00                            SENATE BILL NO. 380                                                                         
01 "An Act relating to the extension under the State Procurement Code of terms for leases                                  
02 for real estate and certain terms for certain state contracts for goods and services; and                               
03 providing for an effective date."                                                                                       
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  AS 36.30 is amended by adding a new section to read:                                                 
06            Sec. 36.30.086.  Lease and contract extensions authorized.  (a)                                            
07       Notwithstanding any other provision of this chapter, the department, the Board of                                 
08       Regents of the University of Alaska, the legislative council, or the court system may                             
09       extend                                                                                                            
10                 (1)  a real property lease that is entered into under this chapter for up to                            
11       a maximum extension of 10 years if a minimum cost savings of at least 5 percent                                   
12       below the prevailing market rates at the time of the extension can be achieved on the                             
13       rent due under the lease; or                                                                                      
14                 (2)  a contract for goods or services that is entered into under this                                   

01       chapter for up to a maximum extension of five years if a minimum cost savings of at                               
02       least 5 percent can be achieved on the price of the goods or services established in the                          
03       contract.                                                                                                         
04            (b)  The department, the University of Alaska, the court system, and the                                     
05       Legislative Affairs Agency shall submit individually an annual report to the                                      
06       Legislative Budget and Audit Committee detailing the leases and contracts for goods                               
07       or services extended and the costs savings achieved by that entity under (a) of this                              
08       section.  Reports are due August 31 of each year.                                                                 
09    * Sec.  2.  AS 36.30.083 is repealed.                                                                              
10    * Sec. 3.  The uncodified law of the State of Alaska is amended by adding a new section to                         
11 read:                                                                                                                   
12       APPLICABILITY.  Notwithstanding the changes made by secs. 1 and 2 of this Act,                                    
13 the state agencies affected by this Act may continue to act on or consider a provision of a                             
14 solicitation, notice of intent to award, or response to solicitation made before the effective                          
15 date of secs. 1 and 2 of this Act, to the extent that the provision is not inconsistent with a                          
16 provision of secs. 1 and 2 of this Act.                                                                                 
17    * Sec. 4.  The uncodified law of the State of Alaska is amended by adding a new section to                         
18 read:                                                                                                                   
19       FIRST LEASE EXTENSION REPORT.  Notwithstanding AS 36.30.086(b), enacted                                           
20 by sec. 1 of this Act, the first lease extension report under AS 36.30.086(b) is due August 31,                         
21 2005, and must cover fiscal year 2005.                                                                                  
22    * Sec. 5.  This Act takes effect immediately under AS 01.10.070(c).