Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. Chapter 386 of the acts of 1996 is hereby repealed.
SECTION 2. The commissioner of capital asset management and maintenance, with the approval of the adjutant general of the military division, may, notwithstanding sections 40E to 40J, inclusive, of chapter 7 of the General Laws, but subject to section 3 and such other terms and conditions as may be determined by the commissioner in consultation with the adjutant general, execute and deliver on behalf of the commonwealth 1 or more instruments to lease the 3-story building at 69 Grove street in the city of Worcester, known as the Massachusetts veterans' shelter, to Massachusetts Veterans, Inc. for a term not to exceed 30 years for the purpose of operating and maintaining a veterans' shelter. As a condition of the lease, the military division, acting through the adjutant general, shall retain the right to re-occupy the premises upon 30 days written notice to Massachusetts Veterans, Inc., should such re-occupation become necessary to enable the military division to adequately perform its duties in a state or national emergency.
The lease price to be paid by Massachusetts Veterans, Inc. shall be the full and fair market value of the building for use as a veteran's shelter based upon 1 or more professional appraisals commissioned by the division reduced by any diminution in value resulting from the military division's right of re-occupation and reduced by any credit authorized by section 3 and certified by the inspector general pursuant to said section 3. The inspector general shall review and approve the appraisal or appraisals, and the review and appraisal shall include an examination of the methodology utilized for said appraisal or appraisals. The commissioner shall, 30 days prior to the execution of any lease or leases authorized by this act or any subsequent amendment thereof, submit the lease or leases and any amendments thereto and a report thereon to the inspector general. The inspector general shall prepare a report of his review and approval of the appraisal or appraisals, lease or leases, or amendments and file the report with the commissioner, and copies of the same shall be filed with the house and senate committees on ways and means and with the chairmen of the joint committee on state administration at least 15 days before execution. The report shall also include a list of those credits that have been certified by the inspector general under section 3 as credits to be applied against the lease price. The lease price paid by Massachusetts Veterans, Inc. for any lease or leases, or any amendments thereof, authorized by this act shall be deposited in the General Fund.
SECTION 3. For purposes of this section only, the following words shall, unless the context shall clearly indicate a different meaning or intent, have the following meanings:-
"Renovations", work required to restore or modernize most or all of a facility in order that the facility may be effectively utilized for its presently designated functional purpose for an extended period of time or to comply with current code requirements.
"Repairs", work required to restore a facility or system to such condition that it may continue to be approximately and effectively utilized for its designated purpose for an extended period of time by overhaul, reprocessing or replacement of constituent parts or materials which have deteriorated by action of the elements or wear and tear in use.
"Long-term capital improvement", reconstruction, remodeling, rehabilitation, extension, or enlargement of a facility that substantially enhances the effective utilization of the facility for its designated functional purpose in such a manner that the tangible and functioning benefits added by said reconstruction, remodeling, rehabilitation, extension or enlargement have not dissipated significantly since their addition and are not likely to dissipate significantly over an extended period of time.
The Massachusetts Veterans, Inc. shall receive a credit against full and fair market value that shall be equal to the value of any renovations, repairs or long-term capital improvements performed by said organization on the 3-story building located at 69 Grove street in the city of Worcester and known as the Massachusetts veterans' shelter from the date of said organization's initial occupation of the premises in 1991 until the expiration date of the lease agreement signed with the division of capital asset management and maintenance under authorization granted to the division by chapter 386 of the acts of 1996. The credits shall be applied against the lease price to be paid by the organization, as initially determined by the appraisal required in section 1, following the execution of its new lease agreement with the division as authorized by this act. If the new lease agreement includes a lease term of 10 years or more, the credits authorized by this section shall only be applied against the lease price during the first 10 years of the new lease agreement. The application of any additional credits against the lease price beyond the first 10 years of the new lease agreement shall require the prior approval of the general court.
Before any such credits may be applied against the lease price, Massachusetts Veterans, Inc. shall submit a detailed list of those renovations, repairs and long-term capital improvements for which it is seeking a lease credit to the office of the inspector general. The list shall include the revenue source used by Massachusetts Veterans, Inc. to fund said renovations, repairs and long-term capital improvements and shall be accompanied by documentation sufficient to show that said renovations, repairs or long-term capital improvements were actually completed at the premises described in this section and during the time required in this section. The inspector general shall review said list and said documentation and determine which proposed credits meet the definitions and requirements set forth in this section. Only those proposed credits certified by the inspector general as meeting the definitions and requirements shall be applied as credits against the lease price. In no instance shall any prior renovation, repair or long-term capital improvement funded in whole or part by a state appropriation, including, but not limited to, funds expended from item 1410-0251 of the annual general appropriation act, be certified as a credit against the lease price by the inspector general. In no instance shall the net lease price during the first 10 years of the lease agreement, after application of the credits, be in an amount less than $100 per month.
SECTION 4. Massachusetts Veterans, Inc. shall be responsible for all costs associated with any appraisal, survey, or other expense incurred by the commonwealth relating to the lease or leases authorized by section 2, and for any costs, liabilities or expenses of any kind for the development, improvement, maintenance or operation of the property as may be determined by the commissioner.
SECTION 5. Massachusetts Veterans, Inc. shall carry such comprehensive liability insurance, in an amount deemed adequate by the commissioner of the division of capital asset management and maintenance in consultation with the adjutant general, to protect the commonwealth and Massachusetts Veterans, Inc. against personal injury or property damage occurring within the building during the term of any lease or leases authorized by this act.
SECTION 6. If the building ceases to be used at any time for the purpose described in this act, the building, together with any improvements thereon, shall revert to the commonwealth. Any further disposition of the property shall be subject to sections 40E to 40J, inclusive, of chapter 7 of the General Laws and shall have the prior approval of the general court.