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S1340aa....................................................by STATE AFFAIRS
STATE FACILITIES - LEASING - Amends and adds to existing law relating to
the leasing of facilities for state use, to define facilities, to provide
for authorization for state facilities by concurrent resolution and to
provide for the creation of an inventory and program of evaluation of state
facility leases.
01/27 Senate intro - 1st rdg - to printing
01/28 Rpt prt - to St Aff
02/05 Rpt out - rec d/p - to 2nd rdg
02/06 2nd rdg - to 3rd rdg
02/11 Rpt out - to 14th Ord
02/19 Rpt out amen - to engros
02/20 Rpt engros - 1st rdg - to 2nd rdg as amen
02/23 2nd rdg - to 3rd rdg as amen
02/26 3rd rdg as amen - PASSED - 30-4-1
AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry, Richardson,
Riggs, Risch, Sandy, Sorensen, Sweeney, Thorne, Twiggs, Wheeler
NAYS--Hawkins, Schroeder, Stennett, Whitworth
Absent and excused--Branch
Floor Sponsor - Bunderson
Title apvd - to House
02/27 House intro - 1st rdg as amen - to St Aff
03/12 Rpt out - rec d/p - to 2nd rdg as amen
03/13 2nd rdg - to 3rd rdg as amen
03/16 3rd rdg as amen- PASSED - 67-3-0
AYES -- Alltus, Barraclough, Bell, Bieter, Bivens, Black(15),
Black(23), Boe, Bruneel, Callister, Campbell, Chase, Clark, Crane,
Crow, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner,
Geddes, Gould, Hadley, Hansen, Henbest, Hornbeck, Jaquet, Jones(9),
Jones(22), Jones(20), Judd, Kellogg, Kempton, Kendell, Kjellander,
Kunz, Lake, Linford, Loertscher, Mader, Marley, McKague, Meyer,
Miller, Mortensen, Newcomb, Pischner, Pomeroy, Reynolds, Richman,
Ridinger, Robison, Schaefer, Stevenson, Stoicheff, Stubbs, Taylor,
Tilman, Tippets, Trail, Watson, Wheeler, Wood, Zimmermann, Mr Speaker
NAYS -- Barrett, Sali, Stone
Absent and excused -- None
Floor Sponsor - Kempton
Title apvd - to Senate
03/16 To enrol
03/18 Rpt enrol - Pres signed
03/19 Sp signed - to Governor
03/20 Governor signed
Session Law Chapter 149
Effective: 07/01/98
S1340|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE SENATE SENATE BILL NO. 1340, As Amended BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO THE LEASING OF FACILITIES FOR STATE USE; AMENDING SECTION 67-5708, 3 IDAHO CODE, TO DEFINE FACILITIES, TO PROVIDE REFERENCES TO FACILITIES AND 4 TO PROVIDE FOR AUTHORIZATION FOR STATE FACILITIES BY CONCURRENT RESOLU- 5 TION; AMENDING CHAPTER 57, TITLE 67, IDAHO CODE, BY THE ADDITION OF A NEW 6 SECTION 67-5708A, IDAHO CODE, TO PROVIDE FOR THE CREATION OF AN INVENTORY 7 AND PROGRAM OF EVALUATION OF STATE FACILITIES LEASES; AND AMENDING SECTION 8 67-5709, IDAHO CODE, TO PROVIDE A REFERENCE TO FACILITIES. 9 Be It Enacted by the Legislature of the State of Idaho: 10 SECTION 1. That Section 67-5708, Idaho Code, be, and the same is hereby 11 amended to read as follows: 12 67-5708. LEASING OFOFFICE SPACEFACILITIES FOR 13 STATE USE --MANAGEMENT OF STATE CAPITOL MALL --CONTROL OF PARK- 14 ING. The department of administration shall negotiate for, approve, and make 15 any and all lease or rental agreements foroffice space16 facilities to be used by the various state departments, agencies and 17 institutions in the state of Idaho. 18 For purposes of thischaptersection and sections 19 67-5708A and 67-5709, Idaho Code , the term"office space"20 "facility or facilities" may be used interchangeably and shall 21include andmeanthe warehouse and central office of the22Idaho state liquor dispensaryreal property and improvements, 23 including buildings and structures of any kind, excluding water rights not 24 appurtenant to other facilities, and state endowment lands . 25 The department of administration shall manage multi-agencyoffice26spacefacilities constructed , acquired or 27 refurbished through the state building authority as established in 28 chapter 64, title 67, Idaho Code, and shall subleasesuch office space29the facilities to various state departments, agencies, and 30 institutions in the state of Idaho. The department of administration is 31 directed to operate anypropertyfacilities acquired 32 for the statecapitol malland to enter into rental contracts and 33 lease agreementsnot inconsistent with the use ofsuch cap-34itol mall real estatethe facilities for state35buildingpurposes when so authorized. 36 The director may authorize and enter into leases of state capitol mall 37 real estate and multi-agencyoffice spacefacilities 38 constructed through the state building authority, not needed for state39buildingpurposes, to other governmental entities or to nonprofit orga- 40 nizations upon such terms as are just and equitable. 41 The administrator of the division of public works shall promulgate rules 42 for the control of the parking of motor vehicles in the state capitol mall. 43 Any person who shall violate any of the provisions of the rules shall be sub- 2 1 ject to a fine of not less than two dollars ($2.00) nor more than twenty-five 2 dollars ($25.00); provided however, that any person who shall violate any of 3 the provisions of the rules concerning the altering, counterfeiting or misuse 4 of parking permits shall be subject to a fine of not more than fifty dollars 5 ($50.00). 6 Every magistrate and every court having jurisdiction of criminal offenses 7 and the violation of public laws committed in the county of Ada shall have 8 jurisdiction to hear and determine violations of the provisions of the rules 9 and to fix, impose and enforce payment of fines therefor. Alleged violations 10 of the parking rules are not subject to the provisions of chapter 52, title 11 67, Idaho Code. The department of administration may pay costs incurred in the 12 operation and management of those properties from rents received therefrom. 13 When astate building orfacility of the state of Idaho is 14 authorized bystatuteconcurrent resolution , and a 15 maximum cost forsuch building orthe facility has 16 been set bystatuteconcurrent resolution , the 17 administrator of the division of public works may enter into lease-purchase or 18 other time-purchase agreements with the Idaho state building authority or 19 other party forsuch building orthe facility. 20 SECTION 2. That Chapter 57, Title 67, Idaho Code, be, and the same is 21 hereby amended by the addition thereto of a NEW SECTION , to be 22 known and designated as Section 67-5708A, Idaho Code, and to read as follows: 23 67-5708A. STATE FACILITIES MANAGEMENT -- COMPARATIVE LEASE COST ANALYSIS 24 AND ACCOUNTABILITY. (1) The director of the department of administration shall 25 establish a program to identify and maintain a current inventory of all leases 26 of facilities used in any manner for the conduct of functions of state govern- 27 ment now or hereafter entered into by any state department, agency or institu- 28 tion. Not later than January 1, 1999, all departments, agencies and institu- 29 tions shall submit copies of all leases of facilities to the director. The 30 submitted inventory shall record the essential terms of the leases, including 31 the rental rate, term of the lease, description of the facilities, the size of 32 the facilities, and the governmental use of the facilities. 33 (2) The director of the department of administration shall establish a 34 program for evaluation of all leases of facilities in effect on or to be 35 entered into after January 1, 1999. No department, agency or institution may 36 enter into or renew any lease of facilities after January 1, 1999, until a 37 comprehensive analysis is performed by that department, agency or institution 38 in accord with standards and criteria established by the director of the 39 department of administration. The comprehensive analysis shall address, at a 40 minimum, an evaluation of the need for facilities, space utilization effi- 41 ciency, long-term needs and objectives, and viable alternatives to meet facil- 42 ity needs, including acquiring facilities with appropriated funds and leasing 43 facilities through the state building authority. Departments, agencies and 44 institutions shall consult with the director when performing the comprehensive 45 analysis and, with the director's assistance, shall select the alternative 46 that best serves long-term needs and objectives and that provides suitable 47 facilities at the lowest responsible cost to the taxpayer measured over the 48 time the facilities are expected to be needed, or forty (40) years, whichever 49 is less. Departments, agencies and institutions shall include a summary of 50 the comprehensive analysis annually in their budget requests to the governor 51 and the legislature, and shall include in that summary, where appropriate, the 52 time necessary to implement their selection. 53 For purposes of this section, consideration of the "lowest responsible 3 1 cost," shall take into account the estimated residual asset value of facili- 2 ties acquired with appropriated funds, or acquired through the state building 3 authority or other lease-purchase arrangements and the use of public lands, 4 wherever practicable, that are owned or can be timely acquired by the state. 5 SECTION 3. That Section 67-5709, Idaho Code, be, and the same is hereby 6 amended to read as follows: 7 67-5709. MANAGEMENT OF STATEOFFICE SPACEFACILITIES 8 . The director of the department of administration may pay personnel 9 costs and operating expenditures incurred in the operation and management of 10 the state capitol mall and the multi-agencyoffice space11 facilities constructed through the state building authority from the 12 rents received therefrom. Proceeds accruing from such rental contracts and 13 lease agreements after payment of personnel costs and operating expenditures 14 which are in excess of two hundred thousand dollars ($200,000) at the end of 15 the fiscal year shall be deposited to the credit of the permanent building 16 account. Proceeds from the rental of parking spaces in the capitol mall shall 17 be deposited upon receipt to the credit of the permanent building account. 18 Said proceeds shall not be expended without an appropriation and shall only be 19 appropriated for the security, maintenance and upkeep of the state capitol 20 mall.
STATEMENT OF PURPOSE
RS 07649
MANAGEMENT OF STATE LEASES - ADOPTING TEE OPTION LEAST
COSTLY TO THE TAXPAYER AND ACCOUNTABILITY REPORTING
This legislation would achieve three important objectives:
1. It makes leasing building space subject to the same public scrutiny as is now accorded the purchase of
buildings. Specifically, it requires state agencies to cost compare each of their facility leases in effect
at July 1, 1998, or entered into subsequent to that date with all viable lease options, including leasing
from the Idaho State Building Authority (ISBA). After making such comparison, it requires the state
agency to select the lease option that provides suitable facility space at the lowest responsible
cost to the taxpayer and justify their selection to the administration and the Legislature. If the
selection is different from their current lease the agency must present the estimated time-line
necessary to implement the least costly option. This legislation does not require any change to any
existing state lease unless such lease is determined to be significantly more expensive than another
suitable option.
2. It establishes a statewide facilities management system under the Department of Administration (DOA)
that includes coordinating with state agencies and confirming the need for and efficient utilization of
building facility space occupied by such agencies..
3. It establishes disclosure and accountability controls.
FISCAL IMPACT
Since this legislation only requires agencies to cost compare their facility leases, it does not by
itself, have significant fiscal impact, other than for the cost of administering, evaluating and cost comparing
facility leases that has not been adequately performed in the past. This cost is estimated at $55,000 from
dedicated funds in FY 1999.
However, savings could begin to accrue as soon as leases are signed with the State Building
Authority since state agency lease payments to the SBA could be 10% less than their current leases and
100% savings would accrue as the bonds are paid off.
There would be no fiscal impact on local property taxes and no change in local property tax roles
in moving state agencies from private, for-profit facilities to ISBA-financed facilities. However' future
evaluations of the "least costly option" required by this legislation should include a case-by-case analysis
of the effect the lease would have on local property taxes.
Contact: Sen. Hal Bunderson 332-1374
Rep.JimKempton 332-1265
Gordon Fisher 334-4738
STATEMENT OF PURPOSE / FISCAL NOTE
Bill No. S1340