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H. B. No. 489 As IntroducedAs Introduced
130th General Assembly | Regular Session | 2013-2014 |
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A BILL
To amend section 123.01 of the Revised Code to modify
the Department of Administrative Services'
lease-purchase agreement process, to grant the
Department the same authority for lease-leaseback
agreements, and to require those agreements to be
awarded through a request for proposals process.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 123.01 of the Revised Code be amended
to read as follows:
Sec. 123.01. (A) The department of administrative services,
in addition to those powers enumerated in Chapters 124. and 125.
of the Revised Code and provided elsewhere by law, shall exercise
the following powers:
(1) To prepare and suggest comprehensive plans for the
development of grounds and buildings under the control of a state
agency;
(2) To acquire, by purchase, gift, devise, lease, or grant,
all real estate required by a state agency, in the exercise of
which power the department may exercise the power of eminent
domain, in the manner provided by sections 163.01 to 163.22 of the
Revised Code;
(3) To erect, supervise, and maintain all public monuments
and memorials erected by the state, except where the supervision
and maintenance is otherwise provided by law;
(4) To procure, by lease, storage accommodations for a state
agency;
(5) To lease or grant easements or licenses for unproductive
and unused lands or other property under the control of a state
agency. Such leases, easements, or licenses may be granted to any
person or entity, shall be for a period not to exceed fifteen
years, and shall be executed for the state by the director of
administrative services, provided that the director shall grant
leases, easements, or licenses of university land for periods not
to exceed twenty-five years for purposes approved by the
respective university's board of trustees wherein the uses are
compatible with the uses and needs of the university and may grant
leases of university land for periods not to exceed forty years
for purposes approved by the respective university's board of
trustees pursuant to section 123.17 of the Revised Code.
(6) To lease space for the use of a state agency;
(7) To have general supervision and care of the storerooms,
offices, and buildings leased for the use of a state agency;
(8) To exercise general custodial care of all real property
of the state;
(9) To assign and group together state offices in any city in
the state and to establish, in cooperation with the state agencies
involved, rules governing space requirements for office or storage
use;
(10) To lease for a period not to exceed forty years,
pursuant to a contract awarded under section 125.071 of the
Revised Code, providing for the construction thereof, renovation,
or other improvement under a lease-purchase plan or
lease-leaseback agreement, of buildings, structures, and other
improvements for any public purpose, and, in conjunction
therewith, to grant leases, easements, or licenses for lands under
the control of a state agency for a period not to exceed forty
years. The lease-purchase plan or lease-leaseback agreement shall
provide that at the end of the lease period, the buildings,
structures, and related improvements, together with the land on
which they are situated, shall become the property of the state
without cost.
(a) Whenever any building, structure, or other improvement is
to be so leased by a state agency, the department shall retain
either basic plans, specifications, bills of materials, and
estimates of cost with sufficient detail to afford bidders all
needed information or, alternatively, all of the following plans,
details, bills of materials, and specifications:
(i) Full and accurate plans suitable for the use of mechanics
and other builders in the improvement;
(ii) Details to scale and full sized, so drawn and
represented as to be easily understood;
(iii) Accurate bills showing the exact quantity of different
kinds of material necessary to the construction;
(iv) Definite and complete specifications of the work to be
performed, together with such directions as will enable a
competent mechanic or other builder to carry them out and afford
bidders all needed information;
(v) A full and accurate estimate of each item of expense and
of the aggregate cost thereof.
(b) The department shall give public notice, in such
newspaper, in such form, and with such phraseology as the director
of administrative services prescribes, published once each week
for four consecutive weeks, of the time when and place where bids
will be received for entering into an agreement to lease to a
state agency a building, structure, or other improvement. The last
publication shall be at least eight days preceding the day for
opening the bids. The bids shall contain the terms upon which the
builder would propose to lease the building, structure, or other
improvement to the state agency. The form of the bid approved by
the department shall be used, and a bid is invalid and shall not
be considered unless that form is used without change, alteration,
or addition. Before submitting bids pursuant to this section, any
builder shall comply with Chapter 153. of the Revised Code.
(c) On the day and at the place named for receiving bids for
entering into lease agreements with a state agency, the director
of administrative services shall open the bids and shall publicly
proceed immediately to tabulate the bids upon duplicate sheets. No
lease agreement shall be entered into until the bureau of workers'
compensation has certified that the person to be awarded the lease
agreement has complied with Chapter 4123. of the Revised Code,
until, if the builder submitting the lowest and best bid is a
foreign corporation, the secretary of state has certified that the
corporation is authorized to do business in this state, until, if
the builder submitting the lowest and best bid is a person
nonresident of this state, the person has filed with the secretary
of state a power of attorney designating the secretary of state as
its agent for the purpose of accepting service of summons in any
action brought under Chapter 4123. of the Revised Code, and until
the agreement is submitted to the attorney general and the
attorney general's approval is certified thereon. Within thirty
days after the day on which the bids are received, the department
shall investigate the bids received and shall determine that the
bureau and the secretary of state have made the certifications
required by this section of the builder who has submitted the
lowest and best bid. Within ten days of the completion of the
investigation of the bids, the department shall award the lease
agreement to the builder who has submitted the lowest and best bid
and who has been certified by the bureau and secretary of state as
required by this section. If bidding for the lease agreement has
been conducted upon the basis of basic plans, specifications,
bills of materials, and estimates of costs, upon the award to the
builder the department, or the builder with the approval of the
department, shall appoint an architect or engineer licensed in
this state to prepare such further detailed plans, specifications,
and bills of materials as are required to construct the building,
structure, or improvement. The department shall adopt such rules
as are necessary to give effect to this section. The department
may reject any bid. Where there is reason to believe there is
collusion or combination among bidders, the bids of those
concerned therein shall be rejected.
Any person or entity entering into a lease-purchase or
lease-leaseback agreement shall provide plans satisfactory to the
department that detail the nature and cost, including financing
costs, of the construction, renovation, or other improvement.
(11) To acquire by purchase, gift, devise, or grant and to
transfer, lease, or otherwise dispose of all real property
required to assist in the development of a conversion facility as
defined in section 5709.30 of the Revised Code as that section
existed before its repeal by Amended Substitute House Bill 95 of
the 125th general assembly;
(12) To lease for a period not to exceed forty years,
notwithstanding any other division of this section, the
state-owned property located at 408-450 East Town Street,
Columbus, Ohio, formerly the state school for the deaf, to a
developer in accordance with this section. "Developer," as used in
this section, has the same meaning as in section 123.77 of the
Revised Code.
Such a lease shall be for the purpose of development of the
land for use by senior citizens by constructing, altering,
renovating, repairing, expanding, and improving the site as it
existed on June 25, 1982. A developer desiring to lease the land
shall prepare for submission to the department a plan for
development. Plans shall include provisions for roads, sewers,
water lines, waste disposal, water supply, and similar matters to
meet the requirements of state and local laws. The plans shall
also include provision for protection of the property by insurance
or otherwise, and plans for financing the development, and shall
set forth details of the developer's financial responsibility.
The department may employ, as employees or consultants,
persons needed to assist in reviewing the development plans. Those
persons may include attorneys, financial experts, engineers, and
other necessary experts. The department shall review the
development plans and may enter into a lease if it finds all of
the following:
(a) The best interests of the state will be promoted by
entering into a lease with the developer;
(b) The development plans are satisfactory;
(c) The developer has established the developer's financial
responsibility and satisfactory plans for financing the
development.
The lease shall contain a provision that construction or
renovation of the buildings, roads, structures, and other
necessary facilities shall begin within one year after the date of
the lease and shall proceed according to a schedule agreed to
between the department and the developer or the lease will be
terminated. The lease shall contain such conditions and
stipulations as the director considers necessary to preserve the
best interest of the state. Moneys received by the state pursuant
to this lease shall be paid into the general revenue fund. The
lease shall provide that at the end of the lease period the
buildings, structures, and related improvements shall become the
property of the state without cost.
(13) To manage the use of space owned and controlled by the
department, including space in property under the jurisdiction of
the Ohio building authority, by doing all of the following:
(a) Biennially implementing, by state agency location, a
census of agency employees assigned space;
(b) Periodically in the discretion of the director of
administrative services:
(i) Requiring each state agency to categorize the use of
space allotted to the agency between office space, common areas,
storage space, and other uses, and to report its findings to the
department;
(ii) Creating and updating a master space utilization plan
for all space allotted to state agencies. The plan shall
incorporate space utilization metrics.
(iii) Conducting a cost-benefit analysis to determine the
effectiveness of state-owned buildings;
(iv) Assessing the alternatives associated with consolidating
the commercial leases for buildings located in Columbus.
(c) Commissioning a comprehensive space utilization and
capacity study in order to determine the feasibility of
consolidating existing commercially leased space used by state
agencies into a new state-owned facility.
(14) To adopt rules to ensure that energy efficiency and
conservation is considered in the purchase of products and
equipment, except motor vehicles, by any state agency, department,
division, bureau, office, unit, board, commission, authority,
quasi-governmental entity, or institution. The department may
require minimum energy efficiency standards for purchased products
and equipment based on federal testing and labeling if available
or on standards developed by the department. When possible, the
rules shall apply to the competitive selection of energy consuming
systems, components, and equipment under Chapter 125. of the
Revised Code.
(15) To ensure energy efficient and energy conserving
purchasing practices by doing all of the following:
(a) Identifying available energy efficiency and conservation
opportunities;
(b) Providing for interchange of information among purchasing
agencies;
(c) Identifying laws, policies, rules, and procedures that
should be modified;
(d) Monitoring experience with and the cost-effectiveness of
this state's purchase and use of motor vehicles and of major
energy-consuming systems, components, equipment, and products
having a significant impact on energy consumption by the
government;
(e) Providing technical assistance and training to state
employees involved in the purchasing process;
(f) Working with the development services agency to make
recommendations regarding planning and implementation of
purchasing policies and procedures that are supportive of energy
efficiency and conservation.
(16) To require all state agencies, departments, divisions,
bureaus, offices, units, commissions, boards, authorities,
quasi-governmental entities, institutions, and state institutions
of higher education to implement procedures to ensure that all of
the passenger automobiles they acquire in each fiscal year, except
for those passenger automobiles acquired for use in law
enforcement or emergency rescue work, achieve a fleet average fuel
economy of not less than the fleet average fuel economy for that
fiscal year as the department shall prescribe by rule. The
department shall adopt the rule prior to the beginning of the
fiscal year, in accordance with the average fuel economy standards
established by federal law for passenger automobiles manufactured
during the model year that begins during the fiscal year.
Each state agency, department, division, bureau, office,
unit, commission, board, authority, quasi-governmental entity,
institution, and state institution of higher education shall
determine its fleet average fuel economy by dividing the total
number of passenger vehicles acquired during the fiscal year,
except for those passenger vehicles acquired for use in law
enforcement or emergency rescue work, by a sum of terms, each of
which is a fraction created by dividing the number of passenger
vehicles of a given make, model, and year, except for passenger
vehicles acquired for use in law enforcement or emergency rescue
work, acquired during the fiscal year by the fuel economy measured
by the administrator of the United States environmental protection
agency, for the given make, model, and year of vehicle, that
constitutes an average fuel economy for combined city and highway
driving.
As used in division (A)(16) of this section, "acquired" means
leased for a period of sixty continuous days or more, or
purchased.
(B) This section and section 125.02 of the Revised Code shall
not interfere with any of the following:
(1) The power of the adjutant general to purchase military
supplies, or with the custody of the adjutant general of property
leased, purchased, or constructed by the state and used for
military purposes, or with the functions of the adjutant general
as director of state armories;
(2) The power of the director of transportation in acquiring
rights-of-way for the state highway system, or the leasing of
lands for division or resident district offices, or the leasing of
lands or buildings required in the maintenance operations of the
department of transportation, or the purchase of real property for
garage sites or division or resident district offices, or in
preparing plans and specifications for and constructing such
buildings as the director may require in the administration of the
department;
(3) The power of the director of public safety and the
registrar of motor vehicles to purchase or lease real property and
buildings to be used solely as locations to which a deputy
registrar is assigned pursuant to division (B) of section 4507.011
of the Revised Code and from which the deputy registrar is to
conduct the deputy registrar's business, the power of the director
of public safety to purchase or lease real property and buildings
to be used as locations for division or district offices as
required in the maintenance of operations of the department of
public safety, and the power of the superintendent of the state
highway patrol in the purchase or leasing of real property and
buildings needed by the patrol, to negotiate the sale of real
property owned by the patrol, to rent or lease real property owned
or leased by the patrol, and to make or cause to be made repairs
to all property owned or under the control of the patrol;
(4) The power of the division of liquor control in the
leasing or purchasing of retail outlets and warehouse facilities
for the use of the division;
(5) The power of the director of development services to
enter into leases of real property, buildings, and office space to
be used solely as locations for the state's foreign offices to
carry out the purposes of section 122.05 of the Revised Code;
(6) The power of the director of environmental protection to
enter into environmental covenants, to grant and accept easements,
or to sell property pursuant to division (G) of section 3745.01 of
the Revised Code.
(C) Purchases for, and the custody and repair of, buildings
under the management and control of the capitol square review and
advisory board, the opportunities for Ohioans with disabilities
agency, the bureau of workers' compensation, or the departments of
public safety, job and family services, mental health and
addiction services, developmental disabilities, and rehabilitation
and correction; buildings of educational and benevolent
institutions under the management and control of boards of
trustees; and purchases or leases for, and the custody and repair
of, office space used for the purposes of the joint legislative
ethics committee are not subject to the control and jurisdiction
of the department of administrative services.
If the joint legislative ethics committee so requests, the
committee and the director of administrative services may enter
into a contract under which the department of administrative
services agrees to perform any services requested by the committee
that the department is authorized under this section to perform.
(D) Any instrument by which real property is acquired
pursuant to this section shall identify the agency of the state
that has the use and benefit of the real property as specified in
section 5301.012 of the Revised Code.
Section 2. That existing section 123.01 of the Revised Code
is hereby repealed.
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