This bill mandates that any lease agreements for land, buildings, or space entered into by state agencies must be at a fair market rate, unless a sub-market rate is mutually agreed upon by the property owner. The new legal language introduced in RSA 4:39-g specifies that any renewal of such leases must adhere to this fair market value requirement, with the exception of leases procured through a competitive selection or bidding process. Additionally, it clarifies that any extra costs, such as utilities and custodial services, should be negotiated separately from the lease rate.

The bill is set to take effect 60 days after its passage and is projected to have a minimal fiscal impact of less than $10,000 for each fiscal year from 2025 to 2028. The Department of Administrative Services has been contacted regarding the implications of this legislation.