Governor Deval Patrick's Budget Recommendation - House 2 Fiscal Year 2015

Outside Section 5



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Authority to Terminate and Renegotiate Leases

SECTION 5.   Chapter 7C of the General Laws is hereby amended by inserting after section 35 the following section:-
Section 35A. (a) The commissioner, after consulting with the head of the leasing state agency or the trial court administrator, may exercise any contractual right to terminate a lease for nonappropriation or nonallotment if, in the determination of the agency head or the trial court administrator, insufficient funds are available within the agency's or the court's appropriation or allotment to maintain the lease consistent with maintaining core governmental functions.
(b) The commissioner may, on behalf of any state agency or the administrative office of the trial court, renegotiate any existing facilities lease of that agency or office, which was procured under this chapter, to obtain a reduced lease rate or other valuable consideration in consideration of an extension of any such lease for a period of time beyond the 10-year limitation provided in section 35, but no lease shall be extended to a date that is more than 15 years after the original commencement date of the lease. The commissioner shall first make a written determination that the renegotiated lease provisions of each renegotiated lease are favorable to the commonwealth based on a cost-benefits analysis.
 
 

Summary:
This section puts in the General Laws the present temporary legislative authorization for DCAMM to terminate state agency and court facility leases for insufficient funding, and to realize operating budget cost savings by renegotiating lease terms in return for extending lease terms to as much as a total of 15 years.



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