SECTION 1.  The inspector general is hereby authorized and directed to expend an amount not exceeding $150,000 to study all Massachusetts water resources authority leasing agreements in which the authority is either the lessor or lessee of real property. This study shall include, but not be limited to, an analysis, appraisal, evaluation and listing of all real property owned or under the control of the authority and shall detail whether such property is generating a positive or negative economic impact for ratepayers in the authority’s district. Said study shall document whether all such real property leases have been authorized in accordance with all applicable or generally accepted principles of advertising and procurement. The inspector general shall include his recommendations for improving real property oversight at the authority and, if indicated by his findings, shall provide draft legislation to improve administration in this area to ensure the authority is receiving the maximum feasible return and is applying the same for the benefit of ratepayers. The inspector general shall complete this study no later than October 15, 2007 and shall submit his findings and recommendations to the house and senate committees on ways and means not later than December 15, 2007.