63A-5b-609.
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/ut/title-63a/chapter-5b/63a-5b-609·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Effective 5/6/2026
63A-5b-609. Expenditure of appropriated funds supervised by director -- Contingencies -- Disposition of project reserve funds -- Set aside for Utah Percent-for-Art Program -- Distribution of cost savings.
(1)The director shall:
(i)supervise the expenditure of funds in providing plans, engineering specifications, sites, and construction of the buildings for which legislative appropriations are made; and
(ii)specifically allocate money appropriated if more than one project is included in any single appropriation without legislative directive;
(i)expend the amount necessary from appropriations for planning, engineering, and architectural work; and
(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; and
(B)return the amounts described in Subsection (1)(b)(ii)(A) to the planning fund; and
(c)hold in a statewide contingency reserve the amount budgeted for contingencies:
(i)in appropriations for the construction or remodeling of facilities; and
(ii)that are over and above all amounts obligated by contract for planning, engineering, architectural work, sites, and construction contracts.
(a)The director shall base the amount budgeted for contingencies on a sliding scale percentage of the construction cost ranging from:
(i)4.5% to 6.5% for new construction; and
(ii)6% to 9.5% for remodeling projects.
(b)The director shall hold the statewide contingency funds to cover:
(i)costs of change orders; and
(ii)unforeseen, necessary costs beyond those specifically budgeted for the project.
(c)The Legislature shall annually review the percentage and the amount held in the statewide contingency reserve.
(d)If any amount from the statewide contingency reserve is in excess of the amount required to meet future contingency needs, the Legislature:
(i)may reappropriate the excess amount to other building needs, including the cost of administering building projects;
(ii)may transfer the excess amount to the General Fund or the Income Tax Fund, in proportion to the amounts originally appropriated from each fund for the projects to which the excess amount is attributable; or
(iii)if the excess amount is attributable to an appropriation for the programming or 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:
(A)the Higher Education Capital Projects Fund, created in Section 53H-9-502 ; or
(B)the Technical Colleges Capital Projects Fund, created in Section 53H-9-605 .
(a)The director shall hold in a separate project reserve state appropriated funds accrued through bid savings and project residual.
(b)The director shall account for the funds accrued under Subsection (3)(a) in separate accounts as follows:
(i)bid savings and project residual from a capital improvement project, as defined in Section 63A-5b-401 ; and
(ii)bid savings and project residual from a capital development project, as defined in Section 63A-5b-401 .
(c)The director may use project reserve funds in the account described in Subsection (3)(b)(i) for a capital improvement project:
(i)approved under Section 63A-5b-405 ; and
(ii)for which funds are not allocated.
(d)The director may:
(i)authorize the use of project reserve funds in the accounts described in Subsection (3)(b) for the award of contracts in excess of a project's construction budget if the use is required to meet the intent of the project;
(ii)transfer money from the account described in Subsection (3)(b)(i) to the account described in Subsection (3)(b)(ii) if a capital development project has exceeded its construction budget; and
(iii)use project reserve funds for any emergency capital improvement project, whether or not the emergency capital improvement project is related to a project that has exceeded its construction budget.
(e)The director shall report to the Office of the Legislative Fiscal Analyst within 30 days:
(i)an expenditure under Subsection (3)(c) ; or
(ii)a transfer under Subsection (3)(d) .
(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 building projects.
(4)If any part of the appropriation for a building project, other than the part set aside for the Utah Percent-for-Art Program under Title 9, Chapter 6, Part 4, Utah Percent-for-Art Act, remains unencumbered after the award of construction and professional service contracts and establishing a reserve for fixed and moveable equipment, the balance of the appropriation is dedicated to the project reserve and does not revert to the General Fund.
(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.
(ii)The total amount appropriated and set aside under Subsection (5)(a)(i) may not exceed:
(A)$200,000, if the new state building or facility is not located in a county of the first class; and
(B)$250,000, if the new state building or facility is located in a county of the first class.
(b)The director shall release to the Division of Fine Arts any funds included in an appropriation to the division that are designated by the Legislature for the Utah Percent-for-Art Program.
(c)Funds from appropriations for a state building or facility may not be set aside:
(i)if any part of the funds is derived from the issuance of bonds; and
(ii)to the extent the set aside of funds would jeopardize the federal income tax exemption otherwise allowed for interest paid on bonds.
(a)After funds are appropriated for a non-dedicated project of an institution of higher education, the director may approve a modification to the design of the project before final project closeout if:
(i)the modification is requested by the institution of higher education; and
(ii)the modification does not:
(A)result in a material reduction in the legislatively approved program scope, capacity, performance standards, durability, intended useful life, or intended use of the project; or
(B)eliminate or defer legislatively approved program elements, including through downsizing or removal of project components.
(b)If a modification approved under Subsection (6)(a) results in a documented reduction in the total project cost attributable to efficiencies in design refinement, engineering optimization, procurement strategy, material selection, scheduling, or construction methodology, the director shall distribute the resulting cost savings as follows:
(i)an amount, as determined by the director, not to exceed 50% of the cost savings:
(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; or
(B)for a technical college described in Subsection 53H-1-102(1)(b) , to the technical college for use on a capital improvement project; and
(ii)the remaining amount to the state, to be deposited into the General Fund or the Income Tax Fund in proportion to the amounts originally appropriated from each fund for the project.
(c)Cost savings allocated under Subsection (6)(b) are not bid savings, including bid savings that result from competitive procurement, or project residual under Subsection
(3).
Amended by Chapter 473 , 2026 General Session