2722-S AMH DUNS MASS 161
SHB 2722 - H AMD 1119
By Representative DunsheeADOPTED 02/13/2012
Strike everything after the enacting clause and insert the following:
"Sec. 1. RCW 43.82.010 and 2007 c 506 s 8 are each amended to read as follows:
(1) The director of ((general administration)) enterprise
services, on behalf of the agency involved and after consultation with the
office of financial management, shall purchase, lease, lease purchase, rent, or
otherwise acquire all real estate, improved or unimproved, as may be required
by elected state officials, institutions, departments, commissions, boards, and
other state agencies, or federal agencies where joint state and federal
activities are undertaken and may grant easements and transfer, exchange, sell,
lease, or sublease all or part of any surplus real estate for those state
agencies which do not otherwise have the specific authority to dispose of real
estate. This section does not transfer financial liability for the acquired
property to the department of ((general administration)) enterprise
services.
(2) Except for real estate occupied by federal agencies,
the director shall determine the location, size, and design of any real estate
or improvements thereon acquired or held pursuant to subsection (1) of this
section. Facilities acquired or held pursuant to this chapter, and any
improvements thereon, shall conform to standards adopted by the director and
approved by the office of financial management governing facility efficiency
unless a specific exemption from such standards is provided by the director of
((general administration)) enterprise services. The director of
((general administration)) enterprise services shall report to
the office of financial management and the appropriate committees of the
legislature annually on any exemptions granted pursuant to this subsection.
(3) The director of ((general administration)) enterprise
services may fix the terms and conditions of each lease entered into under
this chapter, except that no lease shall extend greater than twenty years in
duration. The director of ((general administration)) enterprise
services may enter into a long-term lease greater than ten years in duration
upon a determination by the director of the office of financial management that
the long-term lease provides a more favorable rate than would otherwise be
available, it appears to a substantial certainty that the facility is necessary
for use by the state for the full length of the lease term, and the facility
meets the standards adopted pursuant to subsection (2) of this section. The
director of ((general administration)) enterprise services may
enter into a long- term lease greater than ten years in duration if an analysis
shows that the life-cycle cost of leasing the facility is less than the
life-cycle cost of purchasing or constructing a facility in lieu of leasing the
facility.
(4) Except as permitted under chapter 39.94 RCW, no
lease for or on behalf of any state agency may be used or referred to as
collateral or security for the payment of securities offered for sale through a
public offering. Except as permitted under chapter 39.94 RCW, no lease for or
on behalf of any state agency may be used or referred to as collateral or
security for the payment of securities offered for sale through a private
placement without the prior written approval of the state treasurer. However,
this limitation shall not prevent a lessor from assigning or encumbering its
interest in a lease as security for the repayment of a promissory note provided
that the transaction would otherwise be an exempt transaction under RCW
21.20.320. The state treasurer shall adopt rules that establish the criteria
under which any such approval may be granted. In establishing such criteria
the state treasurer shall give primary consideration to the protection of the
state's credit rating and the integrity of the state's debt management
program. If it appears to the state treasurer that any lease has been used or
referred to in violation of this subsection or rules adopted under this
subsection, then he or she may recommend that the governor cause such lease to
be terminated. The department of ((general administration)) enterprise
services shall promptly notify the state treasurer whenever it may appear
to the department that any lease has been used or referred to in violation of
this subsection or rules adopted under this subsection.
(5) It is the policy of the state to encourage the colocation and consolidation of state services into single or adjacent facilities, whenever appropriate, to improve public service delivery, minimize duplication of facilities, increase efficiency of operations, and promote sound growth management planning.
(6) The director of ((general administration)) enterprise
services shall provide coordinated long-range planning services to identify
and evaluate opportunities for colocating and consolidating state facilities.
Upon the renewal of any lease, the inception of a new lease, or the purchase of
a facility, the director of ((general administration)) enterprise
services shall determine whether an opportunity exists for colocating the
agency or agencies in a single facility with other agencies located in the same
geographic area. If a colocation opportunity exists, the director of ((general
administration)) enterprise services shall consult with the affected
state agencies and the office of financial management to evaluate the impact
colocation would have on the cost and delivery of agency programs, including
whether program delivery would be enhanced due to the centralization of
services. The director of ((general administration)) enterprise
services, in consultation with the office of financial management, shall
develop procedures for implementing colocation and consolidation of state
facilities.
(7) The director of ((general administration)) enterprise
services is authorized to purchase, lease, rent, or otherwise acquire
improved or unimproved real estate as owner or lessee and to lease or sublet
all or a part of such real estate to state or federal agencies. The director
of ((general administration)) enterprise services shall charge
each using agency its proportionate rental which shall include an amount
sufficient to pay all costs, including, but not limited to, those for
utilities, janitorial and accounting services, and sufficient to provide for
contingencies; which shall not exceed five percent of the average annual
rental, to meet unforeseen expenses incident to management of the real estate.
(8) If the director of ((general administration))
enterprise services determines that it is necessary or advisable to
undertake any work, construction, alteration, repair, or improvement on any
real estate acquired pursuant to subsection (1) or (7) of this section, the
director shall cause plans and specifications thereof and an estimate of the
cost of such work to be made and filed in his or her office and the state
agency benefiting thereby is hereby authorized to pay for such work out of any
available funds: PROVIDED, That the cost of executing such work shall not
exceed the sum of twenty-five thousand dollars. Work, construction,
alteration, repair, or improvement in excess of twenty-five thousand dollars,
other than that done by the owner of the property if other than the state,
shall be performed in accordance with the public works law of this state.
(9) In order to obtain maximum utilization of space, the
director of ((general administration)) enterprise services shall
make space utilization studies, and shall establish standards for use of space
by state agencies. Such studies shall include the identification of
opportunities for colocation and consolidation of state agency office and
support facilities.
(10) The director of ((general administration)) enterprise
services may construct new buildings on, or improve existing facilities,
and furnish and equip, all real estate under his or her management. Prior to
the construction of new buildings or major improvements to existing facilities
or acquisition of facilities using a lease purchase contract, the director of
((general administration)) enterprise services shall conduct an
evaluation of the facility design and budget using life-cycle cost analysis,
value-engineering, and other techniques to maximize the long-term effectiveness
and efficiency of the facility or improvement.
(11) All conveyances and contracts to purchase, lease,
rent, transfer, exchange, or sell real estate and to grant and accept easements
shall be approved as to form by the attorney general, signed by the director of
((general administration)) enterprise services or the director's
designee, and recorded with the county auditor of the county in which the
property is located.
(12) The director of ((general administration)) enterprise
services may delegate any or all of the functions specified in this section
to any agency upon such terms and conditions as the director deems advisable.
By January 1st of each year, beginning January 1, 2008, the department shall
submit an annual report to the office of financial management and the
appropriate committees of the legislature on all delegated leases.
(13) This section does not apply to the acquisition of real estate by:
(a) The state college and universities for research or experimental purposes;
(b) The state liquor control board for liquor stores and warehouses; and
(c) The department of natural resources, the department of fish and wildlife, the department of transportation, and the state parks and recreation commission for purposes other than the leasing of offices, warehouses, and real estate for similar purposes.
(14) Notwithstanding any provision in this chapter to
the contrary, the department of ((general administration)) enterprise
services may negotiate ground leases for public lands on which property is
to be acquired under a financing contract pursuant to chapter 39.94 RCW under
terms approved by the state finance committee.
(15) The department of ((general administration))
enterprise services shall report annually to the office of financial management
and the appropriate fiscal committees of the legislature on facility leases
executed for all state agencies for the preceding year, lease terms, and annual
lease costs. The report must include leases executed under RCW 43.82.045 and
subsection (12) of this section.
(16) The department of enterprise services shall report the status of any surplus property that is actively being listed for sale including the date the property was listed and listing price, and any surplus property that has sold including the approximate value, sale price, and fund into which the proceeds will be deposited to the office of financial management and the appropriate fiscal committees of the legislature by January 1st of odd-numbered years. At least nine months prior to being actively listed for sale, the department shall notify the fiscal committees of the legislature and the office of financial management."
Correct the title.
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EFFECT: Removes requirement that the governor's capital budget include a list of surplus property. Removes the requirement that state agencies report surplus property to the Office of Financial Management. Requires the Department of Enterprise Services to report to the Legislature any property that will be actively listed for sale at least nine months prior to listing.
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