Bill Text: GA SB37 | 2011-2012 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: State Properties Commission; multiyear lease agreements; provide for termination of certain rental/lease agreements

Spectrum: Partisan Bill (Republican 6-0)

Status: (Passed) 2012-05-02 - Act 717 [SB37 Detail]

Download: Georgia-2011-SB37-Comm_Sub.html

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11 LC 35 2253S

The House Committee on State Institutions and Property offers the following substitute to SB 37:

A BILL TO BE ENTITLED
AN ACT

To amend Article 2 of Chapter 16 of Title 50 of the Official Code of Georgia Annotated, relating to the "State Properties Code," so as to provide the State Properties Commission the authority to enter into multiyear lease or rental agreements; to provide for the termination of certain rental and lease agreements; to provide for fiscal policies for multiyear lease or rental agreements to be adopted by the Georgia State Financing and Investment Commission; to provide for related matters; to provide an effective date; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Article 2 of Chapter 16 of Title 50 of the Official Code of Georgia Annotated, relating to the "State Properties Code," is amended in Code Section 50-16-34, relating to the powers and duties of the State Properties Commission generally, by deleting "and" at the end of paragraph (16), by replacing the period with "; and" at the end of paragraph (17), and by adding a new paragraph to read as follows:

"(18) Contract with a licensed real estate broker through a competitive selection process to perform transaction management services on behalf of the commission. For the purposes of this Code section, 'transaction management' is defined as the management of all tasks relative to the acquiring and disposing of real property assets, whether leased, subleased, or owned. The commission may charge a negotiated fee from the broker."

SECTION 2.

Said article is further amended in Code Section 50-16-41, relating to authorizing rental agreements without competitive bidding, limitations, charging the commission with the management of administrative space, standards governing the utilization of administrative space, reassignment of administrative space, and rules and regulations therefore, by revising subsection (c) as follows:

"(c) The management of the utilization of administrative space by the commission shall include entering into any necessary agreements to rent or lease administrative space, whether existing or to be constructed, and shall include administrative space rented or leased by a state entity from the Georgia Building Authority or from any other public or private person, firm, or corporation. When it becomes necessary to rent or lease administrative space, the space shall be rented or leased by the commission and for a term not to exceed ten years or, in the case of a sale and leaseback, for a term not to exceed 20 years. The space shall be assigned to the state entity or entities requiring the space. All agreements to rent or lease administrative space with a term of greater than one year shall be publicly advertised for a minimum of four consecutive weeks. Selections are to be based on criteria set forth in the advertisement and the qualifications of the lessor. When there is a need to terminate an agreement for the rent or lease of administrative space, the state entity to which the space is assigned shall notify the commission of such need no less than 90 days prior to the requested date of termination. No agreement for the rent or lease of administrative space with a term in excess of one year shall be terminated without prior approval of the commission."

SECTION 3.

Said Code section is further amended by revising subsection (d) as follows:

"(d) If the commission reassigns all or any portion of any administrative space which is leased or rented by one state entity to another state entity, the state entity to which the administrative space is reassigned shall may pay to the commission rental charges, as determined by the commission, for the utilization of the space; and the commission shall may, in turn, use the rental charges so paid for the purpose of paying or partially paying, as the case may be, the rent or lease payments due the lessor of the administrative space in accordance with the terms of the lease or rent contract existing at the time of the reassignment of the administrative space. Any such payments to a lessor by the commission shall be on behalf of the state entity which is the lessee of the administrative space reassigned as provided in this Code section."

SECTION 4.

Said Code section is further amended by revising subsection (i) as follows:

"(i) The commission is authorized and directed to promulgate rules and regulations governing budgetary requirements for administrative space utilized by state entities in cooperation with the Office of Planning and Budget whereby the entities shall be accountable in the budgetary process for administrative space assigned to and utilized by them. The budgetary requirements may provide for the payment of rent to the commission by state entities or may otherwise provide procedures for the assessment of rent charges for administrative space utilized by state entities or any combination of the foregoing. The commission shall provide a report annually, no later than September 1 of each year, to the Governor, President of the Senate, Speaker of the House of Representatives, chairpersons of the Senate and House Appropriations Committees, and chairpersons of the Senate State Institutions and Property Committee and the House Committee on State Institutions and Property. The report shall provide the total sum of all leasing obligations to be paid by the state for the upcoming fiscal year. Such report shall also include and itemize all revenues collected from the previous fiscal year, including revenues collected from broker fees, and provide an itemized budget allocation for the upcoming fiscal year."

SECTION 5.

Said Code section is further amended by adding a new subsection to read as follows:

"(k)(1) The Georgia State Financing and Investment Commission is authorized to establish fiscal policies regarding multiyear lease and rental agreements and, each fiscal year, may establish a total multiyear contract value authority. During the fiscal year, the multiyear contract value authority may be revised as determined necessary by the Georgia State Financing and Investment Commission. The total multiyear contract value authority may be based upon the Governor's revenue estimate for subsequent fiscal years and other information as determined by the Georgia State Financing and Investment Commission.

(2) No multiyear lease or rental agreement shall be entered into under the provisions of this Code section until the Georgia State Financing and Investment Commission has established the fiscal policies and multiyear contract value authority for the current and future fiscal years. Any multiyear lease or rental agreement entered into that is not in compliance with such fiscal policies and multiyear contract value authority shall be void and of no effect.

(3) At the beginning of each fiscal year, a budget unit's appropriations shall be encumbered for the estimated payments for any multiyear lease and rental agreements in that fiscal year. The commission shall have the right to terminate, without further obligation, any multiyear lease or rental agreement if the commission determines that adequate funds will not be available for the payment obligations of the commission under the agreement. The commission's determination regarding the availability of funds for its obligations shall be conclusive and binding on all parties to the multiyear lease or rental agreement."

SECTION 6.

Section 1 of this Act shall become effective on July 1, 2011. Sections 2 through 5 of this Act shall become effective on January 1, 2013; provided, however, that Sections 2 through 5 of this Act shall only become effective on January 1, 2013, upon the ratification of a resolution at the November, 2012, state-wide general election, which resolution amends the Constitution so as to authorize certain agencies to enter into lease and rental contracts exceeding one year. If such resolution is not so ratified, Sections 2 through 5 of this Act shall not become effective and shall stand repealed on January 1, 2013.

SECTION 7.

All laws and parts of laws in conflict with this Act are repealed.