Senate Bill sb1972e1

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




    CS for CS for SB 1972                          First Engrossed



  1                      A bill to be entitled

  2         An act relating to the leasing of private

  3         property by state agencies; amending s.

  4         255.248, F.S.; defining terms; amending s.

  5         255.249, F.S.; requiring the Department of

  6         Management Services to develop a strategic

  7         leasing plan; removing the expiration of

  8         provisions requiring that the department

  9         annually submit a master leasing report to the

10         Governor and the Legislature concerning leases

11         that are due to expire and amendments and

12         supplements to and waivers of the terms and

13         conditions of lease agreements; requiring state

14         agencies to provide information concerning

15         space needs to the Department of Management

16         Services; requiring that the Department of

17         Management Services adopt rules for soliciting

18         and accepting competitive solicitations for

19         certain leased space, for exempting the lease

20         of care and living space or emergency space

21         from competitive-solicitation requirements, for

22         securing at least three quotes for a lease that

23         is not required to be competitively solicited

24         and for providing information regarding space

25         needs to the Department of Management Services;

26         removing the expiration of provisions requiring

27         that specified clauses, which may not be

28         amended, supplemented, or waived, be included

29         in the terms and conditions of a lease;

30         authorizing the Department of Management

31         Services to contract for services in carrying


                                  1

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






    CS for CS for SB 1972                          First Engrossed



 1         out the strategic leasing plan; amending s.

 2         255.25, F.S.; requiring state agencies to

 3         consult with the Department of Management

 4         Services concerning use of space; removing the

 5         expiration of provisions requiring that the

 6         department approve the terms of a lease by a

 7         state agency; requiring an analysis if the

 8         department approves an amendment or supplement

 9         to or waiver of a term or condition of a lease

10         agreement; prohibiting a state agency from

11         entering into certain leases of space in a

12         privately owned building except upon

13         advertisement for and receipt of competitive

14         solicitations; providing exceptions; providing

15         requirements for the use of invitations to bid,

16         requests for proposals, and invitations to

17         negotiate; providing criteria for awarding

18         contracts; providing criteria for protesting an

19         agency decision or intended decision pertaining

20         to a competitive solicitation for leased space;

21         providing criteria for the Department of

22         Management Services to use when determining the

23         state's best interest and when approving leases

24         of 5,000 square feet or more; authorizing state

25         agencies to use the services of a tenant broker

26         under specified circumstances; authorizing the

27         Department of Management Services to procure a

28         state term contract for real estate consulting

29         and brokerage services; removing the expiration

30         of provisions providing legislative intent with

31         respect to the use of state-owned buildings;


                                  2

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






    CS for CS for SB 1972                          First Engrossed



 1         requiring that the department create a plan for

 2         fully using such buildings before leasing

 3         private buildings; requiring an annual report

 4         to the Legislature and the Governor; providing

 5         the procedure for payment of the tenant broker

 6         for commission earned; providing an effective

 7         date.

 8  

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

10  

11         Section 1.  Section 255.248, Florida Statutes, is

12  amended to read:

13         255.248  Definitions; ss. 255.249 and 255.25.--As The

14  following definitions shall apply when used in ss. 255.249 and

15  255.25, the term:

16         (1)  "Best leasing value" means the highest overall

17  value to the state based on objective factors that include,

18  but are not limited to, rental rate, renewal rate, operational

19  and maintenance costs, tenant-improvement allowance, location,

20  lease term, condition of facility, landlord responsibility,

21  amenities, and parking.

22         (2)  "Competitive solicitation" means an invitation to

23  bid, a request for proposals, or an invitation to negotiate.

24         (3)  "Department" means the Department of Management

25  Services.

26         (4)  "Privately owned building" means any building not

27  owned by a governmental agency.

28         (5)  "Responsible lessor" means a lessor who has the

29  capability in all respects to fully perform the contract

30  requirements and the integrity and reliability that will

31  assure good faith performance.


                                  3

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






    CS for CS for SB 1972                          First Engrossed



 1         (6)  "Responsive bid," "responsive proposal," or

 2  "responsive reply" means a bid or proposal, or reply submitted

 3  by a responsive and responsible lessor, which conforms in all

 4  material respects to the solicitation.

 5         (7)  "Responsive lessor" means a lessor that has

 6  submitted a bid, proposal, or reply that conforms in all

 7  material respects to the solicitation.

 8         (8)(1)  The term "State-owned office building" means

 9  any building title to which is vested in the state and which

10  is used by one or more executive agencies predominantly for

11  administrative direction and support functions.  This term

12  excludes:

13         (a)  District or area offices established for field

14  operations where law enforcement, military, inspections, road

15  operations, or tourist welcoming functions are performed.

16         (b)  All educational facilities and institutions under

17  the supervision of the Department of Education.

18         (c)  All custodial facilities and institutions used

19  primarily for the care, custody, or treatment of wards of the

20  state.

21         (d)  Buildings or spaces used for legislative

22  activities.

23         (e)  Buildings purchased or constructed from

24  agricultural or citrus trust funds.

25         (2)  The term "privately owned building" shall mean any

26  building not owned by a governmental agency.

27         Section 2.  Subsections (1), (3), (4), and (5) of

28  section 255.249, Florida Statutes, are amended, and subsection

29  (6) is added to that section, to read:

30         255.249  Department of Management Services;

31  responsibility; department rules.--


                                  4

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






    CS for CS for SB 1972                          First Engrossed



 1         (1)  The department of Management Services shall have

 2  responsibility and authority for the custodial and preventive

 3  maintenance, repair, and allocation of space of all buildings

 4  in the Florida Facilities Pool and the grounds located

 5  adjacent thereto.

 6         (3)(a)  The department shall, to the extent feasible,

 7  coordinate the vacation of privately owned leased space with

 8  the expiration of the lease on that space and, when a lease is

 9  terminated before expiration of its base term, will make a

10  reasonable effort to place another state agency in the space

11  vacated. Any state agency may lease the space in any building

12  that was subject to a lease terminated by a state agency for a

13  period of time equal to the remainder of the base term without

14  the requirement of competitive solicitation bidding.

15         (b)  The department shall develop and implement a

16  strategic leasing plan. The strategic leasing plan shall

17  forecast space needs for all state agencies and identify

18  opportunities for reducing costs through consolidation,

19  relocation, reconfiguration, capital investment, and the

20  building or acquisition of state-owned space.

21         (c)(b)  The department shall annually publish a master

22  leasing report that lists, by agency, all leases that are due

23  to expire within 24 months. The annual report must include the

24  following information for each lease: location; size of leased

25  space; current cost per leased square foot; lease expiration

26  date; and a determination of whether sufficient state-owned

27  office space will be available at the expiration of the lease

28  to house affected employees. The report must also include a

29  list of amendments and supplements to and waivers of terms and

30  conditions in lease agreements that have been approved

31  pursuant to s. 255.25(2)(a) during the previous 12 months and


                                  5

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






    CS for CS for SB 1972                          First Engrossed



 1  an associated comprehensive analysis, including financial

 2  implications, showing that any amendment, supplement, or

 3  waiver is in the state's long-term best interest. The

 4  department shall furnish the master leasing this report to the

 5  Executive Office of the Governor and the Legislature by

 6  September 15 of each year which provides the following

 7  information: This paragraph expires July 1, 2007.

 8         1.  A list, by agency and by geographic market, of all

 9  leases that are due to expire within 24 months.

10         2.  Details of each lease, including location, size,

11  cost per leased square foot, lease-expiration date, and a

12  determination of whether sufficient state-owned office space

13  will be available at the expiration of the lease to

14  accommodate affected employees.

15         3.  A list of amendments and supplements to and waivers

16  of terms and conditions in lease agreements that have been

17  approved pursuant to s. 255.25(2)(a) during the previous 12

18  months and an associated comprehensive analysis, including

19  financial implications, showing that any amendment,

20  supplement, or waiver is in the state's long-term best

21  interest.

22         4.  Financial impacts to the pool rental rate due to

23  the sale, removal, acquisition, or construction of pool

24  facilities.

25         5.  Changes in occupancy rate, maintenance costs, and

26  efficiency costs of leases in the state portfolio. Changes to

27  occupancy costs in leased space by market and changes to space

28  consumption by agency and by market.

29         6.  An analysis of portfolio supply and demand.

30         7.  Cost-benefit analyses of acquisition, build, and

31  consolidation opportunities, recommendations for strategic


                                  6

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






    CS for CS for SB 1972                          First Engrossed



 1  consolidation, and strategic recommendations for disposition,

 2  acquisition, and building.

 3         8.  The updated plan required by s. 255.25(4)(c).

 4         (d)  By June 30 of each year, each state agency shall

 5  annually provide to the department all information regarding

 6  agency programs affecting the need for or use of space by that

 7  agency, reviews of lease-expiration schedules for each

 8  geographic area, active and planned full-time equivalent data,

 9  business case analyses related to consolidation plans by an

10  agency, and current occupancy and relocation costs, inclusive

11  of furnishings, fixtures and equipment, data, and

12  communications.

13         (4)  The department shall adopt promulgate rules

14  pursuant to chapter 120 providing:

15         (a)  Methods for accomplishing the duties outlined in

16  subsection (1).

17         (b)  Procedures for soliciting and accepting

18  competitive solicitations proposals for leased space of 5,000

19  square feet or more in privately owned buildings, for

20  evaluating the proposals received, for exemption from

21  competitive solicitations bidding requirements of any lease

22  the purpose of which is the provision of care and living space

23  for persons or emergency space needs as provided in s.

24  255.25(10), and for the securing of at least three documented

25  quotes for a lease that is not required to be competitively

26  solicited bid.

27         (c)  A standard method for determining square footage

28  or any other measurement used as the basis for lease payments

29  or other charges.

30  

31  


                                  7

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






    CS for CS for SB 1972                          First Engrossed



 1         (d)  Methods of allocating space in both state-owned

 2  office buildings and privately owned buildings leased by the

 3  state based on use, personnel, and office equipment.

 4         (e)1.  Acceptable terms and conditions for inclusion in

 5  lease agreements.

 6         2.  Such terms and conditions shall include, at a

 7  minimum, the following clauses, which may not be amended,

 8  supplemented, or waived:

 9         a.  As provided in s. 255.2502, "The State of Florida's

10  performance and obligation to pay under this contract is

11  contingent upon an annual appropriation by the Legislature."

12         b.  "The Lessee shall have the right to terminate,

13  without penalty, this lease in the event a State-owned

14  building becomes available to the Lessee for occupancy in the

15  County of ........, Florida, during the term of said lease for

16  the purposes for which this space is being leased upon giving

17  6 months' advance written notice to the Lessor by Certified

18  Mail, Return Receipt Requested."

19  

20  This subparagraph expires July 1, 2007.

21         (f)  Maximum rental rates, by geographic areas or by

22  county, for leasing privately owned space.

23         (g)  A standard method for the assessment of rent to

24  state agencies and other authorized occupants of state-owned

25  office space, notwithstanding the source of funds.

26         (h)  For full disclosure of the names and the extent of

27  interest of the owners holding a 4-percent or more interest in

28  any privately owned property leased to the state or in the

29  entity holding title to the property, for exemption from such

30  disclosure of any beneficial interest which is represented by

31  stock in any corporation registered with the Securities and


                                  8

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






    CS for CS for SB 1972                          First Engrossed



 1  Exchange Commission or registered pursuant to chapter 517,

 2  which stock is for sale to the general public, and for

 3  exemption from such disclosure of any leasehold interest in

 4  property located outside the territorial boundaries of the

 5  United States.

 6         (i)  For full disclosure of the names of all public

 7  officials, agents, or employees holding any interest in any

 8  privately owned property leased to the state or in the entity

 9  holding title to the property, and the nature and extent of

10  their interest, for exemption from such disclosure of any

11  beneficial interest which is represented by stock in any

12  corporation registered with the Securities and Exchange

13  Commission or registered pursuant to chapter 517, which stock

14  is for sale to the general public, and for exemption from such

15  disclosure of any leasehold interest in property located

16  outside the territorial boundaries of the United States.

17         (j)  A method for reporting leases for nominal or no

18  consideration.

19         (k)  For a lease of less than 5,000 square feet, a

20  method for certification by the agency head or the agency

21  head's designated representative that all criteria for leasing

22  have been fully complied with and for the filing of a copy of

23  such lease and all supporting documents with the department

24  for its review and approval as to technical sufficiency.

25         (l)  A standardized format for state agency reporting

26  of the information required by paragraph (3)(d).

27         (5)  The department of Management Services shall

28  prepare a form listing all conditions and requirements adopted

29  pursuant to this chapter which must be met by any state agency

30  leasing any building or part thereof. Before executing any

31  lease, this form shall be certified by the agency head or the


                                  9

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






    CS for CS for SB 1972                          First Engrossed



 1  agency head's designated representative and submitted to the

 2  department.

 3         (6)  The department may contract for real estate

 4  consulting or tenant brokerage services in order to carry out

 5  its duties relating to the strategic leasing plan. The

 6  contract shall be procured pursuant to s. 287.057. The vendor

 7  that is awarded the contract shall be compensated by the

 8  department, subject to the provisions of the contract, and

 9  such compensation is subject to appropriation by the

10  Legislature. The real estate consultant or tenant broker may

11  not receive compensation directly from a lessor for services

12  that are rendered pursuant to the contract. Moneys paid to the

13  real estate consultant or tenant broker are exempt from any

14  charge imposed under s. 287.1345. Moneys paid by a lessor to

15  the department under a facility-leasing arrangement are not

16  subject to the charges imposed under s. 215.20.

17         Section 3.  Subsections (1), (2), (3), (4), and (8) of

18  section 255.25, Florida Statutes, are amended to read:

19         255.25  Approval required prior to construction or

20  lease of buildings.--

21         (1)(a)  A No state agency may not lease space in a

22  private building that is to be constructed for state use

23  unless prior approval of the architectural design and

24  preliminary construction plans is first obtained from the

25  department of Management Services.

26         (b)  During the term of existing leases, each agency

27  shall consult with the department regarding opportunities for

28  consolidation, use of state-owned space, build-to-suit space,

29  and potential acquisitions; shall monitor market conditions;

30  and shall initiate a competitive solicitation or, if

31  appropriate, lease-renewal negotiations for each lease held in


                                  10

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






    CS for CS for SB 1972                          First Engrossed



 1  the private sector to effect the best overall lease terms

 2  reasonably available to that agency. Amendments to leases may

 3  be permitted to modify any lease provisions or any other terms

 4  or conditions, except to the extent specifically prohibited by

 5  this chapter. The department of Management Services shall

 6  serve as a mediator in lease-renewal negotiations lease

 7  renegotiations if the agency and the lessor are unable to

 8  reach a compromise within 6 months after of renegotiation and

 9  if either the agency or lessor requests the Department of

10  Management Services' intervention by the department.

11         (c)  When specifically authorized by the Appropriations

12  Act and in accordance with s. 255.2501, if applicable, the

13  department of Management Services may approve a

14  lease-purchase, sale-leaseback, or tax-exempt leveraged lease

15  contract or other financing technique for the acquisition,

16  renovation, or construction of a state fixed capital outlay

17  project when it is in the best interest of the state.

18         (2)(a)  Except as provided in s. 255.2501, a no state

19  agency may not lease a building or any part thereof unless

20  prior approval of the lease conditions and of the need

21  therefor is first obtained from the department of Management

22  Services.  Any approved lease may include an option to

23  purchase or an option to renew the lease, or both, upon such

24  terms and conditions as are established by the department

25  subject to final approval by the head of the Department of

26  Management Services and s. 255.2502.

27         (b)  The approval of the department of Management

28  Services, except for technical sufficiency, need not be

29  obtained for the lease of less than 5,000 square feet of space

30  within a privately owned building, provided the agency head or

31  the agency head's designated representative has certified


                                  11

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






    CS for CS for SB 1972                          First Engrossed



 1  compliance with applicable leasing criteria as may be provided

 2  pursuant to s. 255.249(4)(k) and has determined such lease to

 3  be in the best interest of the state. Such A lease that which

 4  is for a term extending beyond the end of a fiscal year is

 5  subject to the provisions of ss. 216.311, 255.2502, and

 6  255.2503.

 7         (c)  The department of Management Services shall adopt

 8  as a rule uniform leasing procedures for use by each state

 9  agency other than the Department of Transportation. Each state

10  agency shall ensure that the leasing practices of that agency

11  are in substantial compliance with the uniform leasing rules

12  adopted under this section and ss. 255.249, 255.2502, and

13  255.2503.

14         (d)  Notwithstanding paragraph (a) and except as

15  provided in ss. 255.249 and 255.2501, a state agency may not

16  lease a building or any part thereof unless prior approval of

17  the lease terms and conditions and of the need therefor is

18  first obtained from the department of Management Services. The

19  department may not approve any term or condition in a lease

20  agreement which has been amended, supplemented, or waived

21  unless a comprehensive analysis, including financial

22  implications, demonstrates that such amendment, supplement, or

23  waiver is in the state's long-term best interest. Any approved

24  lease may include an option to purchase or an option to renew

25  the lease, or both, upon such terms and conditions as are

26  established by the department subject to final approval by the

27  head of the Department of Management Services and the

28  provisions of s. 255.2502. This paragraph expires July 1,

29  2007.

30         (3)(a)  Except as provided in subsection (10), a no

31  state agency may not shall enter into a lease as lessee for


                                  12

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






    CS for CS for SB 1972                          First Engrossed



 1  the use of 5,000 square feet or more of space in a privately

 2  owned building except upon advertisement for and receipt of

 3  competitive solicitations bids and award to the lowest and

 4  best bidder.

 5         1.a.  An invitation to bid shall be made available

 6  simultaneously to all lessors and must include a detailed

 7  description of the space sought; the time and date for the

 8  receipt of bids and of the public opening; and all contractual

 9  terms and conditions applicable to the procurement, including

10  the criteria to be used in determining acceptability of the

11  bid. If the agency contemplates renewal of the contract, that

12  fact must be stated in the invitation to bid. The bid must

13  include the price for each year for which the contract may be

14  renewed. Evaluation of bids shall include consideration of the

15  total cost for each year as submitted by the lessor. Criteria

16  that were not set forth in the invitation to bid may not be

17  used in determining acceptability of the bid.

18         b.  The contract shall be awarded with reasonable

19  promptness by written notice to the responsible and responsive

20  lessor that submits the lowest responsive bid. This bid must

21  be determined in writing to meet the requirements and criteria

22  set forth in the invitation to bid.

23         2.a.  If an agency determines in writing that the use

24  of an invitation to bid is not practicable, leased space shall

25  be procured by competitive sealed proposals. A request for

26  proposals shall be made available simultaneously to all

27  lessors and must include a statement of the space sought; the

28  time and date for the receipt of proposals and of the public

29  opening; and all contractual terms and conditions applicable

30  to the procurement, including the criteria, which must

31  include, but need not be limited to, price, to be used in


                                  13

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






    CS for CS for SB 1972                          First Engrossed



 1  determining acceptability of the proposal. The relative

 2  importance of price and other evaluation criteria shall be

 3  indicated. If the agency contemplates renewal of the contract,

 4  that fact must be stated in the request for proposals. The

 5  proposal must include the price for each year for which the

 6  contract may be renewed. Evaluation of proposals shall include

 7  consideration of the total cost for each year as submitted by

 8  the lessor.

 9         b.  The contract shall be awarded to the responsible

10  and responsive lessor whose proposal is determined in writing

11  to be the most advantageous to the state, taking into

12  consideration the price and the other criteria set forth in

13  the request for proposals. The contract file must contain

14  documentation supporting the basis on which the award is made.

15         3.a.  If the agency determines in writing that the use

16  of an invitation to bid or a request for proposals will not

17  result in the best leasing value to the state, the agency may

18  procure leased space by competitive sealed replies. The

19  agency's written determination must specify reasons that

20  explain why negotiation may be necessary in order for the

21  state to achieve the best leasing value and must be approved

22  in writing by the agency head or his or her designee prior to

23  the advertisement of an invitation to negotiate. Cost savings

24  related to the agency procurement process are not sufficient

25  justification for using an invitation to negotiate. An

26  invitation to negotiate shall be made available to all lessors

27  simultaneously and must include a statement of the space

28  sought; the time and date for the receipt of replies and of

29  the public opening; and all terms and conditions applicable to

30  the procurement, including the criteria to be used in

31  determining the acceptability of the reply. If the agency


                                  14

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






    CS for CS for SB 1972                          First Engrossed



 1  contemplates renewal of the contract, that fact must be stated

 2  in the invitation to negotiate. The reply must include the

 3  price for each year for which the contract may be renewed.

 4         b.  The agency shall evaluate and rank responsive

 5  replies against all evaluation criteria set forth in the

 6  invitation to negotiate and shall select, based on the

 7  ranking, one or more lessors with which to commence

 8  negotiations. After negotiations are conducted, the agency

 9  shall award the contract to the responsible and responsive

10  lessor that the agency determines will provide the best

11  leasing value to the state. The contract file must contain a

12  short, plain statement that explains the basis for lessor

13  selection and sets forth the lessor's deliverables and price

14  pursuant to the contract, and an explanation of how these

15  deliverables and price provide the best leasing value to the

16  state.

17         (b)  The Department of Management Services shall have

18  the authority to approve a lease for 5,000 square feet or more

19  of space that covers more than 1 fiscal year, subject to the

20  provisions of ss. 216.311, 255.2501, 255.2502, and 255.2503,

21  if such lease is, in the judgment of the department, in the

22  best interests of the state. In determining best interest, the

23  department shall consider availability of state-owned space

24  and analyses of build-to-suit and acquisition opportunities.

25  This paragraph does not apply to buildings or facilities of

26  any size leased for the purpose of providing care and living

27  space for persons.

28         (c)(b)  The department of Management Services may

29  approve extensions of an existing lease of 5,000 square feet

30  or more of space if such extensions are determined to be in

31  the best interests of the state, but in no case shall the


                                  15

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






    CS for CS for SB 1972                          First Engrossed



 1  total of such extensions exceed 11 months.  If at the end of

 2  the 11th month an agency still needs that space, it shall be

 3  procured by competitive bid in accordance with s.

 4  255.249(4)(b). However, an agency that determines that it is

 5  in its best interest to remain in the space it currently

 6  occupies may negotiate a replacement lease with the lessor if

 7  an independent comparative market analysis demonstrates that

 8  the rates offered are within market rates for the space and

 9  the cost of the new lease does not exceed the cost of a

10  comparable lease plus documented moving costs. A present-value

11  analysis and the consumer price index shall be used in the

12  calculation of lease costs. The term of the replacement lease

13  may not exceed the base term of the expiring lease.

14         (d)(c)  Any person who files an action protesting a

15  decision or intended decision pertaining to a competitive

16  solicitation bid for space to be leased by the agency pursuant

17  to s. 120.57(3)(b) shall post with the state agency at the

18  time of filing the formal written protest a bond payable to

19  the agency in an amount equal to 1 percent of the estimated

20  total rental of the basic lease period or $5,000, whichever is

21  greater, which bond shall be conditioned upon the payment of

22  all costs that which may be adjudged against him or her in the

23  administrative hearing in which the action is brought and in

24  any subsequent appellate court proceeding. If the agency

25  prevails after completion of the administrative hearing

26  process and any appellate court proceedings, it shall recover

27  all costs and charges, which shall be included in the final

28  order or judgment, excluding attorney's fees.  Upon payment of

29  such costs and charges by the person protesting the award, the

30  bond shall be returned to him or her.  If the person

31  protesting the award prevails, the bond shall be returned to


                                  16

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






    CS for CS for SB 1972                          First Engrossed



 1  that person and he or she shall recover from the agency all

 2  costs and charges, which shall be included in the final order

 3  of judgment, excluding attorney's fees.

 4         (e)(d)  The agency and the lessor, when entering into a

 5  lease for 5,000 or more square feet of a privately owned

 6  building, shall, before the effective date of the lease, agree

 7  upon and separately state the cost of tenant improvements

 8  which may qualify for reimbursement if the lease is terminated

 9  before the expiration of its base term. The department shall

10  serve as mediator if the agency and the lessor are unable to

11  agree. The amount agreed upon and stated shall, if

12  appropriated, be amortized over the original base term of the

13  lease on a straight-line basis.

14         (f)(e)  The unamortized portion of tenant improvements,

15  if appropriated, shall will be paid in equal monthly

16  installments over the remaining term of the lease. If any

17  portion of the original leased premises is occupied after

18  termination but during the original term by a tenant that does

19  not require material changes to the premises, the repayment of

20  the cost of tenant improvements applicable to the occupied but

21  unchanged portion shall be abated during occupancy. The

22  portion of the repayment to be abated shall be based on the

23  ratio of leased space to unleased space.

24         (g)  Notwithstanding s. 287.056(1), a state agency may,

25  at the sole discretion of the agency head or his or her

26  designee, use the services of a tenant broker to assist with a

27  competitive solicitation undertaken by the agency. In making

28  its determination whether to use a tenant broker, a state

29  agency shall consult with the department. A state agency may

30  not use the services of a tenant broker unless the tenant

31  broker is under a term contract with the state which complies


                                  17

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






    CS for CS for SB 1972                          First Engrossed



 1  with paragraph (h). If a state agency uses the services of a

 2  tenant broker with respect to a transaction, the agency may

 3  not enter into a lease with any landlord to which the tenant

 4  broker is providing brokerage services for that transaction.

 5         (h)  The Department of Management Services may,

 6  pursuant to s. 287.042(2)(a), procure a term contract for real

 7  estate consulting and brokerage services. A state agency may

 8  not purchase services from the contract unless the contract

 9  has been procured under s. 287.057(1), (2), or (3) after March

10  1, 2007, and contains the following provisions or

11  requirements:

12         1.  Awarded brokers must maintain an office or presence

13  in the market served. In awarding the contract, preference

14  must be given to brokers that are licensed in this state under

15  chapter 475 and that have 3 or more years of experience in the

16  market served. The contract may be made with up to three

17  tenant brokers in order to serve the marketplace in the north,

18  central, and south areas of the state.

19         2.  Each contracted tenant broker shall work under the

20  direction, supervision, and authority of the state agency,

21  subject to the rules governing lease procurements.

22         3.  The department shall provide training for the

23  awarded tenant brokers concerning the rules governing the

24  procurement of leases.

25         4.  Tenant brokers must comply with all applicable

26  provisions of s. 475.278.

27         5.  Real estate consultants and tenant brokers shall be

28  compensated by the state agency, subject to the provisions of

29  the term contract, and such compensation is subject to

30  appropriation by the Legislature. A real estate consultant or

31  tenant broker may not receive compensation directly from a


                                  18

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






    CS for CS for SB 1972                          First Engrossed



 1  lessor for services that are rendered under the term contract.

 2  Moneys paid to a real estate consultant or tenant broker are

 3  exempt from any charge imposed under s. 287.1345. Moneys paid

 4  by a lessor to the state agency under a facility leasing

 5  arrangement are not subject to the charges imposed under s.

 6  215.20. All terms relating to the compensation of the real

 7  estate consultant or tenant broker shall be specified in the

 8  term contract and may not be supplemented or modified by the

 9  state agency using the contract.

10         6.  The department shall conduct periodic

11  customer-satisfaction surveys.

12         7.  Each state agency shall report the following

13  information to the department:

14         a.  The number of leases that adhere to the goal of the

15  workspace-management initiative of 180 square feet per FTE.

16         b.  The quality of space leased and the adequacy of

17  tenant-improvement funds.

18         c.  The timeliness of lease procurement, measured from

19  the date of the agency's request to the finalization of the

20  lease.

21         d.  Whether cost-benefit analyses were performed before

22  execution of the lease in order to ensure that the lease is in

23  the best interest of the state.

24         e.  The lease costs compared to market rates for

25  similar types and classifications of space according to the

26  official classifications of the Building Owners and Managers

27  Association.

28         (4)(a)  The department of Management Services shall not

29  authorize any state agency to enter into a lease agreement for

30  space in a privately owned building when suitable space is

31  available in a state-owned building located in the same


                                  19

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






    CS for CS for SB 1972                          First Engrossed



 1  geographic region, except upon presentation to the department

 2  of sufficient written justification, acceptable to the

 3  department, that a separate space is required in order to

 4  fulfill the statutory duties of the agency making such

 5  request. The term "state-owned building" as used in this

 6  subsection means any state-owned facility regardless of use or

 7  control.

 8         (b)  State agencies shall cooperate with local

 9  governmental units by using suitable, existing publicly owned

10  facilities, subject to the provisions of ss. 255.2501,

11  255.2502, and 255.2503. Agencies may utilize unexpended funds

12  appropriated for lease payments to:

13         1.  Pay their proportion of operating costs.

14         2.  Renovate applicable spaces.

15         (c)  Because the state has a substantial financial

16  investment in state-owned buildings, it is legislative policy

17  and intent that when state-owned buildings meet the needs of

18  state agencies, agencies must fully use such buildings before

19  leasing privately owned buildings. By September 15, 2006, the

20  Department of Management Services shall create a 5-year plan

21  for implementing this policy. The department shall update this

22  plan annually, detailing proposed departmental actions to meet

23  the plan's goals, and shall furnish this plan annually as part

24  of the master leasing report. The department shall furnish

25  this plan to the President of the Senate, the Speaker of the

26  House of Representatives, and the Executive Office of the

27  Governor by September 15 of each year. This paragraph expires

28  July 1, 2007.

29         (8)  An No agency may not shall enter into more than

30  one lease for space in the same privately owned facility or

31  


                                  20

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






    CS for CS for SB 1972                          First Engrossed



 1  complex within any 12-month period except upon competitive the

 2  solicitation of competitive bids.

 3         Section 4.  Recognizing that a term contract consistent

 4  with the requirements of ss. 255.25(3) and 255.249(6), Florida

 5  Statutes, cannot be competitively established prior to July 1,

 6  2007, and notwithstanding any provision of law to the

 7  contrary, between July 1, 2007 and October 15, 2007, with the

 8  prior written approval of the Department of Management

 9  Services, an agency may use the services of a tenant broker

10  currently under contract with the department notwithstanding

11  that such contract was procured prior to March 1, 2007. After

12  July 1, 2007, funds generated through the payment of

13  commissions by third-party landlords shall be deposited into a

14  trust fund of the Department of Management Services and

15  distributed to the tenant broker through the appropriations

16  process provided for in s. 255.249(6), Florida Statutes, or

17  other provision of law. This section shall not be construed to

18  abrogate any existing contract between the department and a

19  tenant broker, and is intended to clarify the procedure for

20  payment to the tenant broker, for commissions earned through

21  successfully completed transactions under a contract procured

22  prior to March 1, 2007.

23         Section 5.  This act shall take effect July 1, 2007.

24  

25  

26  

27  

28  

29  

30  

31  


                                  21

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