Bill
State Facilities Amendments
- Number
- H.B. 422 (2017GS)
- Sponsor
- Rep. Froerer, G.
- Final action
- House/ filed 3/9/2017
- Outcome
- Failed / filed without passage
Summary
This bill addresses provisions related to the State Building Board.
What it does
- This bill:
- defines terms;
- provides for the appointment of a director of the State Building Board;
- modifies the State Building Board's rulemaking authority;
- exempts facility programming from certain appropriations requirements; and
- makes technical and conforming changes.
Every vote on this bill
2/27/2017House Comm - Amendment Recommendation # 1
House Government Operations Committee
7 0 3YEA2/27/2017House Comm - Favorable Recommendation
House Government Operations Committee
7 0 3YEABill text
introduced version · official source
STATE FACILITIES AMENDMENTS GENERAL SESSION STATE OF UTAH Chief Sponsor: Gage Froerer Senate Sponsor: ____________ LONG TITLE General Description: This bill addresses provisions related to the State Building Board. Highlighted Provisions: This bill: ▸ defines terms; ▸ provides for the appointment of a director of the State Building Board; ▸ modifies the State Building Board's rulemaking authority; ▸ exempts facility programming from certain appropriations requirements; and ▸ makes technical and conforming changes. Money Appropriated in this Bill: None Other Special Clauses: None Utah Code Sections Affected: AMENDS: 63A-5-101 , as last amended by Laws of Utah 2013, Chapter 310 63A-5-103 , as last amended by Laws of Utah 2016, Chapter 298 63A-5-104 , as last amended by Laws of Utah 2016, Chapter 298 ENACTS: 63A-5-100 , Utah Code Annotated 1953 63A-5-101.5 , Utah Code Annotated 1953 Be it enacted by the Legislature of the state of Utah: Section 1. Section 63A-5-100 is enacted to read: 63A-5-100. Definitions. As used in this part, "board" means the State Building Board created under Section 63A-5-101 . Section 2. Section 63A-5-101 is amended to read: 63A-5-101. Creation. (1) [ (a) ] There is created [ a ] within the department the State Building Board [ composed of eight members, seven of whom shall be appointed by the governor for terms of four years ]. [ (b) Notwithstanding the requirements of Subsection (1)(a), the governor shall, at the time of appointment or reappointment, adjust the length of terms to ensure that the terms of board members are staggered so that approximately half of the board is appointed every two years. ] [ (2) When a vacancy occurs in the membership for any reason, the replacement shall be appointed for the unexpired term. ] [ (3) The executive director of the Governor's Office of Management and Budget or the executive director's designee is a nonvoting member of the board. ] [ (4) Each member shall hold office until a successor is appointed and qualified, but no member shall serve more than two consecutive terms. ] [ (5) One member shall be designated by the governor as chair. ] [ (6) A member may not receive compensation or benefits for the member's service, but may receive per diem and travel expenses in accordance with: ] [ (a) Section 63A-3-106 ; ] [ (b) Section 63A-3-107 ; and ] [ (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and 63A-3-107 . ] [ (7) The members of the board are not required to give bond for the performance of their official duties. ] [ (8) The department shall provide administrative and staff services to enable the board to exercise its powers and discharge its duties, and shall provide necessary space and equipment for the board. ] (2) (a) The executive director shall appoint a director of the board with the approval of the governor. (b) The director appointed under Subsection (2)(a) is equivalent to a division director described in Section 63A-1-109 . Section 3. Section 63A-5-101.5 is enacted to read: 63A-5-101.5. State Building Board composition -- Appointment -- Per diem and expenses -- Administrative services. (1) (a) The board is composed of eight members, seven of whom are voting members who the governor appoints for terms of four years. (b) The executive director of the Governor's Office of Management and Budget or the executive director's designee is a nonvoting member of the board. (2) Notwithstanding the requirements of Subsection (1)(a), the governor shall, at the time of a member's appointment or reappointment, adjust the length of the member's term to ensure that approximately half of the board is appointed every two years. (3) When a vacancy occurs in the membership of the board for any reason, the governor shall appoint a replacement for the unexpired term of the member who created the vacancy. (4) Each board member shall hold office until the governor appoints and qualifies a successor, but no member may serve more than two consecutive terms. (5) The governor shall designate one member as the chair of the board. (6) A member of the board may not receive compensation or benefits for the member's service on the board, but may receive per diem and travel expenses in accordance with: (a) Section 63A-3-106 ; (b) Section 63A-3-107 ; and (c) rules made by the Division of Finance in accordance with Sections 63A-3-106 and 63A-3-107 . (7) A member of the board is not required to post a bond for the performance of the member's official duties. (8) The department shall provide the board administrative and staff services and necessary space and equipment. Section 4. Section 63A-5-103 is amended to read: 63A-5-103. Board -- Powers -- Rulemaking authority. (1) The State Building Board shall: (a) in cooperation with 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 that complies with the requirements described in Subsection (6), for submission to the governor and subsequent legislatures; and (d) as a part of the long-range plan, recommend to the governor and Legislature any changes in the law that are necessary to ensure an effective, well-coordinated building program for all agencies[ ; ] . [ (e) ] (2) The board shall, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules: [ (i) ] (a) that are necessary to discharge its duties and the duties of the Division of Facilities Construction and Management; [ (ii) to ] (b) that establish standards and requirements for life cycle cost-effectiveness of state facility projects; [ (iii) to ] (c) that govern the disposition of real property by the division and establish factors, including appraised value and historical significance, in evaluating the disposition; [ (iv) to ] (d) that establish standards and requirements for a capital development project request and feasibility study described in Subsection 63A-5-104 (2)(b) , including [ a requirement for a feasibility study; and ] : [ (v) for operations and maintenance expenditures for state-owned facilities that require, and establish standards for: ] [ (A) reporting; ] [ (B) utility metering; ] [ (C) creating operations and maintenance programs within all agency institutional line items; ] [ (D) reviewing and adjusting for inflationary costs of goods and services on an annual basis; and ] (i) a deadline by which a state agency is required to submit a capital development project request; and (ii) conditions and requirements by which a state agency may modify the state agency's capital development project request after the agency submits the request; (e) for the monitoring of a state agency's operations and maintenance expenditures for a state-owned facility, that: (i) establish standards and requirements for utility metering; (ii) create an operations and maintenance program for a state agency's facilities; (iii) establish a methodology for determining reasonably anticipated inflationary costs for each operation and maintenance program described in Subsection (2)(e)(ii); (iv) require an agency to report the amount the agency receives and expends on operations and maintenance; and [ (E) ] (f) for determining the actual cost for operations and management requests for a new facility[ ; ] . (3) The board shall: [ (f) ] (a) 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) ] (b) 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; [ (h) ] (c) assure the efficient use of all building space; and [ (i) ] (d) conduct ongoing facilities maintenance audits for state-owned facilities. [ (2) ] (4) (a) An agency shall comply with [ the rules described in ] a rule made under Subsection [ (1)(e)(v)(E) ] (2)(f) for new facility requests submitted to the Legislature for the 2017 General Session or any session of the Legislature after the 2017 General Session. (b) On or before September 1, 2016, each agency shall revise the agency's budget to comply with the rules described in Subsection [ (1)(e)(v)(C) ] (2)(e)(ii) . (c) Beginning on December 1, 2016, the Office of the Legislative Fiscal Analyst and the Governor's Office of Management and Budget shall, for each agency with operating and maintenance expenses, ensure that each required budget for that agency is adjusted in accordance with the rules described in Subsection [ (1)(e)(v)(D) ] (2)(e)(iii) . [ (3) ] (5) In order to provide adequate information upon which the State Building Board may make a recommendation described in 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. [ (4) ] (6) (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 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 [ (4) ] (6) . [ (5) ] (7) (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 ] the rules described in Subsection (7)(a) , the State Building Board shall provide for the fair and equitable treatment of bidders. [ (6) ] (8) (a) A person who violates a rule [ adopted by the board ] that the board makes under Subsection [ (1)(e) ] (2) 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 ] that the board makes 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) ] (2) in addition to any criminal prosecution. Section 5. 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) (i) "Capital developments" means a: (A) remodeling, site, or utility project with a total cost of $3,500,000 or more; (B) new facility with a construction cost of $500,000 or more; or (C) purchase of real property where an appropriation is requested to fund the purchase. (ii) "Capital developments" does not include a project described in Subsection (1)(b)(iii). (b) "Capital improvements" means: (i) a remodeling, alteration, replacement, or repair project with a total cost of less than $3,500,000; (ii) a site or utility improvement with a total cost of less than $3,500,000; (iii) a utility infrastructure improvement project that: (A) has a total cost of less than $7,000,000; (B) consists of two or more projects that, if done separately, would each cost less than $3,500,000; and (C) the State Building Board determines is more cost effective or feasible to be completed as a single project; or (iv) a 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 include: (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 $3,500,000; 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 ] board shall , on behalf of all state agencies[ , shall submit its ] and in accordance with Subsection (4), submit capital development recommendations and priorities to the Legislature for approval and prioritization. (b) In developing the [ State Building Board's ] board's capital development recommendations and priorities, the [ State Building Board ] board shall[ : (i) ] require each state agency [ requesting ] that requests an appropriation for a capital development project to : (i) submit to the board a capital development project request; and (ii) complete and submit to the board 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[ ; ] . [ (ii) ] (c) The board shall verify the completion and accuracy of [ the ] a feasibility study [ described in ] that a state agency submits to the board under Subsection (2)(b)[ (i); ] . [ (iii) ] (d) The board shall require that an institution of higher education described in Section 53B-1-102 that submits a request for a capital development project address whether and how, as a result of the project, the institution will: [ (A) ] (i) offer courses or other resources that will help meet demand for jobs, training, and employment in the current market and the projected market for the next five years; [ (B) ] (ii) respond to individual skilled and technical job demand over the next 3, 5, and 10 years; [ (C) ] (iii) respond to industry demands for trained workers; [ (D) ] (iv) help meet commitments made by the Governor's Office of Economic Development, including relating to training and incentives; [ (E) ] (v) respond to changing needs in the economy; and [ (F) ] (vi) based on demographics, respond to demands for online or in-class instruction[ ; and ] . [ (iv) only when determining the order of prioritization among requests submitted by the State Board of Regents, ] (e) The board shall give more weight[ , ] in the [ State Building Board's ] board's scoring process[ , ] to a request that is designated as a higher priority by the State Board of Regents than a request that is designated as a lower priority by the State Board of Regents only when determining the order of prioritization among requests submitted by the State Board of Regents . [ (c) An agency may not modify a capital development project request after the deadline for submitting the request, except to the extent that a modification of the scope of the project, or the amount of funds requested, is necessary due to increased construction costs or other factors outside of the agency's control. ] (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: (i) the [ State Building Board ] board determines that the requesting state agency has provided adequate assurance that state funds will not be used for the design or construction of the facility; (ii) the state agency provides to the [ State Building Board ] board a written document, signed by the head of the state agency: (A) stating that funding or a revenue stream is in place, or will be in place before the project is completed, to ensure that increased state funding will not be required to cover the cost of operations and maintenance to the resulting facility for immediate or future capital improvements; and (B) detailing the source of the funding that will be used for the cost of operations and maintenance for immediate and future capital improvements to the resulting facility; and (iii) the [ State Building Board ] board determines that 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 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 ] 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 or before January 15 of each year, the board shall , 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 ] board shall ensure that the list identifies : (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 $3,500,000; (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 $3,500,000; (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; (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; and (G) projects approved under Subsection (1)(b)(iii). (b) Unless otherwise directed by the Legislature, the [ State Building Board ] 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 ] 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 ] In prioritizing capital improvements, the [ State Building Board ] 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 ] In prioritizing capital improvements, the [ State Building Board ] 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 ] 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 ] 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 $3,500,000 or more, if: (i) the capital improvement project is a project described in Subsection (1)(b)(iii); and (ii) the Legislature has not refused to fund the project with capital improvement funds. (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 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), 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) ] (b) If the Legislature determines that there exists an Education Fund budget deficit or a General Fund budget deficit [ exists ] as those terms are defined in Section 63J-1-312 , 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. [ (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 ] (8) (a) 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 ] a vote of two-thirds of all the members elected to each house. (b) This Subsection (8) does not apply to an appropriation to fund a new building or facility's programming. (9) (a) [ If, after approval of ] Notwithstanding the requirements of Title 63J, Chapter 1, Budgetary Procedures Act, after the Legislatures approves 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, ] if an emergency arises that creates an unforseen and critical need for a capital improvement project, the board may reallocate capital improvement funds to address [ those projects ] the project . (b) The [ State Building Board ] board shall report any changes [ it ] the board 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 ] board may adopt a rule allocating to institutions and agencies their proportionate share of capital improvement funding. (b) The [ State Building Board ] 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 ] board may modify the requirement described in Subsection (12)(a) if the [ State Building Board ] board determines that a different allocation of capital improvements funds is in the best interest of the state. Legislative Review Note Office of Legislative Research and General Counsel