HJR 12 -- OBIGATION FOR LEASED PROPERTY (Green)

This proposed amendment to the state constitution allows the
state to enter into lease agreements for periods not to exceed 5
years.  Currently, all obligations entered into terminate at the
end of the fiscal year.

FISCAL NOTE:  Cost to General Revenue Fund of $50,200 in FY 1999.

HJR 12 -- OBLIGATION FOR LEASED PROPERTY

SPONSOR:  Green

COMMITTEE ACTION:  Voted "do pass" by the Committee on Budget by
a vote of 21 to 0.

This proposed amendment to the state constitution allows the
state to enter into lease agreements for periods not to exceed 5
years.  Currently, all obligations entered into terminate at the
end of the fiscal year.

FISCAL NOTE:  Not available at time of printing.

PROPONENTS:  Supporters say that current state lease agreements
terminate after one fiscal year with 4 one year options for the
state to renew the lease. If the state could enter into 5 year
lease agreements the state could receive more favorable lease
terms and developers could receive more favorable financing
terms.

Testifying for the bill were Representative Green; Division of
Facilities Management, Office of Administration; and Jim Moody,
Past Commissioner of Administration.

OPPONENTS:  There was no opposition voiced to the committee.

Roland Tackett, Research Analyst

HJR 12 -- Obligation for Leased Property

Sponsor:  Green

This proposed amendment to the state constitution allows the
state to enter into lease agreements for periods not to exceed 5
years.  Currently, all obligations entered into terminate at the
end of the fiscal year.