Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 217 (2015GS)

Sponsor

Sen. Harper, W.

Final action

Governor Signed 3/27/2015

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• modifies the State Building Board's duties;
• addresses the process by which the State Building Board recommends and prioritizes capital development projects;
• requires the State Building Board to complete a process report relating to operations and maintenance costs; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

CAPITAL IMPROVEMENT AND DEVELOPMENT PROJECT
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: 
Gage Froerer
LONG TITLE
General Description:
This bill amends provisions relating to capital improvement and capital development
projects.
Highlighted Provisions:
This bill:
▸ modifies the State Building Board's duties;
▸ addresses the process by which the State Building Board recommends and
prioritizes capital development projects;
▸ requires the State Building Board to complete a process report relating to operations
and maintenance costs; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
63A-5-103
, as last amended by Laws of Utah 2013, Chapter 250
63A-5-104
, as last amended by Laws of Utah 2014, Chapters 113 and 195
63I-2-263
, as last amended by Laws of Utah 2014, Chapters 172, 423, and 427
ENACTS:
63A-5-104.1
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63A-5-103
 is amended to read:
63A-5-103.
Board -- Powers.
(1) The State Building Board shall:
(a) in cooperation with state institutions, departments, commissions, and agencies,
prepare a master plan of structures built or contemplated;
(b) submit to the governor and the Legislature a comprehensive five-year building plan
for the state containing the information required by Subsection (2);
(c) amend and keep current the five-year building program for submission to the
governor and subsequent legislatures;
(d) as a part of the long-range plan, recommend to the governor and Legislature any
changes in the law that are necessary to insure an effective, well-coordinated building program
for all state institutions;
(e) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
make rules:
(i) that are necessary to discharge its duties and the duties of the Division of Facilities
Construction and Management;
(ii) to establish standards and requirements for life cycle cost-effectiveness of state
facility projects; [
and
]
(iii) to govern the disposition of real property by the division and establish factors,
including appraised value and historical significance, in evaluating the disposition;
(iv) to establish standards and requirements for a capital development project request,
including a requirement for a feasibility study; and
(v) to establish standards and requirements for reporting operations and maintenance
expenditures for state-owned facilities, including standards and requirements relating to utility
metering;
(f) with support from the Division of Facilities Construction and Management,
establish design criteria, standards, and procedures for planning, design, and construction of
new state facilities and for improvements to existing state facilities, including life-cycle
costing, cost-effectiveness studies, and other methods and procedures that address:
(i) the need for the building or facility;
(ii) the effectiveness of its design;
(iii) the efficiency of energy use; and
(iv) the usefulness of the building or facility over its lifetime;
(g) prepare and submit a yearly request to the governor and the Legislature for a
designated amount of square footage by type of space to be leased by the Division of Facilities
Construction and Management in that fiscal year; [
and
]
(h) assure the efficient use of all building space[
.
]
; and
(i) conduct ongoing facilities maintenance audits for state-owned facilities.
(2) In order to provide adequate information upon which the State Building Board may
make its recommendation under Subsection (1), any state agency requesting new full-time
employees for the next fiscal year shall report those anticipated requests to the building board
at least 90 days before the annual general session in which the request is made.
(3) (a) The State Building Board shall ensure that the five-year building plan required
by Subsection (1)(c) includes:
(i) a list that prioritizes construction of new buildings for all structures built or
contemplated based upon each agency's, department's, commission's, and institution's present
and future needs;
(ii) information, and space use data for all state-owned and leased facilities;
(iii) substantiating data to support the adequacy of any projected plans;
(iv) a summary of all statewide contingency reserve and project reserve balances as of
the end of the most recent fiscal year;
(v) a list of buildings that have completed a comprehensive facility evaluation by an
architect/engineer or are scheduled to have an evaluation;
(vi) for those buildings that have completed the evaluation, the estimated costs of
needed improvements; and
(vii) for projects recommended in the first two years of the five-year building plan:
(A) detailed estimates of the cost of each project;
(B) the estimated cost to operate and maintain the building or facility on an annual
basis;
(C) the cost of capital improvements to the building or facility, estimated at 1.1% of
the replacement cost of the building or facility, on an annual basis;
(D) the estimated number of new agency full-time employees expected to be housed in
the building or facility;
(E) the estimated cost of new or expanded programs and personnel expected to be
housed in the building or facility;
(F) the estimated lifespan of the building with associated costs for major component
replacement over the life of the building; and
(G) the estimated cost of any required support facilities.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
State Building Board may make rules prescribing the format for submitting the information
required by this Subsection (3).
(4) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the State Building Board may make rules establishing circumstances under which bids may be
modified when all bids for a construction project exceed available funds as certified by the
director.
(b) In making those rules, the State Building Board shall provide for the fair and
equitable treatment of bidders.
(5) (a) A person who violates a rule adopted by the board under Subsection (1)(e) is
subject to a civil penalty not to exceed $2,500 for each violation plus the amount of any actual
damages, expenses, and costs related to the violation of the rule that are incurred by the state.
(b) The board may take any other action allowed by law.
(c) If any violation of a rule adopted by the board is also an offense under Title 76,
Utah Criminal Code, the violation is subject to the civil penalty, damages, expenses, and costs
allowed under Subsection (1)(e) in addition to any criminal prosecution.
Section 2. Section 
63A-5-104
 is amended to read:
63A-5-104.
Definitions -- Capital development and capital improvement process
-- Approval requirements -- Limitations on new projects -- Emergencies.
(1) As used in this section:
(a) "Capital developments" means a:
(i) remodeling, site, or utility project with a total cost of $2,500,000 or more;
(ii) new facility with a construction cost of $500,000 or more; or
(iii) purchase of real property where an appropriation is requested to fund the purchase.
(b) "Capital improvements" means a:
(i) remodeling, alteration, replacement, or repair project with a total cost of less than
$2,500,000;
(ii) site and utility improvement with a total cost of less than $2,500,000; or
(iii) new facility with a total construction cost of less than $500,000.
(c) (i) "New facility" means the construction of a new building on state property
regardless of funding source.
(ii) "New facility" includes:
(A) an addition to an existing building; and
(B) the enclosure of space that was not previously fully enclosed.
(iii) "New facility" does not mean:
(A) the replacement of state-owned space that is demolished or that is otherwise
removed from state use, if the total construction cost of the replacement space is less than
$2,500,000; or
(B) the construction of facilities that do not fully enclose a space.
(d) "Replacement cost of existing state facilities and infrastructure" means the
replacement cost, as determined by the Division of Risk Management, of state facilities,
excluding auxiliary facilities as defined by the State Building Board and the replacement cost
of infrastructure as defined by the State Building Board.
(e) "State funds" means public money appropriated by the Legislature.
(2) 
(a)
 The State Building Board, on behalf of all state agencies, commissions,
departments, and institutions shall submit its capital development recommendations and
priorities to the Legislature for approval and prioritization.
(b) In developing the State Building Board's capital development recommendations and
priorities, the State Building Board shall:
(i) require each state agency, commission, department, or institution requesting an
appropriation for a capital development project to complete a study that demonstrates the
feasibility of the capital development project, including:
(A) the need for the capital development project;
(B) the appropriateness of the scope of the capital development project;
(C) any private funding for the capital development project; and
(D) the economic and community impacts of the capital development project; and
(ii) verify the completion and accuracy of the feasibility study described in Subsection
(2)(b)(i).
(3) (a) Except as provided in Subsections (3)(b), (d), and (e), a capital development
project may not be constructed on state property without legislative approval.
(b) Legislative approval is not required for a capital development project that consists
of the design or construction of a new facility if the State Building Board determines that:
(i) the requesting state agency, commission, department, or institution has provided
adequate assurance that:
(A) state funds will not be used for the design or construction of the facility; and
(B) the state agency, commission, department, or institution has a plan for funding in
place that will not require increased state funding to cover the cost of operations and
maintenance to, or state funding for, immediate or future capital improvements to the resulting
facility; and
(ii) the use of the state property is:
(A) appropriate and consistent with the master plan for the property; and
(B) will not create an adverse impact on the state.
(c) (i) The Division of Facilities Construction and Management shall maintain a record
of facilities constructed under the exemption provided in Subsection (3)(b).
(ii) For facilities constructed under the exemption provided in Subsection (3)(b), a state
agency, commission, department, or institution may not request:
(A) increased state funds for operations and maintenance; or
(B) state capital improvement funding.
(d) Legislative approval is not required for:
(i) the renovation, remodeling, or retrofitting of an existing facility with nonstate funds
that has been approved by the State Building Board;
(ii) a facility to be built with nonstate funds and owned by nonstate entities within
research park areas at the University of Utah and Utah State University;
(iii) a facility to be built at This is the Place State Park by This is the Place Foundation
with funds of the foundation, including grant money from the state, or with donated services or
materials;
(iv) a capital project that:
(A) is funded by:
(I) the Uintah Basin Revitalization Fund; or
(II) the Navajo Revitalization Fund; and
(B) does not provide a new facility for a state agency or higher education institution; or
(v) a capital project on school and institutional trust lands that is funded by the School
and Institutional Trust Lands Administration from the Land Grant Management Fund and that
does not fund construction of a new facility for a state agency or higher education institution.
(e) (i) Legislative approval is not required for capital development projects to be built
for the Department of Transportation:
(A) as a result of an exchange of real property under Section 
72-5-111
; or
(B) as a result of a sale or exchange of real property from a maintenance facility if the
real property is exchanged for, or the proceeds from the sale of the real property are used for,
another maintenance facility, including improvements for a maintenance facility and real
property.
(ii) When the Department of Transportation approves a sale or exchange under
Subsection (3)(e), it shall notify the president of the Senate, the speaker of the House, and the
cochairs of the Infrastructure and General Government Appropriations Subcommittee of the
Legislature's Joint Appropriation Committee about any new facilities to be built or improved
under this exemption.
(4) (a) (i) The State Building Board, on behalf of all state agencies, commissions,
departments, and institutions shall by January 15 of each year, submit a list of anticipated
capital improvement requirements to the Legislature for review and approval.
(ii) The list shall identify:
(A) a single project that costs more than $1,000,000;
(B) multiple projects within a single building or facility that collectively cost more than
$1,000,000;
(C) a single project that will be constructed over multiple years with a yearly cost of
$1,000,000 or more and an aggregate cost of more than $2,500,000;
(D) multiple projects within a single building or facility with a yearly cost of
$1,000,000 or more and an aggregate cost of more than $2,500,000;
(E) a single project previously reported to the Legislature as a capital improvement
project under $1,000,000 that, because of an increase in costs or scope of work, will now cost
more than $1,000,000; and
(F) multiple projects within a single building or facility previously reported to the
Legislature as a capital improvement project under $1,000,000 that, because of an increase in
costs or scope of work, will now cost more than $1,000,000.
(b) Unless otherwise directed by the Legislature, the State Building Board shall
prioritize capital improvements from the list submitted to the Legislature up to the level of
appropriation made by the Legislature.
(c) In prioritizing capital improvements, the State Building Board shall consider the
results of facility evaluations completed by an architect/engineer as stipulated by the building
board's facilities maintenance standards.
(d) Beginning on July 1, 2013, in prioritizing capital improvements, the State Building
Board shall allocate at least 80% of the funds that the Legislature appropriates for capital
improvements to:
(i) projects that address:
(A) a structural issue;
(B) fire safety;
(C) a code violation; or
(D) any issue that impacts health and safety;
(ii) projects that upgrade:
(A) an HVAC system;
(B) an electrical system;
(C) essential equipment;
(D) an essential building component; or
(E) infrastructure, including a utility tunnel, water line, gas line, sewer line, roof,
parking lot, or road; or
(iii) projects that demolish and replace an existing building that is in extensive
disrepair and cannot be fixed by repair or maintenance.
(e) Beginning on July 1, 2013, in prioritizing capital improvements, the State Building
Board shall allocate no more than 20% of the funds that the Legislature appropriates for capital
improvements to:
(i) remodeling and aesthetic upgrades to meet state programmatic needs; or
(ii) construct an addition to an existing building or facility.
(f) The State Building Board may require an entity that benefits from a capital
improvement project to repay the capital improvement funds from savings that result from the
project.
(g) The State Building Board may provide capital improvement funding to a single
project, or to multiple projects within a single building or facility, even if the total cost of the
project or multiple projects is $2,500,000 or more, if:
(i) the capital improvement project or multiple projects require more than one year to
complete; and
(ii) the Legislature has affirmatively authorized the capital improvement project or
multiple projects to be funded in phases.
(h) In prioritizing and allocating capital improvement funding, the State Building
Board shall comply with the requirement in Subsection 
63B-23-101
(2)(f).
(5) The Legislature may authorize:
(a) the total square feet to be occupied by each state agency; and
(b) the total square feet and total cost of lease space for each agency.
(6) If construction of a new building or facility will be paid for by nonstate funds, but
will require an immediate or future increase in state funding for operations and maintenance or
for capital improvements, the Legislature may not authorize the new building or facility until
the Legislature appropriates funds for:
(a) the portion of operations and maintenance, if any, that will require an immediate or
future increase in state funding; and
(b) the portion of capital improvements, if any, that will require an immediate or future
increase in state funding.
(7) (a) Except as provided in Subsection (7)(b) or (c), the Legislature may not fund the
design or construction of any new capital development projects, except to complete the funding
of projects for which partial funding has been previously provided, until the Legislature has
appropriated 1.1% of the replacement cost of existing state facilities and infrastructure to
capital improvements.
(b) (i) As used in this Subsection (7)(b):
(A) "Education Fund budget deficit" is as defined in Section 
63J-1-312
; and
(B) "General Fund budget deficit" is as defined in Section 
63J-1-312
.
(ii) If the Legislature determines that an Education Fund budget deficit or a General
Fund budget deficit exists, the Legislature may, in eliminating the deficit, reduce the amount
appropriated to capital improvements to 0.9% of the replacement cost of state buildings and
infrastructure.
(c) (i) The requirements under Subsections (6)(a) and (b) do not apply to the 2008-09,
2009-10, 2010-11, 2011-12, and 2012-13 fiscal years.
(ii) For the 2013-14 fiscal year, the amount appropriated to capital improvements shall
be reduced to 0.9% of the replacement cost of state facilities.
(8) It is the policy of the Legislature that a new building or facility be approved and
funded for construction in a single budget action, therefore the Legislature may not fund the
programming, design, and construction of a new building or facility in phases over more than
one year unless the Legislature has approved each phase of the funding for the construction of
the new building or facility by the affirmative vote of two-thirds of all the members elected to
each house.
(9) (a) If, after approval of capital development and capital improvement priorities by
the Legislature under this section, emergencies arise that create unforeseen critical capital
improvement projects, the State Building Board may, notwithstanding the requirements of Title
63J, Chapter 1, Budgetary Procedures Act, reallocate capital improvement funds to address
those projects.
(b) The State Building Board shall report any changes it makes in capital improvement
allocations approved by the Legislature to:
(i) the Office of Legislative Fiscal Analyst within 30 days of the reallocation; and
(ii) the Legislature at its next annual general session.
(10) (a) The State Building Board may adopt a rule allocating to institutions and
agencies their proportionate share of capital improvement funding.
(b) The State Building Board shall ensure that the rule:
(i) reserves funds for the Division of Facilities Construction and Management for
emergency projects; and
(ii) allows the delegation of projects to some institutions and agencies with the
requirement that a report of expenditures will be filed annually with the Division of Facilities
Construction and Management and appropriate governing bodies.
(11) It is the intent of the Legislature that in funding capital improvement requirements
under this section the General Fund be considered as a funding source for at least half of those
costs.
(12) (a) Subject to Subsection (12)(b), at least 80% of the state funds appropriated for
capital improvements shall be used for maintenance or repair of the existing building or
facility.
(b) The State Building Board may modify the requirement described in Subsection
(12)(a) if the State Building Board determines that a different allocation of capital
improvements funds is in the best interest of the state.
Section 3. Section 
63A-5-104.1
 is enacted to read:
 63A-5-104.1.
State Building Board -- Process study and recommendations.
(1) (a) The State Building Board, in collaboration with the Board of Regents, each
higher education institution, as defined in Section 
53B-1-201
, the Utah Schools for the Deaf
and the Blind, and any other state entity that the State Building Board invites to participate,
shall prepare a report that proposes:
(i) a process for tracking direct and indirect operations and maintenance costs on an
individual building basis; and
(ii) alternative funding mechanisms for operations and maintenance costs for
state-owned and state-operated facilities that incorporate actual expenses, the purpose for
which the facility is used, the age of the facility, the condition of the facility, and the location of
the facility.
(b) In preparing a proposal described in Subsection (1)(a)(ii), the State Building Board
shall consider an internal service fund, individual appropriation line items, and a formula to
determine funding.
(2) No later than September 1, 2015, the State Building Board shall submit the report
described in Subsection (1) to:
(a) the legislative fiscal analyst; and
(b) the Infrastructure and General Government Appropriations Subcommittee.
Section 4. Section 
63I-2-263
 is amended to read:
63I-2-263.
Repeal dates, Title 63A to Title 63M.
[
(1) Section 
63A-1-115
 is repealed on July 1, 2014.
]
(1) Section 
63A-5-104.1
 is repealed on January 1, 2016.
(2) Section 
63C-9-501.1
 is repealed on July 1, 2015.
[
(3) Subsection 
63J-1-218
(3) is repealed on December 1, 2013.
]
[
(4) Subsection 
63J-1-218
(4) is repealed on December 1, 2013.
]
[
(5) Section 
63M-1-207
 is repealed on December 1, 2014.
]
[
(6)
] 
(3)
 Subsection 
63M-1-903
(1)(d) is repealed on July 1, 2015.
[
(7) Subsection 
63M-1-1406
(9) is repealed on January 1, 2015.
]