SENATE BILL REPORT

SB 6523

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Background: The Department of Enterprise Services manages more than 750 leases for nearly 11 million square feet of office, warehouse and other space, worth nearly $180 million in annual rent payments. This represents about half of all state leases. State law grants some agencies the authority to manage their own leases.

The Department of Archaeology and Historic Preservation (DAHP), under the direction of the State Historic Preservation Officer, has responsibilities under both federal and state law. Under the National Historic Preservation Act of 1966, the DAHP must be consulted with respect to the impacts federal undertakings have on historic and cultural properties. This process includes arriving at agreements with proponents of a project in order for them to obtain federal approval. Other responsibilities of the office include administering the State Historic Preservation Program and assisting local governments to become eligible for federal grant money. The DAHP is also responsible for nominating historic places to the state and national historic registers, maintaining an inventory of historic properties and archaeological sites, maintaining a computerized mapping system, and engaging in educational outreach.

The Washington Heritage Register is an official listing of historically significant sites and properties found throughout the state. The list is maintained by the DAHP and includes districts, sites, buildings, structures, and objects that have been identified and documented as being significant in local or state history, architecture, archaeology, engineering or culture.

Summary of Bill: A state agency that has the authority to lease state-owned properties to private parties may negotiate a lease at a rate that is less than fair market value under certain circumstances, including occupancy of the property and an agreement to restore, maintain, rehabilitate, or improve the leased property. The agreement between the state agency and the lessee must be in writing and clearly specify the terms of the agreement and the improvements to be made to the property. No improvements to the property may be made without the approval of the leasing agency.

If the property is listed, or is eligible to be listed, on the National Register of Historic Places, the Washington Heritage Register, or a local historic register, the agency must consult with the DAHP and all work performed on the property must comply with the Department of Interior standards for rehabilitation of historic properties.