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State of New Jersey
Executive Order #65

Governor James J. Florio

WHEREAS, it is the policy of the State of New Jersey to operate government in the most efficient manner possible, and at the lowest possible cost to the taxpayers; and

WHEREAS, the government of the State of New Jersey currently occupies approximately 7.5 million square feet of rented space; and

WHEREAS, the Legislature has appropriated nearly $178 million to pay for State leases in Fiscal Year 1993; and

WHEREAS, the State leasing program would be enhanced and improved by changes in the process of acquiring space for State employees; and

WHEREAS, Chief Counsel M. Robert DeCotiis and State Treasurer Sam Crane have submitted a report setting forth various findings and proposals regarding State leasing;

NOW, THEREFORE, I, JAMES J. FLORIO, Governor of the State of New Jersey, by virtue of the authority vested in me by the Constitution and Statutes of this State, do hereby DECLARE, ORDER, and DIRECT as follows:

1. I hereby direct the Administrator of the General Services Administration in the Department of Treasury forthwith to implement the proposals set forth in the Report on State Leasing prepared by the Office of Management and Budget.

2. I further direct the Administrator of the General Services Administration to determine which of these proposals, if any, require the enactment of legislation, and to so indicate to me by October 30, 1992.

3. More particularly, I hereby direct:

a. That, consistent with the recommendations in the Report on State Leasing, a Space Management and Planning Board be formed for the purpose of implementing State policy with respect to acquiring and managing office space and resolving impasses regarding office space. The Board shall be organized within the Department of Treasury, and shall be comprised of the State Treasurer, or his designee, who shall serve as the Chairperson, the Director of Budget and Accounting, the Administrator of the General Services Administration, the Executive Director of the State Building Authority, and an employee of a State department or agency designated by the State Treasurer who has expertise in State leasing.

b. As soon as practicable, the Office of Leasing Operations shall prepare a Master Plan setting forth a comprehensive description of all leased facilities currently occupied by State employees. In addition, the Master Plan shall set forth specific recommendations for reducing the overall cost of State space, with particular concern given to the potential for purchasing existing property or building new facilities.

These recommendations shall be consistent with the State's policy of consolidating space in urban areas, and with the policy of providing space that is safe and appropriate for State employees.

c. The Administrator of the General Services Administration shall immediately adopt a procedure for submitting lease proposals to a modified competitive process, as described in the Report on State Leasing. This process should incorporate public solicitation of bids where appropriate, and the awarding of leases on the basis of objective criteria promulgated by the Office of Leasing Operations in cooperation with the Space Management and Planning Board.

d. I hereby direct the State Treasurer to conduct a pilot privatization program, in which the State shall contract on an experimental basis with private business entities to assist the State in carrying out its leasing obligations. In particular, this program may include the use of commercial real estate companies selected through a competitive process to assist the State in selecting sites and negotiating leases.

e. The Office of Leasing Operations shall improve its procedures for monitoring leased space. In particular, the Administrator of the General Services Administration, in cooperation with the Space Planning and Management Board, shall promulgate stricter monitoring guidelines, as indicated in the Report on State Leasing.

f. In addition, the Department of Treasury shall devise a system of incentives to induce agencies to submit accurate and reliable space requests, as indicated in the Report on State Leasing.

g. The Department of Treasury shall explore with the Legislature a process that would provide for the automatic approval of a lease when the Legislature fails to act upon a lease request within a specified period of time after it receives that request.

h. I further direct the Office of Leasing Operations to strengthen its disclosure requirements, consistent with the recommendations in the Report on State Leasing.

i. I further direct the Department of Treasury to prepare a comprehensive proposal for improving the computer systems currently used in support of State leasing.

j. The Treasurer shall take all necessary and proper actions for implementing the proposals set forth in this Executive Order, as well as the other proposals submitted to me in the Report on State Leasing. The Treasurer shall provide me with a status report on or before December 15, 1992, indicating which of the proposals have been implemented, and, if any have not, what problems may exist and the proposals for resolution. On or before March 15, 1993, the Treasurer shall again provide me with a status report indicating which proposals have been implemented and, if any have not, what problems exist and what the proposals are for resolution. Thereafter, the Treasurer shall report to me on or before the 15th day of every month on the progress in implementing this Order and the proposals set forth in the Report.

4. This Order shall take effect immediately.

GIVEN, under my hand and seal this
5th day of October in the Year of Our
Lord, One Thousand Nine Hundred and
Ninety Two, and of the Independence
of the United States, the Two Hundred
and Seventeenth.

/s/ JAMES J. FLORIO
GOVERNOR

Attest:

/s/ M. Robert DeCotiis
Chief Counsel to the Governor

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