2720-S AMS WOJA S5792.1

SHB 2720 - S AMD - 282

By Senators Wojahn, Loveland and Hargrove

                                                    ADOPTED 3/1/96

    On page 2, line 31, after "value," insert "during the initial term of the lease,"

    On page 2, after line 32, insert the following:

    "The initial term of a lease governed by subsection (1) of this section shall not exceed twenty years.  A lease renewed under subsection (1) of this section after the initial term shall charge the fair rental value for the land and facilities, and may include provisions for payment of any reasonable operation and maintenance expenses incurred by the state.  For the purposes of this subsection, fair rental value shall be determined by the commissioner of public lands in consultation with the department.

    (3) The net proceeds generated from any lease entered or renewed under subsection (1) of this section involving land and facilities on the grounds of eastern state hospital shall be used solely for the benefit of eastern state hospital programs for the long-term care needs of patients with mental disorders.  These proceeds shall not supplant or replace funding from traditional sources for the normal operations and maintenance or capital budget projects.  It is the intent of this subsection to ensure that eastern state hospital receives the full benefit intended by this section, and that such effect will not be diminished by budget adjustments inconsistent with this intent."

EFFECT:  Limits the length of the initial lease to twenty years, during which time the counties may only be charged $1 per year for the land and buildings.  After the initial twenty years, they would be required to pay the fair rental value of the property.  The proceeds from the lease of eastern state hospital property are required to be dedicated to hospital programs.

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