Current Status Bill Number:152 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19950110 Primary Sponsor:McConnell All Sponsors:McConnell, Wilson, Rose Drafted Document Number:GJK\21065SD.95 Residing Body:Senate Current Committee:Judiciary Committee 11 SJ Subject:Agencies, space allocation
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19950110 Introduced, read first time, 11 SJ
referred to Committee
Senate 19941017 Prefiled, referred to Committee 11 SJ
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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, AND FOR THE MANNER IN WHICH SUCH LEASES MAY BE APPROVED BY THE DIVISION OF GENERAL SERVICES; TO AMEND SECTION 11-35-1510, RELATING TO METHODS OF SOURCE SELECTION UNDER THE PROCUREMENT CODE, SO AS TO INCLUDE A REFERENCE TO SECTION 11-35-1595; 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 WHICH PERMIT IT TO APPLY TO THE DIVISION OF GENERAL SERVICES FOR APPROVAL TO ACQUIRE RENTAL PROPERTY FOR ITS OPERATIONS WHEN STATE-OWNED PROPERTY IS NOT AVAILABLE, TO FURTHER PROVIDE FOR THE CRITERIA FOR THE APPROVAL OF SUCH AN APPLICATION, INCLUDING COST-EFFECTIVENESS AND ADEQUACY OF FUNDS, AND TO TRANSFER TO SECTION 11-35-1600 THE AUTHORITY OF THE BUDGET AND CONTROL BOARD TO PROMULGATE CERTAIN REGULATIONS PERTAINING TO RENTAL SPACE; AND TO AMEND SECTION 11-35-1600, RELATING TO THE STATE BUDGET AND CONTROL BOARD MANAGING THE LEASING OF SPACE OF STATE AGENCIES INCLUDING THE REQUIREMENT THAT THE BOARD PROMULGATE REGULATIONS IN REGARD THERETO, SO AS TO FURTHER PROVIDE FOR THESE REGULATIONS.
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:
(1) three hundred square feet for an agency director or an employee with similar duties and responsibilities;
(2) two hundred twenty-five square feet for an assistant agency director or an employee with similar duties and responsibilities;
(3) one hundred fifty square feet for a supervisory or professional position;
(4) an average of seventy-five square feet for a clerical position;
(5) as determined by the Division of General Services for all other space needs including, but not limited to, reception areas, conference rooms, storage areas, or classrooms. 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.
(C) Nothing in this chapter shall apply to the renewal of leases entered into before the effective date of this section.
(D) The requirements of this section must be incorporated into the regulations promulgated by the Budget and Control Board pursuant to Section 11-35-1600 regarding the leasing of public and private space by state agencies."
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) of this Section 11-35-1600, 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.
(3) Promulgation of Regulations. The board shall promulgate regulations to implement the provisions of this Section which shall include:
(a) Procedures for governmental bodies to apply for rental space.
(b) Flexible cost standards for rental space.
(c) Procedures for competitive bidding where feasible."
SECTION 4. Section 11-35-1600 of the 1976 Code, as added by Act 164 of 1993, is amended to read:
"Section 11-35-1600. The State Budget and Control Board, in an effort to ensure that funds authorized and appropriated for rent are used in the most efficient manner, is directed to develop a program to manage the leasing of all public and private space of state agencies. In accordance with Section Sections 11-35-1590 and 11-35-1595, the board's regulations, upon General Assembly approval, shall include procedures for:
(1) assessing and evaluating agency needs, including the authority to require agency justification for any request to lease public or private space;
(2) establishing uniform standards for the quality and quantity of space to be leased by a requesting agency;
(3) devising and requiring the use of a standard lease form, to be (approved by the Attorney General) with provisions which assert and protect the state's prerogatives including, but not limited to, a right of cancellation in the event of:
(a) a nonappropriation for the renting agency,
(b) a dissolution of the agency, and
(c) the availability of public space in substitution for private space being leased by the agency;
(4) rejecting an agency's request for additional space or space at a specific location, or both;
(5) directing agencies to be located in public space, when available, before private space can be leased;
(6) requiring the agency to submit a multi-year financial plan for review by the board's budget office with copies sent to Ways and Means Committee and Senate Finance Committee, before any new lease for space is entered into; and
(7) requiring prior review by the Joint Bond Review Committee and the requirement of Budget and Control Board approval before the adoption of any new lease that commits more than one million dollars in a five-year period.;
(8) implementing the provisions of Sections 11-35-1590 and 11-35-1595 including:
(a) procedures for governmental bodies to apply for rental space;
(b) flexible cost standards for rental space;
(c) procedures for competitive proposals to ensure the most cost-effective procurement of leased space and provide objective criteria for determining when competition is not feasible. The regulations must include a provision where the Division of General Services 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) 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;
(e) 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 5. This act takes effect upon approval by the Governor.