63A-5-104 - Capital development and capital improvement process -- Approval requirements -- Limitations on new projects -- Emergencies.
63A-5-104. Capital development and capital improvement process -- Approvalrequirements -- 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 propertyregardless 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 removedfrom 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" means the replacement cost, asdetermined by the Division of Risk Management, of state facilities, excluding auxiliary facilitiesas defined by the State Building Board.
(e) "State funds" means public money appropriated by the Legislature.
(2) The State Building Board, on behalf of all state agencies, commissions, departments,and institutions shall submit its capital development recommendations and priorities to theLegislature for approval and prioritization.
(3) (a) Except as provided in Subsections (3)(b), (d), and (e), a capital developmentproject may not be constructed on state property without legislative approval.
(b) Legislative approval is not required for a capital development project if the StateBuilding Board determines that:
(i) the requesting higher education institution has provided adequate assurance that:
(A) state funds will not be used for the design or construction of the facility; and
(B) the higher education institution has a plan for funding in place that will not requireincreased 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 recordof facilities constructed under the exemption provided in Subsection (3)(b).
(ii) For facilities constructed under the exemption provided in Subsection (3)(b), a highereducation 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;
(ii) a facility to be built with nonstate funds and owned by nonstate entities withinresearch 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 Foundationwith funds of the foundation, including grant money from the state, or with donated services ormaterials;
(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 Schooland Institutional Trust Lands Administration from the Land Grant Management Fund and thatdoes 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 forthe Department of Transportation as a result of an exchange of real property under Section72-5-111.
(ii) When the Department of Transportation approves those exchanges, it shall notify thepresident of the Senate, the speaker of the House, and the cochairs of the Capital Facilities andAdministrative Services Subcommittee of the Legislature's Joint Appropriation Committee aboutany new facilities to be built 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 capitalimprovement 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 $1,000,000or more and an aggregate cost of more than $2,500,000;
(E) a single project previously reported to the Legislature as a capital improvementproject under $1,000,000 that, because of an increase in costs or scope of work, will now costmore than $1,000,000; and
(F) multiple projects within a single building or facility previously reported to theLegislature as a capital improvement project under $1,000,000 that, because of an increase incosts or scope of work, will now cost more than $1,000,000.
(b) Unless otherwise directed by the Legislature, the State Building Board shall prioritizecapital improvements from the list submitted to the Legislature up to the level of appropriationmade by the Legislature.
(c) In prioritizing capital improvements, the State Building Board shall consider theresults of facility evaluations completed by an architect/engineer as stipulated by the building
board's facilities maintenance standards.
(d) The State Building Board may require an entity that benefits from a capitalimprovement project to repay the capital improvement funds from savings that result from theproject.
(e) The State Building Board may provide capital improvement funding to a singleproject, or to multiple projects within a single building or facility, even if the total cost of theproject or multiple projects is $2,500,000 or more, if:
(i) the capital improvement project or multiple projects require more than one year tocomplete; and
(ii) the Legislature has affirmatively authorized the capital improvement project ormultiple projects to be funded in phases.
(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) (a) Except as provided in Subsection (6)(b) or (c), the Legislature may not fund thedesign or construction of any new capital development projects, except to complete the fundingof projects for which partial funding has been previously provided, until the Legislature hasappropriated 1.1% of the replacement cost of existing state facilities to capital improvements.
(b) (i) As used in this Subsection (6)(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 Fundbudget deficit exists, the Legislature may, in eliminating the deficit, reduce the amountappropriated to capital improvements to 0.9% of the replacement cost of state buildings.
(c) The requirements under Subsections (6)(a) and (b) do not apply to the 2008-09,2009-10, and 2010-11 fiscal years.
(7) (a) If, after approval of capital development and capital improvement priorities by theLegislature under this section, emergencies arise that create unforeseen critical capitalimprovement projects, the State Building Board may, notwithstanding the requirements of Title63J, Chapter 1, Budgetary Procedures Act, reallocate capital improvement funds to address thoseprojects.
(b) The State Building Board shall report any changes it makes in capital improvementallocations 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.
(8) (a) The State Building Board may adopt a rule allocating to institutions and agenciestheir 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 foremergency projects; and
(ii) allows the delegation of projects to some institutions and agencies with therequirement that a report of expenditures will be filed annually with the Division of FacilitiesConstruction and Management and appropriate governing bodies.
(9) It is the intent of the Legislature that in funding capital improvement requirementsunder this section the General Fund be considered as a funding source for at least half of those
costs.
Amended by Chapter 338, 2010 General Session