(a)  (1)  The Director of General Services may not enter into a lease agreement between the state and another entity, public or private, in which the state is lessee if the agreement is to be for the lease of a building or building space, or both, which will be for the occupancy of any agency or agencies of the state where any of the conditions set forth in paragraph (2) exist, unless not less than 30 days prior to entering into the lease the Director of General Services notifies the chairperson of the committee in each house which considers appropriations and the Chairperson of the Joint Legislative Budget Committee, or his or her designee, in writing of the director’s intention to enter into the agreement, or not sooner than such lesser time as the Chairperson of the Joint Legislative Budget Committee, or his or her designee, may in each instance determine.

(2) (A) The proposed lease is for a firm lease period of longer than eight years.

(B) The proposed lease would require an increase in a department or agency’s support budget.

(C) The proposed lease is a capitalized lease, unless it has previously been authorized by the Legislature.

(D) Entering into the proposed lease would result in any occupying department or agency vacating a material amount of state-owned space, and the Director of General Services has not identified one or more state departments or agencies to fill that space.

(3) No funds appropriated in any Budget Act may be encumbered or expended for any lease entered into on or after July 1, 1979, for office space in the County of Sacramento unless all solicitations for leases for office space in the County of Sacramento under the above-described conditions contain the statement, “The state is anticipating capital construction in the City of Sacramento and intends to eventually reduce the use of space on a leased basis.”

(b) The Director of General Services shall, when notifying the Legislature pursuant to paragraph (1) of subdivision (a), provide information to the Legislature that demonstrates that the proposed lease is in the best interest of the state. The notice shall include all of the following:

(1) The terms of the lease.

(2) An analysis showing the financial impact of the proposed lease.

(3) A summary of alternatives considered.

(4) A rationale for entering into a lease that includes the specific provision or provisions that triggered the notification required by paragraph (1) of subdivision (a).

(c) Notwithstanding Section 10231.5, commencing January 10, 2019, and annually thereafter, the Director of General Services shall submit to the chairs and vice chairs of the budget committees in each house a report that identifies all of the leases that the Director of General Services expects to expire during the subsequent fiscal year, including the end of a firm term or a soft term of a lease. The report shall include information on each of the existing leases, including the tenant department or departments, the expiration date of each lease, the net square footage, and the annual cost.

(Amended by Stats. 2018, Ch. 37, Sec. 23. (AB 1817) Effective June 27, 2018.)