In 2005, under the initiation of Governor Jon M. Huntsman, Jr., the Business and Economic Development programs and the State Office of Tourism within the Department of Community and Economic Development (see DCED) were moved under the Governor's Office. The remaining divisions were reconstituted as the Dept. of Community and Culture with the responsibility to coordinate state and local programs related to community and cultural development.

In 2011 H.B. 280 sponsored by Rep. Wayne A. Harper established the Advisory Council on Optimizing and Streamlining State Government to make recommendations on the consolidation of state agencies to achieve efficiencies in state government. The Council was to consider the consolidation of the departments of state government to reduce administrative costs associated with running multiple departments of state government; streamline services of state government and provide a report due to the Governor and the Legislature's Government Operations Interim Committee on or before October 19, 2011. The Council considered 80 proposals and delivered 25 of these as recommendations in their report. The second of these, in prioritized order, was to relocate the Division of Housing and Community Development from the Department of Community and Culture "because certain HCD programs are focused on individuals and certain programs are focused on local governments."

In 2011 H.B. 287 sponsored by Rep. Wayne A. Harper was passed with the intent to "distribute and transition certain Department of Community and Culture powers, duties, functions, and programs to other governmental departments and agencies, specifically moving out the Utah Science Center Authority, Heber Valley Historic Railroad, Utah State Railroad Museum Authority, and Bond Volume Cap Allocation program; and asking for an Interim study report." The Executive Director of the Department of Community and Culture was asked by H.B. 287 to conduct a thorough assessment to determine what internal restructuring or assignment of functions to other entities could improve efficiency, reduce costs, and improve customer service. The report, which would consider retaining or moving the divisions of Housing and Community Development, Arts and Museums, State History, and State Library would be due to the Governor in August, the Legislature's Interim Committee in October, and the Legislative Management Committee in December 2011.

The Report to the Governor, presented by the DCC Executive Director, 19 October 2011, to the Workforce Services and Community and Economic Development Interim Committee, suggested three possible "scenarios" driven by customer and stakeholder input as well as internal analysis. The third of the recommendations was to create a "Cultural Commission" in which DCC would be exclusively focused on cultural programs. Over time funding would come from an endowment ("cultural trust") and its administration would be by a "Cultural Commission." The report also suggested that, "the State Archives mission of preservation aligns well with State Library and State History in DCC." Two sub-scenarios were offered that either Digital Library Services (state publications) would go to State Archives or that State Archives would go the State Library.

In early 2012, the Department of Community and Culture moved from leased space at 324 S. State Street to the Rio Grande Depot. Governor Herbert announced on December 6, 2011 that transferring Housing and Community Development to Workforce Services presents "a unique opportunity to clearly focus one state agency on protecting and promoting Utah's heritage, culture, and arts."

In response to the recommendations of the report prepared by the DCC Executive Directors Office, H.B. 139 (2012) changed the name to the Department of Heritage and Arts and moved the Division of Housing and Community Development to the Department of Workforce Services and renamed it the Housing and Community Development Division. Governor Herbert signed the bill on March ___, 2012 and it takes effect on July 1, 2012. The legislation provides the Executive Director with authority to organize the department in any fashion considered appropriate, unless otherwise expressly provided by statute; and to consolidate personnel and service functions to effectuate efficiency and economy. The mission of the new department is changed to "be responsible for preserving and promoting the heritage of the state, the arts in the state, and cultural development within the state; perform heritage, arts, and cultural development planning for the state; and coordinate the program plans of the various divisions within the department; administer and coordinate all state or federal grant programs which are, or become, available for heritage, arts, and cultural development" (U.C.A. 9-1-201 as amended).

In 2014, S.B. 31 "State Agency Reporting Amendments Act" sponsored by Aaron Osmond and Rebecca P. Edwards amended Utah Code 9-1-208. The Department of Heritage and Arts shall prepare and submit to the governor and the Legislature, by October 1 of each year, an annual written report of the operations, activities, programs, and services of the department, including its divisions, offices, boards, commissions, councils, and committees, for the preceding fiscal year. (2) For each operation, activity, program, or service provided by the department, the annual report shall include: (a) a description of the operation, activity, program, or service; (b) data selected and used by the department to measure progress, performance, and scope of the operation, activity, program, or service, including summary data; (c) budget data, including the amount and source of funding, expenses, and allocation of full-time employees for the operation, activity, program, or service; (d) historical data from previous years for comparison with data reported under Subsections (2)(b) and (c); (e) goals, challenges, and achievements related to the operation, activity, program, or service; (f) relevant federal and state statutory references and requirements; (g) contact information of officials knowledgeable and responsible for each operation, activity, program, or service; and (h) other information determined by the department that: (i) may be needed, useful, or of historical significance; or (ii) promotes accountability and transparency for each operation, activity, program, or service with the public and elected officials. (3) The annual report shall be designed to provide clear, accurate, and accessible information to the public, the governor, and the Legislature. (4) The department shall: (a) submit the annual report in accordance with Section 68-3-14; and (b) make the annual report, and previous annual reports, accessible to the public by placing a link to the reports on the department's website.

On May 5, 2021, the Department of Heritage and Arts was renamed the Department of Cultural & Community Engagement per HB0313:  https://le.utah.gov/~2021/bills/hbillint/HB0313.htm

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