct supervision over the design and construction of
1239     all new facilities, and over all alterations, repairs, and improvements to existing facilities, if:
1240          (i) the total project construction cost, regardless of the funding sources, is $100,000 or
1241     less; and
1242          (ii) the state entity assures compliance with the division's forms and contracts and the
1243     division's design, construction, alteration, repair, improvement, and code inspection standards.
1244          (2) The director may enter into a capital improvement partnering agreement with an
1245     institution of higher education that permits the institution of higher education to exercise direct
1246     supervision for a capital improvement project with oversight from the division.
1247          (3) (a) Subject to Subsection (3)(b), the director may delegate control over design,
1248     construction, and other aspects of any project to entities of state government on a
1249     project-by-project basis.
1250          (b) With respect to a delegation of control under Subsection (3)(a), the director may:
1251          (i) impose terms and conditions on the delegation that the director considers necessary
1252     or advisable to protect the interests of the state; and
1253          (ii) revoke the delegation and assume control of the design, construction, or other
1254     aspect of a delegated project if the director considers the revocation and assumption of control
1255     to be necessary to protect the interests of the state.
1256          (4) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1257     the [board] director may delegate control over design, construction, and all other aspects of any
1258     project to entities of state government on a categorical basis for projects within a particular
1259     dollar range and a particular project type.
1260          (b) Rules adopted by the [board] director under Subsection (4)(a) may:
1261          (i) impose the terms and conditions on categorical delegation that the [board] director
1262     considers necessary or advisable to protect the interests of the state;
1263          (ii) provide for the revocation of the delegation on a categorical [or project specific]
1264     basis and for the division to assume control of the design, construction, or other aspect of a
1265     category of delegated projects or a specific delegated project if the [board] director considers

1266     revocation of the delegation and assumption of control to be necessary to protect the interests
1267     of the state;
1268          (iii) require that a categorical delegation be renewed by the [board] director on an
1269     annual basis; and
1270          (iv) require the division's oversight of delegated projects.
1271          (5) (a) A state entity to which project control is delegated under this section shall:
1272          (i) assume fiduciary control over project finances;
1273          (ii) assume all responsibility for project budgets and expenditures; and
1274          (iii) receive all funds appropriated for the project, including any contingency funds
1275     contained in the appropriated project budget.
1276          (b) Notwithstanding a delegation of project control under this section, a state entity to
1277     which control is delegated is required to comply with the division's codes and guidelines for
1278     design and construction.
1279          (c) A state entity to which project control is delegated under this section may not
1280     access, for the delegated project, the division's statewide contingency reserve and project
1281     reserve authorized in Section 63A-5b-609.
1282          (d) For a facility that will be owned, operated, maintained, and repaired by an entity
1283     that is not an agency and that is located on [state] property that the state owns or leases as a
1284     tenant, the director may authorize the facility's owner to administer the design and construction
1285     of the project relating to that facility.
1286          (6) (a) A project for the construction of a new facility and a project for alterations,
1287     repairs, and improvements to an existing facility are not subject to Subsection (1) if the project:
1288          (i) occurs on property under the jurisdiction of the State Capitol Preservation Board;
1289          (ii) is within a designated research park at the University of Utah or Utah State
1290     University;
1291          (iii) occurs within the boundaries of This is the Place State Park and is administered by
1292     This is the Place Foundation; or
1293          (iv) is for the creation and installation of art under Title 9, Chapter 6, Part 4, Utah
1294     Percent-for-Art Act.
1295          (b) Notwithstanding Subsection (6)(a)(iii), the This is the Place Foundation may
1296     request the director to administer the design and construction of a project within the boundaries

1297     of This is the Place State Park.
1298          (7) (a) The role of compliance agency under Title 15A, State Construction and Fire
1299     Codes Act, shall be filled by:
1300          (i) the director, for a project administered by the division;
1301          (ii) the entity designated by the State Capitol Preservation Board, for a project under
1302     Subsection (6)(a)(i);
1303          (iii) the local government, for a project that is:
1304          (A) not subject to the division's administration under Subsection (6)(a)(ii); or
1305          (B) administered by This is the Place Foundation under Subsection (6)(a)(iii);
1306          (iv) the compliance agency designated by the director, for a project under Subsection
1307     (2), (3), (4), or (5)(d); and
1308          (v) for the installation of art under Subsection (6)(a)(iv), the entity that is acting as the
1309     compliance officer for the balance of the project for which the art is being installed.
1310          (b) A local government acting as the compliance agency under Subsection (7)(a)(iii)
1311     may:
1312          (i) only review plans and inspect construction to enforce the state construction code or
1313     an approved code under Title 15A, State Construction and Fire Codes Act; and
1314          (ii) charge a building permit fee of no more than the amount the local government
1315     could have charged if the land upon which the improvements are located were not owned by
1316     the state.
1317          (8) (a) The zoning authority of a local government under [Section 10-9a-305 or
1318     17-27a-305] Title 10, Chapter 9a, Municipal Land Use, Development, and Management Act, or
1319     Title 17, Chapter 27a, County Land Use, Development, and Management Act, does not apply
1320     to the use of [state] property that the state owns or any improvements constructed on [state]
1321     property that the state owns, including improvements constructed by an entity other than a state
1322     entity.
1323          (b) A state entity controlling the use of [state] property that the state owns shall
1324     consider any input received from a local government in determining how the property is to be
1325     used.
1326          Section 24. Section 63A-5b-802 is amended to read:
1327          63A-5b-802. Leasing responsibilities of the director.

1328          (1) The director shall:
1329          (a) prepare and submit a yearly request to the governor and Legislature for a designated
1330     amount of square footage by type of space to be leased by the division for that fiscal year;
1331          (b) lease, in the name of the division, all real property space to be occupied by a leasing
1332     agency;
1333          (c) in leasing space:
1334          (i) use a process consistent with the best interest of the state, the requirements of the
1335     leasing agency, and the anticipated use of the property; and
1336          (ii) comply with any legislative mandates contained in the appropriations act or other
1337     legislation;
1338          (d) apply the criteria contained in Subsection (1)(f) to prepare a report evaluating each
1339     high-cost lease at least 12 months before the lease expires;
1340          (e) evaluate each lease under the division's control and apply the criteria contained in
1341     Subsection (1)(f), as applicable, to evaluate the lease;
1342          (f) in evaluating leases:
1343          (i) determine whether the lease is cost-effective when the needs of the leasing agency
1344     to be housed in the leased facilities are considered;
1345          (ii) determine whether another option such as construction, use of other state-owned
1346     space, or a lease-purchase agreement is more cost-effective than leasing;
1347          (iii) determine whether the significant lease terms are cost-effective and provide the
1348     state with sufficient flexibility and protection from liability;
1349          (iv) compare the proposed lease payments to the current market rates, and evaluate
1350     whether the proposed lease payments are reasonable under current market conditions;
1351          (v) compare proposed significant lease terms to the current market, and recommend
1352     whether these proposed terms are reasonable under current market conditions; and
1353          (vi) if applicable, recommend that the lease or modification to a lease be approved or
1354     disapproved;
1355          (g) based upon the evaluation, include in the report recommendations that identify
1356     viable alternatives to:
1357          (i) make the lease cost-effective; or
1358          (ii) meet the leasing agency's needs when the lease expires; and

1359          (h) upon request, provide the information included in the report to:
1360          (i) the leasing agency benefitted by the lease; and
1361          (ii) the Office of the Legislative Fiscal Analyst.
1362          (2) The director may:
1363          (a) subject to legislative appropriation, enter into a facility lease with a term of up to 10
1364     years if the length of the lease's term is economically advantageous to the state; and
1365          (b) [with the approval of the board and] subject to legislative appropriation, enter into a
1366     facility lease with a term of more than 10 years if the length of the lease's term is economically
1367     advantageous to the state.
1368          Section 25. Section 63A-5b-803 is amended to read:
1369          63A-5b-803. Reporting of leasing activity.
1370          (1) The director shall:
1371          (a) prepare a standard form upon which a leasing agency and another state institution
1372     or entity can report the current and proposed lease activity of the leasing agency, institution, or
1373     entity, including any lease renewal; and
1374          (b) develop procedures and mechanisms within the division to:
1375          (i) obtain and share information about each leasing agency's real property needs; and
1376          (ii) provide oversight and review of lessors and lessees during the term of each lease.
1377          (2) Each leasing agency, the [Judicial Council] Administrative Office of the Courts,
1378     and the board of trustees for each institution of higher education, shall report all current and
1379     proposed lease activity on the standard form prepared by the division to:
1380          (a) the division; and
1381          (b) the Office of the Legislative Fiscal Analyst.
1382          Section 26. Section 63A-5b-806 is amended to read:
1383          63A-5b-806. Division rules on the value of property bought or exchanged --
1384     Exception.
1385          (1) The division shall, in accordance with Title 63G, Chapter 3, Utah Administrative
1386     Rulemaking Act, make rules to ensure that, if the division buys or exchanges real property, the
1387     value of the real property is congruent with the proposed price and other terms of the purchase
1388     or exchange.
1389          (2) The rules:

1390          (a) shall establish procedures for determining the value of the real property;
1391          (b) may provide that an appraisal, as defined in Section 61-2g-102, demonstrates the
1392     real property's value; and
1393          (c) may require that the appraisal be completed by a state-certified general appraiser, as
1394     defined in Section 61-2g-102.
1395          (3) The rules adopted under Subsection (1) do not apply to the purchase or exchange of
1396     real property, or an interest in real property, with a value of less than [$250,000] $500,000, as
1397     estimated by the division.
1398          Section 27. Section 63A-5b-901 is amended to read:
1399          63A-5b-901. Definitions.
1400          As used in this part:
1401          (1) "Applicant" means a person who submits a timely, qualified proposal to the
1402     division.
1403          (2) "Condemnee" means the same as that term is defined in Section 78B-6-520.3.
1404          [(3) "Convey" means:]
1405          [(a) to provide for a primary state agency's occupancy or use of vacant division-owned
1406     property; or]
1407          [(b) to effect a transfer of ownership or lease of vacant division-owned property to a
1408     secondary state agency, local government entity, public purpose nonprofit entity, or private
1409     party.]
1410          [(4)] (3) "Division-owned property" means real property, including an interest in real
1411     property, to which the division holds title, regardless of who occupies or uses the real property.
1412          [(5)] (4) "Local government entity" means a county, city, town, metro township, local
1413     district, special service district, community development and renewal agency, conservation
1414     district, school district, or other political subdivision of the state.
1415          [(6)] (5) "Primary state agency" means a state agency for which the division holds title
1416     to real property that the state agency occupies or uses, as provided in Subsection
1417     63A-5b-303(1)(a)(iv).
1418          [(7)] (6) "Private party" means a person who is not a state agency, local government
1419     entity, or public purpose nonprofit entity.
1420          [(8)] (7) "Public purpose nonprofit entity" means a corporation, association,

1421     organization, or entity that:
1422          (a) is located within the state;
1423          (b) is not a state agency or local government entity;
1424          (c) is exempt from federal income taxation under Section 501(c)(3), Internal Revenue
1425     Code; and
1426          (d) operates to fulfill a public purpose.
1427          [(9)] (8) "Qualified proposal" means a written proposal that:
1428          (a) meets the criteria established by the division by rule under Section 63A-5b-903;
1429          (b) if submitted by a local government entity or public purpose nonprofit entity,
1430     explains the public purpose for which the local government entity or public purpose nonprofit
1431     entity seeks a transfer of ownership or lease of the vacant division-owned property; and
1432          (c) the director determines will, if accepted and implemented, provide a material
1433     benefit to the state.
1434          [(10)] (9) "Secondary state agency" means a state agency:
1435          (a) that is authorized to hold title to real property that the state agency occupies or uses,
1436     as provided in [Subsection 63A-5b-303(4)] Section 63A-5b-304; and
1437          (b) for which the division does not hold title to real property that the state agency
1438     occupies or uses.
1439          [(11)] (10) "State agency" means a department, division, office, entity, agency, or other
1440     unit of state government.
1441          [(12)] (11) "Transfer of ownership" includes a transfer of the ownership of vacant
1442     division-owned property that occurs as part of an exchange of the vacant division-owned
1443     property for another property.
1444          [(13)] (12) "Vacant division-owned property" means division-owned property that:
1445          (a) a primary state agency [has discontinued to occupy or use] is not occupying or
1446     using; and
1447          (b) the director has determined should be made available for:
1448          (i) use or occupancy by a primary state agency; or
1449          (ii) a transfer of ownership or lease to a secondary state agency, local government
1450     entity, public purpose nonprofit entity, or private party.
1451          [(14)] (13) "Written proposal" means a brief statement in writing that explains:

1452          (a) the proposed use or occupancy, transfer of ownership, or lease of vacant
1453     division-owned property; and
1454          (b) how the state will benefit from the proposed use or occupancy, transfer of
1455     ownership, or lease.
1456          Section 28. Section 63A-5b-902 is amended to read:
1457          63A-5b-902. Application of part.
1458          (1) The provisions of this part, other than this section, do not apply to:
1459          (a) a conveyance, lease, or disposal under Subsection 63A-5b-303(1)(a)[(ix)](viii); [or]
1460          (b) the division's disposal or lease of division-owned property with a value under
1461     [$250,000] $500,000, as estimated by the division[.]; or
1462          (c) a conveyance, lease, or disposal of division-owned property in connection with:
1463          (i) the establishment of a state store, as defined in Section 32B-1-102; or
1464          (ii) the construction of student housing.
1465          (2) Nothing in Subsection (1)(b) or (c) may be construed to diminish or eliminate the
1466     division's responsibility to manage division-owned property in the best interests of the state.
1467          Section 29. Section 63A-5b-904 is amended to read:
1468          63A-5b-904. Division authority with respect to vacant division-owned property --
1469     Limitations.
1470          (1) Subject to Section 63A-5b-909, the division may[, as provided in this part]:
1471          (a) provide for a primary state agency's occupancy or use of vacant division-owned
1472     property, if the director determines that the primary state agency's occupancy or use is in the
1473     best interests of the state;
1474          (b) effect a transfer of ownership or lease of vacant division-owned property [to a
1475     secondary state agency, local government entity, public purpose nonprofit entity, or private
1476     party], as provided in this section; or
1477          (c) refer vacant division-owned property to the Department of Transportation for sale
1478     by auction, as provided in Section 63A-5b-908.
1479          (2) (a) The division may effect a transfer of ownership or lease of vacant
1480     division-owned property to an applicant for fair market value if the director determines that the
1481     transfer of ownership or lease to that applicant is in the state's best interest.
1482          (b) In determining the state's best interest under Subsection (2)(a), the director may

1483     consider:
1484          (i) the price and financial terms of all qualified proposals; and
1485          (ii) the relative benefits to the state of the proposed uses of the vacant division-owned
1486     property as stated in the qualified proposals.
1487          [(2)] (3) The division may [not] effect a transfer of ownership or lease of vacant
1488     division-owned property without receiving fair market value in return [unless] if:
1489          (a) the director determines that the transfer of ownership or lease is in the best interests
1490     of the state;
1491          (b) for a proposed transfer of ownership or lease to a local government entity, public
1492     purpose nonprofit entity, or private party, the director determines that the local government
1493     entity, public purpose nonprofit entity, or private party intends to use the property to fulfill a
1494     public purpose;
1495          (c) the director requests and receives a recommendation on the proposed transfer of
1496     ownership or lease from the Legislative Executive Appropriations Committee;
1497          (d) the director communicates the Executive Appropriations Committee's
1498     recommendation to the executive director; and
1499          (e) the executive director approves the transfer of ownership or lease.
1500          [(3)] (4) (a) If the division effects a transfer of ownership of vacant division-owned
1501     property without receiving fair market value in return, [as provided in this part,] the division
1502     shall require the documents memorializing the transfer of ownership to preserve to the
1503     division:
1504          (i) in the case of a transfer of ownership of vacant division-owned property to a
1505     secondary state agency, local government entity, or public purpose nonprofit entity for no or
1506     nominal consideration, a right of reversion, providing for the ownership of the property to
1507     revert to the division if the property ceases to be used for the public benefit; or
1508          (ii) in the case of any other transfer of ownership of vacant division-owned property, a
1509     right of first refusal allowing the division to purchase the property from the transferee for the
1510     same price that the transferee paid to the division if the transferee wishes to transfer ownership
1511     of the former vacant division-owned property.
1512          (b) Subsection [(3)] (4)(a) does not apply to the sale of vacant division-owned property
1513     at an auction under Section 63A-5b-908.

1514          Section 30. Section 63A-5b-905 is amended to read:
1515          63A-5b-905. Notice required before division may effect a transfer of ownership
1516     or lease of division-owned property.
1517          (1) Before the division may [convey] effect a transfer of ownership or lease of vacant
1518     division-owned property, the division shall give notice as provided in Subsection (2).
1519          (2) A notice required under Subsection (1) shall:
1520          (a) identify and describe the vacant division-owned property;
1521          (b) indicate the availability of the vacant division-owned property;
1522          (c) invite persons interested in the vacant division-owned property to submit a written
1523     proposal to the division;
1524          (d) indicate the deadline for submitting a written proposal;
1525          (e) be posted on the division's website for at least 60 consecutive days before the
1526     deadline for submitting a written proposal, in a location specifically designated for notices
1527     dealing with vacant division-owned property;
1528          (f) be posted on the Utah Public Notice Website created in Section 63A-16-601 for at
1529     least 60 consecutive days before the deadline for submitting a written proposal; and
1530          (g) be sent by email to each person who has previously submitted to the division a
1531     written request to receive notices under this section.
1532          Section 31. Section 63A-5b-907 is amended to read:
1533          63A-5b-907. Priorities for vacant division-owned property -- Division to convey
1534     vacant division-owned property.
1535          (1) This section applies to a proposed transfer of ownership or lease of vacant
1536     division-owned property at less than fair market value.
1537          [(1)] (2) (a) [A] An applicant that is a state agency has priority for vacant
1538     division-owned property over an applicant that is a local government entity, a public purpose
1539     nonprofit entity, and a private party.
1540          (b) [A] An applicant that is a local government entity and an applicant that is a public
1541     purpose nonprofit entity have:
1542          (i) priority for vacant division-owned property over an applicant that is a private party;
1543     and
1544          (ii) between them the same priority for vacant division-owned property.

1545          [(2)] (3) If the division receives multiple timely qualified proposals from applicants
1546     with the highest and same priority, the division shall:
1547          (a) notify the [board] executive director of:
1548          (i) the availability of the vacant division-owned property; and
1549          (ii) the applicants with the highest and same priority that have submitted qualified
1550     proposals; and
1551          (b) provide the [board] executive director with a copy of the timely qualified proposals
1552     submitted by the applicants with the highest and same priority.
1553          [(3)] (4) Within 30 days after being notified under Subsection [(2)] (3), the [board]
1554     executive director shall:
1555          (a) determine which applicant's qualified proposal is most likely to result in the highest
1556     and best public benefit; and
1557          (b) notify the division of the [board's] executive director's decision under Subsection
1558     [(3)] (4)(a).
1559          [(4)] (5) The division shall [convey] effect a transfer or ownership or lease of the
1560     vacant division-owned property to:
1561          (a) the applicant with the highest priority under Subsection [(1)] (2), if the division
1562     receives a timely qualified proposal from a single applicant with the highest priority; or
1563          (b) the applicant whose qualified proposal was determined by the [board] executive
1564     director under Subsection [(3)] (4) to be most likely to result in the highest and best public
1565     benefit, if the division receives multiple timely qualified proposals from applicants with the
1566     highest and same priority.
1567          [(5) (a) If the division leases vacant division-owned property to a private party, the
1568     division shall, within 30 days after a lease agreement is executed, provide written notice of the
1569     lease to:]
1570          [(i) the municipality in which the vacant division-owned property is located, if the
1571     vacant division-owned property is within a municipality; or]
1572          [(ii) the county in whose unincorporated area the vacant division-owned property is
1573     located, if the vacant division-owned property is not located within a municipality.]
1574          [(b) Nothing in this chapter may be used by a private party leasing division-owned
1575     property as a basis for not complying with applicable local land use ordinances and

1576     regulations.]
1577          Section 32. Section 63A-5b-907.5 is enacted to read:
1578          63A-5b-907.5. Lease of division-owned property to a private party.
1579          (1) If the division leases division-owned property to a private party, the division shall,
1580     within 30 days after a lease agreement is executed, provide written notice of the lease to:
1581          (a) the municipality in which the division-owned property is located, if the
1582     division-owned property is within a municipality; or
1583          (b) the county in whose unincorporated area the division-owned property is located, if
1584     the division-owned property is not located within a municipality.
1585          (2) Nothing in this part may be used by a private party leasing division-owned property
1586     as a basis for not complying with applicable local land use ordinances and regulations.
1587          Section 33. Section 63A-5b-910 is amended to read:
1588          63A-5b-910. Disposition of proceeds received by division from sale of vacant
1589     division-owned property.
1590          (1) (a) Except as provided in Section 62A-5-206.7, the division shall pay into the state
1591     treasury the money received from the transfer of ownership or lease of vacant division-owned
1592     property.
1593          (b) Money paid into the state treasury under Subsection (1)(a):
1594          (i) becomes a part of the funds provided by law for carrying out the building program
1595     of the state; and
1596          (ii) is appropriated for the purpose described in Subsection (1)(b)(i).
1597          (2) The proceeds from the transfer of ownership or lease of vacant division-owned
1598     property belonging to or used by a particular state agency shall, to the extent practicable, be
1599     expended for the construction of buildings or in the performance of other work for the benefit
1600     of that state agency.
1601          Section 34. Section 63A-5b-1001 is amended to read:
1602          63A-5b-1001. Definitions.
1603          As used in this part:
1604          (1) "Energy efficiency measure" means an action taken or initiated by an agency that:
1605          (a) reduces the agency's energy or fuel use or resource energy consumption, water or
1606     other resource consumption, operation and maintenance costs, or cost of energy, fuel, water, or

1607     other resource; or
1608          (b) increases the agency's energy or fuel efficiency or resource consumption efficiency.
1609          (2) "Energy efficiency program" means a program established under Section
1610     63A-5b-1002 for the purpose of improving energy efficiency measures and reducing the energy
1611     costs for state facilities.
1612          (3) "Fund" means the State Facility Energy Efficiency Fund created in Section
1613     63A-5b-1003.
1614          (4) "Performance efficiency agreement" means an agreement entered into by an agency
1615     whereby the agency implements one or more energy efficiency measures and finances the costs
1616     associated with implementation of performance efficiency measures using the stream of
1617     expected savings in costs resulting from implementation of the performance efficiency
1618     measures as a funding source for repayment.
1619          (5) (a) "State facility" means any building, structure, or other improvement that is
1620     constructed on property [owned by] that the state, any of the state's departments, commissions,
1621     institutions, or agencies, or a state institution of higher education owns or leases as a tenant.
1622          (b) "State facility" does not include:
1623          (i) an unoccupied structure that is a component of the state highway system;
1624          (ii) a privately owned structure that is located on property [owned by] that the state,
1625     any of the state's departments, commissions, institutions, or agencies, or a state institution of
1626     higher education owns or leases as a tenant; or
1627          (iii) a structure that is located on land administered by the trust lands administration
1628     under a lease, permit, or contract with the trust lands administration.
1629          Section 35. Section 63A-5b-1003 is amended to read:
1630          63A-5b-1003. State Facility Energy Efficiency Fund -- Contents -- Use of fund
1631     money.
1632          (1) There is created a revolving loan fund known as the "State Facility Energy
1633     Efficiency Fund."
1634          (2) The fund shall consist of:
1635          (a) money transferred from the Stripper Well-Petroleum Violation Escrow Fund;
1636          (b) money appropriated by the Legislature;
1637          (c) money received for the repayment of loans made from the fund; and

1638          (d) interest earned on the fund.
1639          (3) The [board] division shall make a loan from the fund to an agency to finance all or
1640     part of energy efficiency measures.
1641          (4) (a) (i) An agency requesting a loan shall submit an application to the [board]
1642     division in the form and containing the information that the [board] division requires, including
1643     plans and specifications for the proposed energy efficiency measures.
1644          (ii) An agency may request a loan to fund all or part of the cost of energy efficiency
1645     measures.
1646          (b) If the [board] division rejects the application, the [board] division shall notify the
1647     applicant stating the reasons for the rejection.
1648          (5) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1649     the [board] division shall make rules establishing:
1650          (i) criteria to determine:
1651          (A) loan eligibility;
1652          (B) energy efficiency measures priority; and
1653          (C) ways to measure energy savings that take into account fluctuations in energy costs
1654     and temperature; and
1655          (ii) a method of monitoring actual savings resulting from energy efficiency measures
1656     implemented using loan money from the fund, using objective and verifiable post-construction
1657     measures, if available.
1658          (b) In making rules that establish prioritization criteria for energy efficiency measures,
1659     the [board] division may consider:
1660          (i) possible additional sources of revenue;
1661          (ii) the feasibility and practicality of the energy efficiency measures;
1662          (iii) the energy savings attributable to eligible energy efficiency measures;
1663          (iv) the annual energy savings;
1664          (v) the projected energy cost payback of eligible energy efficiency measures;
1665          (vi) other benefits to the state attributable to eligible energy efficiency measures;
1666          (vii) the availability of federal funds for the energy efficiency measures; and
1667          (viii) whether to require an agency to provide matching funds for the energy efficiency
1668     measures.

1669          (6) (a) In reviewing energy efficiency measures for possible funding, the [board]
1670     division shall:
1671          (i) review the loan application and the plans and specifications for the energy
1672     efficiency measures;
1673          (ii) determine whether to grant the loan by applying the loan eligibility criteria; and
1674          (iii) if the loan is granted, prioritize funding of the energy efficiency measures by
1675     applying the prioritization criteria.
1676          (b) The [board] division may condition approval of a loan application and the
1677     availability of funds on assurances from the agency that the [board] division considers
1678     necessary to ensure that the agency:
1679          (i) uses the proceeds to pay the cost of the energy efficiency measures; and
1680          (ii) implements the energy efficiency measures.
1681          (7) The division shall annually report to the Government Operations Interim
1682     Committee of the Legislature the actual savings resulting from energy efficiency measures
1683     implemented using loan money from the fund, as monitored pursuant to rules adopted under
1684     Subsection (5)(a)(ii).
1685          [(8) The manager of the energy efficiency program shall provide staff support when the
1686     board performs the duties established in this section.]
1687          Section 36. Section 63A-5b-1104 is amended to read:
1688          63A-5b-1104. Notification to local governments for construction or modification
1689     of certain facilities.
1690          (1) (a) The director or the director's designee shall notify in writing the elected
1691     representatives of a local government entity directly and substantively affected by any
1692     diagnostic, treatment, parole, probation, or other secured facility project exceeding [$250,000]
1693     $500,000, if:
1694          (i) the nature of the project has been significantly altered since an earlier notification;
1695          (ii) the project would significantly change the nature of the functions presently
1696     conducted at the location; or
1697          (iii) the project is new construction.
1698          (b) At the request of the state entity or the local government entity, representatives
1699     from the state entity and the affected local entity shall conduct or participate in a local public

1700     hearing or hearings to discuss the issues described in Subsection (1)(a).
1701          (2) (a) (i) Before beginning the construction of student housing on property owned by
1702     the state or an institution of higher education, the director shall provide written notice of the
1703     proposed construction, as provided in Subsection (2)(a)(ii), if any of the proposed student
1704     housing buildings is within 300 feet of privately owned residential property.
1705          (ii) Each notice under Subsection (2)(a)(i) shall be provided to the legislative body and,
1706     if applicable, the mayor of:
1707          (A) the county in whose unincorporated area the privately owned residential property is
1708     located; or
1709          (B) the municipality in whose boundary the privately owned residential property is
1710     located.
1711          (b) (i) Within 21 days after receiving the notice required by Subsection (2)(a)(i), a
1712     county or municipality entitled to the notice may submit a written request to the director for a
1713     public hearing on the proposed student housing construction.
1714          (ii) If a county or municipality requests a hearing under Subsection (2)(b)(i), the
1715     director and the county or municipality shall jointly hold a public hearing to provide
1716     information to the public and to allow the director and the county or municipality to receive
1717     input from the public about the proposed student housing construction.
1718          Section 37. Section 63B-1-101 is amended to read:
1719          63B-1-101. Definitions.
1720          As used in this title:
1721          [(1) "Board" means the State Building Board.]
1722          [(2)] (1) "Bond anticipation note" means:
1723          (a) any financing note issued according to the procedures and requirements of this title
1724     in anticipation of the receipt of the proceeds of the sale of the bonds authorized under this title;
1725     and
1726          (b) any renewal of those notes.
1727          [(3)] (2) "Bonds" means any bonds, bond anticipation notes, or other obligations
1728     authorized under this title for which the full faith, credit, and resources and ad valorem taxing
1729     power of the state have been pledged for the payment of the principal of and interest on the
1730     bonds.

1731          [(4)] (3) "Capital project" means any land, building, facility, highway, improvement,
1732     equipment, or other property, or combination of them, that the state of Utah or any of its
1733     agencies, divisions, institutions, or other administrative subunits are authorized by law to
1734     acquire or construct.
1735          [(5)] (4) "Commission" means the State Bonding Commission created in Section
1736     63B-1-201.
1737          [(6)] (5) "Division" means the Division of Facilities Construction and Management.
1738          [(7)] (6) "Sinking fund" means the fund or account established as provided in this title
1739     to hold money to pay the principal and interest on each series of bonds as they become due.
1740          Section 38. Section 63B-1-304 is amended to read:
1741          63B-1-304. State Building Ownership Authority created -- Members --
1742     Compensation -- Location in Department of Administrative Services.
1743          (1) There is created a body politic and corporate to be known as the State Building
1744     Ownership Authority composed of:
1745          (a) the governor;
1746          (b) the state treasurer; and
1747          (c) the [chair of the state building board created under Section 63A-5b-201] executive
1748     director of the Department of Government Operations.
1749          (2) A member may not receive compensation or benefits for the member's service, but
1750     may receive per diem and travel expenses in accordance with:
1751          (a) Section 63A-3-106;
1752          (b) Section 63A-3-107; and
1753          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
1754     63A-3-107.
1755          (3) (a) Upon request, the division shall provide staff support to the State Building
1756     Ownership Authority.
1757          (b) The State Building Ownership Authority may seek and obtain independent financial
1758     advice, support, and information from the state financial advisor created under Section
1759     67-4-16.
1760          Section 39. Section 63C-9-403 is amended to read:
1761          63C-9-403. Contracting power of executive director -- Health insurance coverage.

1762          (1) As used in this section:
1763          (a) "Aggregate" means the sum of all contracts, change orders, and modifications
1764     related to a single project.
1765          (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
1766          (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
1767     "operative" who:
1768          (i) works at least 30 hours per calendar week; and
1769          (ii) meets employer eligibility waiting requirements for health care insurance, which
1770     may not exceed the first of the calendar month following 60 days after the day on which the
1771     individual is hired.
1772          (d) "Health benefit plan" means:
1773          (i) the same as that term is defined in Section 31A-1-301; or
1774          (ii) an employee welfare benefit plan:
1775          (A) established under the Employee Retirement Income Security Act of 1974, 29
1776     U.S.C. Sec. 1001 et seq.;
1777          (B) for an employer with 100 or more employees; and
1778          (C) in which the employer establishes a self-funded or partially self-funded group
1779     health plan to provide medical care for the employer's employees and dependents of the
1780     employees.
1781          (e) "Qualified health coverage" means the same as that term is defined in Section
1782     26-40-115.
1783          (f) "Subcontractor" means the same as that term is defined in Section 63A-5b-605.
1784          (g) "Third party administrator" or "administrator" means the same as that term is
1785     defined in Section 31A-1-301.
1786          (2) Except as provided in Subsection (3), the requirements of this section apply to:
1787          (a) a contractor of a design or construction contract entered into by the board, or on
1788     behalf of the board, on or after July 1, 2009, if the prime contract is in an aggregate amount
1789     equal to or greater than $2,000,000; and
1790          (b) a subcontractor of a contractor of a design or construction contract entered into by
1791     the board, or on behalf of the board, on or after July 1, 2009, if the subcontract is in an
1792     aggregate amount equal to or greater than $1,000,000.

1793          (3) The requirements of this section do not apply to a contractor or subcontractor
1794     described in Subsection (2) if:
1795          (a) the application of this section jeopardizes the receipt of federal funds;
1796          (b) the contract is a sole source contract; or
1797          (c) the contract is an emergency procurement.
1798          (4) A person that intentionally uses change orders, contract modifications, or multiple
1799     contracts to circumvent the requirements of this section is guilty of an infraction.
1800          (5) (a) A contractor subject to the requirements of this section shall demonstrate to the
1801     executive director that the contractor has and will maintain an offer of qualified health
1802     coverage for the contractor's employees and the employees' dependents during the duration of
1803     the contract by submitting to the executive director a written statement that:
1804          (i) the contractor offers qualified health coverage that complies with Section
1805     26-40-115;
1806          (ii) is from:
1807          (A) an actuary selected by the contractor or the contractor's insurer;
1808          (B) an underwriter who is responsible for developing the employer group's premium
1809     rates; or
1810          (C) if the contractor provides a health benefit plan described in Subsection (1)(d)(ii),
1811     an actuary or underwriter selected by a third party administrator; and
1812          (iii) was created within one year before the day on which the statement is submitted.
1813          (b) (i) A contractor that provides a health benefit plan described in Subsection (1)(d)(ii)
1814     shall provide the actuary or underwriter selected by the administrator, as described in
1815     Subsection (5)(a)(ii)(C), sufficient information to determine whether the contractor's
1816     contribution to the health benefit plan and the health benefit plan's actuarial value meets the
1817     requirements of qualified health coverage.
1818          (ii) A contractor may not make a change to the contractor's contribution to the health
1819     benefit plan, unless the contractor provides notice to:
1820          (A) the actuary or underwriter selected by the administrator, as described in Subsection
1821     (5)(a)(ii)(C), for the actuary or underwriter to update the written statement described in
1822     Subsection (5)(a) in compliance with this section; and
1823          (B) the executive director.

1824          (c) A contractor that is subject to the requirements of this section shall:
1825          (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
1826     is subject to the requirements of this section shall obtain and maintain an offer of qualified
1827     health coverage for the subcontractor's employees and the employees' dependents during the
1828     duration of the subcontract; and
1829          (ii) obtain from a subcontractor that is subject to the requirements of this section a
1830     written statement that:
1831          (A) the subcontractor offers qualified health coverage that complies with Section
1832     26-40-115;
1833          (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, an
1834     underwriter who is responsible for developing the employer group's premium rates, or if the
1835     subcontractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or
1836     underwriter selected by an administrator; and
1837          (C) was created within one year before the day on which the contractor obtains the
1838     statement.
1839          (d) (i) (A) A contractor that fails to maintain an offer of qualified health coverage as
1840     described in Subsection (5)(a) during the duration of the contract is subject to penalties in
1841     accordance with administrative rules adopted by the division under Subsection (6).
1842          (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
1843     and maintain an offer of qualified health coverage described in Subsection (5)(c)(i).
1844          (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
1845     coverage described in Subsection (5)(c)(i) during the duration of the subcontract is subject to
1846     penalties in accordance with administrative rules adopted by the department under Subsection
1847     (6).
1848          (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
1849     an offer of qualified health coverage described in Subsection (5)(a).
1850          (6) The department shall adopt administrative rules:
1851          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1852          (b) in coordination with:
1853          (i) the Department of Environmental Quality in accordance with Section 19-1-206;
1854          (ii) the Department of Natural Resources in accordance with Section 79-2-404;

1855          (iii) the [State Building Board] Division of Facilities Construction and Management in
1856     accordance with Section 63A-5b-607;
1857          (iv) a public transit district in accordance with Section 17B-2a-818.5;
1858          (v) the Department of Transportation in accordance with Section 72-6-107.5; and
1859          (vi) the Legislature's Administrative Rules Review Committee; and
1860          (c) that establish:
1861          (i) the requirements and procedures a contractor and a subcontractor shall follow to
1862     demonstrate compliance with this section, including:
1863          (A) that a contractor or subcontractor's compliance with this section is subject to an
1864     audit by the department or the Office of the Legislative Auditor General;
1865          (B) that a contractor that is subject to the requirements of this section shall obtain a
1866     written statement described in Subsection (5)(a); and
1867          (C) that a subcontractor that is subject to the requirements of this section shall obtain a
1868     written statement described in Subsection (5)(c)(ii);
1869          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
1870     violates the provisions of this section, which may include:
1871          (A) a three-month suspension of the contractor or subcontractor from entering into
1872     future contracts with the state upon the first violation;
1873          (B) a six-month suspension of the contractor or subcontractor from entering into future
1874     contracts with the state upon the second violation;
1875          (C) an action for debarment of the contractor or subcontractor in accordance with
1876     Section 63G-6a-904 upon the third or subsequent violation; and
1877          (D) monetary penalties which may not exceed 50% of the amount necessary to
1878     purchase qualified health coverage for employees and dependents of employees of the
1879     contractor or subcontractor who were not offered qualified health coverage during the duration
1880     of the contract; and
1881          (iii) a website on which the department shall post the commercially equivalent
1882     benchmark, for the qualified health coverage identified in Subsection (1)(e), that is provided by
1883     the Department of Health, in accordance with Subsection 26-40-115(2).
1884          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
1885     or subcontractor who intentionally violates the provisions of this section is liable to the

1886     employee for health care costs that would have been covered by qualified health coverage.
1887          (ii) An employer has an affirmative defense to a cause of action under Subsection
1888     (7)(a)(i) if:
1889          (A) the employer relied in good faith on a written statement described in Subsection
1890     (5)(a) or (5)(c)(ii); or
1891          (B) the department determines that compliance with this section is not required under
1892     the provisions of Subsection (3).
1893          (b) An employee has a private right of action only against the employee's employer to
1894     enforce the provisions of this Subsection (7).
1895          (8) Any penalties imposed and collected under this section shall be deposited into the
1896     Medicaid Restricted Account created in Section 26-18-402.
1897          (9) The failure of a contractor or subcontractor to provide qualified health coverage as
1898     required by this section:
1899          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
1900     or contractor under:
1901          (i) Section 63G-6a-1602; or
1902          (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
1903          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
1904     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
1905     or construction.
1906          (10) An administrator, including the administrator's actuary or underwriter, who
1907     provides a written statement under Subsection (5)(a) or (c) regarding the qualified health
1908     coverage of a contractor or subcontractor who provides a health benefit plan described in
1909     Subsection (1)(d)(ii):
1910          (a) subject to Subsection (10)(b), is not liable for an error in the written statement,
1911     unless the administrator commits gross negligence in preparing the written statement;
1912          (b) is not liable for any error in the written statement if the administrator relied in good
1913     faith on information from the contractor or subcontractor; and
1914          (c) may require as a condition of providing the written statement that a contractor or
1915     subcontractor hold the administrator harmless for an action arising under this section.
1916          Section 40. Section 63G-6a-103 is amended to read:

1917          63G-6a-103. Definitions.
1918          As used in this chapter:
1919          (1) "Approved vendor" means a person who has been approved for inclusion on an
1920     approved vendor list through the approved vendor list process.
1921          (2) "Approved vendor list" means a list of approved vendors established under Section
1922     63G-6a-507.
1923          (3) "Approved vendor list process" means the procurement process described in
1924     Section 63G-6a-507.
1925          (4) "Bidder" means a person who submits a bid or price quote in response to an
1926     invitation for bids.
1927          (5) "Bidding process" means the procurement process described in Part 6, Bidding.
1928          (6) "Board" means the Utah State Procurement Policy Board, created in Section
1929     63G-6a-202.
1930          [(7) "Building board" means the State Building Board, created in Section
1931     63A-5b-201.]-
1932          [(8)] (7) "Change directive" means a written order signed by the procurement officer
1933     that directs the contractor to suspend work or make changes, as authorized by contract, without
1934     the consent of the contractor.
1935          [(9)] (8) "Change order" means a written alteration in specifications, delivery point,
1936     rate of delivery, period of performance, price, quantity, or other provisions of a contract, upon
1937     mutual agreement of the parties to the contract.
1938          [(10)] (9) "Chief procurement officer" means the individual appointed under Section
1939     63A-2-102.
1940          [(11)] (10) "Conducting procurement unit" means a procurement unit that conducts all
1941     aspects of a procurement:
1942          (a) except:
1943          (i) reviewing a solicitation to verify that it is in proper form; and
1944          (ii) causing the publication of a notice of a solicitation; and
1945          (b) including:
1946          (i) preparing any solicitation document;
1947          (ii) appointing an evaluation committee;

1948          (iii) conducting the evaluation process, except the process relating to scores calculated
1949     for costs of proposals;
1950          (iv) selecting and recommending the person to be awarded a contract;
1951          (v) negotiating the terms and conditions of a contract, subject to the issuing
1952     procurement unit's approval; and
1953          (vi) contract administration.
1954          [(12)] (11) "Conservation district" means the same as that term is defined in Section
1955     17D-3-102.
1956          [(13)] (12) "Construction project":
1957          (a) means a project for the construction, renovation, alteration, improvement, or repair
1958     of a public facility on real property, including all services, labor, supplies, and materials for the
1959     project; and
1960          (b) does not include services and supplies for the routine, day-to-day operation, repair,
1961     or maintenance of an existing public facility.
1962          [(14)] (13) "Construction manager/general contractor":
1963          (a) means a contractor who enters into a contract:
1964          (i) for the management of a construction project; and
1965          (ii) that allows the contractor to subcontract for additional labor and materials that are
1966     not included in the contractor's cost proposal submitted at the time of the procurement of the
1967     contractor's services; and
1968          (b) does not include a contractor whose only subcontract work not included in the
1969     contractor's cost proposal submitted as part of the procurement of the contractor's services is to
1970     meet subcontracted portions of change orders approved within the scope of the project.
1971          [(15)] (14) "Construction subcontractor":
1972          (a) means a person under contract with a contractor or another subcontractor to provide
1973     services or labor for the design or construction of a construction project;
1974          (b) includes a general contractor or specialty contractor licensed or exempt from
1975     licensing under Title 58, Chapter 55, Utah Construction Trades Licensing Act; and
1976          (c) does not include a supplier who provides only materials, equipment, or supplies to a
1977     contractor or subcontractor for a construction project.
1978          [(16)] (15) "Contract" means an agreement for a procurement.

1979          [(17)] (16) "Contract administration" means all functions, duties, and responsibilities
1980     associated with managing, overseeing, and carrying out a contract between a procurement unit
1981     and a contractor, including:
1982          (a) implementing the contract;
1983          (b) ensuring compliance with the contract terms and conditions by the conducting
1984     procurement unit and the contractor;
1985          (c) executing change orders;
1986          (d) processing contract amendments;
1987          (e) resolving, to the extent practicable, contract disputes;
1988          (f) curing contract errors and deficiencies;
1989          (g) terminating a contract;
1990          (h) measuring or evaluating completed work and contractor performance;
1991          (i) computing payments under the contract; and
1992          (j) closing out a contract.
1993          [(18)] (17) "Contractor" means a person who is awarded a contract with a procurement
1994     unit.
1995          [(19)] (18) "Cooperative procurement" means procurement conducted by, or on behalf
1996     of:
1997          (a) more than one procurement unit; or
1998          (b) a procurement unit and a cooperative purchasing organization.
1999          [(20)] (19) "Cooperative purchasing organization" means an organization, association,
2000     or alliance of purchasers established to combine purchasing power in order to obtain the best
2001     value for the purchasers by engaging in procurements in accordance with Section 63G-6a-2105.
2002          [(21)] (20) "Cost-plus-a-percentage-of-cost contract" means a contract under which the
2003     contractor is paid a percentage of the total actual expenses or costs in addition to the
2004     contractor's actual expenses or costs.
2005          [(22)] (21) "Cost-reimbursement contract" means a contract under which a contractor
2006     is reimbursed for costs which are allowed and allocated in accordance with the contract terms
2007     and the provisions of this chapter, and a fee, if any.
2008          [(23)] (22) "Days" means calendar days, unless expressly provided otherwise.
2009          [(24)] (23) "Definite quantity contract" means a fixed price contract that provides for a

2010     specified amount of supplies over a specified period, with deliveries scheduled according to a
2011     specified schedule.
2012          [(25)] (24) "Design professional" means:
2013          (a) an individual licensed as an architect under Title 58, Chapter 3a, Architects
2014     Licensing Act;
2015          (b) an individual licensed as a professional engineer or professional land surveyor
2016     under Title 58, Chapter 22, Professional Engineers and Professional Land Surveyors Licensing
2017     Act; or
2018          (c) an individual certified as a commercial interior designer under Title 58, Chapter 86,
2019     State Certification of Commercial Interior Designers Act.
2020          [(26)] (25) "Design professional procurement process" means the procurement process
2021     described in Part 15, Design Professional Services.
2022          [(27)] (26) "Design professional services" means:
2023          (a) professional services within the scope of the practice of architecture as defined in
2024     Section 58-3a-102;
2025          (b) professional engineering as defined in Section 58-22-102;
2026          (c) master planning and programming services; or
2027          (d) services within the scope of the practice of commercial interior design, as defined
2028     in Section 58-86-102.
2029          [(28)] (27) "Design-build" means the procurement of design professional services and
2030     construction by the use of a single contract.
2031          [(29)] (28) "Division" means the Division of Purchasing and General Services, created
2032     in Section 63A-2-101.
2033          [(30)] (29) "Educational procurement unit" means:
2034          (a) a school district;
2035          (b) a public school, including a local school board or a charter school;
2036          (c) the Utah Schools for the Deaf and the Blind;
2037          (d) the Utah Education and Telehealth Network;
2038          (e) an institution of higher education of the state described in Section 53B-1-102; or
2039          (f) the State Board of Education.
2040          [(31)] (30) "Established catalogue price" means the price included in a catalogue, price

2041     list, schedule, or other form that:
2042          (a) is regularly maintained by a manufacturer or contractor;
2043          (b) is published or otherwise available for inspection by customers; and
2044          (c) states prices at which sales are currently or were last made to a significant number
2045     of any category of buyers or buyers constituting the general buying public for the supplies or
2046     services involved.
2047          [(32)] (31) (a) "Executive branch procurement unit" means a department, division,
2048     office, bureau, agency, or other organization within the state executive branch.
2049          (b) "Executive branch procurement unit" does not include the Colorado River
2050     Authority of Utah as provided in Section 63M-14-210.
2051          [(33)] (32) "Facilities division" means the Division of Facilities Construction and
2052     Management, created in Section 63A-5b-301.
2053          [(34)] (33) "Fixed price contract" means a contract that provides a price, for each
2054     procurement item obtained under the contract, that is not subject to adjustment except to the
2055     extent that:
2056          (a) the contract provides, under circumstances specified in the contract, for an
2057     adjustment in price that is not based on cost to the contractor; or
2058          (b) an adjustment is required by law.
2059          [(35)] (34) "Fixed price contract with price adjustment" means a fixed price contract
2060     that provides for an upward or downward revision of price, precisely described in the contract,
2061     that:
2062          (a) is based on the consumer price index or another commercially acceptable index,
2063     source, or formula; and
2064          (b) is not based on a percentage of the cost to the contractor.
2065          [(36)] (35) "Grant" means an expenditure of public funds or other assistance, or an
2066     agreement to expend public funds or other assistance, for a public purpose authorized by law,
2067     without acquiring a procurement item in exchange.
2068          [(37)] (36) "Immaterial error":
2069          (a) means an irregularity or abnormality that is:
2070          (i) a matter of form that does not affect substance; or
2071          (ii) an inconsequential variation from a requirement of a solicitation that has no, little,

2072     or a trivial effect on the procurement process and that is not prejudicial to other vendors; and
2073          (b) includes:
2074          (i) a missing signature, missing acknowledgment of an addendum, or missing copy of a
2075     professional license, bond, or insurance certificate;
2076          (ii) a typographical error;
2077          (iii) an error resulting from an inaccuracy or omission in the solicitation; and
2078          (iv) any other error that the procurement official reasonably considers to be immaterial.
2079          [(38)] (37) "Indefinite quantity contract" means a fixed price contract that:
2080          (a) is for an indefinite amount of procurement items to be supplied as ordered by a
2081     procurement unit; and
2082          (b) (i) does not require a minimum purchase amount; or
2083          (ii) provides a maximum purchase limit.
2084          [(39)] (38) "Independent procurement unit" means:
2085          (a) (i) a legislative procurement unit;
2086          (ii) a judicial branch procurement unit;
2087          (iii) an educational procurement unit;
2088          (iv) a local government procurement unit;
2089          (v) a conservation district;
2090          (vi) a local building authority;
2091          (vii) a local district;
2092          (viii) a public corporation;
2093          (ix) a special service district; or
2094          (x) the Utah Communications Authority, established in Section 63H-7a-201;
2095          (b) [the building board or] the facilities division, but only to the extent of the
2096     procurement authority provided under Title 63A, Chapter 5b, Administration of State
2097     Facilities;
2098          (c) the attorney general, but only to the extent of the procurement authority provided
2099     under Title 67, Chapter 5, Attorney General;
2100          (d) the Department of Transportation, but only to the extent of the procurement
2101     authority provided under Title 72, Transportation Code; or
2102          (e) any other executive branch department, division, office, or entity that has statutory

2103     procurement authority outside this chapter, but only to the extent of that statutory procurement
2104     authority.
2105          [(40)] (39) "Invitation for bids":
2106          (a) means a document used to solicit:
2107          (i) bids to provide a procurement item to a procurement unit; or
2108          (ii) quotes for a price of a procurement item to be provided to a procurement unit; and
2109          (b) includes all documents attached to or incorporated by reference in a document
2110     described in Subsection [(40)] (39)(a).
2111          [(41)] (40) "Issuing procurement unit" means a procurement unit that:
2112          (a) reviews a solicitation to verify that it is in proper form;
2113          (b) causes the notice of a solicitation to be published; and
2114          (c) negotiates and approves the terms and conditions of a contract.
2115          [(42)] (41) "Judicial procurement unit" means:
2116          (a) the Utah Supreme Court;
2117          (b) the Utah Court of Appeals;
2118          (c) the Judicial Council;
2119          (d) a state judicial district; or
2120          (e) an office, committee, subcommittee, or other organization within the state judicial
2121     branch.
2122          [(43)] (42) "Labor hour contract" is a contract under which:
2123          (a) the supplies and materials are not provided by, or through, the contractor; and
2124          (b) the contractor is paid a fixed rate that includes the cost of labor, overhead, and
2125     profit for a specified number of labor hours or days.
2126          [(44)] (43) "Legislative procurement unit" means:
2127          (a) the Legislature;
2128          (b) the Senate;
2129          (c) the House of Representatives;
2130          (d) a staff office of the Legislature, the Senate, or the House of Representatives; or
2131          (e) a committee, subcommittee, commission, or other organization:
2132          (i) within the state legislative branch; or
2133          (ii) (A) that is created by statute to advise or make recommendations to the Legislature;

2134          (B) the membership of which includes legislators; and
2135          (C) for which the Office of Legislative Research and General Counsel provides staff
2136     support.
2137          [(45)] (44) "Local building authority" means the same as that term is defined in Section
2138     17D-2-102.
2139          [(46)] (45) "Local district" means the same as that term is defined in Section
2140     17B-1-102.
2141          [(47)] (46) "Local government procurement unit" means:
2142          (a) a county or municipality, and each office or agency of the county or municipality,
2143     unless the county or municipality adopts its own procurement code by ordinance;
2144          (b) a county or municipality that has adopted this entire chapter by ordinance, and each
2145     office or agency of that county or municipality; or
2146          (c) a county or municipality that has adopted a portion of this chapter by ordinance, to
2147     the extent that a term in the ordinance is used in the adopted portion of this chapter, and each
2148     office or agency of that county or municipality.
2149          [(48)] (47) "Multiple award contracts" means the award of a contract for an indefinite
2150     quantity of a procurement item to more than one person.
2151          [(49)] (48) "Multiyear contract" means a contract that extends beyond a one-year
2152     period, including a contract that permits renewal of the contract, without competition, beyond
2153     the first year of the contract.
2154          [(50)] (49) "Municipality" means a city, town, or metro township.
2155          [(51)] (50) "Nonadopting local government procurement unit" means:
2156          (a) a county or municipality that has not adopted Part 16, Protests, Part 17,
2157     Procurement Appeals Board, Part 18, Appeals to Court and Court Proceedings, and Part 19,
2158     General Provisions Related to Protest or Appeal; and
2159          (b) each office or agency of a county or municipality described in Subsection [(51)]
2160     (50)(a).
2161          [(52)] (51) "Offeror" means a person who submits a proposal in response to a request
2162     for proposals.
2163          [(53)] (52) "Preferred bidder" means a bidder that is entitled to receive a reciprocal
2164     preference under the requirements of this chapter.

2165          [(54)] (53) "Procure" means to acquire a procurement item through a procurement.
2166          [(55)] (54) "Procurement" means the acquisition of a procurement item through an
2167     expenditure of public funds, or an agreement to expend public funds, including an acquisition
2168     through a public-private partnership.
2169          [(56)] (55) "Procurement item" means an item of personal property, a technology, a
2170     service, or a construction project.
2171          [(57)] (56) "Procurement official" means:
2172          (a) for a procurement unit other than an independent procurement unit, the chief
2173     procurement officer;
2174          (b) for a legislative procurement unit, the individual, individuals, or body designated in
2175     a policy adopted by the Legislative Management Committee;
2176          (c) for a judicial procurement unit, the Judicial Council or an individual or body
2177     designated by the Judicial Council by rule;
2178          (d) for a local government procurement unit:
2179          (i) the legislative body of the local government procurement unit; or
2180          (ii) an individual or body designated by the local government procurement unit;
2181          (e) for a local district, the board of trustees of the local district or the board of trustees'
2182     designee;
2183          (f) for a special service district, the governing body of the special service district or the
2184     governing body's designee;
2185          (g) for a local building authority, the board of directors of the local building authority
2186     or the board of directors' designee;
2187          (h) for a conservation district, the board of supervisors of the conservation district or
2188     the board of supervisors' designee;
2189          (i) for a public corporation, the board of directors of the public corporation or the board
2190     of directors' designee;
2191          (j) for a school district or any school or entity within a school district, the board of the
2192     school district or the board's designee;
2193          (k) for a charter school, the individual or body with executive authority over the charter
2194     school or the designee of the individual or body;
2195          (l) for an institution of higher education described in Section 53B-2-101, the president

2196     of the institution of higher education or the president's designee;
2197          (m) for the State Board of Education, the State Board of Education or the State Board
2198     of Education's designee;
2199          (n) for the Utah Board of Higher Education, the Commissioner of Higher Education or
2200     the designee of the Commissioner of Higher Education;
2201          (o) for the Utah Communications Authority, established in Section 63H-7a-201, the
2202     executive director of the Utah Communications Authority or the executive director's designee;
2203     or
2204          [(p) (i) for the building board, and only to the extent of procurement activities of the
2205     building board as an independent procurement unit under the procurement authority provided
2206     under Title 63A, Chapter 5b, Administration of State Facilities, the director of the building
2207     board or the director's designee;]
2208          [(ii)] (p) (i) for the facilities division, and only to the extent of procurement activities
2209     of the facilities division as an independent procurement unit under the procurement authority
2210     provided under Title 63A, Chapter 5b, Administration of State Facilities, the director of the
2211     facilities division or the director's designee;
2212          [(iii)] (ii) for the attorney general, and only to the extent of procurement activities of
2213     the attorney general as an independent procurement unit under the procurement authority
2214     provided under Title 67, Chapter 5, Attorney General, the attorney general or the attorney
2215     general's designee;
2216          [(iv)] (iii) for the Department of Transportation created in Section 72-1-201, and only
2217     to the extent of procurement activities of the Department of Transportation as an independent
2218     procurement unit under the procurement authority provided under Title 72, Transportation
2219     Code, the executive director of the Department of Transportation or the executive director's
2220     designee; or
2221          [(v)] (iv) for any other executive branch department, division, office, or entity that has
2222     statutory procurement authority outside this chapter, and only to the extent of the procurement
2223     activities of the department, division, office, or entity as an independent procurement unit
2224     under the procurement authority provided outside this chapter for the department, division,
2225     office, or entity, the chief executive officer of the department, division, office, or entity or the
2226     chief executive officer's designee.

2227          [(58)] (57) "Procurement unit":
2228          (a) means:
2229          (i) a legislative procurement unit;
2230          (ii) an executive branch procurement unit;
2231          (iii) a judicial procurement unit;
2232          (iv) an educational procurement unit;
2233          (v) the Utah Communications Authority, established in Section 63H-7a-201;
2234          (vi) a local government procurement unit;
2235          (vii) a local district;
2236          (viii) a special service district;
2237          (ix) a local building authority;
2238          (x) a conservation district;
2239          (xi) a public corporation; and
2240          (b) does not include a political subdivision created under Title 11, Chapter 13,
2241     Interlocal Cooperation Act.
2242          [(59)] (58) "Professional service" means labor, effort, or work that requires specialized
2243     knowledge, expertise, and discretion, including labor, effort, or work in the field of:
2244          (a) accounting;
2245          (b) administrative law judge service;
2246          (c) architecture;
2247          (d) construction design and management;
2248          (e) engineering;
2249          (f) financial services;
2250          (g) information technology;
2251          (h) the law;
2252          (i) medicine;
2253          (j) psychiatry; or
2254          (k) underwriting.
2255          [(60)] (59) "Protest officer" means:
2256          (a) for the division or an independent procurement unit:
2257          (i) the procurement official;

2258          (ii) the procurement official's designee who is an employee of the procurement unit; or
2259          (iii) a person designated by rule made by the rulemaking authority; or
2260          (b) for a procurement unit other than an independent procurement unit, the chief
2261     procurement officer or the chief procurement officer's designee who is an employee of the
2262     division .
2263          [(61)] (60) "Public corporation" means the same as that term is defined in Section
2264     63E-1-102.
2265          [(62)] (61) "Public entity" means the state or any other government entity within the
2266     state that expends public funds.
2267          [(63)] (62) "Public facility" means a building, structure, infrastructure, improvement,
2268     or other facility of a public entity.
2269          [(64)] (63) "Public funds" means money, regardless of its source, including from the
2270     federal government, that is owned or held by a procurement unit.
2271          [(65)] (64) "Public transit district" means a public transit district organized under Title
2272     17B, Chapter 2a, Part 8, Public Transit District Act.
2273          [(66)] (65) "Public-private partnership" means an arrangement or agreement, occurring
2274     on or after January 1, 2017, between a procurement unit and one or more contractors to provide
2275     for a public need through the development or operation of a project in which the contractor or
2276     contractors share with the procurement unit the responsibility or risk of developing, owning,
2277     maintaining, financing, or operating the project.
2278          [(67)] (66) "Qualified vendor" means a vendor who:
2279          (a) is responsible; and
2280          (b) submits a responsive statement of qualifications under Section 63G-6a-410 that
2281     meets the minimum mandatory requirements, evaluation criteria, and any applicable score
2282     thresholds set forth in the request for statement of qualifications.
2283          [(68)] (67) "Real property" means land and any building, fixture, improvement,
2284     appurtenance, structure, or other development that is permanently affixed to land.
2285          [(69)] (68) "Request for information" means a nonbinding process through which a
2286     procurement unit requests information relating to a procurement item.
2287          [(70)] (69) "Request for proposals" means a document used to solicit proposals to
2288     provide a procurement item to a procurement unit, including all other documents that are

2289     attached to that document or incorporated in that document by reference.
2290          [(71)] (70) "Request for proposals process" means the procurement process described
2291     in Part 7, Request for Proposals.
2292          [(72)] (71) "Request for statement of qualifications" means a document used to solicit
2293     information about the qualifications of a person interested in responding to a potential
2294     procurement, including all other documents attached to that document or incorporated in that
2295     document by reference.
2296          [(73)] (72) "Requirements contract" means a contract:
2297          (a) under which a contractor agrees to provide a procurement unit's entire requirements
2298     for certain procurement items at prices specified in the contract during the contract period; and
2299          (b) that:
2300          (i) does not require a minimum purchase amount; or
2301          (ii) provides a maximum purchase limit.
2302          [(74)] (73) "Responsible" means being capable, in all respects, of:
2303          (a) meeting all the requirements of a solicitation; and
2304          (b) fully performing all the requirements of the contract resulting from the solicitation,
2305     including being financially solvent with sufficient financial resources to perform the contract.
2306          [(75)] (74) "Responsive" means conforming in all material respects to the requirements
2307     of a solicitation.
2308          [(76)] (75) "Rule" includes a policy or regulation adopted by the rulemaking authority,
2309     if adopting a policy or regulation is the method the rulemaking authority uses to adopt
2310     provisions that govern the applicable procurement unit.
2311          [(77)] (76) "Rulemaking authority" means:
2312          (a) for a legislative procurement unit, the Legislative Management Committee;
2313          (b) for a judicial procurement unit, the Judicial Council;
2314          (c) (i) only to the extent of the procurement authority expressly granted to the
2315     procurement unit by statute:
2316          (A) for [the building board or] the facilities division, the [building board] facilities
2317     division;
2318          (B) for the Office of the Attorney General, the attorney general;
2319          (C) for the Department of Transportation created in Section 72-1-201, the executive

2320     director of the Department of Transportation; and
2321          (D) for any other executive branch department, division, office, or entity that has
2322     statutory procurement authority outside this chapter, the governing authority of the department,
2323     division, office, or entity; and
2324          (ii) for each other executive branch procurement unit, the board;
2325          (d) for a local government procurement unit:
2326          (i) the governing body of the local government unit; or
2327          (ii) an individual or body designated by the local government procurement unit;
2328          (e) for a school district or a public school, the board, except to the extent of a school
2329     district's own nonadministrative rules that do not conflict with the provisions of this chapter;
2330          (f) for a state institution of higher education, the Utah Board of Higher Education;
2331          (g) for the State Board of Education or the Utah Schools for the Deaf and the Blind, the
2332     State Board of Education;
2333          (h) for a public transit district, the chief executive of the public transit district;
2334          (i) for a local district other than a public transit district or for a special service district,
2335     the board, except to the extent that the board of trustees of the local district or the governing
2336     body of the special service district makes its own rules:
2337          (i) with respect to a subject addressed by board rules; or
2338          (ii) that are in addition to board rules;
2339          (j) for the Utah Educational Savings Plan, created in Section 53B-8a-103, the Utah
2340     Board of Higher Education;
2341          (k) for the School and Institutional Trust Lands Administration, created in Section
2342     53C-1-201, the School and Institutional Trust Lands Board of Trustees;
2343          (l) for the School and Institutional Trust Fund Office, created in Section 53D-1-201,
2344     the School and Institutional Trust Fund Board of Trustees;
2345          (m) for the Utah Communications Authority, established in Section 63H-7a-201, the
2346     Utah Communications Authority board, created in Section 63H-7a-203; or
2347          (n) for any other procurement unit, the board.
2348          [(78)] (77) "Service":
2349          (a) means labor, effort, or work to produce a result that is beneficial to a procurement
2350     unit;

2351          (b) includes a professional service; and
2352          (c) does not include labor, effort, or work provided under an employment agreement or
2353     a collective bargaining agreement.
2354          [(79)] (78) "Small purchase process" means the procurement process described in
2355     Section 63G-6a-506.
2356          [(80)] (79) "Sole source contract" means a contract resulting from a sole source
2357     procurement.
2358          [(81)] (80) "Sole source procurement" means a procurement without competition
2359     pursuant to a determination under Subsection 63G-6a-802(1)(a) that there is only one source
2360     for the procurement item.
2361          [(82)] (81) "Solicitation" means an invitation for bids, request for proposals, or request
2362     for statement of qualifications.
2363          [(83)] (82) "Solicitation response" means:
2364          (a) a bid submitted in response to an invitation for bids;
2365          (b) a proposal submitted in response to a request for proposals; or
2366          (c) a statement of qualifications submitted in response to a request for statement of
2367     qualifications.
2368          [(84)] (83) "Special service district" means the same as that term is defined in Section
2369     17D-1-102.
2370          [(85)] (84) "Specification" means any description of the physical or functional
2371     characteristics or of the nature of a procurement item included in an invitation for bids or a
2372     request for proposals, or otherwise specified or agreed to by a procurement unit, including a
2373     description of:
2374          (a) a requirement for inspecting or testing a procurement item; or
2375          (b) preparing a procurement item for delivery.
2376          [(86)] (85) "Standard procurement process" means:
2377          (a) the bidding process;
2378          (b) the request for proposals process;
2379          (c) the approved vendor list process;
2380          (d) the small purchase process; or
2381          (e) the design professional procurement process.

2382          [(87)] (86) "State cooperative contract" means a contract awarded by the division for
2383     and in behalf of all public entities.
2384          [(88)] (87) "Statement of qualifications" means a written statement submitted to a
2385     procurement unit in response to a request for statement of qualifications.
2386          [(89)] (88) "Subcontractor":
2387          (a) means a person under contract to perform part of a contractual obligation under the
2388     control of the contractor, whether the person's contract is with the contractor directly or with
2389     another person who is under contract to perform part of a contractual obligation under the
2390     control of the contractor; and
2391          (b) includes a supplier, distributor, or other vendor that furnishes supplies or services
2392     to a contractor.
2393          [(90)] (89) "Technology" means the same as "information technology," as defined in
2394     Section 63A-16-102.
2395          [(91)] (90) "Tie bid" means that the lowest responsive bids of responsible bidders are
2396     identical in price.
2397          [(92)] (91) "Time and materials contract" means a contract under which the contractor
2398     is paid:
2399          (a) the actual cost of direct labor at specified hourly rates;
2400          (b) the actual cost of materials and equipment usage; and
2401          (c) an additional amount, expressly described in the contract, to cover overhead and
2402     profit, that is not based on a percentage of the cost to the contractor.
2403          [(93)] (92) "Transitional costs":
2404          (a) means the costs of changing:
2405          (i) from an existing provider of a procurement item to another provider of that
2406     procurement item; or
2407          (ii) from an existing type of procurement item to another type;
2408          (b) includes:
2409          (i) training costs;
2410          (ii) conversion costs;
2411          (iii) compatibility costs;
2412          (iv) costs associated with system downtime;

2413          (v) disruption of service costs;
2414          (vi) staff time necessary to implement the change;
2415          (vii) installation costs; and
2416          (viii) ancillary software, hardware, equipment, or construction costs; and
2417          (c) does not include:
2418          (i) the costs of preparing for or engaging in a procurement process; or
2419          (ii) contract negotiation or drafting costs.
2420          [(94)] (93) "Vendor":
2421          (a) means a person who is seeking to enter into a contract with a procurement unit to
2422     provide a procurement item; and
2423          (b) includes:
2424          (i) a bidder;
2425          (ii) an offeror;
2426          (iii) an approved vendor;
2427          (iv) a design professional; and
2428          (v) a person who submits an unsolicited proposal under Section 63G-6a-712.
2429          Section 41. Section 63G-6a-109 is amended to read:
2430          63G-6a-109. Issuing procurement unit and conducting procurement unit.
2431          (1) With respect to a procurement by an executive branch procurement unit, except for
2432     a procurement by an executive branch procurement unit that, under Subsection
2433     63G-6a-103[(39)](38)(b), (c), (d), or (e), is designated as an independent procurement unit:
2434          (a) the division is the issuing procurement unit; and
2435          (b) the executive branch procurement unit is the conducting procurement unit and is
2436     responsible to ensure that the procurement is conducted in compliance with this chapter.
2437          (2) With respect to a procurement by any other procurement unit, the procurement unit
2438     is both the issuing procurement unit and the conducting procurement unit.
2439          (3) A conducting procurement unit is responsible for contract administration.
2440          Section 42. Section 63G-6a-204 is amended to read:
2441          63G-6a-204. Applicability of rules of Utah State Procurement Policy Board and
2442     Division of Facilities Construction and Management -- Report to interim committee.
2443          (1) Except as provided in Subsection (2), rules made by the board under this chapter

2444     shall govern all procurement units for which the board is the rulemaking authority.
2445          (2) The [building board] facilities division rules governing procurement of
2446     construction, design professional services, and leases apply to the procurement of construction,
2447     design professional services, and leases of real property by the facilities division.
2448          (3) A rulemaking authority may make its own rules, consistent with this chapter,
2449     governing procurement by a person over which the rulemaking authority has rulemaking
2450     authority.
2451          (4) The board shall make a report on or before July 1 of each year to a legislative
2452     interim committee, designated by the Legislative Management Committee created under
2453     Section 36-12-6, on the establishment, implementation, and enforcement of the rules made
2454     under Section 63G-6a-203.
2455          Section 43. Section 63G-6a-303 is amended to read:
2456          63G-6a-303. Role, duties, and authority of chief procurement officer.
2457          (1) The chief procurement officer:
2458          (a) is the director of the division;
2459          (b) serves as the central procurement officer of the state;
2460          (c) serves as a voting member of the board; and
2461          (d) serves as the protest officer for a protest relating to a procurement of an executive
2462     branch procurement, except an executive branch procurement unit designated under Subsection
2463     63G-6a-103[(39)](38)(b), (c), (d), or (e) as an independent procurement unit, or a state
2464     cooperative contract procurement, unless the chief procurement officer designates another to
2465     serve as protest officer, as authorized in this chapter.
2466          (2) Except as otherwise provided in this chapter, the chief procurement officer shall:
2467          (a) develop procurement policies and procedures supporting ethical procurement
2468     practices, fair and open competition among vendors, and transparency within the state's
2469     procurement process;
2470          (b) administer the state's cooperative purchasing program, including state cooperative
2471     contracts and associated administrative fees;
2472          (c) enter into an agreement with a public entity for services provided by the division, if
2473     the agreement is in the best interest of the state;
2474          (d) ensure the division's compliance with any applicable law, rule, or policy, including

2475     a law, rule, or policy applicable to the division's role as an issuing procurement unit or
2476     conducting procurement unit, or as the state's central procurement organization;
2477          (e) manage the division's electronic procurement system;
2478          (f) oversee the recruitment, training, career development, certification requirements,
2479     and performance evaluation of the division's procurement personnel;
2480          (g) make procurement training available to procurement units and persons who do
2481     business with procurement units;
2482          (h) provide exemplary customer service and continually improve the division's
2483     procurement operations;
2484          (i) exercise all other authority, fulfill all other duties and responsibilities, and perform
2485     all other functions authorized under this chapter; and
2486          (j) ensure that any training described in this Subsection (2) complies with Title 63G,
2487     Chapter 22, State Training and Certification Requirements.
2488          (3) With respect to a procurement or contract over which the chief procurement officer
2489     has authority under this chapter, the chief procurement officer, except as otherwise provided in
2490     this chapter:
2491          (a) shall:
2492          (i) manage and supervise a procurement to ensure to the extent practicable that
2493     taxpayers receive the best value;
2494          (ii) prepare and issue standard specifications for procurement items;
2495          (iii) review contracts, coordinate contract compliance, conduct contract audits, and
2496     approve change orders;
2497          (iv) in accordance with Section 63A-16-204, coordinate with the Division of
2498     Technology Services, created in Section 63A-16-103, with respect to the procurement of
2499     information technology services by an executive branch procurement unit;
2500          (v) correct, amend, or cancel a procurement at any stage of the procurement process if
2501     the procurement is out of compliance with this chapter or a board rule;
2502          (vi) after consultation with the attorney general's office, correct, amend, or cancel a
2503     contract at any time during the term of the contract if:
2504          (A) the contract is out of compliance with this chapter or a board rule; and
2505          (B) the chief procurement officer determines that correcting, amending, or canceling

2506     the contract is in the best interest of the state; and
2507          (vii) make a reasonable attempt to resolve a contract dispute, in coordination with the
2508     attorney general's office; and
2509          (b) may:
2510          (i) delegate limited purchasing authority to a state agency, with appropriate oversight
2511     and control to ensure compliance with this chapter;
2512          (ii) delegate duties and authority to an employee of the division, as the chief
2513     procurement officer considers appropriate;
2514          (iii) negotiate and settle contract overcharges, undercharges, and claims, in accordance
2515     with the law and after consultation with the attorney general's office;
2516          (iv) authorize a procurement unit to make a procurement pursuant to a regional
2517     solicitation, as defined in Subsection 63G-6a-2105(7), even if the procurement item is also
2518     offered under a state cooperative contract, if the chief procurement officer determines that the
2519     procurement pursuant to a regional solicitation is in the best interest of the acquiring
2520     procurement unit; and
2521          (v) remove an individual from the procurement process or contract administration for:
2522          (A) having a conflict of interest or the appearance of a conflict of interest with a person
2523     responding to a solicitation or with a contractor;
2524          (B) having a bias or the appearance of bias for or against a person responding to a
2525     solicitation or for or against a contractor;
2526          (C) making an inconsistent or unexplainable score for a solicitation response;
2527          (D) having inappropriate contact or communication with a person responding to a
2528     solicitation;
2529          (E) socializing inappropriately with a person responding to a solicitation or with a
2530     contractor;
2531          (F) engaging in any other action or having any other association that causes the chief
2532     procurement officer to conclude that the individual cannot fairly evaluate a solicitation
2533     response or administer a contract; or
2534          (G) any other violation of a law, rule, or policy.
2535          (4) The chief procurement officer may not delegate to an individual outside the
2536     division the chief procurement officer's authority over a procurement described in Subsection

2537     (3)(a)(iv).
2538          (5) The chief procurement officer has final authority to determine whether an executive
2539     branch procurement unit's anticipated expenditure of public funds, anticipated agreement to
2540     expend public funds, or provision of a benefit constitutes a procurement that is subject to this
2541     chapter.
2542          (6) Except as otherwise provided in this chapter, the chief procurement officer shall
2543     review, monitor, and audit the procurement activities and delegated procurement authority of
2544     an executive branch procurement unit, except to the extent that an executive branch
2545     procurement unit is designated under Subsection 63G-6a-103(39)(b), (c), (d), or (e) as an
2546     independent procurement unit, to ensure compliance with this chapter, rules made by the
2547     applicable rulemaking authority, and division policies.
2548          Section 44. Section 63G-6a-1302 is amended to read:
2549          63G-6a-1302. Alternative methods of construction contracting management.
2550          (1) A rulemaking authority shall, by rule provide as many alternative methods of
2551     construction contracting management as determined to be feasible.
2552          (2) The rules described in Subsection (1) shall:
2553          (a) grant to the procurement official responsible for carrying out the construction
2554     project the discretion to select the appropriate method of construction contracting management
2555     for a particular project; and
2556          (b) require the procurement official to execute and include in the contract file a written
2557     statement describing the facts that led to the selection of a particular method of construction
2558     contracting management for each project.
2559          (3) Before choosing a construction contracting management method, the procurement
2560     official responsible for carrying out the construction project shall consider the following
2561     factors:
2562          (a) when the project must be ready to be occupied;
2563          (b) the type of project;
2564          (c) the extent to which the requirements of the procurement unit, and the way they are
2565     to be met are known;
2566          (d) the location of the project;
2567          (e) the size, scope, complexity, and economics of the project;

2568          (f) the source of funding and any resulting constraints necessitated by the funding
2569     source;
2570          (g) the availability, qualification, and experience of public personnel to be assigned to
2571     the project and the amount of time that the public personnel can devote to the project; and
2572          (h) the availability, qualifications, and experience of outside consultants and
2573     contractors to complete the project under the various methods being considered.
2574          (4) A rulemaking authority may make rules that authorize the use of a construction
2575     manager/general contractor as one method of construction contracting management.
2576          (5) The rules described in Subsection (2) shall require that:
2577          (a) the construction manager/general contractor be selected using:
2578          (i) a standard procurement process; or
2579          (ii) an exception to the requirement to use a standard procurement process, described in
2580     Part 8, Exceptions to Procurement Requirements; and
2581          (b) when entering into a subcontract that was not specifically included in the
2582     construction manager/general contractor's cost proposal, the construction manager/general
2583     contractor shall procure the subcontractor by using a standard procurement process, or an
2584     exception to the requirement to use a standard procurement process, described in Part 8,
2585     Exceptions to Procurement Requirements, in the same manner as if the subcontract work was
2586     procured directly by the procurement unit.
2587          (6) Procurement rules adopted by the [building board] facilities division under
2588     Subsections (1) through (3) for state building construction projects may authorize the use of a
2589     design-build provider as one method of construction contracting management.
2590          (7) A design-build contract may include a provision for obtaining the site for the
2591     construction project.
2592          (8) A design-build contract or a construction manager/general contractor contract may
2593     include provision by the contractor of operations, maintenance, or financing.
2594          Section 45. Section 63H-6-103 is amended to read:
2595          63H-6-103. Utah State Fair Corporation -- Legal status -- Powers.
2596          (1) There is created an independent public nonprofit corporation known as the "Utah
2597     State Fair Corporation."
2598          (2) The board shall file articles of incorporation for the corporation with the Division

2599     of Corporations and Commercial Code.
2600          (3) The corporation, subject to this chapter, has all powers and authority permitted
2601     nonprofit corporations by law.
2602          (4) The corporation shall:
2603          (a) manage, supervise, and control:
2604          (i) all activities relating to the annual exhibition described in Subsection (4)(j); and
2605          (ii) except as otherwise provided by statute, all state expositions, including setting the
2606     time, place, and purpose of any state exposition;
2607          (b) for public entertainment, displays, and exhibits or similar events:
2608          (i) provide, sponsor, or arrange the events;
2609          (ii) publicize and promote the events; and
2610          (iii) secure funds to cover the cost of the exhibits from:
2611          (A) private contributions;
2612          (B) public appropriations;
2613          (C) admission charges; and
2614          (D) other lawful means;
2615          (c) acquire and designate exposition sites;
2616          (d) use generally accepted accounting principles in accounting for the corporation's
2617     assets, liabilities, and operations;
2618          (e) seek corporate sponsorships for the state fair park or for individual buildings or
2619     facilities within the fair park;
2620          (f) work with county and municipal governments, the Salt Lake Convention and
2621     Visitor's Bureau, the Utah Travel Council, and other entities to develop and promote
2622     expositions and the use of the state fair park;
2623          (g) develop and maintain a marketing program to promote expositions and the use of
2624     the state fair park;
2625          (h) in accordance with provisions of this part, operate and maintain the state fair park,
2626     including the physical appearance and structural integrity of the state fair park and the
2627     buildings located at the state fair park;
2628          (i) prepare an economic development plan for the state fair park;
2629          (j) hold an annual exhibition that:

2630          (i) is called the state fair or a similar name;
2631          (ii) promotes and highlights agriculture throughout the state;
2632          (iii) includes expositions of livestock, poultry, agricultural, domestic science,
2633     horticultural, floricultural, mineral and industrial products, manufactured articles, and domestic
2634     animals that, in the corporation's opinion will best stimulate agricultural, industrial, artistic, and
2635     educational pursuits and the sharing of talents among the people of Utah;
2636          (iv) includes the award of premiums for the best specimens of the exhibited articles
2637     and animals;
2638          (v) permits competition by livestock exhibited by citizens of other states and territories
2639     of the United States; and
2640          (vi) is arranged according to plans approved by the board;
2641          (k) fix the conditions of entry to the annual exhibition described in Subsection (4)(j);
2642     and
2643          (l) publish a list of premiums that will be awarded at the annual exhibition described in
2644     Subsection (4)(j) for the best specimens of exhibited articles and animals.
2645          (5) In addition to the annual exhibition described in Subsection (4)(j), the corporation
2646     may hold other exhibitions of livestock, poultry, agricultural, domestic science, horticultural,
2647     floricultural, mineral and industrial products, manufactured articles, and domestic animals that,
2648     in the corporation's opinion, will best stimulate agricultural, industrial, artistic, and educational
2649     pursuits and the sharing of talents among the people of Utah.
2650          (6) The corporation may:
2651          (a) employ advisers, consultants, and agents, including financial experts and
2652     independent legal counsel, and fix their compensation;
2653          (b) (i) participate in the state's Risk Management Fund created under Section
2654     63A-4-201 or any captive insurance company created by the risk manager; or
2655          (ii) procure insurance against any loss in connection with the corporation's property
2656     and other assets, including mortgage loans;
2657          (c) receive and accept aid or contributions of money, property, labor, or other things of
2658     value from any source, including any grants or appropriations from any department, agency, or
2659     instrumentality of the United States or Utah;
2660          (d) hold, use, loan, grant, and apply that aid and those contributions to carry out the

2661     purposes of the corporation, subject to the conditions, if any, upon which the aid and
2662     contributions were made;
2663          (e) enter into management agreements with any person or entity for the performance of
2664     the corporation's functions or powers;
2665          (f) establish whatever accounts and procedures as necessary to budget, receive, and
2666     disburse, account for, and audit all funds received, appropriated, or generated;
2667          (g) subject to Subsection (8), lease any of the facilities at the state fair park;
2668          (h) sponsor events as approved by the board; and
2669          (i) enter into one or more agreements to develop the state fair park.
2670          (7) (a) Except as provided in Subsection (7)(c), as an independent agency of Utah, the
2671     corporation is exempt from:
2672          (i) Title 51, Chapter 5, Funds Consolidation Act;
2673          (ii) Title 51, Chapter 7, State Money Management Act;
2674          (iii) Title 63A, Utah Government Operations Code;
2675          (iv) Title 63J, Chapter 1, Budgetary Procedures Act; and
2676          (v) Title 63A, Chapter 17, Utah State Personnel Management Act.
2677          (b) The board shall adopt policies parallel to and consistent with:
2678          (i) Title 51, Chapter 5, Funds Consolidation Act;
2679          (ii) Title 51, Chapter 7, State Money Management Act;
2680          (iii) Title 63A, Utah Government Operations Code; and
2681          (iv) Title 63J, Chapter 1, Budgetary Procedures Act.
2682          (c) The corporation shall comply with:
2683          (i) Title 52, Chapter 4, Open and Public Meetings Act;
2684          (ii) Title 63G, Chapter 2, Government Records Access and Management Act;
2685          (iii) the provisions of Section 67-3-12;
2686          (iv) Title 63G, Chapter 6a, Utah Procurement Code, except for a procurement for:
2687          (A) entertainment provided at the state fair park;
2688          (B) judges for competitive exhibits; or
2689          (C) sponsorship of an event at the state fair park; and
2690          (v) the legislative approval requirements for new facilities established in Section
2691     63A-5b-404.

2692          (8) (a) Before the corporation executes a lease described in Subsection (6)(g) with a
2693     term of 10 or more years, the corporation shall:
2694          (i) submit the proposed lease to the [State Building Board] division for the [State
2695     Building Board's] division's approval or rejection; and
2696          (ii) if the [State Building Board] division approves the proposed lease, submit the
2697     proposed lease to the Executive Appropriations Committee for the Executive Appropriation
2698     Committee's review and recommendation in accordance with Subsection (8)(b).
2699          (b) The Executive Appropriations Committee shall review a proposed lease submitted
2700     in accordance with Subsection (8)(a) and recommend to the corporation that the corporation:
2701          (i) execute the proposed sublease; or
2702          (ii) reject the proposed sublease.
2703          Section 46. Section 63H-6-108 is amended to read:
2704          63H-6-108. Operation of the state fair park.
2705          (1) The corporation shall:
2706          (a) operate and maintain the state fair park in accordance with the facility maintenance
2707     standards approved by the [State Building Board] division;
2708          (b) pay for all costs associated with operating and maintaining the state fair park;
2709          (c) obtain approval from the division before the corporation commences capital
2710     developments or capital improvements on the state fair park that involve:
2711          (i) a construction project that costs more than $250,000; or
2712          (ii) the construction of a new building that costs more than $1,000,000;
2713          (d) obtain a building permit from the division before commencing an activity that
2714     requires a building permit;
2715          (e) ensure that:
2716          (i) any design plan related to the state fair park satisfies any applicable design standards
2717     established by the division [or the State Building Board]; and
2718          (ii) construction performed on the state fair park satisfies any applicable construction
2719     standards established by the division [or the State Building Board];
2720          (f) for any new construction project on the state fair park that costs $250,000 or more:
2721          (i) notify the division before commencing the new construction project; and
2722          (ii) coordinate with the division regarding review of design plans and construction

2723     management;
2724          (g) obtain approval from the division before the corporation makes any alteration or
2725     addition to the water system, heating system, plumbing system, air conditioning system, or
2726     electrical system;
2727          (h) obtain approval from the [State Building Board] division before the corporation
2728     demolishes a building or facility on the state fair park;
2729          (i) keep the state fair park fully insured to protect against loss or damage by fire,
2730     vandalism, or malicious mischief;
2731          (j) in accordance with Subsection (3), at the corporation's expense, and for the mutual
2732     benefit of the division, maintain general public liability insurance in an amount equal to at least
2733     $1,000,000 through one or more companies that are:
2734          (i) licensed to do business in the state;
2735          (ii) selected by the corporation; and
2736          (iii) approved by the division and the Division of Risk Management;
2737          (k) ensure that the division is an additional insured with primary coverage on each
2738     insurance policy that the corporation obtains in accordance with this section;
2739          (l) give the division notice at least 30 days before the day on which the corporation
2740     cancels any insurance policy that the corporation obtains in accordance with this section; and
2741          (m) if any lien is recorded or filed against the state fair park as a result of an act or
2742     omission of the corporation, cause the lien to be satisfied or cancelled within 10 days after the
2743     day on which the corporation receives notice of the lien.
2744          (2) [The State Building Board] At least 90 calendar days before demolition work
2745     begins, the division shall notify the State Historic Preservation Office of any [State Building
2746     Board meeting at which the State Building Board will consider approval] division plan to
2747     demolish a facility on the state fair park.
2748          (3) The general public liability insurance described in Subsection (1)(j) shall:
2749          (a) insure against any claim for personal injury, death, or property damage that occurs
2750     at the state fair park; and
2751          (b) be a blanket policy that covers all activities of the corporation.
2752          (4) The division shall administer any capital improvements on the state fair park that
2753     cost more than $250,000.

2754          (5) Upon 24 hours notice to the corporation, the division may enter the state fair park
2755     to inspect the state fair park and make any repairs that the division determines necessary.
2756          (6) If the corporation no longer operates as an independent public nonprofit corporation
2757     as described in this chapter, the state shall assume the responsibilities of the corporation under
2758     any contract that is:
2759          (a) in effect as of the day on which the status of the corporation changes; and
2760          (b) for the lease, construction, or development of a building or facility on the state fair
2761     park.
2762          (7) (a) A debt or obligation contracted by the corporation is a debt or obligation of the
2763     corporation.
2764          (b) The state is not liable and assumes no responsibility for any debt or obligation
2765     described in Subsection (7)(a), unless the Legislature expressly:
2766          (i) authorizes the corporation to contract for the debt or obligation; and
2767          (ii) accepts liability or assumes responsibility for the debt or obligation.
2768          (8) The provisions of this section apply notwithstanding any contrary provision in Title
2769     63A, Chapter 5b, Administration of State Facilities.
2770          Section 47. Section 63J-4-401 is amended to read:
2771          63J-4-401. Planning coordinator appointment, functions, and duties.
2772          (1) (a) The executive director shall appoint a planning coordinator to perform the
2773     functions and duties stated in this section.
2774          (b) The planning coordinator serves at the pleasure of and under the direction of the
2775     executive director.
2776          (2) The planning coordinator shall:
2777          (a) act as the governor's adviser on state, regional, metropolitan, and local
2778     governmental planning matters relating to public improvements and land use;
2779          (b) counsel with the authorized representatives of the Department of Transportation,
2780     the [State Building Board] Division of Facilities Construction and Management, the
2781     Department of Health, the Department of Workforce Services, the Labor Commission, the
2782     Department of Natural Resources, the School and Institutional Trust Lands Administration, and
2783     other proper persons concerning all state planning matters;
2784          (c) when designated to do so by the governor, receive funds made available to the state

2785     by the federal government;
2786          (d) receive, review, and provide an internet-accessible repository of plans and studies
2787     of the various state agencies and political subdivisions relating to public improvements,
2788     housing, land use, economic development, transportation infrastructure, water infrastructure,
2789     and utility infrastructure;
2790          (e) if a conflict occurs between the plans and proposals of state agencies, prepare
2791     specific recommendations for the resolution of the conflict and submit the recommendations to
2792     the governor for a decision resolving the conflict;
2793          (f) if a conflict occurs between the plans and proposals of a state agency and a political
2794     subdivision or between two or more political subdivisions, advise these entities of the conflict
2795     and make specific recommendations for the resolution of the conflict;
2796          (g) act as the governor's planning agent in planning public improvements and land use
2797     and, in this capacity, undertake special studies and investigations, participate in
2798     cross-jurisdictional planning activities, and, if needed, provide coordination;
2799          (h) provide information and cooperate with the Legislature or any of its committees in
2800     conducting planning studies;
2801          (i) cooperate and exchange information with federal agencies and local, metropolitan,
2802     or regional agencies as necessary to assist with federal, state, regional, metropolitan, and local
2803     programs;
2804          (j) make recommendations to the governor that the planning coordinator considers
2805     advisable for the proper development and coordination of plans for state government and
2806     political subdivisions;
2807          (k) assist in the interpretation of projections and analyses with respect to future growth
2808     needs; and
2809          (l) actively participate in informing the short-term and long-term budgetary needs of
2810     the state.
2811          (3) (a) The planning coordinator may:
2812          (i) perform regional and state planning and assist state government planning agencies
2813     in performing state planning;
2814          (ii) provide planning assistance to Indian tribes regarding planning for Indian
2815     reservations;

2816          (iii) assist city, county, metropolitan, and regional planning agencies in performing
2817     local, metropolitan, and regional planning, subject to Subsection (3)(b); and
2818          (iv) conduct, or coordinate with stakeholders to conduct, public meetings or hearings
2819     to:
2820          (A) encourage maximum public understanding of and agreement with the factual data
2821     and assumptions upon which projections and analyses are based; and
2822          (B) receive suggestions as to the types of projections and analyses that are needed.
2823          (b) In performing the duties described in Subsection (3)(a)(iii), to the extent possible
2824     the planning coordinator and any agent or designee of the planning coordinator shall recognize
2825     and promote the plans, policies, programs, processes, and desired outcomes of the city, county,
2826     metropolitan, or regional planning agency that the planning coordinator or the planning
2827     coordinator's agent or designee is assisting.
2828          (4) In assisting in the preparation of plans, policies, programs, or processes related to
2829     the management or use of federal lands or natural resources on federal lands in the state, the
2830     planning coordinator shall coordinate with the Public Lands Policy Coordinating Office created
2831     in Section 63L-11-201.
2832          Section 48. Section 72-6-107.5 is amended to read:
2833          72-6-107.5. Construction of improvements of highway -- Contracts -- Health
2834     insurance coverage.
2835          (1) As used in this section:
2836          (a) "Aggregate" means the sum of all contracts, change orders, and modifications
2837     related to a single project.
2838          (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
2839          (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
2840     "operative" who:
2841          (i) works at least 30 hours per calendar week; and
2842          (ii) meets employer eligibility waiting requirements for health care insurance, which
2843     may not exceed the first day of the calendar month following 60 days after the day on which
2844     the individual is hired.
2845          (d) "Health benefit plan" means:
2846          (i) the same as that term is defined in Section 31A-1-301; or

2847          (ii) an employee welfare benefit plan:
2848          (A) established under the Employee Retirement Income Security Act of 1974, 29
2849     U.S.C. Sec. 1001 et seq.;
2850          (B) for an employer with 100 or more employees; and
2851          (C) in which the employer establishes a self-funded or partially self-funded group
2852     health plan to provide medical care for the employer's employees and dependents of the
2853     employees.
2854          (e) "Qualified health coverage" means the same as that term is defined in Section
2855     26-40-115.
2856          (f) "Subcontractor" means the same as that term is defined in Section 63A-5b-605.
2857          (g) "Third party administrator" or "administrator" means the same as that term is
2858     defined in Section 31A-1-301.
2859          (2) Except as provided in Subsection (3), the requirements of this section apply to:
2860          (a) a contractor of a design or construction contract entered into by the department on
2861     or after July 1, 2009, if the prime contract is in an aggregate amount equal to or greater than
2862     $2,000,000; and
2863          (b) a subcontractor of a contractor of a design or construction contract entered into by
2864     the department on or after July 1, 2009, if the subcontract is in an aggregate amount equal to or
2865     greater than $1,000,000.
2866          (3) The requirements of this section do not apply to a contractor or subcontractor
2867     described in Subsection (2) if:
2868          (a) the application of this section jeopardizes the receipt of federal funds;
2869          (b) the contract is a sole source contract; or
2870          (c) the contract is an emergency procurement.
2871          (4) A person that intentionally uses change orders, contract modifications, or multiple
2872     contracts to circumvent the requirements of this section is guilty of an infraction.
2873          (5) (a) A contractor subject to the requirements of this section shall demonstrate to the
2874     department that the contractor has and will maintain an offer of qualified health coverage for
2875     the contractor's employees and the employees' dependents during the duration of the contract
2876     by submitting to the department a written statement that:
2877          (i) the contractor offers qualified health coverage that complies with Section

2878     26-40-115;
2879          (ii) is from:
2880          (A) an actuary selected by the contractor or the contractor's insurer;
2881          (B) an underwriter who is responsible for developing the employer group's premium
2882     rates; or
2883          (C) if the contractor provides a health benefit plan described in Subsection (1)(d)(ii),
2884     an actuary or underwriter selected by a third party administrator; and
2885          (iii) was created within one year before the day on which the statement is submitted.
2886          (b) (i) A contractor that provides a health benefit plan described in Subsection (1)(d)(ii)
2887     shall provide the actuary or underwriter selected by an administrator, as described in
2888     Subsection (5)(a)(ii)(C), sufficient information to determine whether the contractor's
2889     contribution to the health benefit plan and the actuarial value of the health benefit plan meet the
2890     requirements of qualified health coverage.
2891          (ii) A contractor may not make a change to the contractor's contribution to the health
2892     benefit plan, unless the contractor provides notice to:
2893          (A) the actuary or underwriter selected by an administrator, as described in Subsection
2894     (5)(a)(ii)(C), for the actuary or underwriter to update the written statement described in
2895     Subsection (5)(a) in compliance with this section; and
2896          (B) the department.
2897          (c) A contractor that is subject to the requirements of this section shall:
2898          (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
2899     is subject to the requirements of this section shall obtain and maintain an offer of qualified
2900     health coverage for the subcontractor's employees and the employees' dependents during the
2901     duration of the subcontract; and
2902          (ii) obtain from a subcontractor that is subject to the requirements of this section a
2903     written statement that:
2904          (A) the subcontractor offers qualified health coverage that complies with Section
2905     26-40-115;
2906          (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, an
2907     underwriter who is responsible for developing the employer group's premium rates, or if the
2908     subcontractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or

2909     underwriter selected by an administrator; and
2910          (C) was created within one year before the day on which the contractor obtains the
2911     statement.
2912          (d) (i) (A) A contractor that fails to maintain an offer of qualified health coverage
2913     described in Subsection (5)(a) during the duration of the contract is subject to penalties in
2914     accordance with administrative rules adopted by the department under Subsection (6).
2915          (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
2916     and maintain an offer of qualified health coverage described in Subsection (5)(c)(i).
2917          (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
2918     coverage described in Subsection (5)(c) during the duration of the subcontract is subject to
2919     penalties in accordance with administrative rules adopted by the department under Subsection
2920     (6).
2921          (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
2922     an offer of qualified health coverage described in Subsection (5)(a).
2923          (6) The department shall adopt administrative rules:
2924          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
2925          (b) in coordination with:
2926          (i) the Department of Environmental Quality in accordance with Section 19-1-206;
2927          (ii) the Department of Natural Resources in accordance with Section 79-2-404;
2928          (iii) the [State Building Board] Division of Facilities Construction and Management in
2929     accordance with Section 63A-5b-607;
2930          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403;
2931          (v) a public transit district in accordance with Section 17B-2a-818.5; and
2932          (vi) the Legislature's Administrative Rules Review Committee; and
2933          (c) that establish:
2934          (i) the requirements and procedures a contractor and a subcontractor shall follow to
2935     demonstrate compliance with this section, including:
2936          (A) that a contractor or subcontractor's compliance with this section is subject to an
2937     audit by the department or the Office of the Legislative Auditor General;
2938          (B) that a contractor that is subject to the requirements of this section shall obtain a
2939     written statement described in Subsection (5)(a); and

2940          (C) that a subcontractor that is subject to the requirements of this section shall obtain a
2941     written statement described in Subsection (5)(c)(ii);
2942          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
2943     violates the provisions of this section, which may include:
2944          (A) a three-month suspension of the contractor or subcontractor from entering into
2945     future contracts with the state upon the first violation;
2946          (B) a six-month suspension of the contractor or subcontractor from entering into future
2947     contracts with the state upon the second violation;
2948          (C) an action for debarment of the contractor or subcontractor in accordance with
2949     Section 63G-6a-904 upon the third or subsequent violation; and
2950          (D) monetary penalties which may not exceed 50% of the amount necessary to
2951     purchase qualified health coverage for an employee and a dependent of the employee of the
2952     contractor or subcontractor who was not offered qualified health coverage during the duration
2953     of the contract; and
2954          (iii) a website on which the department shall post the commercially equivalent
2955     benchmark, for the qualified health coverage identified in Subsection (1)(e), that is provided by
2956     the Department of Health, in accordance with Subsection 26-40-115(2).
2957          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
2958     or subcontractor who intentionally violates the provisions of this section is liable to the
2959     employee for health care costs that would have been covered by qualified health coverage.
2960          (ii) An employer has an affirmative defense to a cause of action under Subsection
2961     (7)(a)(i) if:
2962          (A) the employer relied in good faith on a written statement described in Subsection
2963     (5)(a) or (5)(c)(ii); or
2964          (B) the department determines that compliance with this section is not required under
2965     the provisions of Subsection (3).
2966          (b) An employee has a private right of action only against the employee's employer to
2967     enforce the provisions of this Subsection (7).
2968          (8) Any penalties imposed and collected under this section shall be deposited into the
2969     Medicaid Restricted Account created in Section 26-18-402.
2970          (9) The failure of a contractor or subcontractor to provide qualified health coverage as

2971     required by this section:
2972          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
2973     or contractor under:
2974          (i) Section 63G-6a-1602; or
2975          (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
2976          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
2977     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
2978     or construction.
2979          (10) An administrator, including an administrator's actuary or underwriter, who
2980     provides a written statement under Subsection (5)(a) or (c) regarding the qualified health
2981     coverage of a contractor or subcontractor who provides a health benefit plan described in
2982     Subsection (1)(d)(ii):
2983          (a) subject to Subsection (10)(b), is not liable for an error in the written statement,
2984     unless the administrator commits gross negligence in preparing the written statement;
2985          (b) is not liable for any error in the written statement if the administrator relied in good
2986     faith on information from the contractor or subcontractor; and
2987          (c) may require as a condition of providing the written statement that a contractor or
2988     subcontractor hold the administrator harmless for an action arising under this section.
2989          Section 49. Section 78A-5-111 is amended to read:
2990          78A-5-111. Transfer of court operating responsibilities -- Facilities -- Staff --
2991     Budget.
2992          (1) A county's determination to transfer responsibility for operation of the district court
2993     to the state is irrevocable.
2994          (2) (a) Court space suitable for the conduct of judicial business as specified by the
2995     Judicial Council shall be provided by the state from appropriations made by the Legislature for
2996     these purposes.
2997          (b) The state may, in order to carry out its obligation to provide these facilities, lease
2998     space from a county, or reimburse a county for the number of square feet used by the district.
2999     Any lease and reimbursement shall be determined in accordance with the standards of the
3000     [State Building Board] Division of Facilities Construction and Management applicable to state
3001     agencies generally. A county or municipality terminating a lease with the court shall provide

3002     written notice to the Judicial Council at least one year prior to the effective date of the
3003     termination.
3004          (c) District courts shall be located in municipalities that are sites for the district court
3005     or circuit court as of January 1, 1994. Removal of the district court from the municipality shall
3006     require prior legislative approval by joint resolution.
3007          (3) The state shall provide legal reference materials for all district judges' chambers
3008     and courtrooms, as required by Judicial Council rule. Maintenance of county law libraries shall
3009     be in consultation with the court executive of the district court.
3010          (4) (a) At the request of the Judicial Council, the county or municipality shall provide
3011     staff for the district court in county seats or municipalities under contract with the
3012     administrative office of the courts.
3013          (b) Payment for necessary expenses shall be by a contract entered into annually
3014     between the state and the county or municipality, which shall specifically state the agreed costs
3015     of personnel, supplies, and services, as well as the method and terms of payment.
3016          (c) Workload measures prepared by the state court administrator and projected costs
3017     for the next fiscal year shall be considered in the negotiation of contracts.
3018          (d) Each May 1 preceding the general session of the Legislature, the county or
3019     municipality shall submit a budget request to the Judicial Council, the governor, and the
3020     legislative fiscal analyst for services to be rendered as part of the contract under Subsection
3021     (4)(b) for the fiscal year immediately following the legislative session. The Judicial Council
3022     shall consider this information in developing its budget request. The legislative fiscal analyst
3023     shall provide the Legislature with the county's or municipality's original estimate of expenses.
3024     By June 15 preceding the state's fiscal year, the county and the state court administrator shall
3025     negotiate a contract to cover expenses in accordance with the appropriation approved by the
3026     Legislature. The contracts may not include payments for expenses of service of process,
3027     indigent defense costs, or other costs or expenses provided by law as an obligation of the
3028     county or municipality.
3029          Section 50. Section 79-2-404 is amended to read:
3030          79-2-404. Contracting powers of department -- Health insurance coverage.
3031          (1) As used in this section:
3032          (a) "Aggregate" means the sum of all contracts, change orders, and modifications

3033     related to a single project.
3034          (b) "Change order" means the same as that term is defined in Section 63G-6a-103.
3035          (c) "Employee" means, as defined in Section 34A-2-104, an "employee," "worker," or
3036     "operative" who:
3037          (i) works at least 30 hours per calendar week; and
3038          (ii) meets employer eligibility waiting requirements for health care insurance, which
3039     may not exceed the first day of the calendar month following 60 days after the day on which
3040     the individual is hired.
3041          (d) "Health benefit plan" means:
3042          (i) the same as that term is defined in Section 31A-1-301; or
3043          (ii) an employee welfare benefit plan:
3044          (A) established under the Employee Retirement Income Security Act of 1974, 29
3045     U.S.C. Sec. 1001 et seq.;
3046          (B) for an employer with 100 or more employees; and
3047          (C) in which the employer establishes a self-funded or partially self-funded group
3048     health plan to provide medical care for the employer's employees and dependents of the
3049     employees.
3050          (e) "Qualified health coverage" means the same as that term is defined in Section
3051     26-40-115.
3052          (f) "Subcontractor" means the same as that term is defined in Section 63A-5b-605.
3053          (g) "Third party administrator" or "administrator" means the same as that term is
3054     defined in Section 31A-1-301.
3055          (2) Except as provided in Subsection (3), the requirements of this section apply to:
3056          (a) a contractor of a design or construction contract entered into by, or delegated to, the
3057     department or a division, board, or council of the department on or after July 1, 2009, if the
3058     prime contract is in an aggregate amount equal to or greater than $2,000,000; and
3059          (b) a subcontractor of a contractor of a design or construction contract entered into by,
3060     or delegated to, the department or a division, board, or council of the department on or after
3061     July 1, 2009, if the subcontract is in an aggregate amount equal to or greater than $1,000,000.
3062          (3) This section does not apply to contracts entered into by the department or a
3063     division, board, or council of the department if:

3064          (a) the application of this section jeopardizes the receipt of federal funds;
3065          (b) the contract or agreement is between:
3066          (i) the department or a division, board, or council of the department; and
3067          (ii) (A) another agency of the state;
3068          (B) the federal government;
3069          (C) another state;
3070          (D) an interstate agency;
3071          (E) a political subdivision of this state; or
3072          (F) a political subdivision of another state; or
3073          (c) the contract or agreement is:
3074          (i) for the purpose of disbursing grants or loans authorized by statute;
3075          (ii) a sole source contract; or
3076          (iii) an emergency procurement.
3077          (4) A person that intentionally uses change orders, contract modifications, or multiple
3078     contracts to circumvent the requirements of this section is guilty of an infraction.
3079          (5) (a) A contractor subject to the requirements of this section shall demonstrate to the
3080     department that the contractor has and will maintain an offer of qualified health coverage for
3081     the contractor's employees and the employees' dependents during the duration of the contract
3082     by submitting to the department a written statement that:
3083          (i) the contractor offers qualified health coverage that complies with Section
3084     26-40-115;
3085          (ii) is from:
3086          (A) an actuary selected by the contractor or the contractor's insurer;
3087          (B) an underwriter who is responsible for developing the employer group's premium
3088     rates; or
3089          (C) if the contractor provides a health benefit plan described in Subsection (1)(d)(ii),
3090     an actuary or underwriter selected by a third party administrator; and
3091          (iii) was created within one year before the day on which the statement is submitted.
3092          (b) (i) A contractor that provides a health benefit plan described in Subsection (1)(d)(ii)
3093     shall provide the actuary or underwriter selected by an administrator, as described in
3094     Subsection (5)(a)(ii)(C), sufficient information to determine whether the contractor's

3095     contribution to the health benefit plan and the actuarial value of the health benefit plan meet the
3096     requirements of qualified health coverage.
3097          (ii) A contractor may not make a change to the contractor's contribution to the health
3098     benefit plan, unless the contractor provides notice to:
3099          (A) the actuary or underwriter selected by an administrator, as described in Subsection
3100     (5)(a)(ii)(C), for the actuary or underwriter to update the written statement described in
3101     Subsection (5)(a) in compliance with this section; and
3102          (B) the department.
3103          (c) A contractor that is subject to the requirements of this section shall:
3104          (i) place a requirement in each of the contractor's subcontracts that a subcontractor that
3105     is subject to the requirements of this section shall obtain and maintain an offer of qualified
3106     health coverage for the subcontractor's employees and the employees' dependents during the
3107     duration of the subcontract; and
3108          (ii) obtain from a subcontractor that is subject to the requirements of this section a
3109     written statement that:
3110          (A) the subcontractor offers qualified health coverage that complies with Section
3111     26-40-115;
3112          (B) is from an actuary selected by the subcontractor or the subcontractor's insurer, an
3113     underwriter who is responsible for developing the employer group's premium rates, or if the
3114     subcontractor provides a health benefit plan described in Subsection (1)(d)(ii), an actuary or
3115     underwriter selected by an administrator; and
3116          (C) was created within one year before the day on which the contractor obtains the
3117     statement.
3118          (d) (i) (A) A contractor that fails to maintain an offer of qualified health coverage
3119     described in Subsection (5)(a) during the duration of the contract is subject to penalties in
3120     accordance with administrative rules adopted by the department under Subsection (6).
3121          (B) A contractor is not subject to penalties for the failure of a subcontractor to obtain
3122     and maintain an offer of qualified health coverage described in Subsection (5)(c)(i).
3123          (ii) (A) A subcontractor that fails to obtain and maintain an offer of qualified health
3124     coverage described in Subsection (5)(c) during the duration of the subcontract is subject to
3125     penalties in accordance with administrative rules adopted by the department under Subsection

3126     (6).
3127          (B) A subcontractor is not subject to penalties for the failure of a contractor to maintain
3128     an offer of qualified health coverage described in Subsection (5)(a).
3129          (6) The department shall adopt administrative rules:
3130          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
3131          (b) in coordination with:
3132          (i) the Department of Environmental Quality in accordance with Section 19-1-206;
3133          (ii) a public transit district in accordance with Section 17B-2a-818.5;
3134          (iii) the [State Building Board] Division of Facilities Construction and Management in
3135     accordance with Section 63A-5b-607;
3136          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403;
3137          (v) the Department of Transportation in accordance with Section 72-6-107.5; and
3138          (vi) the Legislature's Administrative Rules Review Committee; and
3139          (c) that establish:
3140          (i) the requirements and procedures a contractor and a subcontractor shall follow to
3141     demonstrate compliance with this section, including:
3142          (A) that a contractor or subcontractor's compliance with this section is subject to an
3143     audit by the department or the Office of the Legislative Auditor General;
3144          (B) that a contractor that is subject to the requirements of this section shall obtain a
3145     written statement described in Subsection (5)(a); and
3146          (C) that a subcontractor that is subject to the requirements of this section shall obtain a
3147     written statement described in Subsection (5)(c)(ii);
3148          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
3149     violates the provisions of this section, which may include:
3150          (A) a three-month suspension of the contractor or subcontractor from entering into
3151     future contracts with the state upon the first violation;
3152          (B) a six-month suspension of the contractor or subcontractor from entering into future
3153     contracts with the state upon the second violation;
3154          (C) an action for debarment of the contractor or subcontractor in accordance with
3155     Section 63G-6a-904 upon the third or subsequent violation; and
3156          (D) monetary penalties which may not exceed 50% of the amount necessary to

3157     purchase qualified health coverage for an employee and a dependent of an employee of the
3158     contractor or subcontractor who was not offered qualified health coverage during the duration
3159     of the contract; and
3160          (iii) a website on which the department shall post the commercially equivalent
3161     benchmark, for the qualified health coverage identified in Subsection (1)(e), provided by the
3162     Department of Health, in accordance with Subsection 26-40-115(2).
3163          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c)(ii), a contractor
3164     or subcontractor who intentionally violates the provisions of this section is liable to the
3165     employee for health care costs that would have been covered by qualified health coverage.
3166          (ii) An employer has an affirmative defense to a cause of action under Subsection
3167     (7)(a)(i) if:
3168          (A) the employer relied in good faith on a written statement described in Subsection
3169     (5)(a) or (5)(c)(ii); or
3170          (B) the department determines that compliance with this section is not required under
3171     the provisions of Subsection (3).
3172          (b) An employee has a private right of action only against the employee's employer to
3173     enforce the provisions of this Subsection (7).
3174          (8) Any penalties imposed and collected under this section shall be deposited into the
3175     Medicaid Restricted Account created in Section 26-18-402.
3176          (9) The failure of a contractor or subcontractor to provide qualified health coverage as
3177     required by this section:
3178          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
3179     or contractor under:
3180          (i) Section 63G-6a-1602; or
3181          (ii) any other provision in Title 63G, Chapter 6a, Utah Procurement Code; and
3182          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
3183     contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
3184     or construction.
3185          (10) An administrator, including an administrator's actuary or underwriter, who
3186     provides a written statement under Subsection (5)(a) or (c) regarding the qualified health
3187     coverage of a contractor or subcontractor who provides a health benefit plan described in

3188     Subsection (1)(d)(ii):
3189          (a) subject to Subsection (10)(b), is not liable for an error in the written statement,
3190     unless the administrator commits gross negligence in preparing the written statement;
3191          (b) is not liable for any error in the written statement if the administrator relied in good
3192     faith on information from the contractor or subcontractor; and
3193          (c) may require as a condition of providing the written statement that a contractor or
3194     subcontractor hold the administrator harmless for an action arising under this section.
3195          Section 51. Repealer.
3196          This bill repeals:
3197          Section 63A-5b-201, Creation of state building board -- Composition --
3198     Appointment -- Per diem and expenses -- Board officers.
3199          Section 63A-5b-202, State Building Board powers and duties.
3200          Section 63A-5b-203, Meetings of state building board -- Rules of procedure --
3201     Quorum.
3202          Section 52. Effective date.
3203          This bill takes effect on May 4, 2022, except that the amendments to Section
3204     53B-2a-112 (Effective 07/01/22) take effect on July 1, 2022.