If such state-owned space is not available,

1. (1) space may be leased from another state agency through an interagency contract;
2. (2) space may be obtained through transfer of leased space from another state agency or public source;
3. (3) space may be obtained from the federal government through a negotiated lease; or

4. (4) space may be obtained from a political subdivision of this state, including a county, a municipality, a school district, a water or irrigation district, a council of government, or a regional planning council, through a negotiated lease. It is contemplated for the purpose of this section that the political subdivision generally will own the property to be leased to the state; however, the state may sublease from political subdivisions leasing from non-public entities if the state pays not more than market price and where:

   1. (A) political subdivisions occupy more than half of the primary leased space; or
   2. (B) political subdivisions pay at least 10% of the primary lease cost of the space occupied by the state; or
   3. (C) it is determined by the commission to be in the best interest of the state.

Source Note:The provisions of this §115.4 adopted to be effective March 18, 2002, 27 TexReg 2004.