Technical colleges -- Leasing authority -- Lease-purchase agreements -- Report.

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  • (1) A technical college may enter into a lease with other higher education institutions, school districts, charter schools, state agencies, or business and industry for a term of:
    • (a) one year or less with the approval of the technical college board of trustees; or
    • (b) more than one year with the approval of the board if:
      • (i) the Legislature approves funding for the lease prior to a technical college entering into the lease; or
      • (ii) the lease agreement includes language that allows termination of the lease without penalty.
  • (2)
    • (a) A technical college may enter into a lease-purchase agreement if:
      • (i) there is a long-term benefit to the state;
      • (ii) the project is included in the technical college master plan;
      • (iii) the lease-purchase agreement includes language that allows termination of the lease;
      • (iv) the lease-purchase agreement is approved by the technical college board of trustees and the board; and
      • (v) the lease-purchase agreement is:
        • (A) reviewed by the Division of Facilities Construction and Management;
        • (B) reviewed by the State Building Board; and
        • (C) approved by the Legislature.
    • (b) An approval under Subsection (2)(a) shall include a recognition of:
      • (i) all parties, dates, and elements of the agreement;
      • (ii) the equity or collateral component that creates the benefit; and
      • (iii) the options dealing with the sale and division of equity.
  • (3)
    • (a) Each technical college shall provide an annual lease report to the board that details each of the technical college's leases, annual costs, location, square footage, and recommendations for lease continuation.
    • (b) The board shall compile and distribute an annual combined lease report for all technical colleges to the Division of Facilities Construction and Management and to others upon request.
  • (4) The board shall use the annual combined lease report in determining planning, utilization, and budget requests.




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