HB 508

Enrolled Copy  H.B. 508
1State Facilities Modifications
                                        2026 GENERAL SESSION
                                               STATE OF UTAH
                                      Chief Sponsor: Walt Brooks
                                      Senate Sponsor: Don L. Ipson
  Cosponsor:
  Jill Koford
2
3  LONG TITLE
4  General Description:
5      This bill addresses state facilities.
6  Highlighted Provisions:
7      This bill:
8      ▸ establishes the Higher Education Appropriations Subcommittee as the subcommittee to
9  hear and prioritize requests for state funding of capital facility projects within the Utah
10  System of Higher Education;
11      ▸ establishes requirements for the proposal of a technical college or degree-granting
12  institution for a capital facility project funding request;
13      ▸ requires compliance with the dedicated and non-dedicated project approval process for
14  higher education capital facility projects;
15      ▸ clarifies the process for requesting capital development appropriations by distinguishing
16  between architectural programming and design-and-construction phases;
17      ▸ authorizes an agency to request funding for architectural programming without requiring
18  the submission of a feasibility study;
19      ▸ requires an agency to complete architectural programming before requesting an
20  appropriation for the design and construction of a capital development project;
21      ▸ increases, from $100,000 to $1,500,000, the maximum project cost for which a state
22  entity may directly supervise the design and construction of a state facility and
23  establishes higher supervisory thresholds for certain institutions within the Utah System
24  of Higher Education;
25      ▸ requires a state entity that elects to directly supervise the design and construction of a
H.B. 508  Enrolled Copy
26   state facility project to enter into a memorandum of understanding with the Division of
27   Facilities Construction and Management (division) that addresses compliance with
28   division standards;
29▸ prohibits a state entity described above from accessing the division's statewide
30   contingency reserve or project reserve for the state facility project;
31▸ authorizes the director of the division to assume control of a project described above
32   when division inspection or review determines that the work is deficient or
33   noncompliant with division design, construction, or code inspection standards;
34▸ aligns revocation authority for delegated projects by allowing the director of the division
35   to revoke delegation to address inspection-based deficiencies;
36▸ requires that design criteria exceeding the state construction code to be appropriate for the
37   facility's intended use and cost-effective over the facility's expected useful life;
38▸ adds required components to a capital development feasibility study by requiring
39   inclusion of a space utilization plan and capital budget estimate approved by the division;
40▸ authorizes the Legislature to transfer any excess amount from the statewide contingency
41   reserve to the General Fund or the Income Tax Fund;
42▸ if the excess amount described above is attributable to a higher education or technical
43   college capital project, requires the Legislature to transfer the excess amount to the
44   applicable capital project fund;
45▸ requires the division to submit an annual request for appropriation to the Legislature for
46   each year covered by the five-year building plan;
47▸ authorizes the director of the division to approve certain design modifications for capital
48   development projects of institutions of higher education and to allocate resulting
49   construction cost savings between the institution and the state;
50▸ exempts construction contracts administered by the division from statutory performance
51   and payment bond requirements;
52▸ authorizes the division to require a performance or payment bond when necessary to
53   protect the division from financial loss or performance risk; and
54▸ makes technical and conforming changes.
55   Money Appropriated in this Bill:
56None
57   Other Special Clauses:
58This bill provides a special effective date.
59   Utah Code Sections Affected:
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60  AMENDS:
61      14-1-19 (Effective 05/06/26), as last amended by Laws of Utah 2012, Chapter 330
62      53H-1-402 (Effective 05/06/26) (Partially Repealed 07/01/27), as renumbered and
63      amended by Laws of Utah 2025, First Special Session, Chapter 8
64      53H-9-402 (Effective 05/06/26), as renumbered and amended by Laws of Utah 2025,
65      First Special Session, Chapter 8
66      53H-9-504 (Effective 05/06/26), as renumbered and amended by Laws of Utah 2025,
67      First Special Session, Chapter 8
68      53H-9-604 (Effective 05/06/26), as renumbered and amended by Laws of Utah 2025,
69      First Special Session, Chapter 8
70      63A-5b-102 (Effective 05/06/26), as last amended by Laws of Utah 2025, First Special
71      Session, Chapter 9
72      63A-5b-402 (Effective 05/06/26), as last amended by Laws of Utah 2022, Chapter 421
73      63A-5b-501 (Effective 05/06/26), as enacted by Laws of Utah 2020, Chapter 152
74      63A-5b-502 (Effective 05/06/26), as enacted by Laws of Utah 2020, Chapter 152
75      63A-5b-602 (Effective 05/06/26), as enacted by Laws of Utah 2020, Chapter 152
76      63A-5b-604 (Effective 05/06/26), as last amended by Laws of Utah 2025, First Special
77      Session, Chapter 15
78      63A-5b-609 (Effective 05/06/26), as last amended by Laws of Utah 2024, Chapter 368
79      63G-6a-1103 (Effective 05/06/26), as last amended by Laws of Utah 2020, Chapter 257
80
81  Be it enacted by the Legislature of the state of Utah:
82Section 1. Section 14-1-19 is amended to read:
8314-1-19 (Effective 05/06/26). Failure of government entity to obtain payment
84  bond -- Right of action -- Notice -- Exception.
85  (1) If the state or a political subdivision fails to obtain a payment bond, it shall, upon
86      demand by a person who has furnished labor or supplied materials to the contractor or
87      subcontractor for the work provided for in a contract which is subject to Section 14-1-18,
88      promptly make payment to that person.
89  (2) A person described in Subsection (1):
90      (a) shall have a direct right of action against the state or the political subdivision in any
91court having jurisdiction in any county in which the contract was to be performed,
92upon giving written notice to the state or political subdivision within 90 days from
93the date on which such person performed the last of the labor or supplied the last of
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94the material for which claim is made;
95(b) shall state in the notice a designation of the construction project and its location, the
96amount claimed, and the name of the party for whom the labor was performed or to
97whom the material was supplied; and
98(c) shall serve the notice by registered or certified mail, postage prepaid, on the state
99agency or political subdivision that is a party to the contract.
100   (3) An action described in this section may not be commenced later than one year after the
101day on which the last of the labor was performed or material was supplied by the person
102bringing the action.
103   (4) Unless otherwise specified in a lawful contract between the state or the political
104subdivision against which the claim is made and the person demanding payment, the
105interest rate applicable to the payment or claim is the rate described in Subsection
10615-1-1(2).
107   (5) This section does not apply to a construction contract administered by the Division of
108Facilities Construction and Management.
109   (6) Subsection (5) does not affect a right of action that accrued under this section with
110respect to a construction contract executed before the effective date of this bill.
111Section 2. Section 53H-1-402 is amended to read:
11253H-1-402 (Effective 05/06/26) (Partially Repealed 07/01/27). Reports to and
113   actions of the Higher Education Appropriations Subcommittee.
114   (1) In accordance with applicable provisions and Section 68-3-14, the following recurring
115reports are due to the Higher Education Appropriations Subcommittee:
116(a) the reports described in Sections 53H-1-502, 53H-1-503, and 53H-1-504;
117(b) the reports described in Section 53H-1-203 by the board on:
118(i) system wide responses to changing demographics and workforce; and
119(ii) the board's activities and performance against the board's goals and metrics;
120(c) the report described in Section 53H-5-205;
121(d) the report described in Section 53H-8-202 by the board on recommended
122appropriations for higher education institutions and the board, including the report
123described in Section 53H-11-406 by the board on the effects of offering nonresident
124partial tuition scholarships;
125(e) the report described in Section 53H-8-306 by the Department of Workforce Services
126and the Governor's Office of Economic Opportunity on targeted jobs;
127(f) the reports described in Section 53H-8-303 by the board on performance;
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128      (g) the report described in Section 53H-11-402 by the board on the Opportunity
129Scholarship Program;
130      (h) the report described in Section 53H-13-309 regarding the talent advisory councils;
131      (i) the report described in Section 53H-11-414 by the board on the Utah Promise
132Program;
133      (j) the report described in Section 53H-6-202 by the board on an institution
134compensating a student athlete for the use of the student athlete's name, image, or
135likeness;
136      (k) the report described in Section 53H-1-604 regarding the Higher Education and
137Corrections Council; and
138      (l) the report described in Section 53E-10-308 by the State Board of Education and
139board on student participation in the concurrent enrollment program.
140  (2) In accordance with applicable provisions and Section 68-3-14, the following occasional
141      report is due to the Higher Education Appropriations Subcommittee: the board's report
142      regarding each institution's strategic reinvestment plan described in Section 53H-8-210.
143  (3) In accordance with applicable provisions, the Higher Education Appropriations
144      Subcommittee shall complete the following:
145      (a) an appropriation recommendation described in Section 53H-1-504 regarding
146compliance with Subsections 53H-1-504(5) and (14); and
147      (b) as required by Section 53H-8-304, the review of performance funding described in
148Section 53H-8-304.
149  (4) The Higher Education Appropriations Subcommittee shall hear and prioritize any
150      requests for capital facilities within the Utah System of Higher Education described in
151      Section 53H-1-102, in accordance with Chapter 9, Part 5, General Capital
152      Developments, and Chapter 9, Part 6, Technical College Leasing and Capital
153      Development.
154  [(4)] (5) In consultation with the board, the Higher Education Appropriations Subcommittee
155      shall study a re-design of:
156      (a) the performance funding model described in Chapter 8, Part 3, Performance Funding,
157to better ensure:
158(i) institutional alignment with the statewide system of higher education and the
159institution's mission within the statewide system; and
160(ii) investment in meeting localized and statewide workforce demands and securing
161post-graduation employment outcomes; and
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162(b) enrollment-based funding, including, for technical colleges, funding distribution
163models that:
164(i) include equivalent funding value for secondary and adult students; and
165(ii) reflect the full responsibility of the technical college's statutorily-required
166services.
167Section 3. Section 53H-9-402 is amended to read:
16853H-9-402 (Effective 05/06/26). Buildings and facilities -- Board approval of
169   construction and purchases -- Rules.
170   (1) The board shall approve all new construction, repair, or purchase of educational and
171general buildings and facilities financed from any source at all institutions subject to the
172jurisdiction of the board.
173   (2) An institution may not[ ] :
174(a) submit plans or specifications to the Division of Facilities Construction and
175Management for the construction or alteration of buildings, structures, or facilities or
176for the purchases of equipment or fixtures for the structure without the authorization
177of the board[.] ; or
178(b) request state funding for a dedicated or non-dedicated project except as provided in
179Part 5, General Capital Developments, and Part 6, Technical College Leasing and
180Capital Development.
181   (3) The board shall make rules establishing the conditions under which facilities may be
182eligible to request state funds for operations and maintenance.
183   (4) Before approving the purchase of a building, the board shall:
184(a) determine whether or not the building will be eligible for state funds for operations
185and maintenance by applying the rules adopted under Subsection (3); and
186(b) if the annual request for state funding for operations and maintenance will be greater
187than $100,000, notify the speaker of the House, the president of the Senate, and the
188cochairs of the Transportation and Infrastructure Appropriations Subcommittee.
189Section 4. Section 53H-9-504 is amended to read:
19053H-9-504 (Effective 05/06/26). Funding request for capital development project
191   -- Legislative approval -- Board prioritization, approval, and review.
192   (1) In accordance with this section, a degree-granting institution is required to receive
193legislative approval in an appropriations act for a dedicated project or a nondedicated
194project.
195   (2) A degree-granting institution shall[ ] :
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196      (a) submit to the board a proposal for a funding request for each dedicated project or
197nondedicated project for which the institution seeks legislative approval[.] ; and
198      (b) ensure that the proposal described in Subsection (2)(a) includes:
199(i) the name of the project;
200(ii) a specification of the intent of the project as a dedicated project or a
201non-dedicated project;
202(iii) the projected cost of the project and the sources of funding, including internal
203funds, requested legislative appropriations, matching funds, or debt;
204(iv) a budget for the project, including:
205(A) any land cost;
206(B) architecture and engineering costs;
207(C) any impact fees;
208(D) horizontal development costs, including infrastructure and site work;
209(E) vertical construction costs;
210(F) furniture costs;
211(G) any plan to fund future operations, maintenance, and staffing costs;
212(H) financing costs;
213(I) construction management, project management, or other administrative costs;
214and
215(J) costs associated with the demolition or remodeling of existing space;
216(v) a rendering of the project;
217(vi) a narrative explaining the use of the facility, including the facility's expected life
218span;
219(vii) a facility utilization analysis demonstrating that the existing facilities are
220inadequate to serve the program or function for which the institution is seeking
221funding; and
222(viii) the amount of square feet of the project, including a breakdown of the uses of
223the space by square footage, including any:
224(A) classroom space;
225(B) lab space;
226(C) office space;
227(D) meeting room space;
228(E) entertainment space;
229(F) residential space;
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230(G) garage or storage space;
231(H) mechanical space; and
232(I) common areas, including any atrium, stairway, restroom, or commons.
233   (3) The board shall:
234(a) review each proposal submitted under Subsection (2) to ensure the proposal:
235(i) is cost effective and an efficient use of resources;
236(ii) is consistent with the degree-granting institution's mission and master plan; and
237(iii) fulfills a critical institutional facility need;
238(b) based on the results of the board's review under Subsection (3)(a), create:
239(i) a list of approved dedicated projects; and
240(ii) a list of approved nondedicated projects, prioritized in accordance with
241Subsection (5); and
242(c) submit the lists described in Subsection (3)(b), including the relevant proposals, to:
243(i) the governor;
244[(ii) the Transportation and Infrastructure Appropriations Subcommittee;]
245[(iii)] (ii) the Higher Education Appropriations Subcommittee; and
246[(iv)] (iii) the Division of Facilities Construction and Management for a:
247(A) recommendation, for the list described in Subsection (3)(b)(i); or
248(B) recommendation and prioritization, for the list described in Subsection
249(3)(b)(ii).
250   (4) A dedicated project:
251(a) is subject to the recommendation of the Division of Facilities Construction and
252Management as described in Section 63A-5b-403; and
253(b) is not subject to the prioritization of the Division of Facilities Construction and
254Management as described in Section 63A-5b-403.
255   (5)(a) Subject to Subsection (6), the board shall prioritize institution requests for funding
256for nondedicated projects based on:
257(i) capital facility need;
258(ii) utilization of facilities;
259(iii) maintenance and condition of facilities; and
260(iv) any other factor determined by the board.
261(b) The board shall establish how the board will prioritize institution requests for
262funding for nondedicated projects, including:
263(i) how the board will measure each factor described in Subsection (5)(a); and
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264(ii) procedures for prioritizing requests.
265  (6)(a) Subject to Subsection (6)(b), and in accordance with Subsection (5), the board
266      may annually prioritize:
267(i) up to three nondedicated projects if the ongoing appropriation to the fund is less
268than $50,000,000;
269(ii) up to two nondedicated projects if the ongoing appropriation to the fund is at least
270$50,000,000 but less than $100,000,000; or
271(iii) one nondedicated project if the ongoing appropriation to the fund is at least
272$100,000,000.
273      (b) For each calendar year, the dollar amounts described in Subsection (6)(a) shall be
274adjusted by an amount equal to the percentage difference between:
275(i) the Consumer Price Index for the 2019 calendar year; and
276(ii) the Consumer Price Index for the previous calendar year.
277  (7)(a) A degree-granting institution may request operations and maintenance funds for a
278      capital development project approved under this section.
279      (b) A degree-granting institution shall make the request described in Subsection (7)(a) at
280the same time the degree-granting institution submits the proposal described in
281Subsection (2).
282      (c) The Legislature shall consider a degree-granting institution's request described in
283Subsection (7)(a).
284  (8) After a degree-granting institution completes a capital development project described in
285      this section, the board shall review the capital development project, including the costs
286      and design of the capital development project.
287Section 5. Section 53H-9-604 is amended to read:
28853H-9-604 (Effective 05/06/26). Legislative approval -- Capital development
289  projects -- Prioritization.
290  (1) As used in this section:
291      (a) "Consumer Price Index" means the Consumer Price Index for All Urban Consumers
292as published by the Bureau of Labor Statistics of the United States Department of
293Labor.
294      (b) "Fund" means the Technical Colleges Capital Projects Fund created in Section
29553H-9-605.
296  (2) In accordance with this section, a technical college is required to receive legislative
297      approval in an appropriations act for a dedicated project or a nondedicated project.
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298   (3) In accordance with Section 53H-9-603, a technical college shall[ ] :
299(a) submit to the board a proposal for a funding request for each dedicated project or
300nondedicated project for which the technical college seeks legislative approval[.] ; and
301(b) ensure that the proposal described in Subsection (3)(a) includes:
302(i) the name of the project;
303(ii) a specification of the intent of the project as a dedicated project or a
304non-dedicated project;
305(iii) the projected cost of the project and the sources of funding, including internal
306funds, requested legislative appropriations, matching funds, or debt;
307(iv) a budget for the project, including:
308(A) any land cost;
309(B) architecture and engineering costs;
310(C) any impact fees;
311(D) horizontal development costs, including infrastructure and site work;
312(E) vertical construction costs;
313(F) furniture costs;
314(G) any plan to fund future operations, maintenance, and staffing costs;
315(H) financing costs;
316(I) construction management, project management, or other administrative costs;
317and
318(J) costs associated with the demolition or remodeling of existing space;
319(v) a rendering of the project;
320(vi) a narrative explaining the use of the facility, including the facility's expected life
321span;
322(vii) a facility utilization analysis demonstrating that the existing facilities are
323inadequate to serve the program or function for which the institution is seeking
324funding; and
325(viii) the amount of square feet of the project, including a breakdown of the uses of
326the space by square footage, including any:
327(A) classroom space;
328(B) lab space;
329(C) office space;
330(D) meeting room space;
331(E) entertainment space;
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332(F) residential space;
333(G) garage or storage space;
334(H) mechanical space; and
335(I) common areas, including any atrium, stairway, restroom, or commons.
336  (4) The board shall:
337      (a) review each proposal submitted under Subsection (3) to ensure that the proposal
338complies with Section 53H-9-603;
339      (b) based on the results of the board's review under Subsection (4)(a), create:
340(i) a list of approved dedicated projects, prioritized in accordance with Subsection (6);
341and
342(ii) a list of approved nondedicated projects, prioritized in accordance with
343Subsection (6); and
344      (c) submit the lists described in Subsection (4)(b), including the relevant proposals, to:
345(i) the governor;
346[(ii) the Transportation and Infrastructure Appropriations Subcommittee;]
347[(iii)] (ii) the Higher Education Appropriations Subcommittee; and
348[(iv)] (iii) the Division of Facilities Construction and Management for a:
349(A) recommendation, for the list described in Subsection (4)(b)(i); or
350(B) recommendation and prioritization, for the list described in Subsection
351(4)(b)(ii).
352  (5) A dedicated project:
353      (a) is subject to the recommendation of the Division of Facilities Construction and
354Management as described in Section 63A-5b-403; and
355      (b) is not subject to the prioritization of the Division of Facilities Construction and
356Management as described in Section 63A-5b-403.
357  (6)(a) Subject to Subsection (7), the board shall prioritize funding requests for capital
358      development projects described in this section based on:
359(i) growth and capacity;
360(ii) effectiveness and support of critical programs;
361(iii) cost effectiveness;
362(iv) building deficiencies and life safety concerns; and
363(v) alternative funding sources.
364      (b) The board shall establish:
365(i) how the board will measure each factor described in Subsection (6)(a); and
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366(ii) procedures for prioritizing funding requests for capital development projects
367described in this section.
368   (7)(a) Subject to Subsection (7)(b), and in accordance with Subsection (6), the board
369may annually prioritize:
370(i) up to three nondedicated projects if the ongoing appropriation to the fund is less
371than $7,000,000;
372(ii) up to two nondedicated projects if the ongoing appropriation to the fund is at least
373$7,000,000 but less than $14,000,000; or
374(iii) one nondedicated project if the ongoing appropriation to the fund is at least
375$14,000,000.
376(b) For each calendar year, the dollar amounts described in Subsection (7)(a) shall be
377adjusted by an amount equal to the percentage difference between:
378(i) the Consumer Price Index for the 2019 calendar year; and
379(ii) the Consumer Price Index for the previous calendar year.
380   (8)(a) A technical college may request operations and maintenance funds for a capital
381development project approved under this section.
382(b) A technical college shall make the request described in Subsection (8)(a) at the same
383time the technical college submits the proposal described in Subsection (3).
384(c) The Legislature shall consider a technical college's request described in Subsection
385(8)(a).
386Section 6. Section 63A-5b-102 is amended to read:
38763A-5b-102 (Effective 05/06/26). Definitions.
388      As used in this chapter:
389   (1) "Capitol hill" means the same as that term is defined in Section 63O-1-101.
390   (2) "Compliance agency" means the same as that term is defined in Section 15A-1-202.
391   (3) "Director" means the division director, appointed under Section 63A-5b-302.
392   (4) "Division" means the Division of Facilities Construction and Management created in
393Section 63A-5b-301.
394   (5) "Institution of higher education" means the same as that term is defined in Section
39553H-1-101.
396   (6) "Program document" means a final document that contains programming information.
397   (7) "Programming" means services to define the scope and purpose of an anticipated
398project, and may include:
399(a) researching criteria applicable to the scope and purpose of an anticipated project;
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400      (b) identifying the scale of the project and the type of facilities and the level of
401specialized functions that will be required;
402      (c) identifying and prioritizing values and goals that will impact the project, including
403institutional purposes, growth objectives, and cultural, technological, temporal,
404aesthetic, symbolic, economic, environmental, safety, sustainability, and other
405relevant criteria;
406      (d) evaluating functional efficiency, user comfort, building economics, environmental
407sustainability, and visual quality;
408      (e) identifying objectives for the project, including such elements as image, efficiencies,
409functionality, cost, and schedule;
410      (f) identifying and evaluating the constraints that will have an impact on the project such
411as legal requirements, financial constraints, location, access, visibility, and building
412services;
413      (g) developing standards such as area allowances, space allocation, travel distances, and
414furniture and equipment requirements;
415      (h) establishing general space quality standards related to such elements as lighting
416levels, equipment performance, acoustical requirements, security, and aesthetics;
417      (i) identifying required spaces;
418      (j) establishing sizes and relationships;
419      (k) establishing space efficiency factors or the ratio of net square footage to gross square
420footage; and
421      (l) documenting particular space requirements such as special HVAC, plumbing, power,
422lighting, acoustical, furnishings, equipment, or security needs.
423  [(6)] (8) "Trust lands administration" means the School and Institutional Trust Lands
424      Administration established in Section 53C-1-201.
425  [(7)] (9) "Utah Board of Higher Education" means the Utah Board of Higher Education
426      established in Section 53H-1-203.
427Section 7. Section 63A-5b-402 is amended to read:
42863A-5b-402 (Effective 05/06/26). Capital development process -- Approval
429  requirements.
430  (1) Except as provided in Section 63A-5b-404, the division shall, on behalf of all agencies,
431      submit capital development project recommendations and priorities to the Legislature
432      for approval and prioritization.
433  [(2) An agency that requests an appropriation for a capital development project shall submit
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434to the division for transmission to the Legislature a capital development project request
435and a feasibility study relating to the capital development project.]
436   (2)(a) An agency may request an appropriation for the programming of a capital
437development project by submitting the request to the division for transmittal to the
438Legislature.
439(b) An agency may, but is not required to, submit a completed feasibility study in
440connection with a request described in Subsection (2)(a).
441(c) An agency may request an appropriation for the design and construction of a capital
442development project by submitting the request and a program document to the
443division for transmittal to the Legislature.
444   (3) The division may not transmit to the Legislature a request described in Subsection (2)(c)
445unless the agency submits a program document for the capital development project.
446   [(3)] (4)(a) The division shall, in accordance with Title 63G, Chapter 3, Utah
447Administrative Rulemaking Act, make rules that establish standards and
448requirements for[ a capital development project request and feasibility study.] :
449(i) a capital development project; and
450(ii) if submitted, a feasibility study.
451(b) The rules shall include:
452(i) a deadline by which an agency is required to submit a capital development project
453request;
454(ii) conditions under which an agency may modify the agency's capital development
455project request after the agency submits the request, and requirements applicable
456to a modification; and
457(iii) requirements for the contents of a feasibility study, including:
458(A) the need for the capital development project;
459(B) the appropriateness of the scope of the capital development project;
460(C) any private funding for the capital development project;[ and]
461(D) the economic and community impacts of the capital development project[.] ;
462(E) a space utilization plan developed in accordance with rules made by the
463division under Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
464(F) a capital budget estimate approved by the division.
465   [(4)] (5) The division shall verify the completion and accuracy of a feasibility study or
466program document that an agency submits under Subsection (2) prior to submitting
467capital development project recommendations and priorities under Subsection (1).
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468Section 8. Section 63A-5b-501 is amended to read:
46963A-5b-501 (Effective 05/06/26). Five-year building plan.
470  (1) The director shall:
471      (a) in cooperation with agencies, prepare a master plan of structures built or
472contemplated;
473      (b) submit to the governor and the Legislature a comprehensive five-year building plan
474for the state containing the information required by Subsection (2);
475      (c) amend and keep current the five-year building plan that complies with the
476requirements described in Subsection (2), for submission to the governor and
477subsequent legislatures;[ and]
478      (d) as part of the long-range plan, recommend to the governor and Legislature any
479changes in the law that are necessary to ensure an effective, well-coordinated
480building program for all agencies[.] ; and
481      (e) for each fiscal year covered by the five-year building plan, submit to the Legislature
482a request for appropriation for that fiscal year.
483  (2)(a) The director shall ensure that the five-year building plan required by Subsection
484      (1)(b) includes:
485(i) a list that prioritizes construction of new buildings for all structures built or
486contemplated based upon each agency's present and future needs;
487(ii) information and space use data for all state-owned and leased facilities;
488(iii) substantiating data to support the adequacy of any projected plans;
489(iv) a summary of all statewide contingency reserve and project reserve balances as
490of the end of the most recent fiscal year;
491(v) a list of buildings that have completed a comprehensive facility evaluation by an
492architect or engineer or are scheduled to have an evaluation;
493(vi) for those buildings that have completed the evaluation, the estimated costs of
494needed improvements; and
495(vii) for projects recommended in the first two years of the five-year building plan:
496(A) detailed estimates of the cost of each project;
497(B) the estimated cost to operate and maintain the building or facility on an annual
498basis;
499(C) the cost of capital improvements to the building or facility, estimated at 1.1%
500of the replacement cost of the building or facility, on an annual basis;
501(D) the estimated number of new agency full-time employees expected to be
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502housed in the building or facility;
503(E) the estimated cost of new or expanded programs and personnel expected to be
504housed in the building or facility;
505(F) the estimated lifespan of the building with associated costs for major
506component replacement over the life of the building; and
507(G) the estimated cost of any required support facilities.
508(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
509director may make rules prescribing the format for submitting the information
510required by this Subsection (2).
511   (3) To provide adequate information to enable the director to make a recommendation
512described in Subsection (1), an agency requesting new full-time employees for the next
513fiscal year shall report those anticipated requests to the director at least 90 days before
514the annual general session in which the request is made.
515Section 9. Section 63A-5b-502 is amended to read:
51663A-5b-502 (Effective 05/06/26). Programming.
517   [(1) As used in this section:]
518[(a) "Program document" means a final document that contains programming
519information.]
520[(b) "Programming" means services to define the scope and purpose of an anticipated
521project, and may include:]
522[(i) researching criteria applicable to the scope and purpose of an anticipated project;]
523[(ii) identifying the scale of the project and the type of facilities and the level of
524specialized functions that will be required;]
525[(iii) identifying and prioritizing values and goals that will impact the project,
526including institutional purposes, growth objectives, and cultural, technological,
527temporal, aesthetic, symbolic, economic, environmental, safety, sustainability, and
528other relevant criteria;]
529[(iv) evaluating functional efficiency, user comfort, building economics,
530environmental sustainability, and visual quality;]
531[(v) identifying objectives for the project, including such elements as image,
532efficiencies, functionality, cost, and schedule;]
533[(vi) identifying and evaluating the constraints that will have an impact on the project
534such as legal requirements, financial constraints, location, access, visibility, and
535building services;]
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536[(vii) developing standards such as area allowances, space allocation, travel
537distances, and furniture and equipment requirements;]
538[(viii) establishing general space quality standards related to such elements as
539lighting levels, equipment performance, acoustical requirements, security, and
540aesthetics;]
541[(ix) identifying required spaces;]
542[(x) establishing sizes and relationships;]
543[(xi) establishing space efficiency factors or the ratio of net square footage to gross
544square footage; and]
545[(xii) documenting particular space requirements such as special HVAC, plumbing,
546power, lighting, acoustical, furnishings, equipment, or security needs.]
547  [(2)] (1) A program document may:
548      (a) incorporate written and graphic materials; and
549      (b) include:
550(i) an executive summary;
551(ii) documentation of the methodology used to develop the programming;
552(iii) value and goal statements;
553(iv) relevant facts upon which the programming was based;
554(v) conclusions derived from data analysis;
555(vi) relationship diagrams;
556(vii) flow diagrams;
557(viii) matrices identifying space allocations and relationships;
558(ix) space listings by function and size; and
559(x) space program sheets, including standard requirements and special HVAC,
560plumbing, power, lighting, acoustical, furnishings, equipment, or security needs.
561  [(3)] (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
562      director may make rules:
563      (a) establishing the types of projects for which programming and a program document
564are required;
565      (b) establishing the scope of programming required for defined categories of projects;
566      (c) establishing the circumstances under which an agency must obtain authorization
567from the director to engage in programming;
568      (d) governing the funding of programming;
569      (e) relating to the administration of programming; and
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570(f) regarding any restrictions that may be imposed on a person involved in programming
571from participating in the preparation of construction documents for a project that is
572the subject of the programming.
573Section 10. Section 63A-5b-602 is amended to read:
57463A-5b-602 (Effective 05/06/26). Design criteria, standards, and procedures.
575   (1) The director shall establish design criteria, standards, and procedures for the planning,
576design, and construction of a new facility and for improvements to an existing facility,
577including life-cycle costing, cost-effectiveness studies, and other methods and
578procedures that address:
579(a) the need for the facility;
580(b) the effectiveness of the facility's design;
581(c) the efficiency of energy use; and
582(d) the usefulness of the facility over the facility's lifetime.
583   (2) Before proceeding with construction, the director and the officials charged with the
584administration of the affairs of the particular agency shall approve the location, design,
585plans, and specifications.
586   (3) The director shall prepare or have prepared by one or more private persons the designs,
587plans, and specifications for the projects administered by the division.
588   (4) Before construction may begin, the director shall review the design of projects
589exempted from the division's administration under Section 63A-5b-604 to determine if
590the design:
591(a) complies with any restrictions placed on the project by the director; and
592(b) is appropriate for the purpose and setting of the project.
593   (5) Notwithstanding the requirements of Title 63J, Chapter 1, Budgetary Procedures Act,
594the director may:
595(a) accelerate the design of a project funded by an appropriation act passed by the
596Legislature in the Legislature's annual general session;
597(b) use an unencumbered existing account balance to fund that design work; and
598(c) reimburse the account balance from the amount funded for the project when the
599appropriation act funding the project becomes effective.
600   (6) If the director establishes design criteria or standards that exceed the minimum
601requirements of the State Construction Code adopted under Title 15A, State
602Construction and Fire Codes Act, the director shall ensure that the additional criteria or
603standards are:
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604      (a) appropriate for the intended use and setting of the facility; and
605      (b) cost-effective over the expected useful life of the facility.
606Section 11. Section 63A-5b-604 is amended to read:
60763A-5b-604 (Effective 05/06/26). Construction, alteration, and repair of state
608  facilities -- Powers of director -- Exceptions -- Expenditure of appropriations --
609  Compliance agency role.
610  (1)(a) Except as provided in this section and Section 63A-5b-1101, the director shall
611      exercise direct supervision over the design and construction of all new facilities, and
612      all alterations, repairs, and improvements to existing facilities, if the total project
613      construction cost, regardless of the funding source, is greater than [$100,000]
614      $1,500,000.
615      (b) [A] Subject to Subsections (1)(c) and (d), a state entity may exercise direct
616supervision over the design and construction of all new facilities, and over all
617alterations, repairs, and improvements to existing facilities, if:
618(i) except as provided in Subsection (1)(e), the total project construction cost,
619regardless of the funding sources, is [$100,000] $1,500,000 or less; and
620(ii) the state entity assures compliance with the division's forms and contracts and the
621division's design, construction, alteration, repair, improvement, and code
622inspection standards.
623      (c) Before exercising direct supervision under Subsection (1)(b), a state entity shall enter
624into a memorandum of understanding with the division, in a form developed by the
625division, that addresses:
626(i) the state entity's compliance with Subsection (1)(b)(ii); and
627(ii) other matters the division considers necessary and appropriate to facilitate the
628state entity's supervision of the project, including provisions governing the use of
629capital improvement funds to ensure expenditures are consistent with legislative
630appropriations and the five-year building plan.
631      (d) The director may assume direct supervision over the design and construction of a
632project described in Subsection (1)(b) if the division determines, through inspection
633or review conducted in accordance with the division's design, construction, or code
634inspection standards, that the work is deficient, substandard, or noncompliant.
635      (e) For purposes of Subsection (1)(b)(i), a state entity that is an institution of higher
636education described in Subsection 53H-1-102(1)(a) or (b) may exercise direct
637supervision if the total project construction cost is:
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638(i) $30,000,000 or less for the University of Utah;
639(ii) $10,000,000 or less for Utah State University;
640(iii) $2,500,000 or less for a university described in Subsections 53H-1-102(1)(a)(iii),
641(iv), (vi), or (vii); or
642(iv) $1,000,000 or less for:
643(A) Snow College;
644(B) Salt Lake Community College; or
645(C) a technical college described in Subsection 53H-1-102(1)(b).
646(f) A state entity that exercises direct supervision under Subsection (1)(b) may not
647access, for the supervised project, the division's statewide contingency reserve or
648project reserve authorized in Section 63A-5b-609.
649   (2) The director may enter into a capital improvement partnering agreement with an
650institution of higher education that permits the institution of higher education to exercise
651direct supervision for a capital improvement project with oversight from the division.
652   (3)(a) Subject to Subsection (3)(b), the director may delegate control over design,
653construction, and other aspects of any project to entities of state government on a
654project-by-project basis.
655(b) With respect to a delegation of control under Subsection (3)(a), the director may:
656(i) impose terms and conditions on the delegation that the director considers
657necessary or advisable to protect the interests of the state; and
658(ii) revoke the delegation and assume control of the design, construction, or other
659aspect of a delegated project if the director considers the revocation and
660assumption of control to be necessary to:
661(A) address a circumstance described in Subsection (1)(d); or
662(B) otherwise protect the interests of the state.
663   (4)(a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
664the director may delegate control over design, construction, and all other aspects of
665any project to entities of state government on a categorical basis for projects within a
666particular dollar range and a particular project type.
667(b) Rules adopted by the director under Subsection (4)(a) may:
668(i) impose the terms and conditions on categorical delegation that the director
669considers necessary or advisable to protect the interests of the state;
670(ii) provide for the revocation of the delegation on a categorical basis and for the
671division to assume control of the design, construction, or other aspect of a
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672category of delegated projects or a specific delegated project if the director
673considers revocation of the delegation and assumption of control to be necessary
674to protect the interests of the state;
675(iii) require that a categorical delegation be renewed by the director on an annual
676basis; and
677(iv) require the division's oversight of delegated projects.
678  (5)(a) A state entity to which project control is delegated under this section shall:
679(i) assume fiduciary control over project finances;
680(ii) assume all responsibility for project budgets and expenditures; and
681(iii) receive all funds appropriated for the project, including any contingency funds
682contained in the appropriated project budget.
683      (b) Notwithstanding a delegation of project control under this section, a state entity to
684which control is delegated is required to comply with the division's codes and
685guidelines for design and construction.
686      (c) A state entity to which project control is delegated under this section may not access,
687for the delegated project, the division's statewide contingency reserve and project
688reserve authorized in Section 63A-5b-609.
689      (d) For a facility that will be owned, operated, maintained, and repaired by an entity that
690is not an agency and that is located on property that the state owns or leases as a
691tenant, the director may authorize the facility's owner to administer the design and
692construction of the project relating to that facility.
693  (6)(a) A project for the construction of a new facility and a project for alterations,
694      repairs, and improvements to an existing facility are not subject to Subsection (1) if
695      the project:
696(i) occurs on property under the jurisdiction of the State Capitol Preservation Board;
697(ii) is within a designated research park at the University of Utah or Utah State
698University;
699(iii) occurs within the boundaries of This is the Place State Park and is administered
700by This is the Place Foundation; or
701(iv) is for the creation and installation of art under Title 9, Chapter 6, Part 4, Utah
702Percent-for-Art Act.
703      (b) Notwithstanding Subsection (6)(a)(iii), the This is the Place Foundation may request
704the director to administer the design and construction of a project within the
705boundaries of This is the Place State Park.
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706   (7)(a) The role of compliance agency under Title 15A, State Construction and Fire
707Codes Act, shall be filled by:
708(i) the director, for a project administered by the division;
709(ii) the entity designated by the State Capitol Preservation Board, for a project under
710Subsection (6)(a)(i);
711(iii) the local government, for a project that is:
712(A) not subject to the division's administration under Subsection (6)(a)(ii); or
713(B) administered by This is the Place Foundation under Subsection (6)(a)(iii);
714(iv) the compliance agency designated by the director, for a project under Subsection
715(2), (3), (4), or (5)(d); and
716(v) for the installation of art under Subsection (6)(a)(iv), the entity that is acting as
717the compliance officer for the balance of the project for which the art is being
718installed.
719(b) A local government acting as the compliance agency under Subsection (7)(a)(iii)
720may:
721(i) only review plans and inspect construction to enforce the state construction code
722or an approved code under Title 15A, State Construction and Fire Codes Act; and
723(ii) charge a building permit fee of no more than the amount the local government
724could have charged if the land upon which the improvements are located were not
725owned by the state.
726   (8)(a) The zoning authority of a local government under Title 10, Chapter 20, Municipal
727Land Use, Development, and Management Act, or Title 17, Chapter 79, County Land
728Use, Development, and Management Act, does not apply to the use of property that
729the state owns or any improvements constructed on property that the state owns,
730including improvements constructed by an entity other than a state entity.
731(b) A state entity controlling the use of property that the state owns shall consider any
732input received from a local government in determining how the property is to be used.
733Section 12. Section 63A-5b-609 is amended to read:
73463A-5b-609 (Effective 05/06/26). Expenditure of appropriated funds supervised
735   by director -- Contingencies -- Disposition of project reserve funds -- Set aside for Utah
736   Percent-for-Art Program -- Distribution of cost savings.
737   (1) The director shall:
738(a)(i) supervise the expenditure of funds in providing plans, engineering
739specifications, sites, and construction of the buildings for which legislative
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740appropriations are made; and
741(ii) specifically allocate money appropriated if more than one project is included in
742any single appropriation without legislative directive;
743      (b)(i) expend the amount necessary from appropriations for planning, engineering,
744and architectural work; and
745(ii)(A) allocate amounts from appropriations necessary to cover expenditures
746previously made from the planning fund under Section 63A-5b-503 in the
747preparation of plans, engineering, and specifications; and
748(B) return the amounts described in Subsection (1)(b)(ii)(A) to the planning fund;
749and
750      (c) hold in a statewide contingency reserve the amount budgeted for contingencies:
751(i) in appropriations for the construction or remodeling of facilities; and
752(ii) that are over and above all amounts obligated by contract for planning,
753engineering, architectural work, sites, and construction contracts.
754  (2)(a) The director shall base the amount budgeted for contingencies on a sliding scale
755      percentage of the construction cost ranging from:
756(i) 4.5% to 6.5% for new construction; and
757(ii) 6% to 9.5% for remodeling projects.
758      (b) The director shall hold the statewide contingency funds to cover:
759(i) costs of change orders; and
760(ii) unforeseen, necessary costs beyond those specifically budgeted for the project.
761      (c)[(i)] The Legislature shall annually review the percentage and the amount held in
762the statewide contingency reserve.
763[(ii) The Legislature may reappropriate to other building needs, including the cost of
764administering building projects, any amount from the statewide contingency
765reserve that is in excess of the reserve required to meet future contingency needs.]
766      (d) If any amount from the statewide contingency reserve is in excess of the amount
767required to meet future contingency needs, the Legislature:
768(i) may reappropriate the excess amount to other building needs, including the cost of
769administering building projects;
770(ii) may transfer the excess amount to the General Fund or the Income Tax Fund, in
771proportion to the amounts originally appropriated from each fund for the projects
772to which the excess amount is attributable; or
773(iii) if the excess amount is attributable to an appropriation for the programming or
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774design and construction of a project described in Title 53H, Chapter 9, Part 5,
775General Capital Developments, or Title 53H, Chapter 9, Part 6, Technical College
776Leasing and Capital Development, shall, instead of taking the action described in
777Subsection (2)(d)(i) or (ii), transfer the excess amount, as applicable, to:
778(A) the Higher Education Capital Projects Fund, created in Section 53H-9-502; or
779(B) the Technical Colleges Capital Projects Fund, created in Section 53H-9-605.
780   (3)(a) The director shall hold in a separate project reserve state appropriated funds
781accrued through bid savings and project residual.
782(b) The director shall account for the funds accrued under Subsection (3)(a) in separate
783accounts as follows:
784(i) bid savings and project residual from a capital improvement project, as defined in
785Section 63A-5b-401; and
786(ii) bid savings and project residual from a capital development project, as defined in
787Section 63A-5b-401.
788(c) The director may use project reserve funds in the account described in Subsection
789(3)(b)(i) for a capital improvement project:
790(i) approved under Section 63A-5b-405; and
791(ii) for which funds are not allocated.
792(d) The director may:
793(i) authorize the use of project reserve funds in the accounts described in Subsection
794(3)(b) for the award of contracts in excess of a project's construction budget if the
795use is required to meet the intent of the project;
796(ii) transfer money from the account described in Subsection (3)(b)(i) to the account
797described in Subsection (3)(b)(ii) if a capital development project has exceeded its
798construction budget; and
799(iii) use project reserve funds for any emergency capital improvement project,
800whether or not the emergency capital improvement project is related to a project
801that has exceeded its construction budget.
802(e) The director shall report to the Office of the Legislative Fiscal Analyst within 30
803days:
804(i) an expenditure under Subsection (3)(c); or
805(ii) a transfer under Subsection (3)(d).
806(f) The Legislature shall annually review the amount held in the project reserve for
807possible reallocation by the Legislature to other building needs, including the cost of
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808administering building projects.
809  (4) If any part of the appropriation for a building project, other than the part set aside for the
810      Utah Percent-for-Art Program under Title 9, Chapter 6, Part 4, Utah Percent-for-Art Act,
811      remains unencumbered after the award of construction and professional service contracts
812      and establishing a reserve for fixed and moveable equipment, the balance of the
813      appropriation is dedicated to the project reserve and does not revert to the General Fund.
814  (5)(a)(i) One percent of the amount appropriated for the construction of any new state
815      building or facility may be appropriated and set aside for the Utah Percent-for-Art
816      Program administered by the Division of Fine Arts under Title 9, Chapter 6, Part
817      4, Utah Percent-for-Art Act.
818(ii) The total amount appropriated and set aside under Subsection (5)(a)(i) may not
819exceed:
820(A) $200,000, if the new state building or facility is not located in a county of the
821first class; and
822(B) $250,000, if the new state building or facility is located in a county of the first
823class.
824      (b) The director shall release to the Division of Fine Arts any funds included in an
825appropriation to the division that are designated by the Legislature for the Utah
826Percent-for-Art Program.
827      (c) Funds from appropriations for a state building or facility may not be set aside:
828(i) if any part of the funds is derived from the issuance of bonds; and
829(ii) to the extent the set aside of funds would jeopardize the federal income tax
830exemption otherwise allowed for interest paid on bonds.
831  (6)(a) After funds are appropriated for a non-dedicated project of an institution of higher
832      education, the director may approve a modification to the design of the project before
833      final project closeout if:
834(i) the modification is requested by the institution of higher education; and
835(ii) the modification does not:
836(A) result in a material reduction in the legislatively approved program scope,
837capacity, performance standards, durability, intended useful life, or intended
838use of the project; or
839(B) eliminate or defer legislatively approved program elements, including through
840downsizing or removal of project components.
841      (b) If a modification approved under Subsection (6)(a) results in a documented reduction
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842in the total project cost attributable to efficiencies in design refinement, engineering
843optimization, procurement strategy, material selection, scheduling, or construction
844methodology, the director shall distribute the resulting cost savings as follows:
845(i) an amount, as determined by the director, not to exceed 50% of the cost savings:
846(A) for a degree-granting institution described in Subsection 53H-1-102(1)(a), to
847the institution's allocation within the Higher Education Capital Projects Fund;
848or
849(B) for a technical college described in Subsection 53H-1-102(1)(b), to the
850technical college for use on a capital improvement project; and
851(ii) the remaining amount to the state, to be deposited into the General Fund or the
852Income Tax Fund in proportion to the amounts originally appropriated from each
853fund for the project.
854(c) Cost savings allocated under Subsection (6)(b) are not bid savings, including bid
855savings that result from competitive procurement, or project residual under
856Subsection (3).
857Section 13. Section 63G-6a-1103 is amended to read:
85863G-6a-1103 (Effective 05/06/26). Bonds or security necessary when contract is
859   awarded -- Waiver -- Action -- Attorney fees -- Exception.
860   (1) [When] Except as provided in Subsection (5), if a construction contract is awarded under
861this chapter, the contractor to whom the contract is awarded shall deliver the following
862bonds or security to the procurement unit, which shall become binding on the parties
863upon the execution of the contract:
864(a) a performance bond satisfactory to the procurement unit that is in an amount equal to
865100% of the price specified in the contract and is executed by a surety company
866authorized to do business in the state or any other form satisfactory to the
867procurement unit; and
868(b) a payment bond satisfactory to the procurement unit that is in an amount equal to
869100% of the price specified in the contract and is executed by a surety company
870authorized to do business in the state or any other form satisfactory to the
871procurement unit, which is for the protection of each person supplying labor, service,
872equipment, or material for the performance of the work provided for in the contract.
873   (2)(a) When a construction contract is awarded under this chapter, the procurement
874official responsible for carrying out the construction project may not require a
875contractor to whom a contract is awarded to obtain a bond of the types [referred to]
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876      described in Subsection (1) from a specific insurance or surety company, producer,
877      agent, or broker.
878      (b) A person who violates Subsection (2)(a) is guilty of an infraction.
879  (3) Rules of a rulemaking authority may provide for waiver of the requirement of a bid,
880      performance, or payment bond for circumstances in which the procurement official
881      considers any or all of the bonds to be unnecessary to protect the procurement unit.
882  (4)(a) [A] If a payment bond is required to be delivered under Subsection (1)(b) or (5)(c),
883      a person has a right of action on [a] the payment bond under this section for any
884      unpaid amount due to the person if:
885[(a)] (i) the person has furnished labor, service, equipment, or material for the work
886provided for in the contract for which the payment bond is furnished under this
887section; and
888[(b)] (ii) the person has not been paid in full within 90 days after the last day on which
889the person performed the labor or service or supplied the equipment or material
890for which the claim is made.
891      [(5)] (b) An action upon a payment bond may only be brought in a court of competent
892jurisdiction in a county where the construction contract was to be performed.
893      (c) The action is barred if not commenced within one year after the last day on which the
894claimant performed the labor or service or supplied the equipment or material on
895which the claim is based.
896      (d) The obligee named in the bond need not be joined as a party to the action.
897      [(6)] (e) In any suit upon a payment bond, the court shall award reasonable attorney fees
898to the prevailing party, which fees shall be taxed as costs in the action.
899  (5)(a) As used in this Subsection (5), "division" means the Division of Facilities
900      Construction and Management created in Section 63A-5b-301.
901      (b) The division is not required to obtain from a contractor a performance bond or
902payment bond for a construction contract administered by the division.
903      (c) Subject to Subsection (2), the division may require a performance bond, payment
904bond, or both for a construction contract administered by the division if the division
905determines that the bond is necessary to protect the division from financial loss or
906performance risk.
907  (6) Subsection (5)(b) does not affect the validity or enforceability of a performance bond or
908      payment bond required under this section with respect to a construction contract
909      executed before the effective date of this bill.
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910Section 14. Effective Date.
911   This bill takes effect:
912   (1) except as provided in Subsection (2), May 6, 2026; or
913   (2) if approved by two-thirds of all members elected to each house:
914(a) upon approval by the governor;
915(b) without the governor's signature, the day following the constitutional time limit of
916Utah Constitution, Article VII, Section 8; or
917(c) in the case of a veto, the date of veto override.
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