Am. H. B. No. 420 As Passed by the House

Cosponsors: Representatives Evans, McGregor, J., Bubp, Raussen, Blessing, Uecker, Batchelder, Adams, Hughes, Collier, Combs, Patton, Yuko, Stebelton, Hite, Gibbs, Stewart, J., Jones, Webster, Bacon, Schindel, Huffman, Daniels, Dolan, Hagan, J., McGregor, R., Wachtmann, Wagner, Skindell, Fessler, Book, Peterson, Stewart, D., Coley, Goodwin, Domenick, Bolon, Boyd, Brown, Celeste, Core, DeBose, Dodd, Dyer, Flowers, Garrison, Gerberry, Goyal, Hagan, R., Letson, Luckie, Lundy, Mallory, Mecklenborg, Newcomb, Oelslager, Schneider, Setzer, Wolpert, Zehringer

Section 1. That sections 126.51, 126.52, 126.53, 126.55,	9
126.57, 126.61, and 126.62 of the Revised Code be enacted to read	10
as follows:	11

Sec. 126.51. (A) The director of each state agency or, in	12
the case of a state agency without a director, the equivalent	13
officer of that agency, shall, within thirty days after the	14
effective date of this section, designate a senior real property	15
officer for that agency. The officer shall have the education,	16
training, and experience required to administer the necessary	17
functions of the position, as set forth in this section.	18

(B) The senior real property officer shall develop and	19
implement an agency asset management plan that meets the form,	20
content, and other requirements established by the Ohio real	21
property council under section 126.52 of the Revised Code. In	22
developing this plan, the senior real property officer shall do	23
all of the following:	24

(1) Identify and categorize all real property owned, leased,	25
or otherwise managed by the agency;	26

(2) Prioritize actions to be taken to improve the operational	27
and financial management of the agency's real property inventory;	28

(3) Make life-cycle cost estimations associated with the	29
prioritized actions;	30

(4) Identify governmental authorities that are required to	31
address these priorities;	32

(5) Identify and pursue goals, with appropriate deadlines,	33
that are consistent with and supportive of the agency asset	34
management plan and measure progress against such goals;	35

(6) Incorporate planning and management requirements for	36
historic property and for environmental management;	37

(7) Identify any other information and pursue any other	38
action necessary to the appropriate development and implementation	39
of the agency asset management plan.	40

(C) The senior real property officer shall, on an ongoing	41
basis, monitor the real property assets of the agency to ensure	42
the assets are managed in a manner that is consistent with the	43
real property asset management principles developed by the Ohio	44
real property council and with the agency asset management plan.	45

(D) Each agency's initial asset management plan shall be	46
submitted to the office of budget and management not later than	47
January 1, 2009.	48

Sec. 126.52. (A) There is hereby established the Ohio real	49
property council, within the office of budget and management, to	50
develop guidance for, and facilitate the success of, each state	51
agency's asset management plan. The council shall be composed of	52
the senior real property officers designated under section 126.51	53
of the Revised Code, the director of budget and management, and	54
the director of administrative services. The director of budget	55
and management shall chair the council. The office of budget and	56
management shall provide administrative support for the council.	57

(B) The council shall assist the senior real property	58
officers in the development and implementation of the agency asset	59
management plans. The council shall establish appropriate	60
performance measures to determine the effectiveness of state real	61
property management and to allow for comparing the performance of	62
state agencies against industry and other governmental entities.	63
The performance measures shall include the following, as	64
appropriate:	65

(1) Life-cycle cost estimations associated with the agency's	66
prioritized actions;	67

(2) The costs relating to the acquisition of real property	68
assets by purchase, condemnation, exchange, lease, or otherwise;	69

(4) The operating, maintenance, and security costs of state	73
properties, including the cost of utility services at unoccupied	74
properties;	75

(8) Opportunities for cooperative arrangements with the	82
commercial real estate community;	83

(9) The enhancement of agency productivity through an	84
improved working environment.	85

(3) The cost and time required to dispose of state real	70
property assets and the financial recovery of the state investment	71
resulting from the disposal;	72

(5) The environmental costs associated with ownership of	76
property, including the cost of environmental restoration and	77
compliance activities;	78

(7) The realization of equity value in state real property	80
assets;	81

(C) The council shall hold its first meeting not later than	86
sixty days after the effective date of this section. Thereafter,	87
meetings shall be held at least once each quarter of the fiscal	88
year.	89

Sec. 126.53. (A) The director of budget and management, in	90
consultation with the Ohio real property council established in	91
section 126.52 of the Revised Code, shall develop and maintain a	92
comprehensive and descriptive database of all real property under	93
the custody and control of the state, except when otherwise	94
required for reasons of homeland security. For purposes of the	95
database, each state agency shall provide information that	96
adequately describes the nature, use, and extent of the agency's	97
real property assets.	98

(B) The director shall make the real property database	99
available on the office of budget and management's web site not	100
later than January 1, 2009.	101

Sec. 126.55. (A) The director of budget and management, in	102
consultation with the governor, shall, not later than twelve	103
months after the effective date of this section, develop	104
management standards that are to be considered the best practices	105
to which state agencies must adhere. In developing these	106
standards, consideration shall be given to similar efforts in the	107
public and private sectors. These standards shall, at a minimum,	108
address all of the following areas:	109

(B) The director shall also establish performance measures to	115
increase transparency and to ensure citizens and agencies have a	116
better understanding of what is being accomplished. The office of	117
budget and management shall apply these measures to periodically	118
assess agency progress on a case-by-case basis.	119

(C) An agency's successful implementation of the best	120
practices in each of the areas described in division (A) of this	121
section shall be tracked using the following grading system:	122

(1) Green: Implementation is proceeding according to plans	123
agreed upon with the agency.	124

(2) Yellow: Issues have arisen requiring adjustment by the	125
agency in order to achieve the objectives in a timely manner.	126

(3) Red: Agency is unlikely to realize objectives absent	127
significant management intervention.	128

(D) The office of budget and management shall post on its web	129
site each assessment made pursuant to this section.	130

Sec. 126.57. (A) The office of budget and management shall,	131
at least once every twenty-four-month cycle, assess each state	132
program with respect to its purpose, design, planning, management,	133
results, and accountability, to determine the overall	134
effectiveness of the program and, based on that assessment, make	135
recommendations on ways to improve program results.	136

(B) To implement division (A) of this section, the office of	137
budget and management shall design a questionnaire and rating	138
system that indicates a program's overall performance. The	139
questionnaire shall focus on a program's purpose and management,	140
strategic planning with respect to the program, and program	141
results. It shall be customized depending on the type of program	142
to be assessed. The results of each assessment shall be posted on	143
the office of budget and management's web site.	144

(C) The office of budget and management shall begin	145
conducting the assessments required by this section not later than	146
twelve months after the effective date of this section.	147

(1) "Entity" means, whether for profit or nonprofit, a	149
corporation, association, partnership, limited liability company,	150
sole proprietorship, or other business entity. "Entity" does not	151
include an individual who receives state assistance that is not	152
related to the individual's business.	153

(2)(a) "State award" means state financial assistance and	154
expenditures in any of the following forms:	155

(i) Grants, subgrants, loans, awards, cooperative agreements,	156
or other similar form of financial assistance;	157

(ii) Contracts, subcontracts, purchase orders, task orders,	158
delivery orders, or other similar type of transaction.	159