SENATE BILL REPORT

SB 5071

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 (DES) manages more than 1000 leases for nearly 16.1 million square feet of office, warehouse, and other space, generating approximately $192 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, DAHP must be consulted regarding 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. The office's other federal responsibilities include administering the State Historic Preservation Program and assisting local governments to become eligible for federal grant money. DAHP also nominates historic places to the state and national historic registers, maintains an inventory of historic properties and archaeological sites and a computerized mapping system, and engages in educational outreach.

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

Summary of Bill: State agencies with the authority to lease property to private parties may do so at a below-market rate if the lessee agrees to occupy and restore, maintain, rehabilitate, or otherwise improve the property. The lease must be in writing, specifying the terms of the agreement and improvements to be made to the property. Improvements must be approved by 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 DAHP and all work performed on the property must comply with Department of Interior standards for rehabilitation of historic properties.

Staff Summary of Public Testimony: PRO: This bill is designed to encourage agencies to restore their properties by leasing facilities at less than market value, conditioned upon restoration. Agencies can probably do this now, but this bill would encourage them to restore properties to full value.

OTHER: Last year, a bill signed into law, SB 6034, increased accountability for future state parks partnership agreements. It included good common sense safeguards and we'd like to see similar language included in this bill.