HB0736_S_Cmte_Amend

SECTION 1. Section 29-5-2, Mississippi Code of 1972, is amended as follows:

29-5-2. The duties of the Department of Finance and Administration shall be as follows:

(a) (i) To exercise general supervision and care over and keep in good condition the following state property located in the City of Jackson: the New State Capitol Building, the Woolfolk State Office Building and Parking Garage, the Carroll Gartin Justice Building, the Walter Sillers Office Building and Parking Garage, the War Veterans' Memorial Building, the Charlotte Capers Building, the William F. Winter Archives and History Building, the Mississippi Museum Complex, the Gulf, Mobile and Ohio Train Depot (GM&O Depot), the Old State Capitol Building, the Governor's Mansion, the Heber Ladner Building, the Robert E. Lee Office Building, the Robert E. Lee Parking Garage, the former Naval Reserve Center, 515 East Amite Street, 620 North Street, 660 North Street, 700 North State Street, the State Records Center, the Robert G. Clark, Jr. Building, the Mississippi State Fairgrounds Complex, * * * the former Central High Building, as well as all state-owned or leased buildings situated on seat of government property.

(ii) To exercise general supervision and care over and keep in good condition the Dr. Eldon Langston Bolton Building located in Biloxi, Mississippi.

(iii) To exercise general supervision and care over and keep in good condition the State Service Center, located at the intersection of U.S. Highway 49 and John Merl Tatum Industrial Drive in Hattiesburg, Mississippi.

(iv) To exercise general supervision and care over and keep in good condition any property purchased, constructed or otherwise acquired by the State of Mississippi for conducting state business and not specifically under the supervision and care by any other state entity, but which is reasonably assumed the department would be responsible for such, as approved by the Public Procurement Review Board, including, but not limited to:

1. The National Aeronautics and Space Administration (NASA) Shared Services Center and Lockheed Martin Building at Stennis Space Center;

2. The Mississippi Sports Hall of Fame;

3. The Mississippi Crafts Center;

4. The Mississippi Children's Museum; and

5. The Mississippi Arts and Entertainment Center.

(b) To assign suitable office and other necessary space for the various state departments, officers and employees who are provided with an office in any of the buildings under the jurisdiction or control of the Department of Finance and Administration. However, the assignment of space in the New Capitol Building shall be designated by duly passed resolution of the combined Senate Rules Committee and the House Management Committee, meeting as a joint committee, approved by the Lieutenant Governor and Speaker of the House of Representatives. A majority vote of the members of the Senate Rules Committee and a majority vote of the members of the House Management Committee shall be required on all actions taken, resolutions or reports adopted, and all other matters considered by the full combined committee on occasions when the Senate Rules Committee and the House Management Committee shall meet as a full combined committee.

(c) (i) To approve or disapprove with the concurrence of the Public Procurement Review Board, any lease or rental agreements by any state agency or department, including any state agency financed entirely by federal and special funds, for space outside the buildings under the jurisdiction of the Department of Finance and Administration, including space necessary for parking to be used by state employees * * * or visitors of such agencies. In no event shall any employee, officer, department, federally funded agency or bureau of the state be authorized to enter into a lease or rental agreement without prior approval of the Department of Finance and Administration and the Public Procurement Review Board.

The Department of Finance and Administration is authorized to use architects, engineers, building inspectors and other personnel for the purpose of making inspections as may be deemed necessary in carrying out its duties and maintaining the facilities.

( * * *dii) The Department of Finance and Administration, acting through the Bureau of Building, Grounds and Real Property Management and Capitol Facilities, shall regulate and supervise the process of acquiring and granting leasehold interests in office space for state agencies:

1. Whenever possible, the department shall house state agencies in state-owned buildings with available space; and

2. If such space is unavailable, the department shall house state agencies in the most efficient and cost-effective means possible in privately owned buildings.

( * * *eiii) Subparagraphs (ii) through (ix) of this paragraph shall apply to all state agencies as defined in Section 31-7-1, except for the military department, universities and community colleges. After January 1, 2019, any state agency shall:

1. Obtain the department's approval before entering, renewing, amending, modifying or otherwise negotiating an agreement to lease, lease-purchase or purchase a building for office space, from or to any individual or entity; and

2. Upon the department's decision and consistent with subparagraph (v) of this paragraph, any state agency shall execute and enter into an agreement to lease 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 department and the state agency involved to be appropriate and in the best interests of all concerned.

(iv) In addition to the other duties conferred under this section, the department shall have the following powers and duties:

1. To act as the leasing agent for space for all state agencies, acting either as lessor or lessee;

2. To act as the agent for leasing space in all state-owned buildings;

3. Upon the effective date of this act, to confirm the needs of any state agency requesting space, locate an appropriate space, negotiate the lease, lease-purchase or purchase on the agency's behalf, and maintain records of all such leases;

4. To adopt standards for the use and allocation of 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 spaces, and the necessary space to ensure adequate and effective circulation within and access to all state agencies, including parking and traffic patterns;

5. 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 department determines that consolidation will result in lower rental costs for the agencies; and

6. 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 a. all terms and conditions deemed necessary based on the type and purpose of the leased property; b. terms and conditions that are as uniform as possible; and c. a lease term that expires on March 31, June 30, September 30 or December 31.

(v) 1. Unless a state agency provides direct public access services directly from its leased facility solely to citizens of Hinds, Madison or Rankin County, as applicable, and subject to the reduction of rental costs as provided in this section, any state agency located within Hinds, Madison or Rankin County shall be housed in a facility located within the Capitol Complex, as defined in item 2 of this subparagraph. The department may waive the requirements of this subparagraph in cases where relocation within the Capitol Complex will significantly impair public access to the agency's services.

2. The area to be known as the "Capitol Complex" is more particularly described as the property bounded by the following:

Beginning at the intersection of Pascagoula Street and Mill Street in Jackson, Mississippi;

Travel north along Mill Street to Woodrow Wilson Avenue;

Travel west along Woodrow Wilson Avenue to Livingston Road;

Travel north along Livingston Road to Stonewall Street;

Travel east along Stonewall Street to Mill Street;

Travel east along Mitchell Avenue to State Street/US 51;

Travel south along State Street/US 51 to the intersection of State Street/US 51 and Old Canton Road;

Travel north along Old Canton Road to Lakeland Drive;

Travel east along Lakeland Drive to Interstate 55;

Travel south along Interstate 55 to the Pearl Street Access Road;

Travel west along the Pearl Street Access Road to Jefferson Street;

Travel south on Jefferson Street to Pascagoula Street;

Travel west on Pascagoula Street to the POINT OF BEGINNING.

(vi) Any state agency shall submit a written request for leased space to the department at least one hundred eighty (180) days before the date the space is needed. The agency's written request shall include the following:

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

2. Anticipated moving expenses;

3. Positions to occupy the space and the functions of each position by state employment grade;

4. Special requirements and the function of those requirements; and

5. Any other information that will affect the planning of the space needs and the agency's efficient operation.

(vii) The department shall use a Request for Proposal (RFP) selection process when an agency requests to lease space in a privately owned building when state-owned space is not available.

1. The department 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.

2. For any state agency subject to subparagraph (v) of this paragraph and not located within the Capitol Complex, the lease shall be awarded to the lowest and best proposal received, unless a proposal to house the agency in a facility within the Capitol Complex will lower the agency's gross rental payments as determined by the department on the basis of an effective rate for the entire term of the proposed new lease, including parking but excluding moving expenses and rental payment increases based on the applicable consumer price index or successor index, from the amount of gross rental payments then being paid under the existing lease as determined by the department on the basis of an effective rate for the last twelve (12) months of the existing lease term in which case, the lease shall be awarded to the lowest and best proposal received from facilities located within the Capitol Complex, provided the department determines such facility to be of a reasonably acceptable quality for the intended use. For any agency located within the Capitol Complex, the lease shall be awarded to the lowest and best proposal received from facilities located within the Capitol Complex, provided the department determines such facility to be of a reasonably acceptable quality for the intended use.

(viii) If a state agency is aggrieved by a proposed RFP, proposed lease agreement, or by the application of a standard for the use and allocation of space, it may submit a written request for reconsideration to the Public Procurement Review Board. A state agency's request for reconsideration shall specify why the agency is entitled to relief and the type of relief sought. At the regular meeting occurring next after the filing of the state agency's request for reconsideration, the Public Procurement Review Board shall allow the agency to appear before it to explain its objections and any requested modification. Following the hearing, the board may grant the relief it deems appropriate. The board is authorized to promulgate the rules and regulations that may be necessary for the effective administration of this subsection.

(ix) 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 existing leases.

(d) To acquire by lease, lease-purchase agreement, or otherwise, as provided in Section 27-104-107, and to assign through the Office of General Services, by lease or sublease agreement from the office, and with the concurrence of the Public Procurement Review Board, to any state agency or department, including any state agency financed entirely by federal and special funds, appropriate office space in the buildings acquired.

(e) [Repealed]

SECTION 2. Section 31-11-27, Mississippi Code of 1972, is amended as follows:

31-11-27. (1) (a) The Department of Finance and Administration shall conduct a detailed study of the building and other capital needs at each state institution and at each junior college immediately prior to September first in each year. This study shall include, but shall not be limited to, the following matters:

(i) An inventory of every state building and other capital facility which is the property of the State of Mississippi;

(ii) The location, date of construction or acquisition, the purpose for which used, outstanding indebtedness against such facility, if any, and cost of repairs for the preceding fiscal year;

(iii) An examination of the condition of the building or other facility, including current conditions and ratings of roofs at each state agency, state institution of higher learning, community college and junior college;

(iv) An estimate of the cost of repairs required to place the facility in good condition;

(v) An estimate of the cost of major renovations, if contemplated; and

(vi) A determination of the new building and other facility needs of each institution with such needs classified under immediate or long range requirements.

(b) All state agencies, departments and institutions are hereby authorized and directed to cooperate with the Department of Finance and Administration in carrying out the provisions of this section. For purposes of validating paragraph (a)(iii) above, each roof of a building not planned for demolition must be visually inspected by the institution's or agency's facilities staff, by a licensed architect or engineer, or by thermal imaging inspection at least every three (3) years.

(c) The Department of Finance and Administration shall submit a detailed report to the Legislative Budget Office, the House Public Property Committee and the Senate Public Property Committee on or before September first of each year. Such report shall be in such detail and in such form as may be prescribed by the Legislative Budget Office.

(d) The architect or building inspector of the Department of Finance and Administration shall make a biennial inspection of the New Capitol, Old Capitol, Woolfolk State Office Building, War Memorial Building, the Governor's Mansion, and all other buildings under jurisdiction of the Department of Finance and Administration for structural or other physical needs or defects of such buildings, and he shall further inquire of the department or its representatives regarding the condition of the buildings. He shall make a written report of his finding to the Department of Finance and Administration, Governor, Lieutenant Governor and Speaker of the House of Representatives. The report shall also make recommendations for repairs and list, by number, the priority which should be given to making necessary repairs.

(2) (a) In addition to any report required in subsection (1) of this section, the Department of Finance and Administration shall prepare and submit an annual report to the Legislative Budget Office, the House Public * * *~~Buildings, Grounds and Lands~~ Property Committee and the Senate Public Property Committee describing the proposed capital improvements projects for state agencies, departments and institutions for the upcoming five-year period. The Department of Finance and Administration shall not be required to include in the report any project costing less than One Million Dollars ($1,000,000.00). The department shall submit the report before September 1 of each year. The report shall include at least the following information:

(i) A prioritized list of the projects proposed for the five-year period, with each project ranked on the basis of need, consistent with the primary goal of preserving existing capital assets where possible and replacing existing capital assets where necessary;

(ii) A prioritized list of the projects proposed for the next regular legislative session, with each project ranked on the basis of need, consistent with the primary goal of preserving existing capital assets where possible and replacing existing capital assets where necessary;

(iii) A prioritized list of the projects requested by each state agency, department or institution;

(iv) A detailed explanation of criteria used by the Department of Finance and Administration to rank projects for purposes of any list it prepares under this paragraph (a);

(v) A detailed statement of justification for each project;

(vi) The approximate cost for each project, including, but not limited to, itemized estimates of costs for preplanning, constructing, furnishing and equipping a project, and costs for property acquisition;

(vii) The estimated beginning date and completion date for each project;

(viii) Whether a project, as proposed, is a complete project or a phase or part of a project;

(ix) How a project will affect the operating budget of the applicable agency, department or institution for the upcoming five-year period, regarding such items as additional personnel requirements, utility costs, maintenance costs, security costs, etc. Any request for new construction other than replacement, or for purposes other than incidental expansion of existing facilities, shall also identify the total amount of nonstate funds to support such project;

(x) The proposed method of financing each project and the effect such financing will have on the state budget, including an estimate of any required debt service for the project, and an estimate of any federal funds or other funds that the agency, department or institution may have access to because of the project; and

(xi) A list of the projects requested by each agency, department or institution for the five-year period, with each project ranked by the appropriate agency, department or institution on the basis of need.

(b) To enable the Department of Finance and Administration to prepare the report required in this subsection (2), it may require all state agencies, departments and institutions to file a capital improvements projects request with such information and in such form and in such detail as the department may deem necessary and advisable. Such request shall be filed with the Department of Finance and Administration no later than August 1 of each year.

(3) (a) In addition to any reports required under subsections (1) and (2) of this section, the Department of Finance and Administration shall conduct a detailed study and space optimization master plan for the office space assigned in state office buildings under its jurisdiction no less than every five (5) years to ensure space is utilized in the most efficient and cost effective manner feasible. The department shall submit the report to the Legislative Budget Office, the House Public Property Committee and the Senate Public Property Committee on or before September 1 of each year that the report is due. The report shall include the following information:

(i) A list of state agencies, departments and institutions housed in such state office buildings, the buildings at which they are located, the amount of space assigned to each tenant and the number of occupants housed therein;

(ii) A list of leases of state agencies and departments including the institutions of higher learning and community and junior colleges, their location, the amount of space leased, the number of occupants housed therein, where applicable, and the cost of such lease;

(iii) An analysis of compliance of space usage with office space utilization standards and guidelines adopted by the Department of Finance and Administration;

(iv) Recommendations for agencies and departments not currently housed in state office buildings which offer potential cost savings, space optimization opportunities and efficiencies from utilization of shared spaces or resources in State Office Buildings;

(v) A space optimization master plan identifying a prioritized list of projects, including approximate cost and schedule to optimize the space of or relocate current tenants, to add new tenants, or to remove current tenants in order to bring all space usage into compliance with space utilization standards and guidelines; and

(vi) Any recommendations for the acquisition, construction or disposal of buildings or real property necessary to optimize the housing and support of state agencies, departments and institutions, including an analysis of total cost of ownership to the state.

(b) To enable the Department of Finance and Administration to prepare the report required in this subsection (3), it may require any state agency, department or institution to file space needs including such information and in such form and in such detail as the department may deem necessary and advisable. The information shall be filed with the Department of Finance and Administration no later than January 1 of each year the report is due.

(c) In years that the study and master plan are not due, the Department of Finance and Administration shall submit to the Legislative Budget Office, on or before September 1, an annual update identifying any progress on achieving the space optimization master plan recommendations during the preceding fiscal year.

SECTION 3. This act shall take effect and be in force from and after July 1, 2018, and shall stand repealed on June 30, 2018.