Miscellaneous Expenditures — Real and Personal State Property
Leasing Space for State Agencies and Institutions of Higher Education

The Texas Facilities Commission (TFC) may lease space for a state agency in accordance with the State Purchasing and General Services Act and the agency’s specifications, if:

• State-owned space is not otherwise available to the agency, and
• The agency has verified it has money available to pay for the lease.

In leasing space for the use of a state agency, TFC or the private brokerage or real estate firm assisting TFC must give first consideration to a building designated as a historic structure or a building designated a landmark by a local governing authority if:

• The building meets requirements and specifications, and
• The cost is not substantially higher than the cost for other available buildings that meet requirements and specifications.

TFC may lease space for a state agency under a contract containing an option for TFC to purchase the space subject to the Legislature’s appropriation of money for the purchase. A lease contract containing the option must indicate:

• The amount that will accumulate and be credited toward the purchase at various times during the lease term, and
• The purchase price of the property at the beginning of each fiscal biennium during the lease term.

TFC may delegate to a state agency, including an institution of higher education, the authority to enter into lease contracts for space. The agency may not enter a lease contract under delegated authority from TFC unless the institution complies with the architectural barriers law.

An institution of higher education may not lease classroom and instructional space unless the portion of the building to be used by the institution complies with the applicable standards and specifications under the architectural barriers law.

TFC may not lease office space to serve the needs of any health and human services agency unless the Health and Human Services Commission has approved the lease for office space for the agency.

In leasing space in accordance with the State Purchasing and General Services Act, TFC must, whenever possible, enter into a lease contract that allows for subleasing space to a child care provider.

The information provided in this section applies to:

• Office space.
• Warehouse space.
• Laboratory space.
• Storage space exceeding 1,000 gross square feet.
• Boat storage space.
• Aircraft hangar space other than hangar space and adjacent space leased by the Texas Department of Transportation at Austin-Bergstrom International Airport and operated for the purpose of providing air transportation services for the State.
• Vehicle parking space.
• A combination of those kinds of space.

The information provided in this section does not apply to:

• Radio antenna space.
• Residential space for a program of the Texas Department of Aging and Disabilities Services.
• Residential space for a program of the Texas Juvenile Justice Department.
• Space to be used for less than one month for meetings, conferences, conventions, seminars, displays, examinations, auctions or similar purposes.
• District office space for legislators.
• Space used by the Texas Workforce Commission.
• Residential property acquired by the Texas Department of Housing and Community Affairs or the Texas State Affordable Housing Corporation offered for sale or rental to individuals and families of low or very low income or families of moderate income.
• Classroom and instructional space for an institution of higher education, except as provided by the State Purchasing and General Services Act, Texas Government Code Section 2167.007.

Definitions:

State agency

• A department, commission, board, office or other agency in the executive branch of state government created by the state constitution or a state statute.
• The Supreme Court, the Court of Criminal Appeals, a court of appeals or the Texas Judicial Council.
• A university system or an institution of higher education as defined by Texas Education Code Section 61.003, except a public junior college.

Historic structure

A structure:

• Included on the National Register of Historic Places.
• Designated as a Recorded Texas Historic Landmark.
• Designated as a State Archeological Landmark.
• Determined by the Texas Historical Commission to qualify as eligible property under criteria for inclusion on the National Register. of Historic Places or for designation as a Recorded Texas Historic Landmark or as a State Archeological Landmark.
• Certified by the Texas Historical Commission to other state agencies as worthy of preservation.
• Designated by an ordinance of a municipality with a population of more than 1.5 million as historic.

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