HB 13-1274 Summary

• Grants the State Board of Land Commissioners authority to enter lease-purchase agreements with the state treasurer for acquisition, construction, renovation, and improvement of commercial real property to lease to state agencies and other tenants.

• Establishes maximum principal of $50 million and annual lease payment cap of $5 million for all outstanding lease-purchase agreements, with agreement terms not exceeding 25 years.

• Creates the Commercial Real Property Operating Fund to manage lease income from commercial real property owned and leased by the state board, with provisions for contracting third-party property management firms.

• Creates the State Board of Land Commissioners Lease-Purchase Fund funded by transfers from the Commercial Real Property Operating Fund, supplemented by a reserve (10% of principal) and the Investment and Development Fund as needed.

• Includes lease payments and rental payments from state school lands in revenues credited to the permanent school fund, and requires financial plan approval by the Office of State Planning and Budgeting and Capital Development Committee before lease agreements are executed.