HI SR122

Urges the Department of Accounting and General Services to implement the lease buyback program and adopt administrative rules pursuant to Act 177, Session Laws of Hawaii 2015.

Lease buyback (sale-leaseback) is an arrangement where the seller of an asset leases back the same asset from the purchaser, providing one-time revenue from asset sales.

Act 177 required the department to establish a program to facilitate facility agreements between the State and private investors for the sale of facilities, excluding those managed by the Department of Transportation.

Act 177 appropriated $250,000 to conduct an inventory of all leases of property between state agencies and private entities to understand state facility needs.

Report findings identified that the State has underutilized and dilapidated buildings requiring modernization, and other states have successfully implemented similar sale-leaseback legislation.