1998 Legislation
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SENATE BILL NO. 1340, As Amended – Facilities, leasing, state use

SENATE BILL NO. 1340, As Amended

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Daily Data Tracking History



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

Bill Text


S1340


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998
                                                                        

                                      IN 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 OF  OFFICE SPACE   FACILITIES  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 for   office  space    
16    facilities    to  be used by the various state departments, agencies and
17    institutions in the state of Idaho.
18        For purposes of this   chapter      section  and  sections
19    67-5708A  and 67-5709, Idaho Code , the term  "office space" 
20     "facility or facilities" may be used interchangeably  and    shall
21      include  and   mean  the warehouse and central office of the
22    Idaho state liquor dispensary    real  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-agency    office
26    space         facilities    constructed  ,  acquired  or
27    refurbished  through the state  building  authority  as  established  in
28    chapter  64,  title 67, Idaho Code, and shall sublease  such office space
29      the facilities  to various state departments, agencies, and
30    institutions in the state  of  Idaho.  The  department  of  administration  is
31    directed to operate any  property   facilities  acquired
32    for the state  capitol mall  and to enter into rental contracts and
33    lease agreements  not in consistent with the use of  such cap-
34    itol  mall  real  estate      the facilities  for state 
35    building  purposes when so authorized.
36        The director may authorize and enter into leases  of  state  capitol  mall
37    real estate and multi-agency  office space   facilities 
38    constructed  through  the state building authority, not needed for state 
39    building  purposes, 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  a    state building or  facility of the state of Idaho is
14    authorized  by  statute   concurrent resolution , and  a
15    maximum  cost  for  such building or   the  facility has
16    been set by  statute      concurrent  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 for  such building or   the  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  STATE  OFFICE SPACE   FACILITIES
 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-agency  office  space    
11    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 / Fiscal Impact


    





                            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