Utah Code 63A-5b-804. Leasing by the Administrative Office of the Courts — Judicial Council approval required for high-cost lease — Director’s responsibilities
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(1) Before executing a high-cost lease or a modification to a lease that results in a high-cost lease, the Administrative Office of the Courts shall submit a draft of the new lease or modification to:
Terms Used In Utah Code 63A-5b-804
- Director: means the division director, appointed under Section
63A-5b-302 . See Utah Code 63A-5b-102 - High-cost lease: means a real property lease that:(2)(a) has an initial term including any agency optional term of 10 years or more; or(2)(b) will require lease payments of more than $5,000,000 over the term of the lease, including any agency optional term. See Utah Code 63A-5b-801
- 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
- Significant lease terms: includes the duration of the lease, the frequency of the periodic payments, a renewal clause, a purchase option, a cancellation clause, a repair and maintenance clause, and a restriction on use of the property. See Utah Code 63A-5b-801
- 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
(1)(a) the Judicial Council; and(1)(b) the director.
(2) The director shall:
(2)(a) review the draft submitted by the Administrative Office of the Courts; and
(2)(b) within 30 days after receiving the draft, submit a report on the draft to:
(2)(b)(i) the Judicial Council; and
(2)(b)(ii) the Office of the Legislative Fiscal Analyst.
(3) A report under Subsection (2)(b) shall contain:
(3)(a) the director’s opinion about:
(3)(a)(i) whether the lease or modification is cost-effective when the needs of the entity to be housed in the leased facility are considered;
(3)(a)(ii) whether another option such as construction, use of other state-owned space, or a lease-purchase agreement is more cost-effective than leasing; and
(3)(a)(iii) whether the significant lease terms are cost-effective and provide the state with sufficient flexibility and protection from liability;
(3)(b) a comparison of the proposed lease payments to the current market rates, and a recommendation as to whether the proposed lease payments are reasonable under current market conditions;
(3)(c) a comparison of proposed significant lease terms to the current market, and a recommendation as to whether the proposed terms are reasonable under current market conditions; and
(3)(d) a recommendation from the director that the lease or modification to a lease be approved or disapproved.
(4)
(4)(a) The Administrative Office of the Courts may not execute a new high-cost lease or modification to an existing lease that will result in a high-cost lease unless the lease or modification is approved by a majority vote of the Judicial Council.
(4)(b) The Judicial Council shall consider the recommendations of the director in determining whether to approve a high-cost lease or modification resulting in a high-cost lease.