PURPOSE: This rule establishes a uniform procedure for managing leased real property.

1. (1) In order for any lease of real property to obligate the state of Missouri, the lease must be signed by the commissioner of administration, the director of the Division of Facilities Management, or their designees.
2. (2) The rights and obligations of the lessor and the lessee shall be as specified in the lease.
3. (3) The tenant/using agency shall be responsible for the day-to-day operations of the rental facility.

4. (4) The commissioner of administration shall have the authority to make a one (1)-time lump-sum payment to a lessor for improvements to a leased facility under the following conditions:

   1. (A) The improvements would provide a direct benefit to the operations of the state’s programs and are not required for the provision of any of the services covered by the lease, such as maintenance, upkeep or repair of the facility;
   2. (B) The amount paid by the commissioner for the construction of the improvements is no more than the reasonable cost to construct the improvements; and
   3. (C) The remaining term of the lease, including the lessee’s options to renew, exceeds twelve (12) months. A one (1)-time payment may only be made in the last one (1)-year renewal period of a lease if necessary to meet unforeseen changes in program requirements.
5. (5) Monies to fund all payments due under lease agreements are appropriated annually by the Missouri General Assembly for one
6. (1) fiscal year beginning July 1. No lease shall be binding on the lessee unless and until appropriations have been made by the Missouri General Assembly and, if applicable, funds have been received from the United States government for any payment therefor. This limitation shall apply for any fiscal year during the initial period and all renewal periods.

AUTHORITY: section 34.030, RSMo 1994.* Original rule filed April 15, 1998, effective Nov. 30, 1998.

*Original authority: 34.030, RSMo 1939, amended 1945.