Adopted

AMENDMENT NO 1 PROPOSED TO

Cmte Sub for Senate Bill No. 2291

BY: Senator(s) Blount

     AMEND by deleting SECTION 1 in its entirety and inserting the following in lieu thereof:

     SECTION 1.  The following provision shall be codified as Section 29-5-2.2, Mississippi Code of 1972:

29-5-2.2.  (1)  In enacting this section, it is the intent of the Legislature that:

          (a)  The Bureau of Building, Grounds and Real Property Management of the Department of Finance and Administration (bureau) regulate and supervise the process of acquiring and granting leasehold interests in office space for state agencies;

          (b)  State agencies be housed, whenever possible, in state-owned buildings if office space is available; and

          (c)  If such office space is unavailable, state agencies be housed in the most efficient and cost-effective means possible in privately owned buildings.

     (2)  This section applies to all state agencies as defined in Section 31-7-1, including occupational licensure boards and excepting the military department, universities and community colleges.  After January 1, 2026, any state agency shall:

          (a)  Obtain the bureau's approval before entering, renewing, or otherwise negotiating an agreement to lease, lease-purchase, or purchase a building for office space, from or to any individual or entity; and

          (b)  Upon the bureau's decision and consistent with subsection (4), any state agency shall execute and enter an agreement to lease office space in available state-owned buildings.  The leases may be upon such conditions, for such terms, for such rentals and may contain any other provisions as determined by the bureau and the state agency involved to be appropriate and in the best interests of all concerned.

     (3)  In addition to the duties conferred under Section 29-5-2, the bureau shall have the following powers and duties:

          (a)  To conduct all lease solicitations on behalf of all state agencies for office space outside the buildings under the jurisdiction of the Department of Finance and Administration;

          (b)  Upon the effective date of this act, to confirm the needs of any state agency requesting office space, identify appropriate locations for such office space, negotiate the lease, lease-purchase or purchase on the agency's behalf subject to appropriation, and maintain records of all such leases;

          (c)  To solicit and approve a master lease of privately owned buildings or parking facilities, or portions thereof, for the purpose of co-locating and sub-leasing such space to state agencies or departments.  Charges for such sub-leases shall be established by the Department to cover master lease costs as well as all direct expenses required for the administration, operation, and maintenance of such master leased buildings and shall be considered pass-through costs and not rent for the purposes of Section 27-104-203;

          (d)  To adopt standards for the use and allocation of office space to state agencies.  At a minimum, these standards shall provide specifications related to a state agency's workrooms or stations, private offices, conference rooms, reception areas, equipment rooms, vaults, storage areas, warehouses, support office spaces, and the necessary office space to ensure adequate and effective circulation within and access to all state agencies, including parking and traffic patterns;

          (e)  To identify opportunities for cost efficiencies by recommending the consolidation of more than one (1) state agency's office space within one (1) building if the bureau determines that such consolidation will result in lower rental costs for such agencies.  In such cases of consolidation and co-location, the Department of Finance and Administration may require agencies to share administrative and support staff and/or common spaces, including, but not limited to, conference rooms, break areas, and bathrooms; and

          (f)  To adopt a standard lease form to be used for leases of office space, buildings, structures, parking lots or grounds by state agencies from private individuals or entities.  The standard lease form shall contain (i) all terms and conditions deemed necessary based on the type and purpose of the leased property; (ii) such terms and conditions that are as uniform as possible; and (iii) a lease term that expires on March 31, June 30, September 30 or December 31.

     (4)  All solicitations for space in privately-owned buildings for statewide offices may be restricted to include only properties within the Capitol Complex Improvement District as originally created in Section 2 of House Bill No. 1226, 2017 Regular Session, and in all cases must allow consideration of such properties unless the agency or department requires an alternate location to effectively service its clients and/or interact with other agencies, departments or stakeholders located outside of the original Capitol Complex Improvement District boundaries.  Where such solicitations include both properties within and outside of the original Capitol Complex District boundaries, award shall be made to the lowest and best proposal within the original Capitol Complex District boundaries unless such award would increase the agency's or department's current rental costs, excluding moving expenses.

     (5)  Any state agency shall submit a written request for leased office space to the bureau one hundred eighty (180) days before the date the office space is needed.  The agency's request shall list the following:

          (a)  Any information required from the agency under Section 27-104-7(c);

          (b)  Anticipated moving expenses;

          (c)  Positions to occupy the office space and the functions of each position by state employment grade;

          (d)  Special requirements and the function of those requirements; and

          (e)  Any other information that will affect the planning of the office space needs and the agency's efficient operation.

     (6)  The bureau shall use a Request for Lease Proposal (RLP) selection process when an agency requests to lease office space in a privately owned building when state-owned office space is not available.  The bureau shall advertise such leasing needs through its website in accordance with Section 27-104-7 and shall provide RFP packages to any property owners or managers interested in submitting a proposal.

     (7)  If the agency requests the lease document proposed by the bureau to be reconsidered, the agency shall have an opportunity to appear before the Public Procurement Review Board at the next regular meeting to explain its objections and any requested modification.  After hearing from the agency, the board may modify the lease.

     (8)  All leases referred to in this section and all covenants and agreements contained therein shall be binding in all respects upon the parties thereto and their successors, and all the provisions thereof shall be enforceable by mandamus and other remedies provided by law.  Nothing in this section shall be construed to terminate or amend existing leases.

     (9)  By December 1 of each year, the Department of Finance and Administration shall submit a report to the chairmen of the Public Property Committees of the Mississippi Senate and the Mississippi House of Representatives containing information regarding any potential savings that could result from purchasing a privately owned building for the purpose of office space for a state agency.