HB 939 Summary

• Defines "lease or lease-purchase of equipment" as an appropriations category for funding leases of equipment, fixtures, and tangible personal property.

• Prohibits state agencies from entering into contracts requiring liquidated damages, early termination fees, interest payments due to insufficient budget authority, or granting parties the right to collect fees from non-parties, unless specifically authorized by law or Legislature.

• Requires agencies to report contracts exceeding $10 million annually, those with minimal state payments, or those involving third-party revenue collection to the Governor and Legislature at least 30 days before execution.

• Mandates all state contracts identify the specific appropriation funding the contract and include statements that performance is contingent upon annual legislative appropriation and can be terminated if funding is eliminated due to budget deficits.

• Restricts agencies from entering into leases or deferred-payment equipment purchases exceeding $500,000 without express legislative authorization or Legislative Budget Commission approval for budget authority transfers, effective July 1, 2011.