1.1 	A bill for an act
1.2 	relating to state government; specifying conditions
1.3 	for state agencies leasing real property; amending
1.4 	Minnesota Statutes 2004, section 16B.24, subdivision 6.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 16B.24,
1.7 	subdivision 6, is amended to read:
1.8 		Subd. 6.Property leases.  (a)  [LEASES.] The
1.9 	commissioner shall lease land and other premises when necessary
1.10 	for state purposes.  Notwithstanding subdivision 6a, paragraph
1.11 	(a), the commissioner may lease land or premises for up to ten
1.12 	years, subject to cancellation upon 30 days' written notice by
1.13 	the state for any reason except lease of other non-state-owned
1.14 	land or premises for the same use.  The commissioner may not
1.15 	lease non-state-owned land and buildings or substantial portions
1.16 	of land or buildings within the Capitol Area as defined in
1.17 	section 15B.02 unless the commissioner first consults with the
1.18 	Capitol Area Architectural and Planning Board.  If the
1.19 	commissioner enters into a lease-purchase agreement for
1.20 	buildings or substantial portions of buildings within the
1.21 	Capitol Area, the commissioner shall require that any new
1.22 	construction of non-state-owned buildings conform to design
1.23 	guidelines of the Capitol Area Architectural and Planning
1.24 	Board.  Lands needed by the Department of Transportation for
1.25 	storage of vehicles or road materials may be leased for five
2.1 	years or less, such leases for terms over two years being
2.2 	subject to cancellation upon 30 days' written notice by the
2.3 	state for any reason except lease of other non-state-owned land
2.4 	or premises for the same use.  An agency or department head must
2.5 	consult with the chairs of the house appropriations and senate
2.6 	finance committees before entering into any agreement that would
2.7 	cause an agency's rental costs to increase by ten percent or
2.8 	more per square foot or would increase the number of square feet
2.9 	of office space rented by the agency by 25 percent or more in
2.10 	any fiscal year.
2.11 	(b)  [USE VACANT PUBLIC SPACE.] No agency may initiate or
2.12 	renew a lease for space for its own use in a private building
2.13 	unless the commissioner has thoroughly investigated presently
2.14 	vacant space in public buildings, such as closed school
2.15 	buildings, and found that none is available or use of the space
2.16 	is not feasible, prudent, and cost-effective compared with
2.17 	available alternatives.
2.18 	(c)  [PREFERENCE FOR CERTAIN BUILDINGS.] For needs beyond
2.19 	those which can be accommodated in state-owned buildings, the
2.20 	commissioner shall acquire and utilize space in suitable
2.21 	buildings of historical, architectural, or cultural significance
2.22 	for the purposes of this subdivision unless use of that space is
2.23 	not feasible, prudent and cost-effective compared with available
2.24 	alternatives.  Buildings are of historical, architectural, or
2.25 	cultural significance if they are listed on the National
2.26 	Register of Historic Places, designated by a state or county
2.27 	historical society, or designated by a municipal preservation
2.28 	commission.
2.29 	(d)  [RECYCLING SPACE.] Leases for space of 30 days or more
2.30 	for 5,000 square feet or more must require that space be
2.31 	provided for recyclable materials.
2.32 	(e) Before the commissioner or an agency enters into an
2.33 	agreement to lease land or buildings, the commissioner must
2.34 	determine and report to the chairs of the house Ways and Means
2.35 	and senate Finance Committees the prevailing lease rate in the
2.36 	relevant market for property similar to that in the proposed
3.1 	lease agreement.  The commissioner or an agency may not enter
3.2 	into a lease agreement for a rate that exceeds the rate reported
3.3 	by the commissioner.