WILLIAM DONALD SCHAEFER, Governor

AN ACT concerning

Capital Lease Financing

FOR the purpose of requiring all capital lease projects to be
submitted to the Board of Public Works and certain other
State departments; defining certain terms; exempting the
procurement of certain auxiliary facilities of institutions
of higher education; requiring the proposals for capital
lease financing to contain certain information; providing
the Board with certain criteria for review of capital lease
proposals; requiring that initial and final approval of the
proposals be obtained from the budget committees of the
General Assembly; requiring that the construction costs of
the capital projects be within the State debt limitation;
requiring the Department of General Services to initiate the
procurement process for capital lease financing for agencies
and facilities within its jurisdiction; authorizing the
Board to require the Department to negotiate sale and lease
provisions for certain other agencies or facilities;
requiring final review by the Board and certain State staff
agencies; providing for final approval or disapproval by the
Board; requiring approval by the responsible State staff
agency under certain circumstances; requiring that Capital
leases be considered along with State debt by the Capital
Debt Affordability Committee; and generally relating to
capital lease financing.

BY adding to

Article - State Finance and Procurement
Section 5-706.1 through 5-706.5 5-706.6
Annotated Code of Maryland
(1985 Volume and 1987 Supplement)

BY repealing and reenacting, with amendments,

Article - State Finance and Procurement

Section 8-112

Annotated Code of Maryland

(1985 Volume and 1987 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - State Finance and Procurement

5-706.1.

(A) IN THIS SECTION AND IN §§ 5-706.2 THROUGH 5-706.5
5-706.6 THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED.

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