SENATE BILL REPORT

SB 5887

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.

As of February 16, 2015

Title: An act relating to lengthening the maximum terms of leases entered into by the director of enterprise services in certain counties.

Brief Description: Lengthening the maximum terms of leases entered into by the director of enterprise services in certain counties.

Sponsors: Senators Pearson and Ranker.

Brief History:

Committee Activity: Government Operations & Security: 2/16/15.

SENATE COMMITTEE ON GOVERNMENT OPERATIONS & SECURITY

Staff: Curt Gavigan (786-7437)

Background: Department of Enterprise Services (DES) Lease Authority. For most state agencies, DES has the statutory authority to acquire, lease, purchase, and dispose of real estate in consultation with the Office of Financial Management (OFM). DES has the general authority to set lease terms and conditions, but is prohibited from granting a lease that exceeds 20 years. A lease may exceed ten years only if OFM makes findings including that the long-term lease provides a more favorable rate for the state.

Northern State Hospital Site. Northern State Hospital, in Skagit County, was operated by the Department of Social and Health Services from 1909 to 1973. Approximately 225 acres of the main campus are managed by DES. The site currently includes 44 buildings with approximately 630,000 square feet of total space.

Summary of Bill: The bill as referred to committee not considered.

Summary of Bill (Proposed Substitute): DES may lease property at the Northern State Hospital site for up to 60 years.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.