00                       CS FOR HOUSE BILL NO. 545(L&C)                                                                    
01 "An Act relating to time extensions under the State Procurement Code for real property                                  
02 leases; and providing for an effective date."                                                                           
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 36.30.083 is repealed and reenacted to read:                                                      
05            Sec. 36.30.083.  Lease extensions authorized.  (a) Notwithstanding any other                               
06       provision of this chapter, the department, the Board of Regents of the University of                              
07       Alaska, the legislative council, or the court system may extend a real property lease                             
08       that is entered into under this chapter for up to 10 years if a minimum cost savings of                           
09       at least 10 percent below the market rental value of the real property at the time of the                         
10       extension would be achieved on the rent due under the lease.  The market rental value                             
11       must be established by a real estate broker's opinion of the rental value or by an                                
12       appraisal of the rental value.                                                                                    
13            (b)  The department, the University of Alaska, the court system, and the                                     
14       Legislative Affairs Agency shall submit individually an annual report to the                                      
01       Legislative Budget and Audit Committee detailing the leases extended and the cost                                 
02       savings achieved by that entity under (a) of this section.  The reports are due                                   
03       August 31 of each year.                                                                                           
04    * Sec. 2.  The uncodified law of the State of Alaska is amended by adding a new section to                         
05 read:                                                                                                                   
06       APPLICABILITY.  Notwithstanding the changes made by sec. 1 of this Act, the state                                 
07 agencies affected by this Act may continue to act on or consider a provision of a solicitation,                         
08 notice of intent to award, or response to solicitation made before the effective date of sec. 1 of                      
09 this Act, to the extent that the provision is not inconsistent with a provision of sec. 1 of this                       
10 Act.                                                                                                                    
11    * Sec. 3.  The uncodified law of the State of Alaska is amended by adding a new section to                         
12 read:                                                                                                                   
13       FIRST LEASE EXTENSION REPORT.  Notwithstanding AS 36.30.083(b), as                                                
14 repealed and reenacted by sec. 1 of this Act, the first lease extension report under                                    
15 AS 36.30.083(b) is due August 31, 2005, and must cover fiscal year 2005.                                                
16    * Sec. 4.  This Act takes effect immediately under AS 01.10.070(c).