SB 2558 Summary

• Authorizes state agencies to lease underutilized property or facilities to private partners through enhanced use leases in exchange for cash or in-kind services as rent.

• Requires state agencies to collect rent equal to fair market value, retain control over the leased property, and prohibit selling property, entering business partnerships, contributing equity, or guaranteeing revenue to private partners.

• Mandates that each state agency board adopt rules for implementing their enhanced use lease program, including project identification, competitive advertising, proposal evaluation, lease terms, and project use schedules with termination rights.

• Specifies that lease income can be used to fund other state projects and does not need to be reinvested in the leased property.

• Takes effect upon approval.