Section 35. The commissioner of capital asset management and maintenance shall suggest to the budget director, as part of his recommendation for the annual appropriation for space rentals provided for by section 3 of chapter 29, the maximum rate to be paid for the rental of space by type and geographical area and the maximum percentage to be paid for the escalation of all such rental costs. The budget director shall consider the suggestions of the commissioner in recommending the approval of such costs by the general court, as part of the annual appropriations act.

The commissioner may rent, for the use of state agencies, through lease, tenancy-at-will or other rental agreement for a term not exceeding 10 years, premises outside of the state house or other buildings owned by the commonwealth. If the term of the rental agreement under which premises are being used for the purposes of a particular activity by any state agency expires between the beginning of a fiscal year and the effective date of an appropriation act for such fiscal year and no appropriation for rent for said premises has been made and if the general court has not provided otherwise, the commissioner may rent for such purposes the same or different premises, for a term not exceeding 5 years, obligating the commonwealth to pay no greater amount of rent for any period than was paid for a corresponding period under the expiring agreement.

No charges for rentals provided for in this section shall exceed the maximum rate plus escalation cost approved by the general court. Further, the commissioner shall notify the house and senate committees on ways and means 30 days prior to the final authorization of any such rental agreement and such agreement shall only be made when the general court is in session, except as provided hereafter. Such agreement may be made when the general court is not in session, and the 30 day notification requirement may be waived, only if the commissioner certifies in writing that an emergency exists; provided that, any such agreement shall be authorized for a period not to exceed 6 months, and provided further, that the commissioner shall submit his certification to and notify the house and senate committees on ways and means of such agreement at the earliest possible opportunity.

Notwithstanding the time limitation of this section or of any other law, the commissioner may enter into rental-purchase agreements for the purchase or construction of premises to be occupied by the division of employment and training outside of the state house or other buildings owned by the commonwealth, provided, that the costs incident to such rental-purchase agreements, including amortization, shall be borne by the federal government. After expiration of the period of amortization in each such instance, the commonwealth shall not charge the department of employment and training with rent of such premises, provided the federal government shall bear the cost of service to and maintenance of such premises.

The secretary of administration and finance shall report quarterly to the house and senate committees on ways and means any lease, tenancy-at-will or other rental agreement, or any extensions thereof, made pursuant to this section; provided, however that said quarterly report shall include, by agency, the amount and location of such rental space, any new or additional space, the duration of the lease or agreement, the cost per square foot of such rental space, any increase or decrease in said cost, and the cost of the preceding lease or agreement.