HB 508 — State Facilities Modifications

53H-9-504.53H-9-504 (Effective 05/06/26).

{(EffectiveFunding 05/06/26)}(Effective upon governor's approval)Funding request for capital development project -- Legislative approval -- Board prioritization, approval, and review.

(a)- submit6 to- theEnrolled boardCopy aH.B. proposal for a funding request for each dedicated project or nondedicated project for which the institution seeks legislative approval[.] ;

508 (a) submit to the board a proposal for a funding request for each dedicated project or nondedicated project for which the institution seeks legislative approval[.] ;

- 7 - HB0508 compared with HB0508S03 (D) horizontal development costs, including infrastructure and site work;

{and} (I) construction management, project management, or other administrative costs;andcosts; (J) costs associated with the demolition or remodeling of existing space;

and (J) costs associated with the demolition or remodeling of existing space;

(G)- garage7 or- storageH.B. space;

508 Enrolled Copy (G) garage or storage space;

- 8 - HB0508 compared with HB0508S03 (i) the governor;

(5)(5)(a) (a) Subject to Subsection (6), the board shall prioritize institution requests for funding for nondedicated projects based on:

and (ii)- procedures8 for- prioritizingEnrolled requests.Copy H.B.

(6)508 (a)(ii) Subjectprocedures tofor Subsectionprioritizing (6)(b),requests. and in accordance with Subsection (5), the board may annually prioritize:

(6)(a) Subject to Subsection (6)(b), and in accordance with Subsection (5), the board may annually prioritize:

- 9 - HB0508 compared with HB0508S03 (b) For each calendar year, the dollar amounts described in Subsection (6)(a) shall be adjusted by an amount equal to the percentage difference between:

(7)(7)(a) (a) A degree-granting institution may request operations and maintenance funds for a capital development project approved under this section.

53H-9-604.53H-9-604 (Effective 05/06/26).

{(EffectiveLegislative 05/06/26)}(Effective upon governor's approval)Legislative approval -- Capital development projects -- Prioritization.

(3)- In9 accordance- withH.B. Section 53H-9-603, a technical college shall[ ] :

508 Enrolled Copy (3) In accordance with Section 53H-9-603, a technical college shall[ ] :

- 10 - HB0508 compared with HB0508S03 (A) any land cost;

{and} (I) construction management, project management, or other administrative costs;andcosts; (J) costs associated with the demolition or remodeling of existing space;

and (J) costs associated with the demolition or remodeling of existing space;

(F)- residential10 space;- Enrolled Copy H.B.

508 (F) residential space;

and - 11 - HB0508 compared with HB0508S03 (c) submit the lists described in Subsection (4)(b), including the relevant proposals, to:

(6)(6)(a) (a) Subject to Subsection (7), the board shall prioritize funding requests for capital development projects described in this section based on:

and (ii)- procedures11 for- prioritizingH.B. funding requests for capital development projects described in this section.

(7)508 (a)Enrolled SubjectCopy to(ii) Subsectionprocedures (7)(b),for andprioritizing infunding accordancerequests withfor Subsectioncapital (6),development theprojects boarddescribed mayin annuallythis prioritize:section.

(7)(a) Subject to Subsection (7)(b), and in accordance with Subsection (6), the board may annually prioritize:

or - 12 - HB0508 compared with HB0508S03 (iii) one nondedicated project if the ongoing appropriation to the fund is at least $14,000,000.

(8)(8)(a) (a) A technical college may request operations and maintenance funds for a capital development project approved under this section.

63A-5b-102.63A-5b-102 (Effective 05/06/26).

(b)- identifying12 the- scaleEnrolled ofCopy theH.B. project and the type of facilities and the level of specialized functions that will be required;

508 (b) identifying the scale of the project and the type of facilities and the level of specialized functions that will be required;

- 13 - HB0508 compared with HB0508S03 (e) identifying objectives for the project, including such elements as image, efficiencies, functionality, cost, and schedule;

63A-5b-402.63A-5b-402 (Effective 05/06/26).

{(EffectiveCapital 05/06/26)}(Effective upon governor's approval)Capital development process -- Approval requirements.

[(2) An agency that requests an appropriation for a capital development project shall submit to- the13 division- forH.B. transmission to the Legislature a capital development project request and a feasibility study relating to the capital development project.] (2) (a) An agency may request an appropriation for {architectural } the programming {for } of a capital development project by submitting the request to the division for {transmission } transmittal to the Legislature.

-508 14Enrolled -Copy HB0508to comparedthe withdivision HB0508S03for (b)transmission Anto agencythe may,Legislature buta iscapital notdevelopment requiredproject to,request submitand a completed feasibility study inrelating connectionto withthe capital development project.] (2)(a) An agency may request an appropriation for the programming of a capital development project by submitting the request describedto inthe Subsectiondivision (2)(a).for transmittal to the Legislature.

(c)(b) An agency maymay, requestbut anis appropriationnot forrequired theto, designsubmit and construction of a capitalcompleted developmentfeasibility projectstudy byin submittingconnection thewith request and a {completedrequest architecturaldescribed }in programSubsection document(2)(a). to the division for {transmission } transmittal to the Legislature.

(3)(c) TheAn divisionagency may notrequest transmitan toappropriation for the Legislaturedesign aand requestconstruction describedof ina Subsectioncapital (2)(c)development unlessproject theby agencysubmitting {hasthe completedrequest architecturaland programming } submits a program document forto the capitaldivision developmentfor project.transmittal to the Legislature.

[(3)](3) (4) (a) The division shall,may innot accordancetransmit withto Titlethe 63G,Legislature Chaptera 3,request Utahdescribed Administrativein RulemakingSubsection Act,(2)(c) makeunless rulesthe thatagency establishsubmits standardsa andprogram requirementsdocument for[for athe capital development projectproject. request and{, if submitted, a} feasibility study.] :

[(3)] (4)(a) The division shall, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules that establish standards and requirements for[ a capital development project request and feasibility study.] :

(C) any private funding for the capital development project;[ {[} and] (D) the economic and community impacts of the capital development project[.] ;

[(4)] (5) The division shall verify the completion and accuracy of a feasibility study or {architectural } program document that an agency submits under Subsection (2) prior to submitting capital development project recommendations and priorities under Subsection (1).

Section- 8.14 - Enrolled Copy H.B.

508 Section 8.

63A-5b-501.63A-5b-501 (Effective 05/06/26).

- 15 - HB0508 compared with HB0508S03 (1) The director shall:

(2)(2)(a) (a) The director shall ensure that the five-year building plan required by Subsection (1)(b) includes:

(D) the estimated number of new agency full-time employees expected to be housed- in15 the- buildingH.B. or facility;

508 Enrolled Copy housed in the building or facility;

- 16 - HB0508 compared with HB0508S03 (F) the estimated lifespan of the building with associated costs for major component replacement over the life of the building;

63A-5b-502.63A-5b-502 (Effective 05/06/26).

[(1) As used in this section:] [(a) "Program document" means a final document that contains programming information.] [(b) "Programming" means services to define the scope and purpose of an anticipated project, and may include:] [(i) researching criteria applicable to the scope and purpose of an anticipated project;] [(ii) identifying the scale of the project and the type of facilities and the level of specialized functions that will be required;] [(iii) identifying and prioritizing values and goals that will impact the project, including institutional purposes, growth objectives, and cultural, technological, temporal, aesthetic, symbolic, economic, environmental, safety, sustainability, and other relevant criteria;] [(iv) evaluating functional efficiency, user comfort, building economics, environmental sustainability, and visual quality;] [(v) identifying objectives for the project, including such elements as image, efficiencies, functionality, cost, and schedule;] [(vi) identifying and evaluating the constraints that will have an impact on the project such as legal requirements, financial constraints, location, access, visibility, and building services;] [(vii) developing standards such as area allowances, space allocation, travel distances, and furniture and equipment requirements;] [(viii) establishing general space quality standards related to such elements as lighting levels, equipment performance, acoustical requirements, security, and aesthetics;] - 1716 - HB0508Enrolled comparedCopy withH.B. HB0508S03 [(ix) identifying required spaces;] [(x) establishing sizes and relationships;] [(xi) establishing space efficiency factors or the ratio of net square footage to gross square footage;

508 [(vii) developing standards such as area allowances, space allocation, travel distances, and furniture and equipment requirements;] [(viii) establishing general space quality standards related to such elements as lighting levels, equipment performance, acoustical requirements, security, and aesthetics;] [(ix) identifying required spaces;] [(x) establishing sizes and relationships;] [(xi) establishing space efficiency factors or the ratio of net square footage to gross square footage;

and (f)- regarding17 any- restrictionsH.B. that may be imposed on a person involved in programming from participating in the preparation of construction documents for a project that is the subject of the programming.

508 Enrolled Copy (f) regarding any restrictions that may be imposed on a person involved in programming from participating in the preparation of construction documents for a project that is the subject of the programming.

-63A-5b-602 18(Effective -05/06/26). HB0508 compared with HB0508S03 63A-5b-602.

{(EffectiveDesign 05/06/26)}(Effective upon governor's approval)Design criteria, standards, and procedures.

(a)- appropriate18 for- theEnrolled intendedCopy useH.B. and setting of the facility;

508 (a) appropriate for the intended use and setting of the facility;

-63A-5b-604 19(Effective -05/06/26). HB0508 compared with HB0508S03 63A-5b-604.

{(EffectiveConstruction, 05/06/26)}(Effective upon governor's approval)Construction, alteration, and repair of state facilities -- Powers of director -- Exceptions -- Expenditure of appropriations -- Compliance agency role.

(1)(1)(a) (a) Except as provided in this section and Section 63A-5b-1101, the director shall exercise direct supervision over the design and construction of all new facilities, and all alterations, repairs, and improvements to existing facilities, if the total project construction cost, regardless of the funding source, is greater than [$100,000] $1,500,000.

{(2)}(e) For purposes of Subsection (1)(b)(i), a state entity that is an institution of higher education described in Subsection 53H-1-102(1)(a) or (b) may exercise direct supervision if the total project construction cost is:

(i)- $30,000,00019 or- lessH.B. for the University of Utah;

508 Enrolled Copy (i) $30,000,000 or less for the University of Utah;

- 20 - HB0508 compared with HB0508S03 (iii) $2,500,000 or less for a university described in Subsections 53H-1-102(1)(a)(iii), (iv), (vi), or (vii);

(3)(3)(a) (a) Subject to Subsection (3)(b), the director may delegate control over design, construction, and other aspects of any project to entities of state government on a project-by-project basis.

(4)(4)(a) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the director may delegate control over design, construction, and all other aspects of any project to entities of state government on a categorical basis for projects within a particular dollar range and a particular project type.

- 21 - HB0508 compared with HB0508S03 (ii) provide for the revocation of the delegation on a categorical basis and for the division to assume control of the design, construction, or other aspect of a category- of20 delegated- projectsEnrolled orCopy aH.B. specific delegated project if the director considers revocation of the delegation and assumption of control to be necessary to protect the interests of the state;

508 category of delegated projects or a specific delegated project if the director considers revocation of the delegation and assumption of control to be necessary to protect the interests of the state;

(5)(5)(a) (a) A state entity to which project control is delegated under this section shall:

(6)(6)(a) (a) A project for the construction of a new facility and a project for alterations, repairs, and improvements to an existing facility are not subject to Subsection (1) if the project:

- 22 - HB0508 compared with HB0508S03 (b) Notwithstanding Subsection (6)(a)(iii), the This is the Place Foundation may request the director to administer the design and construction of a project within the boundaries of This is the Place State Park.

(7)- (a)21 The- roleH.B. of compliance agency under Title 15A, State Construction and Fire Codes Act, shall be filled by:

508 Enrolled Copy (7)(a) The role of compliance agency under Title 15A, State Construction and Fire Codes Act, shall be filled by:

(ii) the entity designated by the State Capitol Preservation Board, for a project under Subsection (6)(6)(a)(i); (a)(i);

(8)(8)(a) (a) The zoning authority of a local government under Title 10, Chapter 20, Municipal Land Use, Development, and Management Act, or Title 17, Chapter 79, County Land Use, Development, and Management Act, does not apply to the use of property that the state owns or any improvements constructed on property that the state owns, including improvements constructed by an entity other than a state entity.

-63A-5b-609 23(Effective -05/06/26). HB0508 compared with HB0508S03 63A-5b-609.

{(EffectiveExpenditure 05/06/26)}(Effective upon governor's approval)Expenditure of appropriated funds supervised by director -- Contingencies -- Disposition of project reserve funds -- Set aside for Utah Percent-for-Art Program.Program -- Distribution of cost savings.

(a)(a)(i) (i) supervise the expenditure of funds in providing plans, engineering specifications, sites, and construction of the buildings for which legislative appropriations- are22 made;- Enrolled Copy H.B.

508 appropriations are made;

(b)(b)(i) (i) expend the amount necessary from appropriations for planning, engineering, and architectural work;

and (ii)(ii)(A) (A) allocate amounts from appropriations necessary to cover expenditures previously made from the planning fund under Section 63A-5b-503 in the preparation of plans, engineering, and specifications;

(2)(2)(a) (a) The director shall base the amount budgeted for contingencies on a sliding scale percentage of the construction cost ranging from:

(c)(c)[(i)] - 24 - HB0508 compared with HB0508S03 [(i)] The Legislature shall annually review the percentage and the amount held in the statewide contingency reserve.

[(ii) The Legislature may{:}may {(A)} reappropriate to other building needs, including the cost of administering building projects, any amount from the statewide contingency reserve that is in excess of the reserve required to meet future contingency needs{[}needs.] .] (d) If any amount from the statewide contingency reserve is in excess of the amount required to meet future contingency needs, the Legislature:

or (iii) if the excess amount is attributable to an appropriation for the programming or design- and23 construction- ofH.B. a project described in Title 53H, Chapter 9, Part 5, General Capital Developments, or Title 53H, Chapter 9, Part 6, Technical College Leasing and Capital Development, shall, instead of taking the action described in Subsection (2)(d)(i) or (ii), transfer the excess amount, as applicable, to:

508 Enrolled Copy design and construction of a project described in Title 53H, Chapter 9, Part 5, General Capital Developments, or Title 53H, Chapter 9, Part 6, Technical College Leasing and Capital Development, shall, instead of taking the action described in Subsection (2)(d)(i) or (ii), transfer the excess amount, as applicable, to:

(3)(3)(a) (a)The {;director shall hold in a separate project reserve state appropriated funds accrued through bid savings and project residual.

or}(b) {(B)The transferdirector anyshall excessaccount amounts described in Subsection (2)(c)(ii)(A) to the General Fund or the Income Tax Fund, in proportion to the amounts originally appropriated from each fund for the projectsfunds toaccrued whichunder theSubsection excess(3)(a) amount is attributable.} {(iii) {The division shall, for each year of the five-year building plan, submit an annual request for appropriation to the Legislature.} {(3)} {(a)} The director shall hold in a separate projectaccounts reserveas statefollows: appropriated funds accrued through bid savings and project residual.

- 25 - HB0508 compared with HB0508S03 (b) The director shall account for the funds accrued under Subsection (3)(a) in separate accounts as follows:

(f) The Legislature shall annually review the amount held in the project reserve for possible reallocation by the Legislature to other building needs, including the cost of administering- building24 projects.- Enrolled Copy H.B.

508 administering building projects.

(5)(5)(a)(i) (a) - 26 - HB0508 compared with HB0508S03 (i) One percent of the amount appropriated for the construction of any new state building or facility may be appropriated and set aside for the Utah Percent-for-Art Program administered by the Division of Fine Arts under Title 9, Chapter 6, Part 4, Utah Percent-for-Art Act.

(6)(6)(a) (a) After funds are appropriated for a {capital development } non-dedicated project of an institution of higher education, {but before construction begins, } the director may approve a modification to the design of the project before final project closeout if:

(ii){(A)}(A) {the modification does not } result in a material reduction in the {scope } legislatively approved program scope, capacity, performance standards, durability, intended useful life, or intended use of the project{.}project; ;

(b) If a modification approved under Subsection (6)(a) results in a {reduction to the amount appropriated for } documented reduction in- the25 total- projectH.B. cost attributable to efficiencies in design refinement, engineering optimization, procurement strategy, material selection, scheduling, or constructionmethodology, the director shall {allocate } distribute the resulting cost savings as follows:

(i)508 anEnrolled amount,Copy asin determinedthe bytotal theproject director,cost notattributable to exceedefficiencies 50%in ofdesign therefinement, costengineering savings{,optimization, toprocurement thestrategy, institutionmaterial ofselection, higherscheduling, educationor forconstruction usemethodology, onthe adirector capitalshall improvementdistribute project;the resulting cost savings as follows:

and}(i) :an amount, as determined by the director, not to exceed 50% of the cost savings:

- 27 - HB0508 compared with HB0508S03 (A) for a degree-granting institution described in Subsection 53H-1-102(1)(a), to the institution's allocation within the Higher Education Capital Projects Fund;

(c) Cost savings allocated under Subsection (6)(b) are not bid savingssavings, , including bid savings that result from competitive procurement, or project residual under Subsection (3).

63G-6a-1103.63G-6a-1103 (Effective 05/06/26).

Bonds or security necessary when contract is awarded -- Waiver -- Action -- Attorney fees.fees -- Exception.

(2)(2)(a) (a) When a construction contract is awarded under this chapter, the procurement official responsible for carrying out the construction project may not require a contractor to whom a contract is awarded to obtain a bond of the types [referred to] described- in26 Subsection- (1)Enrolled fromCopy aH.B. specific insurance or surety company, producer, agent, or broker.

508 described in Subsection (1) from a specific insurance or surety company, producer, agent, or broker.

- 28 - HB0508 compared with HB0508S03 (3) Rules of a rulemaking authority may provide for waiver of the requirement of a bid, performance, or payment bond for circumstances in which the procurement official considers any or all of the bonds to be unnecessary to protect the procurement unit.

(4)(4)(a) (a) [A] If a payment bond is required to be delivered under Subsection (1)(b) or (5)(c), a person has a right of action on [a] the payment bond under this section for any unpaid amount due to the person if:

(5)(5)(a) (a) As used in this Subsection (5), "division" means the Division of Facilities Construction and Management created in Section 63A-5b-301.

Section- 14.27 - H.B.

Effective508 date.Enrolled Copy Section 14.

- 29 - HB0508 compared with HB0508S03 Effective Date.

This bill takes effecteffect: {on May 6, 2026.} :

3-1-26 7:00 PM - 3028 -