Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

SF 798

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 09:17am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6
1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19
2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11
3.12 3.13

A bill for an act
relating to state government; requiring the commissioner of administration
to enter into a contract for state agency real estate lease evaluation services;
increasing the length of time required for notice of cancellation of state leases;
amending Minnesota Statutes 2010, section 16B.24, subdivision 6.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 16B.24, subdivision 6, is amended to read:


Subd. 6.

Property leases.

(a) Leases. The commissioner shall lease land and
other premises when necessary for state purposes. Notwithstanding subdivision 6a,
paragraph (a), the commissioner may lease land or premises for up to ten years, subject
to cancellation deleted text begin upon 30 days'deleted text end new text begin one year afternew text end written notice deleted text begin by the statedeleted text end new text begin provided by the
commissioner
new text end for any reason deleted text begin except lease of other non-state-owned land or premises for
the same use
deleted text end . The commissioner may not lease non-state-owned land and buildings or
substantial portions of land or buildings within the Capitol Area as defined in section
15B.02 unless the commissioner first consults with the Capitol Area Architectural and
Planning Board. If the commissioner enters into a lease-purchase agreement for buildings
or substantial portions of buildings within the Capitol Area, the commissioner shall require
that any new construction of non-state-owned buildings conform to design guidelines of
the Capitol Area Architectural and Planning Board. Lands needed by the Department of
Transportation for storage of vehicles or road materials may be leased for five years or
less, such leases for terms over two years being subject to cancellation upon 30 days'
written notice by the state for any reason except lease of other non-state-owned land or
premises for the same use. An agency or department head must consult with the chairs of
the house of representatives appropriations and senate finance committees before entering
into any agreement that would cause an agency's rental costs to increase by ten percent or
more per square foot or would increase the number of square feet of office space rented by
the agency by 25 percent or more in any fiscal year.

(b) Use vacant public space. No agency may initiate or renew a lease for space
for its own use in a private building unless the commissioner has thoroughly investigated
presently vacant space in public buildings, such as closed school buildings, and found that
none is available or use of the space is not feasible, prudent, and cost-effective compared
with available alternatives.

(c) Preference for certain buildings. For needs beyond those which can be
accommodated in state-owned buildings, the commissioner shall acquire and utilize space
in suitable buildings new text begin that are: (1) new text end of historical, architectural, or cultural significancenew text begin ;
or (2) environmentally efficient
new text end for the purposes of this subdivision unless use of that
space is not feasible, prudent and cost-effective compared with available alternatives.
Buildings are of historical, architectural, or cultural significance if they are listed on the
National Register of Historic Places, designated by a state or county historical society, or
designated by a municipal preservation commission.new text begin For the purposes of this subdivision,
a building is environmentally efficient if it is certified under the Leadership in Energy and
Environmental Design system, or the equivalent.
new text end

(d) Recycling space. Leases for space of 30 days or more for 5,000 square feet or
more must require that space be provided for recyclable materials.

Sec. 2. new text begin STATE REAL ESTATE EVALUATION SERVICES.
new text end

new text begin Subdivision 1. new text end

new text begin Request for proposals. new text end

new text begin (a) Within 60 days after the effective date of
this section, the commissioner of administration shall issue a request for proposals for
a contract to provide lease evaluation services for the commissioner. The request for
proposals must ensure that the vendor will:
new text end

new text begin (1) identify leases entered into under Minnesota Statutes, section 16B.24, subdivision
6, where the commissioner can reduce lease expenditures by renegotiating the lease or
canceling the lease and entering into a new lease at a lower rate;
new text end

new text begin (2) evaluate and identify current state agency use of space and provide
recommendations for more efficient use of space and disposal of excess space; and
new text end

new text begin (3) disclose existing or potential conflicts of interest related to the contractor's
provision of services under the contract.
new text end

new text begin (b) Minnesota Statutes, section 16C.09, paragraph (a), clause (1), does not apply
to contracts under this section.
new text end

new text begin Subd. 2. new text end

new text begin Contract required; performance-based financing. new text end

new text begin Within ten days after
accepting a proposal submitted under subdivision 1, the commissioner must enter into
a contract for the services specified in subdivision 1. The contract shall incorporate a
performance-based financing option that limits the payment to the vendor to the lesser of
the following amounts:
new text end

new text begin (1) 50 percent of the cost savings in the first full fiscal year following the realization
of cost savings attributable to recommendations made under the contract, as determined
by the commissioner of management and budget, subject to a limit of $1 per square foot
per year applied to all leases entered into and modified according to recommendations
made under the contract; or
new text end

new text begin (2) the dollar amount specified in the contract entered into under this subdivision.
new text end

new text begin The commissioner may delay payment to the vendor under this section until the
fiscal year specified in clause (1).
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective the day following final enactment.
new text end