(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; and
- (B) 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.
Renumbered and Amended by Chapter 8, 2025 Special Session 1