Subcommittee to have OLS draft amendment to HB 694 requiring fair‑market lease renewals between state and political subdivisions

A subcommittee of the Executive Departments and Administration Committee agreed to ask the Office of Legislative Services to draft an amendment to House Bill 694 that would require lease renewals between the State of New Hampshire and political subdivisions to be renewed at fair market rates, with additional operating expenses negotiated separately.

The move came during a subcommittee meeting when members and witnesses discussed language and calculation methods for determining fair market value for leased state or county space. Kate Horgan, representative of the New Hampshire Association of Counties, told the panel that "buildings are appraised every 5 years, but you could get an appraisal at any time if the county or the state wanted to pay for it to get a more up to date number." Horgan said the draft language she helped prepare divides an appraisal value by building square footage, then adjusts for depreciation and accounts for any deficiencies such as nonfunctional electrical, and leaves additional operating costs to be negotiated.

The subcommittee discussed whether to rely on the phrase "fair market value" alone or to include an appraisal-based formula. Several members noted that appraised values and market values often differ: one member said an appraised value in Milford was about 67 percent of market value. Rep. Aaron, after hearing the suggested edits and Horgan's testimony, said the changes were acceptable: "if this is amenable to Mister Furland and I imagine, Miss Horgan, then I'm fine with it to make whatever change." The panel also debated limiting the requirement to space "owned by a political subdivision" versus applying it both ways between the state and political subdivisions; members agreed to expand the language to cover renewals "between a political subdivision and the State of New Hampshire."

The amendment language the subcommittee asked OLS to draft would read, in substance, that any renewal of a lease for land, buildings, or space between a political subdivision and the State of New Hampshire shall be renewed at a fair market rate unless otherwise agreed upon by the lessor, and that additional expenses, "including, but not limited to, utilities and custodial services," shall be negotiated separately. The committee noted the RSA citation that appears in the draft would be updated by OLS.

The panel did not take a formal vote on final amendment text at the meeting. Instead, members agreed to have OLS prepare the amendment language for HB 694 and to return it for further consideration. Chairwoman (name not specified in the transcript) closed the subcommittee's public meeting on HB 694 after the agreement: "And I will close the public, the subcommittee meeting on H B 694."