As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 489

Representative Blair 

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A BILL

To amend section 123.01 of the Revised Code to modify

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the Department of Administrative Services'

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lease-purchase agreement process, to grant the

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Department the same authority for lease-leaseback

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agreements, and to require those agreements to be

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awarded through a request for proposals process.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 123.01 of the Revised Code be amended	7
to read as follows:	8

Sec. 123.01.  (A) The department of administrative services,	9
in addition to those powers enumerated in Chapters 124. and 125.	10
of the Revised Code and provided elsewhere by law, shall exercise	11
the following powers:	12

(1) To prepare and suggest comprehensive plans for the	13
development of grounds and buildings under the control of a state	14
agency;	15

(2) To acquire, by purchase, gift, devise, lease, or grant,	16
all real estate required by a state agency, in the exercise of	17
which power the department may exercise the power of eminent	18
domain, in the manner provided by sections 163.01 to 163.22 of the	19
Revised Code;	20

(3) To erect, supervise, and maintain all public monuments	21
and memorials erected by the state, except where the supervision	22
and maintenance is otherwise provided by law;	23

(4) To procure, by lease, storage accommodations for a state	24
agency;	25

(5) To lease or grant easements or licenses for unproductive	26
and unused lands or other property under the control of a state	27
agency. Such leases, easements, or licenses may be granted to any	28
person or entity, shall be for a period not to exceed fifteen	29
years, and shall be executed for the state by the director of	30
administrative services, provided that the director shall grant	31
leases, easements, or licenses of university land for periods not	32
to exceed twenty-five years for purposes approved by the	33
respective university's board of trustees wherein the uses are	34
compatible with the uses and needs of the university and may grant	35
leases of university land for periods not to exceed forty years	36
for purposes approved by the respective university's board of	37
trustees pursuant to section 123.17 of the Revised Code.	38

(6) To lease space for the use of a state agency;

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(7) To have general supervision and care of the storerooms,	40
offices, and buildings leased for the use of a state agency;	41

(8) To exercise general custodial care of all real property	42
of the state;	43

(9) To assign and group together state offices in any city in	44
the state and to establish, in cooperation with the state agencies	45
involved, rules governing space requirements for office or storage	46
use;	47

(10) To lease for a period not to exceed forty years,	48
pursuant to a contract awarded under section 125.071 of the	49
Revised Code, providing for the construction thereof, renovation,	50
or other improvement under a lease-purchase planor	51
lease-leaseback agreement, of buildings, structures, and other	52
improvements for any public purpose, and, in conjunction	53
therewith, to grant leases, easements, or licenses for lands under	54
the control of a state agency for a period not to exceed forty	55
years. The lease-purchase planor lease-leaseback agreement shall	56
provide that at the end of the lease period, the buildings,	57
structures, and related improvements, together with the land on	58
which they are situated, shall become the property of the state	59
without cost.	60

(a) Whenever any building, structure, or other improvement is	61
to be so leased by a state agency, the department shall retain	62
either basic plans, specifications, bills of materials, and	63
estimates of cost with sufficient detail to afford bidders all	64
needed information or, alternatively, all of the following plans,	65
details, bills of materials, and specifications:	66

(i) Full and accurate plans suitable for the use of mechanics	67
and other builders in the improvement;	68

(ii) Details to scale and full sized, so drawn and	69
represented as to be easily understood;	70

(iii) Accurate bills showing the exact quantity of different	71
kinds of material necessary to the construction;	72

(iv) Definite and complete specifications of the work to be	73
performed, together with such directions as will enable a	74
competent mechanic or other builder to carry them out and afford	75
bidders all needed information;	76

(v) A full and accurate estimate of each item of expense and	77
of the aggregate cost thereof.	78

(b) The department shall give public notice, in such	79
newspaper, in such form, and with such phraseology as the director	80
of administrative services prescribes, published once each week	81
for four consecutive weeks, of the time when and place where bids	82
will be received for entering into an agreement to lease to a	83
state agency a building, structure, or other improvement. The last	84
publication shall be at least eight days preceding the day for	85
opening the bids. The bids shall contain the terms upon which the	86
builder would propose to lease the building, structure, or other	87
improvement to the state agency. The form of the bid approved by	88
the department shall be used, and a bid is invalid and shall not	89
be considered unless that form is used without change, alteration,	90
or addition. Before submitting bids pursuant to this section, any	91
builder shall comply with Chapter 153. of the Revised Code.	92

(c) On the day and at the place named for receiving bids for	93
entering into lease agreements with a state agency, the director	94
of administrative services shall open the bids and shall publicly	95
proceed immediately to tabulate the bids upon duplicate sheets. No	96
lease agreement shall be entered into until the bureau of workers'	97
compensation has certified that the person to be awarded the lease	98
agreement has complied with Chapter 4123. of the Revised Code,	99
until, if the builder submitting the lowest and best bid is a	100
foreign corporation, the secretary of state has certified that the	101
corporation is authorized to do business in this state, until, if	102
the builder submitting the lowest and best bid is a person	103
nonresident of this state, the person has filed with the secretary	104
of state a power of attorney designating the secretary of state as	105
its agent for the purpose of accepting service of summons in any	106
action brought under Chapter 4123. of the Revised Code, and until	107
the agreement is submitted to the attorney general and the	108
attorney general's approval is certified thereon. Within thirty	109
days after the day on which the bids are received, the department	110
shall investigate the bids received and shall determine that the	111
bureau and the secretary of state have made the certifications	112
required by this section of the builder who has submitted the	113
lowest and best bid. Within ten days of the completion of the	114
investigation of the bids, the department shall award the lease	115
agreement to the builder who has submitted the lowest and best bid	116
and who has been certified by the bureau and secretary of state as	117
required by this section. If bidding for the lease agreement has	118
been conducted upon the basis of basic plans, specifications,	119
bills of materials, and estimates of costs, upon the award to the	120
builder the department, or the builder with the approval of the	121
department, shall appoint an architect or engineer licensed in	122
this state to prepare such further detailed plans, specifications,	123
and bills of materials as are required to construct the building,	124
structure, or improvement. The department shall adopt such rules	125
as are necessary to give effect to this section. The department	126
may reject any bid. Where there is reason to believe there is	127
collusion or combination among bidders, the bids of those	128
concerned therein shall be rejected.	129

Any person or entity entering into a lease-purchase or	130
lease-leaseback agreement shall provide plans satisfactory to the	131
department that detail the nature and cost, including financing	132
costs, of the construction, renovation, or other improvement.	133

(11) To acquire by purchase, gift, devise, or grant and to	134
transfer, lease, or otherwise dispose of all real property	135
required to assist in the development of a conversion facility as	136
defined in section 5709.30 of the Revised Code as that section	137
existed before its repeal by Amended Substitute House Bill 95 of	138
the 125th general assembly;	139

(12) To lease for a period not to exceed forty years,	140
notwithstanding any other division of this section, the	141
state-owned property located at 408-450 East Town Street,	142
Columbus, Ohio, formerly the state school for the deaf, to a	143
developer in accordance with this section. "Developer," as used in	144
this section, has the same meaning as in section 123.77 of the	145
Revised Code.	146

Such a lease shall be for the purpose of development of the	147
land for use by senior citizens by constructing, altering,	148
renovating, repairing, expanding, and improving the site as it	149
existed on June 25, 1982. A developer desiring to lease the land	150
shall prepare for submission to the department a plan for	151
development. Plans shall include provisions for roads, sewers,	152
water lines, waste disposal, water supply, and similar matters to	153
meet the requirements of state and local laws. The plans shall	154
also include provision for protection of the property by insurance	155
or otherwise, and plans for financing the development, and shall	156
set forth details of the developer's financial responsibility.	157

The department may employ, as employees or consultants,	158
persons needed to assist in reviewing the development plans. Those	159
persons may include attorneys, financial experts, engineers, and	160
other necessary experts. The department shall review the	161
development plans and may enter into a lease if it finds all of	162
the following:	163

(a) The best interests of the state will be promoted by	164
entering into a lease with the developer;	165

(b) The development plans are satisfactory;

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(c) The developer has established the developer's financial	167
responsibility and satisfactory plans for financing the	168
development.	169

The lease shall contain a provision that construction or	170
renovation of the buildings, roads, structures, and other	171
necessary facilities shall begin within one year after the date of	172
the lease and shall proceed according to a schedule agreed to	173
between the department and the developer or the lease will be	174
terminated. The lease shall contain such conditions and	175
stipulations as the director considers necessary to preserve the	176
best interest of the state. Moneys received by the state pursuant	177
to this lease shall be paid into the general revenue fund. The	178
lease shall provide that at the end of the lease period the	179
buildings, structures, and related improvements shall become the	180
property of the state without cost.	181

(13) To manage the use of space owned and controlled by the	182
department, including space in property under the jurisdiction of	183
the Ohio building authority, by doing all of the following:	184

(a) Biennially implementing, by state agency location, a	185
census of agency employees assigned space;	186

(b) Periodically in the discretion of the director of	187
administrative services:	188

(i) Requiring each state agency to categorize the use of	189
space allotted to the agency between office space, common areas,	190
storage space, and other uses, and to report its findings to the	191
department;	192

(ii) Creating and updating a master space utilization plan	193
for all space allotted to state agencies. The plan shall	194
incorporate space utilization metrics.	195

(iii) Conducting a cost-benefit analysis to determine the	196
effectiveness of state-owned buildings;	197

(iv) Assessing the alternatives associated with consolidating	198
the commercial leases for buildings located in Columbus.	199

(c) Commissioning a comprehensive space utilization and	200
capacity study in order to determine the feasibility of	201
consolidating existing commercially leased space used by state	202
agencies into a new state-owned facility.	203

(14) To adopt rules to ensure that energy efficiency and	204
conservation is considered in the purchase of products and	205
equipment, except motor vehicles, by any state agency, department,	206
division, bureau, office, unit, board, commission, authority,	207
quasi-governmental entity, or institution. The department may	208
require minimum energy efficiency standards for purchased products	209
and equipment based on federal testing and labeling if available	210
or on standards developed by the department. When possible, the	211
rules shall apply to the competitive selection of energy consuming	212
systems, components, and equipment under Chapter 125. of the	213
Revised Code.	214

(15) To ensure energy efficient and energy conserving	215
purchasing practices by doing all of the following:	216

(a) Identifying available energy efficiency and conservation	217
opportunities;	218

(b) Providing for interchange of information among purchasing	219
agencies;	220

(c) Identifying laws, policies, rules, and procedures that	221
should be modified;	222

(d) Monitoring experience with and the cost-effectiveness of	223
this state's purchase and use of motor vehicles and of major	224
energy-consuming systems, components, equipment, and products	225
having a significant impact on energy consumption by the	226
government;	227

(e) Providing technical assistance and training to state	228
employees involved in the purchasing process;	229

(f) Working with the development services agency to make	230
recommendations regarding planning and implementation of	231
purchasing policies and procedures that are supportive of energy	232
efficiency and conservation.	233

(16) To require all state agencies, departments, divisions,	234
bureaus, offices, units, commissions, boards, authorities,	235
quasi-governmental entities, institutions, and state institutions	236
of higher education to implement procedures to ensure that all of	237
the passenger automobiles they acquire in each fiscal year, except	238
for those passenger automobiles acquired for use in law	239
enforcement or emergency rescue work, achieve a fleet average fuel	240
economy of not less than the fleet average fuel economy for that	241
fiscal year as the department shall prescribe by rule. The	242
department shall adopt the rule prior to the beginning of the	243
fiscal year, in accordance with the average fuel economy standards	244
established by federal law for passenger automobiles manufactured	245
during the model year that begins during the fiscal year.	246

Each state agency, department, division, bureau, office,	247
unit, commission, board, authority, quasi-governmental entity,	248
institution, and state institution of higher education shall	249
determine its fleet average fuel economy by dividing the total	250
number of passenger vehicles acquired during the fiscal year,	251
except for those passenger vehicles acquired for use in law	252
enforcement or emergency rescue work, by a sum of terms, each of	253
which is a fraction created by dividing the number of passenger	254
vehicles of a given make, model, and year, except for passenger	255
vehicles acquired for use in law enforcement or emergency rescue	256
work, acquired during the fiscal year by the fuel economy measured	257
by the administrator of the United States environmental protection	258
agency, for the given make, model, and year of vehicle, that	259
constitutes an average fuel economy for combined city and highway	260
driving.	261

As used in division (A)(16) of this section, "acquired" means	262
leased for a period of sixty continuous days or more, or	263
purchased.	264

(B) This section and section 125.02 of the Revised Code shall	265
not interfere with any of the following:	266

(1) The power of the adjutant general to purchase military	267
supplies, or with the custody of the adjutant general of property	268
leased, purchased, or constructed by the state and used for	269
military purposes, or with the functions of the adjutant general	270
as director of state armories;	271

(2) The power of the director of transportation in acquiring	272
rights-of-way for the state highway system, or the leasing of	273
lands for division or resident district offices, or the leasing of	274
lands or buildings required in the maintenance operations of the	275
department of transportation, or the purchase of real property for	276
garage sites or division or resident district offices, or in	277
preparing plans and specifications for and constructing such	278
buildings as the director may require in the administration of the	279
department;	280

(3) The power of the director of public safety and the	281
registrar of motor vehicles to purchase or lease real property and	282
buildings to be used solely as locations to which a deputy	283
registrar is assigned pursuant to division (B) of section 4507.011	284
of the Revised Code and from which the deputy registrar is to	285
conduct the deputy registrar's business, the power of the director	286
of public safety to purchase or lease real property and buildings	287
to be used as locations for division or district offices as	288
required in the maintenance of operations of the department of	289
public safety, and the power of the superintendent of the state	290
highway patrol in the purchase or leasing of real property and	291
buildings needed by the patrol, to negotiate the sale of real	292
property owned by the patrol, to rent or lease real property owned	293
or leased by the patrol, and to make or cause to be made repairs	294
to all property owned or under the control of the patrol;	295

(4) The power of the division of liquor control in the	296
leasing or purchasing of retail outlets and warehouse facilities	297
for the use of the division;	298

(5) The power of the director of development services to	299
enter into leases of real property, buildings, and office space to	300
be used solely as locations for the state's foreign offices to	301
carry out the purposes of section 122.05 of the Revised Code;	302

(6) The power of the director of environmental protection to	303
enter into environmental covenants, to grant and accept easements,	304
or to sell property pursuant to division (G) of section 3745.01 of	305
the Revised Code.	306

(C) Purchases for, and the custody and repair of, buildings	307
under the management and control of the capitol square review and	308
advisory board, the opportunities for Ohioans with disabilities	309
agency, the bureau of workers' compensation, or the departments of	310
public safety, job and family services, mental health and	311
addiction services, developmental disabilities, and rehabilitation	312
and correction; buildings of educational and benevolent	313
institutions under the management and control of boards of	314
trustees; and purchases or leases for, and the custody and repair	315
of, office space used for the purposes of the joint legislative	316
ethics committee are not subject to the control and jurisdiction	317
of the department of administrative services.	318

If the joint legislative ethics committee so requests, the	319
committee and the director of administrative services may enter	320
into a contract under which the department of administrative	321
services agrees to perform any services requested by the committee	322
that the department is authorized under this section to perform.	323

(D) Any instrument by which real property is acquired	324
pursuant to this section shall identify the agency of the state	325
that has the use and benefit of the real property as specified in	326
section 5301.012 of the Revised Code.	327

Section 2. That existing section 123.01 of the Revised Code	328
is hereby repealed.	329