H-2166.1  _______________________________________________

                    SUBSTITUTE HOUSE BILL 1433

          _______________________________________________

State of Washington      55th Legislature     1997 Regular Session

By House Committee on Capital Budget (originally sponsored by Representatives Sump, McMorris, Ballasiotes, DeBolt, Sheahan, Talcott, Quall, D. Sommers, Honeyford, Chandler, Schoesler, Crouse, Mastin and Mielke)

Read first time 02/25/97.

Leasing property to counties for correctional facilities.

    AN ACT Relating to leases with consortiums of counties formed to acquire correctional facilities; amending RCW 43.17.360; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 43.17.360 and 1996 c 261 s 2 are each amended to read as follows:

    (1) The department of social and health services and other state agencies may lease real property and improvements thereon to a consortium of three or more counties in order for the counties to construct or otherwise acquire correctional facilities for juveniles or adults.

    (2) A lease governed by subsection (1) of this section shall not charge more than one dollar per year for the land value and facilities value, during the initial term of the lease, but the lease may include provisions for payment of any reasonable operation and maintenance expenses incurred by the state.

    The initial term of a lease governed by subsection (1) of this section shall not exceed ((twenty)) fifty years.  ((A lease renewed)) The consortium of counties may renew the lease under subsection (1) of this section after the initial term ((shall charge the fair rental value for the land and facilities, and)) under the same terms and conditions as provided in the original lease, but the renewed lease 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.

(4) Section 1(2), chapter . . . (this act), Laws of 1997 applies retroactively to any lease the department of social and health services entered into with the consortium of counties after January 1, 1996.  The department shall modify the terms of such a lease according to subsection (2) of this section.  The department and the consortium of counties may not renegotiate any other terms of the lease except as provided in subsection (2) of this section unless both parties agree to renegotiate.

NEW SECTION. Sec. 2.  If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 3.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

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