HB 18-1374

House Bill 18-1374, which has been signed into law, stops state agencies and higher education institutions from using lease-purchase agreements for acquiring real property if they can't show a plan to cover the ongoing maintenance costs of that property. This means these entities must now present a detailed funding strategy to a specific committee before entering such agreements, ensuring there's enough money set aside for future repairs and upkeep. The law also requires the state treasurer to provide guidance on how much should be reserved specifically for maintenance needs. This impacts any state agency or higher education institution that acquires real property through lease-purchase deals.

Official Summary

Capital Development Committee. The bill specifies that any real property acquired by a state agency or a state institution of higher education through a lease-purchase agreement is not eligible for state controlled maintenance funding. The bill specifies that any bill enacted by the general assembly on or after the effective date of the legislation authorizing a lease-purchase agreement for the acquisition of real property must include a requirement that the state agency or state institution of higher education entering into the lease-purchase agreement present a plan to the capital development committee, by a specified date, that details how the state agency or state institution of higher education is prepared to fund the controlled maintenance needs of the real property so that at least a specified amount is available for the controlled maintenance needs of the real property. The plan may include an additional lease-purchase agreement for such controlled maintenance needs or may include a request for partial or complete state funding of such controlled maintenance needs. The bill also requires the state treasurer to advise any state agency or state institution of higher education regarding the controlled maintenance reserve requirement.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.) , Read More

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