This bill mandates that leases for land, buildings, or space by state agencies must be set at a fair market rate, unless a sub-market rate is mutually agreed upon by the property owner. The new section, 4:39-g, specifies that any renewal of such leases between a political subdivision and the state must adhere to this fair market value requirement, with the exception of leases obtained through a competitive selection or bidding process. Additionally, any extra costs related to utilities and custodial services are to be negotiated separately.

The bill also includes a provision for its effective date, stating that it will take effect 60 days after its passage, which is set for September 5, 2025. The language of the bill introduces new requirements while ensuring that existing processes for competitive leasing are not affected.