53B-2a-113. Technical colleges — Leasing authority — Lease-purchase agreements — Report.
| (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:
Terms Used In Utah Code 53B-2a-113- Board: means the Utah Board of Higher Education described in Section 53B-1-402. See Utah Code 53B-1-101.5
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
- Technical college: means an institution of higher education described in Subsection 53B-1-102(1)(b). See Utah Code 53B-1-101.5
| (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. |
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| (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. |
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| (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. |
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| (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. |
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| (4) |
The board shall use the annual combined lease report in determining planning, utilization, and budget requests. |
Amended by Chapter 421, 2022 General Session
