Utah Code Ann. § 63A-5b-604 – Construction, alteration, and repair of state facilities -- Powers of director -- Exceptions -- Expenditure of appropriations -- Compliance agency role.

(1)
1. (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 $1,500,000.
2. (b) Subject to Subsections (1)(c) and (d), a state entity may exercise direct supervision over the design and construction of all new facilities, and over all alterations, repairs, and improvements to existing facilities, if:
  1. (i) except as provided in Subsection (1)(e), the total project construction cost, regardless of the funding sources, is $1,500,000 or less; and
  2. (ii) the state entity assures compliance with the division's forms and contracts and the division's design, construction, alteration, repair, improvement, and code inspection standards.
3. (c) Before exercising direct supervision under Subsection (1)(b), a state entity shall enter into a memorandum of understanding with the division, in a form developed by the division, that addresses:
  1. (i) the state entity's compliance with Subsection (1)(b)(ii); and
  2. (ii) other matters the division considers necessary and appropriate to facilitate the state entity's supervision of the project, including provisions governing the use of capital improvement funds to ensure expenditures are consistent with legislative appropriations and the five-year building plan.
4. (d) The director may assume direct supervision over the design and construction of a project described in Subsection (1)(b) if the division determines, through inspection or review conducted in accordance with the division's design, construction, or code inspection standards, that the work is deficient, substandard, or noncompliant.
5. (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:
  1. (i) $30,000,000 or less for the University of Utah;
  2. (ii) $10,000,000 or less for Utah State University;
  3. (iii) $2,500,000 or less for a university described in Subsections 53H-1-102(1)(a)(iii), (iv), (vi), or (vii); or
  4. (iv) $1,000,000 or less for:
    1. (A) Snow College;
    2. (B) Salt Lake Community College; or
    3. (C) a technical college described in Subsection 53H-1-102(1)(b).
6. (f) A state entity that exercises direct supervision under Subsection (1)(b) may not access, for the supervised project, the division's statewide contingency reserve or project reserve authorized in Section 63A-5b-609.
(2) The director may enter into a capital improvement partnering agreement with an institution of higher education that permits the institution of higher education to exercise direct supervision for a capital improvement project with oversight from the division.
(3)
1. (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.
2. (b) With respect to a delegation of control under Subsection (3)(a), the director may:
  1. (i) impose terms and conditions on the delegation that the director considers necessary or advisable to protect the interests of the state; and
  2. (ii) revoke the delegation and assume control of the design, construction, or other aspect of a delegated project if the director considers the revocation and assumption of control to be necessary to:
    1. (A) address a circumstance described in Subsection (1)(d); or
    2. (B) otherwise protect the interests of the state.
(4)
1. (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.
2. (b) Rules adopted by the director under Subsection (4)(a) may:
  1. (i) impose the terms and conditions on categorical delegation that the director considers necessary or advisable to protect the interests of the state;
  2. (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 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;
  3. (iii) require that a categorical delegation be renewed by the director on an annual basis; and
  4. (iv) require the division's oversight of delegated projects.
(5)
1. (a) A state entity to which project control is delegated under this section shall:
  1. (i) assume fiduciary control over project finances;
  2. (ii) assume all responsibility for project budgets and expenditures; and
  3. (iii) receive all funds appropriated for the project, including any contingency funds contained in the appropriated project budget.
2. (b) Notwithstanding a delegation of project control under this section, a state entity to which control is delegated is required to comply with the division's codes and guidelines for design and construction.
3. (c) A state entity to which project control is delegated under this section may not access, for the delegated project, the division's statewide contingency reserve and project reserve authorized in Section 63A-5b-609.
4. (d) For a facility that will be owned, operated, maintained, and repaired by an entity that is not an agency and that is located on property that the state owns or leases as a tenant, the director may authorize the facility's owner to administer the design and construction of the project relating to that facility.
(6)
1. (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:
  1. (i) occurs on property under the jurisdiction of the State Capitol Preservation Board;
  2. (ii) is within a designated research park at the University of Utah or Utah State University;
  3. (iii) occurs within the boundaries of This is the Place State Park and is administered by This is the Place Foundation; or
  4. (iv) is for the creation and installation of art under Title 9, Chapter 6, Part 4, Utah Percent-for-Art Act.
2. (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)
1. (a) The role of compliance agency under Title 15A, State Construction and Fire Codes Act, shall be filled by:
  1. (i) the director, for a project administered by the division;
  2. (ii) the entity designated by the State Capitol Preservation Board, for a project under Subsection (6)(a)(i);
  3. (iii) the local government, for a project that is:
    1. (A) not subject to the division's administration under Subsection (6)(a)(ii); or
    2. (B) administered by This is the Place Foundation under Subsection (6)(a)(iii);
  4. (iv) the compliance agency designated by the director, for a project under Subsection (2), (3), (4), or (5)(d); and
  5. (v) for the installation of art under Subsection (6)(a)(iv), the entity that is acting as the compliance officer for the balance of the project for which the art is being installed.
2. (b) A local government acting as the compliance agency under Subsection (7)(a)(iii) may:
  1. (i) only review plans and inspect construction to enforce the state construction code or an approved code under Title 15A, State Construction and Fire Codes Act; and
  2. (ii) charge a building permit fee of no more than the amount the local government could have charged if the land upon which the improvements are located were not owned by the state.
(8)
1. (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.
2. (b) A state entity controlling the use of property that the state owns shall consider any input received from a local government in determining how the property is to be used.

Amended by Chapter 473, 2026 General Session