Section 104 - Definitions -- Capital development and capital improvement process -- Approval requirements -- Limitations on new projects -- Emergencies.

UT Code § 63A-5-104 (2019) (N/A)
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(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.

(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).

(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.

(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.

(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

(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.

(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.

(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.

(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) Except as provided in Subsection (2)(f), the board shall, on behalf of all state agencies, submit capital development recommendations and priorities to the Legislature for approval and prioritization. (b) In developing the board's capital development recommendations and priorities, the board shall require each state agency 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. (c) The board shall verify the completion and accuracy of a feasibility study that a state agency submits to the board under Subsection (2)(b). (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: (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; (ii) respond to individual skilled and technical job demand over the next 3, 5, and 10 years; (iii) respond to industry demands for trained workers; (iv) help meet commitments made by the Governor's Office of Economic Development, including relating to training and incentives; (v) respond to changing needs in the economy; and (vi) based on demographics, respond to demands for on-line or in-class instruction. (e) The board shall give more weight in the 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. (f) (i) For a dedicated project as defined in Section 53B-2a-101 or 53B-22-201, the board shall submit recommendations to the Legislature in accordance with this section. (ii) A dedicated project as defined in Section 53B-2a-101 or 53B-22-201 is not subject to prioritization by the board.

(a) Except as provided in Subsection (2)(f), the board shall, on behalf of all state agencies, submit capital development recommendations and priorities to the Legislature for approval and prioritization.

(b) In developing the board's capital development recommendations and priorities, the board shall require each state agency 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.

(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.

(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.

(c) The board shall verify the completion and accuracy of a feasibility study that a state agency submits to the board under Subsection (2)(b).

(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: (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; (ii) respond to individual skilled and technical job demand over the next 3, 5, and 10 years; (iii) respond to industry demands for trained workers; (iv) help meet commitments made by the Governor's Office of Economic Development, including relating to training and incentives; (v) respond to changing needs in the economy; and (vi) based on demographics, respond to demands for on-line or in-class instruction.

(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;

(ii) respond to individual skilled and technical job demand over the next 3, 5, and 10 years;

(iii) respond to industry demands for trained workers;

(iv) help meet commitments made by the Governor's Office of Economic Development, including relating to training and incentives;

(v) respond to changing needs in the economy; and

(vi) based on demographics, respond to demands for on-line or in-class instruction.

(e) The board shall give more weight in the 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.

(f) (i) For a dedicated project as defined in Section 53B-2a-101 or 53B-22-201, the board shall submit recommendations to the Legislature in accordance with this section. (ii) A dedicated project as defined in Section 53B-2a-101 or 53B-22-201 is not subject to prioritization by the board.

(i) For a dedicated project as defined in Section 53B-2a-101 or 53B-22-201, the board shall submit recommendations to the Legislature in accordance with this section.

(ii) A dedicated project as defined in Section 53B-2a-101 or 53B-22-201 is not subject to prioritization by the board.

(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 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 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 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 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 the Uintah Basin Revitalization Fund or 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.

(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 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 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 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.

(i) the 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 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

(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 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.

(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.

(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.

(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 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 the Uintah Basin Revitalization Fund or 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.

(i) the renovation, remodeling, or retrofitting of an existing facility with nonstate funds that has been approved by the 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 the Uintah Basin Revitalization Fund or the Navajo Revitalization Fund; and (B) does not provide a new facility for a state agency or higher education institution; or

(A) is funded by the Uintah Basin Revitalization Fund or 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.

(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.

(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) 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.

(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.

(5) 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.

(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.

(6) (a) Except as provided in Subsections (6)(b) and (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) If the Legislature determines that there exists an Education Fund budget deficit or a General Fund budget deficit 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. (c) Subsection (6)(a) does not apply to a dedicated project as defined in Section 53B-2a-101 or 53B-22-201.

(a) Except as provided in Subsections (6)(b) and (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) If the Legislature determines that there exists an Education Fund budget deficit or a General Fund budget deficit 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.

(c) Subsection (6)(a) does not apply to a dedicated project as defined in Section 53B-2a-101 or 53B-22-201.

(7) (a) (i) Except as provided in Subsection (7)(a)(ii), the Legislature may not fund the design and construction of a new facility in phases over more than one year unless the Legislature approves the funding for both the design and construction by a vote of two-thirds of all the members elected to each house. (ii) Subsection (7)(a)(i) does not apply to a dedicated project as defined in Section 53B-2a-101 or 53B-22-201. (b) An agency is required to receive approval from the board before the agency begins programming for a new facility that requires legislative approval under Subsection (3). (c) The board or an agency may fund the programming of a new facility before the Legislature makes an appropriation for the new facility under Subsection (7)(a).

(a) (i) Except as provided in Subsection (7)(a)(ii), the Legislature may not fund the design and construction of a new facility in phases over more than one year unless the Legislature approves the funding for both the design and construction by a vote of two-thirds of all the members elected to each house. (ii) Subsection (7)(a)(i) does not apply to a dedicated project as defined in Section 53B-2a-101 or 53B-22-201.

(i) Except as provided in Subsection (7)(a)(ii), the Legislature may not fund the design and construction of a new facility in phases over more than one year unless the Legislature approves the funding for both the design and construction by a vote of two-thirds of all the members elected to each house.

(ii) Subsection (7)(a)(i) does not apply to a dedicated project as defined in Section 53B-2a-101 or 53B-22-201.

(b) An agency is required to receive approval from the board before the agency begins programming for a new facility that requires legislative approval under Subsection (3).

(c) The board or an agency may fund the programming of a new facility before the Legislature makes an appropriation for the new facility under Subsection (7)(a).

(8) (a) Notwithstanding the requirements of Title 63J, Chapter 1, Budgetary Procedures Act, after the Legislature approves capital development and capital improvement priorities under this section and Section 63A-5-228, if an emergency arises that creates an unforeseen and critical need for a capital improvement project, the board may reallocate capital improvement funds to address the project. (b) The board shall report any changes 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.

(a) Notwithstanding the requirements of Title 63J, Chapter 1, Budgetary Procedures Act, after the Legislature approves capital development and capital improvement priorities under this section and Section 63A-5-228, if an emergency arises that creates an unforeseen and critical need for a capital improvement project, the board may reallocate capital improvement funds to address the project.

(b) The board shall report any changes 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.

(i) the Office of Legislative Fiscal Analyst within 30 days of the reallocation; and

(ii) the Legislature at its next annual general session.