Opinion No.

Mr. Robert L. Laman, Director Arkansas State Building Services 1515 Building, Suite 700 Little Rock, Arkansas 72201

Dear Mr. Laman:

This is in response to your request for an opinion on several questions concerning the ability of state agencies to enter into lease-purchase agreements in connection with "energy management performance contracts." You note that these contracts are "typically financed as lease-purchases for equipment and installation. They typically run five years or more and are paid for entirely by cost savings generated by the service and/or equipment." You note that "there are…