Senate Bill 1902c1

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    Florida Senate - 2000                           CS for SB 1902

    By the Committee on Governmental Oversight and Productivity;
    and Senator Geller




    302-2188-00

  1                      A bill to be entitled

  2         An act relating to public property and

  3         buildings; designating the procedure for the

  4         sale of public property to the tenants doing

  5         the majority of business in the public

  6         property; authorizing the Division of Facility

  7         Management to procure real estate appraisals on

  8         the public property; requiring the Board of

  9         Trustees of the Internal Improvement Trust Fund

10         to institute a procedure to negotiate the sale

11         and privatization of certain public property

12         and buildings; providing an effective date.

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14         WHEREAS, the State of Florida currently owns

15  significant public properties and buildings located on those

16  public properties, known as state facilities, and

17         WHEREAS, the Legislature wishes to promote businesses

18  within Florida while upgrading certain state facilities

19  through privatization, and

20         WHEREAS, certain state facilities need substantial

21  capital improvements to continue to provide the services

22  necessary for the Florida businesses, and

23         WHEREAS, it is the Legislature's public policy to

24  promote private industry in areas such as property

25  construction, renovation, and management, and

26         WHEREAS, certain state facilities are operating without

27  substantial capital improvements to fully optimize the use of

28  the state facilities, NOW, THEREFORE,

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30  Be It Enacted by the Legislature of the State of Florida:

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 1902
    302-2188-00




  1         Section 1.  The Board of Trustees of the Internal

  2  Improvement Trust Fund shall institute a program of

  3  privatization of certain state facilities.

  4         (1)  The Board of Trustees of the Internal Improvement

  5  Trust Fund shall privatize certain state facilities where the

  6  majority private business tenants on the facility are private

  7  businesses, the majority private business tenants petition the

  8  board of trustees, and the facility meets one or more of the

  9  following criteria:

10         (a)  The state facility is more than 25 years old and

11  is in need of substantial capital improvements;

12         (b)  The Office of Program Policy Analysis and

13  Government Accountability has issued a report questioning the

14  long-term viability of the state facility or states that the

15  sale of the state facility is appropriate;

16         (c)  The state agency has provided in its budget for

17  substantial capital improvements to the state facility and the

18  budget request has gone unfunded for 2 consecutive years; or

19         (d)  The state facility requires asbestos removal from

20  the buildings on the facility and such removal has not been

21  undertaken within 2 years of discovery.

22         (2)  For purposes of this section, the term:

23         (a)  "Substantial capital improvement" means that the

24  capital improvements' cost would exceed 25 percent of the

25  appraised value of the property, including the cost of removal

26  and replacement of outdated buildings on the public property.

27         (b)  "State facility" means public property and

28  buildings consisting of 25 acres or less of state-owned land

29  that is improved with office space and is leased by the state

30  to private tenants that occupy the majority of the square

31  footage of the leased space.

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000                           CS for SB 1902
    302-2188-00




  1         (c)  "Majority private business tenants" means the

  2  nongovernmental lessees of the state facilities which lease

  3  the majority of the square footage of state facilities which

  4  is for lease.

  5         (3)  The Board of Trustees of the Internal Improvement

  6  Trust Fund shall have 6 months from the date of the receipt of

  7  the petition to procure three appraisals of the facility for

  8  purposes of negotiating with the petitioning tenants to sell

  9  the state facility for the average price of the appraisals.

10         (4)  The agreement for purchase shall be executed by

11  the Board of Trustees of the Internal Improvement Trust Fund

12  within 9 months after the date of the receipt of tenant

13  petition and shall be for the average price of the three

14  appraisals.

15         (5)  Notwithstanding any other law to the contrary, the

16  majority private business tenants shall have a right of first

17  refusal to purchase the state facility, provided the majority

18  private business tenants have petitioned the state in their

19  petition. Such right of first refusal must be exercised within

20  90 days after notice of the sale to the tenants.

21         Section 2.  This act shall take effect upon becoming a

22  law.

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    Florida Senate - 2000                           CS for SB 1902
    302-2188-00




  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                             SB 1902

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  4  Provides that the Board of Trustees of the Internal
    Improvement Trust Fund (BOT), rather than the Department of
  5  Management Services, must sell a state facility under
    specified circumstances.
  6
    Adds definitions.
  7
    Clarifies that the BOT must obtain three appraisals, rather
  8  than "up to" three appraisals.

  9  Increases the amount of time the BOT has to execute a purchase
    agreement from 90 days to 9 months.
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    Deletes the bill's provision concerning how proceeds of the
11  sale would be appropriated.

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