BILL REQ. #: H-4113.2
State of Washington | 62nd Legislature | 2012 Regular Session |
READ FIRST TIME 02/03/12.
AN ACT Relating to surplus property; and amending RCW 43.88.030, 43.82.010, and 43.82.150.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 43.88.030 and 2006 c 334 s 43 are each amended to read
as follows:
(1) The director of financial management shall provide all agencies
with a complete set of instructions for submitting biennial budget
requests to the director at least three months before agency budget
documents are due into the office of financial management. The budget
document or documents shall consist of the governor's budget message
which shall be explanatory of the budget and shall contain an outline
of the proposed financial policies of the state for the ensuing fiscal
period, as well as an outline of the proposed six-year financial
policies where applicable, and shall describe in connection therewith
the important features of the budget. The biennial budget document or
documents shall also describe performance indicators that demonstrate
measurable progress towards priority results. The message shall set
forth the reasons for salient changes from the previous fiscal period
in expenditure and revenue items and shall explain any major changes in
financial policy. Attached to the budget message shall be such
supporting schedules, exhibits and other explanatory material in
respect to both current operations and capital improvements as the
governor shall deem to be useful to the legislature. The budget
document or documents shall set forth a proposal for expenditures in
the ensuing fiscal period, or six-year period where applicable, based
upon the estimated revenues and caseloads as approved by the economic
and revenue forecast council and caseload forecast council or upon the
estimated revenues and caseloads of the office of financial management
for those funds, accounts, sources, and programs for which the forecast
councils do not prepare an official forecast. Revenues shall be
estimated for such fiscal period from the source and at the rates
existing by law at the time of submission of the budget document,
including the supplemental budgets submitted in the even-numbered years
of a biennium. However, the estimated revenues and caseloads for use
in the governor's budget document may be adjusted to reflect budgetary
revenue transfers and revenue and caseload estimates dependent upon
budgetary assumptions of enrollments, workloads, and caseloads. All
adjustments to the approved estimated revenues and caseloads must be
set forth in the budget document. The governor may additionally
submit, as an appendix to each supplemental, biennial, or six-year
agency budget or to the budget document or documents, a proposal for
expenditures in the ensuing fiscal period from revenue sources derived
from proposed changes in existing statutes.
The budget document or documents shall also contain:
(a) Revenues classified by fund and source for the immediately past
fiscal period, those received or anticipated for the current fiscal
period, and those anticipated for the ensuing biennium;
(b) The undesignated fund balance or deficit, by fund;
(c) Such additional information dealing with expenditures,
revenues, workload, performance, and personnel as the legislature may
direct by law or concurrent resolution;
(d) Such additional information dealing with revenues and
expenditures as the governor shall deem pertinent and useful to the
legislature;
(e) Tabulations showing expenditures classified by fund, function,
and agency;
(f) The expenditures that include nonbudgeted, nonappropriated
accounts outside the state treasury;
(g) Identification of all proposed direct expenditures to implement
the Puget Sound water quality plan under chapter 90.71 RCW, shown by
agency and in total; and
(h) Tabulations showing each postretirement adjustment by
retirement system established after fiscal year 1991, to include, but
not be limited to, estimated total payments made to the end of the
previous biennial period, estimated payments for the present biennium,
and estimated payments for the ensuing biennium.
(2) The budget document or documents shall include detailed
estimates of all anticipated revenues applicable to proposed operating
or capital expenditures and shall also include all proposed operating
or capital expenditures. The total of beginning undesignated fund
balance and estimated revenues less working capital and other reserves
shall equal or exceed the total of proposed applicable expenditures.
The budget document or documents shall further include:
(a) Interest, amortization and redemption charges on the state
debt;
(b) Payments of all reliefs, judgments, and claims;
(c) Other statutory expenditures;
(d) Expenditures incident to the operation for each agency;
(e) Revenues derived from agency operations;
(f) Expenditures and revenues shall be given in comparative form
showing those incurred or received for the immediately past fiscal
period and those anticipated for the current biennium and next ensuing
biennium;
(g) A showing and explanation of amounts of general fund and other
funds obligations for debt service and any transfers of moneys that
otherwise would have been available for appropriation;
(h) Common school expenditures on a fiscal-year basis;
(i) A showing, by agency, of the value and purpose of financing
contracts for the lease/purchase or acquisition of personal or real
property for the current and ensuing fiscal periods; and
(j) A showing and explanation of anticipated amounts of general
fund and other funds required to amortize the unfunded actuarial
accrued liability of the retirement system specified under chapter
41.45 RCW, and the contributions to meet such amortization, stated in
total dollars and as a level percentage of total compensation.
(3) The governor's operating budget document or documents shall
reflect the statewide priorities as required by RCW 43.88.090.
(4) The governor's operating budget document or documents shall
identify activities that are not addressing the statewide priorities.
(5) A separate capital budget document or schedule shall be
submitted that will contain the following:
(a) A statement setting forth a long-range facilities plan for the
state that identifies and includes the highest priority needs within
affordable spending levels;
(b) A capital program consisting of proposed capital projects for
the next biennium and the two biennia succeeding the next biennium
consistent with the long-range facilities plan. Insomuch as is
practical, and recognizing emergent needs, the capital program shall
reflect the priorities, projects, and spending levels proposed in
previously submitted capital budget documents in order to provide a
reliable long-range planning tool for the legislature and state
agencies;
(c) A capital plan consisting of proposed capital spending for at
least four biennia succeeding the next biennium;
(d) A strategic plan for reducing backlogs of maintenance and
repair projects. The plan shall include a prioritized list of specific
facility deficiencies and capital projects to address the deficiencies
for each agency, cost estimates for each project, a schedule for
completing projects over a reasonable period of time, and
identification of normal maintenance activities to reduce future
backlogs;
(e) A statement of the reason or purpose for a project;
(f) Verification that a project is consistent with the provisions
set forth in chapter 36.70A RCW;
(g) A statement about the proposed site, size, and estimated life
of the project, if applicable;
(h) Estimated total project cost;
(i) For major projects valued over five million dollars, estimated
costs for the following project components: Acquisition, consultant
services, construction, equipment, project management, and other costs
included as part of the project. Project component costs shall be
displayed in a standard format defined by the office of financial
management to allow comparisons between projects;
(j) Estimated total project cost for each phase of the project as
defined by the office of financial management;
(k) Estimated ensuing biennium costs;
(l) Estimated costs beyond the ensuing biennium;
(m) Estimated construction start and completion dates;
(n) Source and type of funds proposed;
(o) Estimated ongoing operating budget costs or savings resulting
from the project, including staffing and maintenance costs;
(p) For any capital appropriation requested for a state agency for
the acquisition of land or the capital improvement of land in which the
primary purpose of the acquisition or improvement is recreation or
wildlife habitat conservation, the capital budget document, or an
omnibus list of recreation and habitat acquisitions provided with the
governor's budget document, shall identify the projected costs of
operation and maintenance for at least the two biennia succeeding the
next biennium. Omnibus lists of habitat and recreation land
acquisitions shall include individual project cost estimates for
operation and maintenance as well as a total for all state projects
included in the list. The document shall identify the source of funds
from which the operation and maintenance costs are proposed to be
funded;
(q) Such other information bearing upon capital projects as the
governor deems to be useful;
(r) Standard terms, including a standard and uniform definition of
normal maintenance, for all capital projects;
(s) A list of surplus properties including the identification of
the property, agency ownership, approximate value, and original fund
source used to acquire or construct the property when the governor's
biennial capital budget proposal is submitted to the legislature; and
(t) Such other information as the legislature may direct by law or
concurrent resolution.
For purposes of this subsection (5), the term "capital project"
shall be defined subsequent to the analysis, findings, and
recommendations of a joint committee comprised of representatives from
the house capital appropriations committee, senate ways and means
committee, legislative evaluation and accountability program committee,
and office of financial management.
(6) No change affecting the comparability of agency or program
information relating to expenditures, revenues, workload, performance
and personnel shall be made in the format of any budget document or
report presented to the legislature under this section or RCW
43.88.160(1) relative to the format of the budget document or report
which was presented to the previous regular session of the legislature
during an odd-numbered year without prior legislative concurrence.
Prior legislative concurrence shall consist of (a) a favorable majority
vote on the proposal by the standing committees on ways and means of
both houses if the legislature is in session or (b) a favorable
majority vote on the proposal by members of the legislative evaluation
and accountability program committee if the legislature is not in
session.
Sec. 2 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.
Sec. 3 RCW 43.82.150 and 2007 c 506 s 7 are each amended to read
as follows:
(1) The office of financial management shall develop and maintain
an inventory system to account for all owned or leased facilities
utilized by state government, or surplus properties. At a minimum, the
inventory system must include the facility owner, location, type,
condition, use, and size of each facility. In addition, for owned
facilities, the inventory system must include the date and cost of
original construction and the cost of any major remodeling or
renovation. The inventory must be updated by June 30th of each year.
The office of financial management shall publish a report summarizing
information contained in the inventory system for each agency by
October 1st of each year, beginning in 2010 and shall submit this
report to the appropriate fiscal committees of the legislature.
(2) All agencies, departments, boards, commissions, and
institutions of the state of Washington shall provide to the office of
financial management a complete inventory of owned and leased
facilities ((by September 1, 2010)), and a list of properties that are
identified to be surplus. The inventory and surplus must be updated
and submitted to the office of financial management by September 1st of
each subsequent year. The inventories and surpluses required under
this subsection must be submitted in a standard format prescribed by
the office of financial management.
(3) ((The office of financial management shall report to the
legislature by September 1, 2008, on recommended improvements to the
inventory system, redevelopment costs, and an implementation schedule
for the redevelopment of the inventory system. The report shall also
make recommendations on other improvements that will improve
accountability and assist in the evaluation of budget requests and
facility management by the governor and the legislature.)) For the purposes of this section, "facilities" means
buildings and other structures with walls and a roof. "Facilities"
does not mean roads, bridges, parking areas, utility systems, and other
similar improvements to real property.
(4)