S 106 Session 109 (1991-1992)
S 0106 General Bill, By McConnell and Wilson
A Bill to amend Code of Laws of South Carolina, 1976, by adding Section
11-35-1595 so as to provide for the maximum space allocation for governmental
bodies entering into new leases and for exceptions; to amend Section
11-35-1510, relating to methods of source selection under the Procurement
Code, so as to add Section 11-35-1595; and to amend Section 11-35-1590,
relating to leasing of real property for governmental bodies, so as to revise
the requirements of a governmental body when it needs to acquire real property
for its operations when state-owned property is not available, to provide for
the General Assembly to approve a governmental body's lease-purchase
agreements, and to provide for regulations of the Budget and Control Board
concerning procedures for competitive proposals to ensure the most
cost-effective procurement of leased space.
09/17/90 Senate Prefiled
09/17/90 Senate Referred to Committee on Judiciary
01/08/91 Senate Introduced and read first time SJ-52
01/08/91 Senate Referred to Committee on Judiciary SJ-52
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976,
BY ADDING SECTION 11-35-1595 SO AS TO PROVIDE FOR THE
MAXIMUM SPACE ALLOCATION FOR GOVERNMENTAL
BODIES ENTERING INTO NEW LEASES AND FOR EXCEPTIONS;
TO AMEND SECTION 11-35-1510, RELATING TO METHODS OF
SOURCE SELECTION UNDER THE PROCUREMENT CODE, SO
AS TO ADD SECTION 11-35-1595; AND TO AMEND SECTION
11-35-1590, RELATING TO LEASING OF REAL PROPERTY FOR
GOVERNMENTAL BODIES, SO AS TO REVISE THE
REQUIREMENTS OF A GOVERNMENTAL BODY WHEN IT
NEEDS TO ACQUIRE REAL PROPERTY FOR ITS OPERATIONS
WHEN STATE-OWNED PROPERTY IS NOT AVAILABLE, TO
PROVIDE FOR THE GENERAL ASSEMBLY TO APPROVE A
GOVERNMENTAL BODY'S LEASE-PURCHASE AGREEMENTS,
AND TO PROVIDE FOR REGULATIONS OF THE BUDGET AND
CONTROL BOARD CONCERNING PROCEDURES FOR
COMPETITIVE PROPOSALS TO ENSURE THE MOST
COST-EFFECTIVE PROCUREMENT OF LEASED SPACE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 11-35-1595. (A) Except as otherwise authorized
in this section, the maximum space allocation for governmental bodies
entering into new leases is, for:
(1) an agency director or an employee with similar duties and
responsibilities: three hundred square feet;
(2) an assistant agency director or an employee with similar
duties and responsibilities: two hundred twenty-five square feet;
(3) a supervisory or professional position: one hundred fifty
square feet;
(4) a clerical position: equal to an average of seventy-five
square feet;
(5) all other space needs including, but not limited to, reception
areas, conference rooms, storage areas, or classrooms: as determined by
the Division of General Services. In determining the maximum space
allocation for these space needs, the division shall consider the size of
the governmental body, the duties, responsibilities, and services
provided by the governmental body, the convenience to the public, and
other factors the division determines are necessary to achieve optimum
space usage. The division shall require a governmental body to set out
its space needs in writing.
(B) The division may refuse to approve a lease agreement when
allocations exceed the statutory maximums or when, in the judgment of
the director of the division, the lease proposal is not cost effective based
upon the provisions of this subarticle and related regulations. The
division, in its discretion, may approve lease agreements exceeding the
statutory maximums provided in this section if the governmental body
demonstrates through written documentation that there is a justifiable
need for additional space or that an alteration of the proposed leased
space to conform to the provisions of this section is not cost
effective."
SECTION 2. Section 11-35-1510 of the 1976 Code is amended to
read:
"Section 11-35-1510. Unless otherwise provided by law, all
state contracts shall must be awarded by competitive
sealed bidding, pursuant to Section 11-35-1520, except as provided in:
( 1) Section 11-35-1250 (Authority to Contract for Auditing
Services);
( 2) Section 11-35-1260 (Authority to Contract for Legal Services);
( 3) Section 11-35-1270 (Authority to Contract for Certain
Services);
( 4) Section 11-35-1530 (Competitive Sealed Proposals);
( 5) Section 11-35-1540 (Negotiations After Unsuccessful
Competitive Sealed Bidding);
( 6) Section 11-35-1550 (Small Purchases);
( 7) Section 11-35-1560 (Sole Source Procurements);
( 8) Section 11-35-1570 (Emergency Procurements);
( 9) Section 11-35-1580 (Procurement of Information Technology);
(10) Section 11-35-1590 (Leasing of Real Property for
Governmental Bodies);
(11) Section 11-35-1595 (Maximum Space Allocation for
Governmental Bodies);
(12) Section 11-35-3020 (Construction Procurement
Procedures);
(12)(13) Section 11-35-3220 (Architect-Engineer,
Construction Management and Land Surveying Services Procurement
Procedures);
(13)(14) Section 11-35-3230 (Exception for Small
Architect-Engineer and Land Surveying Services Contracts)."
SECTION 3. Section 11-35-1590 of the 1976 Code is amended to
read:
"Section 11-35-1590. (1)(A) Designation
of Board as Single Central Broker. The board is hereby
designated as the single central broker for the leasing of real property for
governmental bodies. No governmental body shall may
enter into any a lease agreement or renew any
an existing lease except in accordance with the provisions of
this Section section.
(2)(B) Notification as to Need When
State-Owned Property is Unavailable. When any a
governmental body needs to acquire real property for its operations or
any a part thereof of its operations and
the Division of General Services determines that state-owned
property is not available, it the governmental body shall
notify request that the division of General Services
of review its requirement requirements.
A request must be submitted on rental request forms prepared
by the division. Such The forms shall
must indicate the amount and location of space desired, the
parking requirements, the purpose for which it shall is
to be used, the proposed date of occupancy, and
such other information as the division may require to
ensure that competition is encouraged in the acquisition of leased
space.
Upon receipt of any such a request, the division
shall conduct an investigation of available rental space which
would adequately meet meets the governmental
body's requirements, including specific locations which may be
suggested and preferred by the governmental body concerned. This
investigation must include an analysis of the cost effectiveness of a
move or expansion through a review of estimated moving costs, new
furniture or equipment purchases associated with the move as certified
by the agency. This investigation also must include installation
expenses for telephone, information technology, or other items, loss of
undepreciated assets, and upfitting or permanent improvement costs
such as floor coverings, wall coverings, decorating, or structural
improvements for the specific locations under consideration. If the
director of the division determines, based upon the investigation, that a
governmental body's requirements are too restrictive to facilitate
adequate competition or to facilitate a cost-effective procurement of
leased space the division may require the governmental body to modify
its requirements. When suitable space has been located which
the governmental body and the division agree meets necessary
requirements and standards for state leasing as prescribed in
by this subarticle and the regulations of the board as provided
for in subsection (3) (D) of this Section
section, the division shall give its written approval to the
governmental body to enter into a lease agreement. In the event
If the governmental body and does not agree
with the division fail to reach agreement with regard to the
appropriate property for leasing or a decision rendered by the
division pursuant to this subarticle, the controversy shall
must be referred to the board which shall make a final
determination of the matter. All proposed lease renewals shall
must be submitted to the division by the time specified by
the division it specifies.
The division may not give its written approval to the
governmental body to enter into a lease agreement until the division
verifies that adequate funds exist for the lease payments and the
governmental body certifies that it has funds in its existing accounts to
pay additional lease payments and related costs. A transfer of funds by
a governmental body that has been made or is necessary to meet lease
payment obligations and related costs under a proposed lease agreement
must be reported to the division before its approval of the lease
agreement. If the lease is approved by the division, actual transfers
made to pay lease obligations and related costs also must be reported by
the governmental body to the State Bidding Practices Committee at the
end of each fiscal year in which transfers are made. These requirements
are in addition to other provisions regarding the transfer of funds among
the accounts within a governmental body.
(C) The General Assembly shall approve
lease-purchase agreements. No governmental body may enter into a real
property lease-purchase agreement without the prior approval of the
General Assembly by Joint Resolution.
(3)(D) Promulgation of Regulations. The board
shall promulgate regulations to implement the provisions of this
Section section which shall include:
(a) Procedures procedures for governmental
bodies to apply for rental space.;
(b) Flexible flexible cost standards for rental
space.;
(c) Procedures procedures for competitive
bidding where feasible proposals to ensure the most
cost-effective procurement of leased space and provide objective criteria
for determining when competition is not feasible. The division
shall certify, based upon written documentation, that competition is not
feasible in those instances where a determination is made and approval
is granted by the division to acquire leased space without
competition;
(d) uniform standards for determining space needs
and space allocation;
(e) guidelines for evaluating lease proposals
giving weight not only to location, but to the policy of the General
Assembly which is to rent the most cost-effective space considering the
duties, responsibilities, and services provided by the governmental body,
the convenience to the public, the safety of the employees, the condition
of the building, and the consolidation of the governmental body in one
location;
(f) guidelines to ensure that, before entering into
a lease, governmental bodies review and consider the acquisition of
surplus property before new equipment or new furniture is
purchased."
SECTION 4. This act takes effect upon approval by the Governor.
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