Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 342 (2018GS)

Sponsor

Rep. Brooks, W.

Final action

House/ filed 3/8/2018

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• provides a process for the Division of Facilities Construction and Management to change the occupancy or use of, transfer the ownership of, or lease vacant division-owned real property;
• modifies a provision relating to the application of division rules on determining the value of real property under certain circumstances;
• provides a process for a person to submit to the division a written proposal for the use of vacant division-owned property;
• requires the division to provide notice relating to vacant division-owned property if the division receives a qualified proposal;
• provides for priority among competing applicants for vacant division-owned property;
• provides for the approval of the State Building Board or the director of the Department of Administrative Services, with the recommendation of the Executive Appropriations Committee, under certain circumstances, relating to vacant division-owned property;
• authorizes the Division of Facilities and Construction Management to refer vacant division-owned property to the Department of Transportation for public auction, under certain circumstances; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

DIVISION OF FACILITIES CONSTRUCTION AND
MANAGEMENT PROPERTY AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Walt Brooks
Senate Sponsor: 
 Wayne A. Harper
LONG TITLE
General Description:
This bill modifies and enacts provisions relating to real property owned by the Division
of Facilities Construction and Management.
Highlighted Provisions:
This bill:
▸ provides a process for the Division of Facilities Construction and Management to
change the occupancy or use of, transfer the ownership of, or lease vacant
division-owned real property;
▸ modifies a provision relating to the application of division rules on determining the
value of real property under certain circumstances;
▸ provides a process for a person to submit to the division a written proposal for the
use of vacant division-owned property;
▸ requires the division to provide notice relating to vacant division-owned property if
the division receives a qualified proposal;
▸ provides for priority among competing applicants for vacant division-owned
property;
▸ provides for the approval of the State Building Board or the director of the
Department of Administrative Services, with the recommendation of the Executive
Appropriations Committee, under certain circumstances, relating to vacant
division-owned property;
▸ authorizes the Division of Facilities and Construction Management to refer vacant
division-owned property to the Department of Transportation for public auction,
under certain circumstances; 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 2017, Chapter 355
63A-5-204
, as last amended by Laws of Utah 2017, Chapter 56
63A-5-401
, as last amended by Laws of Utah 2011, Chapter 289
65A-4-1
, as enacted by Laws of Utah 1988, Chapter 121
ENACTS:
63A-5a-101
, Utah Code Annotated 1953
63A-5a-102
, Utah Code Annotated 1953
63A-5a-103
, Utah Code Annotated 1953
63A-5a-104
, Utah Code Annotated 1953
63A-5a-201
, Utah Code Annotated 1953
63A-5a-202
, Utah Code Annotated 1953
63A-5a-203
, Utah Code Annotated 1953
63A-5a-204
, Utah Code Annotated 1953
63A-5a-205
, Utah Code Annotated 1953
63A-5a-206
, 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 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 (6);
(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[
.
]
; and
(e) fulfill the duties given to the board under Chapter 5a, Division-Owned Real
Property Act.
(2) The board shall, in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act, make rules:
(a) that are necessary to discharge its duties and the duties of the Division of Facilities
Construction and Management;
(b) that establish standards and requirements for life cycle cost-effectiveness of state
facility projects;
(c) that govern the disposition of real property by the division and establish factors,
including appraised value and historical significance, in evaluating the disposition;
(d) that establish standards and requirements for a capital development project request
and feasibility study described in Subsection 
63A-5-104
(2)(b), including:
(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); and
(iv) require an agency to report the amount the agency receives and expends on
operations and maintenance; and
(f) determining the actual cost for operations and management requests for a new
facility.
(3) The board shall:
(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;
(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;
(c) assure the efficient use of all building space; and
(d) conduct ongoing facilities maintenance audits for state-owned facilities.
(4) (a) An agency shall comply with the rules made under Subsection (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 made under Subsection (2)(e)(ii).
]
[
(c)
] 
(b)
 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 (2)(e)(iii).
(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.
(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 (6).
(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 the rules described in Subsection (7)(a), the State Building Board shall
provide for the fair and equitable treatment of bidders.
(8) (a) A person who violates a rule that the board makes under Subsection (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 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 (2) in addition to any criminal prosecution.
Section 2. Section 
63A-5-204
 is amended to read:
63A-5-204.
Specific powers and duties of director.
(1) As used in this section[
, "capitol hill facilities" and "capitol hill grounds" have the
same meaning as provided in Section 
63C-9-102
.
]
:
(a) "Capitol hill facilities" means the same as that term is defined in Section
63C-9-102
.
(b) "Capitol hill grounds" means the same as that term is defined in Section 
63C-9-102
.
(2) (a) The director shall:
(i) recommend rules to the executive director for the use and management of facilities
and grounds owned or occupied by the state for the use of its departments and agencies;
(ii) 
subject to Chapter 5a, Division-Owned Real Property Act,
 supervise and control
the allocation of space, in accordance with legislative directive through annual appropriations
acts or other specific legislation, to the various departments, commissions, institutions, and
agencies in all buildings or space owned, leased, or rented by or to the state, except capitol hill
facilities and capitol hill grounds and except as otherwise provided by law;
(iii) comply with the procedures and requirements of Title 63A, Chapter 5, Part 3,
Division of Facilities Construction and Management Leasing;
(iv) except as provided in Subsection (2)(b), acquire, as authorized by the Legislature
through the appropriations act or other specific legislation, and hold title to, in the name of the
division, all real property, buildings, fixtures, or appurtenances owned by the state or any of its
agencies;
(v) collect and maintain all deeds, abstracts of title, and all other documents evidencing
title to or interest in property belonging to the state or any of its departments, except
institutions of higher education and the School and Institutional Trust Lands Administration;
(vi) report all properties acquired by the state, except those acquired by institutions of
higher education, to the director of the Division of Finance for inclusion in the state's financial
records;
(vii) before charging a rate, fee, or other amount for services provided by the division's
internal service fund to an executive branch agency, or to a subscriber of services other than an
executive branch agency:
(A) submit the proposed rates, fees, and cost analysis to the Rate Committee
established in Section 
63A-1-114
; and
(B) obtain the approval of the Legislature as required by Section 
63J-1-410
;
(viii) conduct a market analysis by July 1, 2005, and periodically thereafter, of
proposed rates and fees, which analysis shall include a comparison of the division's rates and
fees with the fees of other public or private sector providers where comparable services and
rates are reasonably available;
(ix) implement the State Building Energy Efficiency Program under Section
63A-5-701
;
(x) convey, lease, or dispose of the real property or water rights associated with the
Utah State Developmental Center according to the Utah State Developmental Center Board's
determination, as described in Subsection 
62A-5-206.6
(5); and
(xi) take all other action necessary for carrying out the purposes of this chapter.
(b) Legislative approval is not required for acquisitions by the division that cost less
than $250,000.
(3) (a) The director shall direct or delegate maintenance and operations, preventive
maintenance, and facilities inspection programs and activities for any agency, except:
(i) the State Capitol Preservation Board; and
(ii) state institutions of higher education.
(b) The director may choose to delegate responsibility for these functions only when
the director determines that:
(i) the agency has requested the responsibility;
(ii) the agency has the necessary resources and skills to comply with facility
maintenance standards approved by the State Building Board; and
(iii) the delegation would result in net cost savings to the state as a whole.
(c) The State Capitol Preservation Board and state institutions of higher education are
exempt from Division of Facilities Construction and Management oversight.
(d) Each state institution of higher education shall comply with the facility
maintenance standards approved by the State Building Board.
(e) Except for the State Capitol Preservation Board, agencies and institutions that are
exempt from division oversight shall annually report their compliance with the facility
maintenance standards to the division in the format required by the division.
(f) The division shall:
(i) prescribe a standard format for reporting compliance with the facility maintenance
standards;
(ii) report agency compliance or noncompliance with the standards to the Legislature;
and
(iii) conduct periodic audits of exempt agencies and institutions to ensure that they are
complying with the standards.
(4) (a) In making any allocations of space under Subsection (2), the director shall:
(i) conduct studies to determine the actual needs of each agency; and
(ii) comply with the restrictions contained in this Subsection (4).
(b) The supervision and control of the legislative area is reserved to the Legislature.
(c) The supervision and control of the judicial area is reserved to the judiciary for trial
courts only.
(d) The director may not supervise or control the allocation of space for entities in the
public and higher education systems.
(e) The supervision and control of capitol hill facilities and capitol hill grounds is
reserved to the State Capitol Preservation Board.
(5) The director may:
(a) hire or otherwise procure assistance and services, professional, skilled, or
otherwise, that are necessary to carry out the director's responsibilities, and may expend funds
provided for that purpose either through annual operating budget appropriations or from
nonlapsing project funds;
(b) sue and be sued in the name of the division; [
and
]
(c) hold, buy, lease, and acquire by exchange or otherwise, as authorized by the
Legislature, whatever real or personal property that is necessary for the discharge of the
director's duties[
.
]
; and
(d) as provided in Chapter 5a, Division-Owned Real Property Act, fulfill duties and
exercise authority with respect to division-owned property, as defined in Section 
63A-5a-102
,
on behalf of the division.
(6) Notwithstanding the provisions of Subsection (2)(a)(iv), the following entities may
hold title to any real property, buildings, fixtures, and appurtenances held by them for purposes
other than administration that are under their control and management:
(a) the Office of Trust Administrator;
(b) the Department of Transportation;
(c) the Division of Forestry, Fire, and State Lands;
(d) the Department of Natural Resources;
(e) the Utah National Guard;
(f) any area vocational center or other institution administered by the State Board of
Education;
(g) any institution of higher education; and
(h) the Utah Science Technology and Research Governing Authority.
(7) The director shall ensure that any firm performing testing and inspection work
governed by the American Society for Testing Materials Standard E-329 on public buildings
under the director's supervision shall:
(a) fully comply with the American Society for Testing Materials standard
specifications for agencies engaged in the testing and inspection of materials known as ASTM
E-329; and
(b) carry a minimum of $1,000,000 of errors and omissions insurance.
(8) Notwithstanding Subsections (2)(a)(iii) and (iv), the School and Institutional Trust
Lands Administration may hold title to any real property, buildings, fixtures, and appurtenances
held by it that are under its control.
Section 3. Section 
63A-5-401
 is amended to read:
63A-5-401.
Rulemaking for sale of real property -- Licensed or certified
appraisers -- Exceptions.
(1) [
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if
]
If
 the division buys, sells, or exchanges real property, the division shall
, in accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
 make rules to ensure that the value
of the real property is congruent with the proposed price and other terms of the purchase, sale,
or exchange.
(2) The rules:
(a) shall establish procedures for determining the value of the real property;
(b) may provide that an appraisal, as defined under Section 
61-2g-102
, demonstrates
the real property's value; and
(c) may require that the appraisal be completed by a state-certified general appraiser, as
defined under Section 
61-2g-102
.
(3) Subsection (1) does not apply to
:
(a)
 the purchase, sale, or exchange of real property, or to an interest in real property[
:
(a) that is under a contract or other written agreement before May 5, 2008; or (b)
] with a value
of less than $100,000, as estimated by the [
state agency.
] 
division; or
(b) a transfer of ownership or lease of vacant division-owned property, as defined in
Section 
63A-5a-102
, at below fair market value under Chapter 5a, Division-Owned Real
Property Act.
Section 4. Section 
63A-5a-101
 is enacted to read:
CHAPTER 5a. DIVISION-OWNED REAL PROPERTY ACT
Part 1. General Provisions
 63A-5a-101.
Title.
This chapter is known as the "Division-Owned Real Property Act."
Section 5. Section 
63A-5a-102
 is enacted to read:
 63A-5a-102.
Definitions.
As used in this chapter:
(1) "Applicant" means a person who submits a timely, qualified proposal to the
division.
(2) "Board" means the State Building Board, created in Section 
63A-5-101
.
(3) "Condemnee" means the same as that term is defined in Section 
78B-6-520.3
.
(4) "Convey" means:
(a) to provide for a primary state agency's occupancy or use of vacant division-owned
property; or
(b) to effect a transfer of ownership or lease of vacant division-owned property to a
secondary state agency, local government entity, public purpose nonprofit entity, or private
party.
(5) "Director" means the division director, appointed under Section 
63A-5-203
.
(6) "Division" means the Division of Facilities Construction and Management, created
in Section 
63A-5-201
.
(7) "Division-owned property" means real property, including an interest in real
property, to which the division holds title, regardless of who occupies or uses the real property.
(8) "Local government entity" means a county, city, town, metro township, local
district, special service district, community development and renewal agency, conservation
district, school district, or other political subdivision of the state.
(9) "Primary state agency" means a state agency for which the division holds title to
real property that the state agency occupies or uses, as provided in Subsection
63A-5-204
(2)(a)(iv).
(10) "Private party" means a person who is not a state agency, local government entity,
or public purpose nonprofit entity.
(11) "Public purpose nonprofit entity" means a corporation, association, organization,
or entity that:
(a) is located within the state;
(b) is not a state agency or local government entity;
(c) is exempt from federal income taxation under Section 501(c)(3), Internal Revenue
Code; and
(d) operates to fulfill a public purpose.
(12) "Qualified proposal" means a written proposal that:
(a) meets the criteria established by the division by rule;
(b) if submitted by a local government entity or public purpose nonprofit entity,
explains the public purpose for which the local government entity or public purpose nonprofit
entity seeks a transfer of ownership or lease of the vacant division-owned property; and
(c) the director determines will, if accepted and implemented, provide a material
benefit to the state.
(13) "Secondary state agency" means a state agency:
(a) that is authorized to hold title to real property that the state agency occupies or uses,
as provided in Subsection 
63A-5-204
(6); and
(b) for which the division does not hold title to real property that the state agency
occupies or uses.
(14) "State agency" means a department, division, office, entity, agency, or other unit
of state government.
(15) "Transfer of ownership" includes a transfer of the ownership of vacant
division-owned property that occurs as part of an exchange of the vacant division-owned
property for another property.
(16) "Vacant division-owned property" means division-owned property that:
(a) a primary state agency has discontinued to occupy or use; and
(b) the director has determined should be made available for:
(i) use or occupancy by a primary state agency; or
(ii) a transfer of ownership or lease to a secondary state agency, local government
entity, public purpose nonprofit entity, or private party.
(17) "Written proposal" means a brief statement in writing that explains:
(a) the proposed use or occupancy, transfer of ownership, or lease of vacant
division-owned property; and
(b) how the state will benefit from the proposed use or occupancy, transfer of
ownership, or lease.
Section 6. Section 
63A-5a-103
 is enacted to read:
 63A-5a-103.
Application of chapter.
(1) The provisions of this chapter, other than this section, do not apply to:
(a) a conveyance, lease, or disposal under Subsection 
63A-5-204
(2)(a)(x); or
(b) the division's disposal or lease of division-owned property with a value under
$100,000, as estimated by the division.
(2) Nothing in Subsection (1)(b) may be construed to diminish or eliminate the
division's responsibility to manage division-owned property in the best interests of the state.
Section 7. Section 
63A-5a-104
 is enacted to read:
 63A-5a-104.
Rules adopted by the division.
The division may, in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act, make rules to:
(1) establish criteria that a written proposal is required to satisfy in order to be a
qualified proposal, including, if applicable, a minimum acceptable purchase price; and
(2) define criteria that the director will consider in making a determination whether a
proposed use or occupancy, transfer of ownership, or lease of vacant division-owned property
provides a material benefit to the state.
Section 8. Section 
63A-5a-201
 is enacted to read:
Part 2. Disposition of Vacant Division-Owned Property
 63A-5a-201.
Division authority with respect to vacant division-owned property --
Limitations.
(1) Subject to Section 
63A-5a-206
, the division may, as provided in this chapter:
(a) provide for a primary state agency's occupancy or use of vacant division-owned
property;
(b) effect a transfer of ownership or lease of vacant division-owned property to a
secondary state agency, local government entity, public purpose nonprofit entity, or private
party; or
(c) refer vacant division-owned property to the Department of Transportation for sale
by auction, as provided in Section 
63A-5a-205
.
(2) The division may not effect a transfer of ownership or lease of vacant
division-owned property without receiving fair market value in return unless:
(a) the director determines that the transfer of ownership or lease is in the best interests
of the state;
(b) for a proposed transfer of ownership or lease to a local government entity, public
purpose nonprofit entity, or private party, the director determines that the local government
entity, public purpose nonprofit entity, or private party intends to use the property to fulfill a
public purpose;
(c) the director requests and receives a recommendation on the proposed transfer of
ownership or lease from the Executive Appropriations Committee of the Legislature;
(d) the director communicates the Executive Appropriations Committee's
recommendation to the executive director; and
(e) the executive director approves the transfer of ownership or lease.
(3) (a) If the division effects a transfer of ownership of vacant division-owned property
without receiving fair market value in return, as provided in this chapter, the division shall
require the documents memorializing the transfer of ownership to preserve to the division:
(i) in the case of a transfer of ownership of vacant division-owned property to a
secondary state agency, local government entity, or public purpose nonprofit entity for no or
nominal consideration, a right of reversion, providing for the ownership of the property to
revert to the division if the property ceases to be used for the public benefit; or
(ii) in the case of any other transfer of ownership of vacant division-owned property, a
right of first refusal allowing the division to purchase the property from the transferee for the
same price that the transferee paid to the division if the transferee wishes to transfer ownership
of the former vacant division-owned property.
(b) Subsection (3)(a) does not apply to the sale of vacant division-owned property at an
auction under Section 
63A-5a-205
.
Section 9. Section 
63A-5a-202
 is enacted to read:
 63A-5a-202.
Notice required before division may convey division-owned property.
(1) Before the division may convey vacant division-owned property, the division shall
give notice as provided in Subsection (2).
(2) A notice required under Subsection (1) shall:
(a) identify and describe the vacant division-owned property;
(b) indicate the availability of the vacant division-owned property;
(c) invite persons interested in the vacant division-owned property to submit a written
proposal to the division;
(d) indicate the deadline for submitting a written proposal;
(e) be posted on the division's website for at least 60 consecutive days before the
deadline for submitting a written proposal, in a location specifically designated for notices
dealing with vacant division-owned property;
(f) be posted on the Utah Public Notice Website created in Section 
63F-1-701
 for at
least 60 consecutive days before the deadline for submitting a written proposal; and
(g) be sent by email to each person who has previously submitted to the division a
written request to receive notices under this section.
Section 10. Section 
63A-5a-203
 is enacted to read:
 63A-5a-203.
Submitting a written proposal for vacant division-owned property.
(1) A person may submit to the division a written proposal:
(a) in response to the division's notice under Section 
63A-5a-202
; or
(b) with respect to vacant division-owned property as to which the division has not
given notice under Section 
63A-5a-202
.
(2) The division is not required to consider a written proposal or provide notice under
Section 
63A-5a-202
 if the director determines that the written proposal is not a qualified
proposal.
(3) If a person submits a qualified proposal to the division under Subsection (1)(b):
(a) the division shall:
(i) give notice as provided in Section 
63A-5a-202
; and
(ii) treat the qualified proposal as though it were submitted in response to the notice;
and
(b) the person may, within the time provided for the submission of written proposals,
modify the qualified proposal to the extent necessary to address matters raised in the notice that
were not addressed in the initial qualified proposal.
(4) A person who fails to submit a qualified proposal to the division within 60 days
after the date of the notice under Section 
63A-5a-202
 may not be considered for the vacant
division-owned property.
Section 11. Section 
63A-5a-204
 is enacted to read:
 63A-5a-204.
Priorities for vacant division-owned property -- Division to convey
vacant division-owned property.
(1) (a) A state agency has priority for vacant division-owned property over a local
government entity, a public purpose nonprofit entity, and a private party.
(b) A local government entity and a public purpose nonprofit entity have:
(i) priority for vacant division-owned property over a private party; and
(ii) between them the same priority for vacant division-owned property.
(2) If the division receives multiple timely qualified proposals from applicants with the
highest and same priority, the division shall:
(a) notify the board of:
(i) the availability of the vacant division-owned property; and
(ii) the applicants with the highest and same priority that have submitted qualified
proposals; and
(b) provide the board with a copy of the timely qualified proposals submitted by the
applicants with the highest and same priority.
(3) Within 30 days after being notified under Subsection (2), the board shall:
(a) determine which applicant's qualified proposal is most likely to result in the highest
and best public benefit; and
(b) notify the division of the board's decision under Subsection (3)(a).
(4) The division shall convey the vacant division-owned property to:
(a) the applicant with the highest priority under Subsection (1), if the division receives
a timely qualified proposal from a single applicant with the highest priority; or
(b) the applicant whose qualified proposal was determined by the board under
Subsection (3) to be most likely to result in the highest and best public benefit, if the division
receives multiple timely qualified proposals from applicants with the highest and same priority.
Section 12. Section 
63A-5a-205
 is enacted to read:
 63A-5a-205.
Referring vacant division-owned property to the Department of
Transportation for auction.
(1) The division may refer vacant division-owned property to the Department of
Transportation for a public auction if:
(a) (i) the division has provided notice under Section 
63A-5a-202
 with respect to the
vacant division-owned property; and
(ii) the division receives no qualified proposals in response to the notice under Section
63A-5a-202
;
(b) the director determines that:
(i) there is no reasonable likelihood that within the foreseeable future:
(A) a primary state agency will use or occupy the vacant division-owned property; or
(B) a secondary state agency, local government entity, or public purpose nonprofit
entity will seek a transfer of ownership or lease of the vacant division-owned property; and
(ii) disposing of the vacant division-owned property through a public auction is in the
best interests of the state;
(c) the director requests and receives a recommendation on the proposed public auction
from the Executive Appropriations Committee of the Legislature;
(d) the director communicates the Executive Appropriations Committee's
recommendation to the executive director; and
(e) the executive director approves the public auction.
(2) If the division refers a vacant division-owned property to the Department of
Transportation for public auction, the Department of Transportation shall publicly auction the
vacant division-owned property under the same law and in the same manner as apply to a
public auction of Department of Transportation property.
(3) At a public auction conducted under Subsection (2), the Department of
Transportation may, on behalf of the division, accept an offer to purchase the vacant
division-owned property.
(4) The division and the Department of Transportation shall coordinate together to:
(a) manage the details of finalizing any sale of the vacant division-owned property at
public auction; and
(b) ensure that the buyer acquires proper title and that the division receives the
proceeds of the sale.
(5) If a public auction under this section does not result in a sale of the vacant
division-owned property, the Department of Transportation shall notify the division and refer
the vacant division-owned property back to the division.
Section 13. Section 
63A-5a-206
 is enacted to read:
 63A-5a-206.
State real property subject to right of first refusal.
(1) (a) If Section 
78B-6-520.3
 applies to vacant division-owned property, the division
shall comply with Subsection 
78B-6-520.3
(3).
(b) If a condemnee accepts the division's offer to sell the vacant division-owned
property as provided in Section 
78B-6-520.3
, the division shall:
(i) comply with the requirements of Section 
78B-6-520.3
; and
(ii) terminate any process under this chapter to convey the vacant division-owned
property.
(c) A condemnee may waive rights and benefits afforded under Section 
78B-6-520.3
and instead seek a transfer of ownership or lease of vacant division-owned property under the
provisions of this chapter in the same manner as any other person not entitled to the rights and
benefits of Section 
78B-6-520.3
.
(2) (a) If Section 
78B-6-521
 applies to the anticipated disposal of the vacant
division-owned property, the division shall comply with the limitations and requirements of
Subsection 
78B-6-521
(2).
(b) If the original grantor or the original grantor's assignee accepts an offer for sale as
provided in Subsection 
78B-6-521
(2)(a)(i), the division shall:
(i) sell the vacant division-owned property to the original grantor or the original
grantor's assignee, as provided in Section 
78B-6-521
; and
(ii) terminate any process under this chapter to convey the vacant division-owned
property.
(c) An original grantor or the original grantor's assignee may waive rights afforded
under Section 
78B-6-521
 and instead seek a transfer of ownership or lease of vacant
division-owned property under the provisions of this chapter in the same manner as any other
person seeking a transfer of ownership or lease of vacant division-owned property to which
Section 
78B-6-521
 does not apply.
Section 14. Section 
65A-4-1
 is amended to read:
65A-4-1.
Acquisition and disposition of land by state agencies.
(1) All state agencies may acquire land by gift, devise, bequest, exchange,
compensation for public resource value loss, or in satisfaction of a debt and are authorized to
sell, lease, or otherwise dispose of land no longer needed for public purposes, unless otherwise
provided by law.
(2) The proceeds from the sale, lease, or other disposition of land shall go to the state
agency using or holding the land unless:
(a) the governor or the Legislature order its deposit in the fund from which the state
agency receives its appropriations; or
(b) the use or disposition of the proceeds is specified elsewhere in law.
(3) Subsections (1) and (2) do not apply to division-owned property, as defined in
Section 
63A-5a-102
.
Legislative Review Note
Office of Legislative Research and General Counsel