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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.