SECTION 351.101. Leasing Department Real Property

(a) Commercial lease. A commercial lease may be executed for surplus real property in accordance with Texas Health and Safety Code, §533.084. A commercial lease may be executed for nonsurplus real property in accordance with Texas Health and Safety Code, §533.087.

(1) A commercial lease proposal must be submitted by the department or by the General Land Office for approval by the Texas Mental Health and Mental Retardation Board (board).

(2) A commercial lease proposal must be advertised in accordance with applicable state law. The advertisement must summarize the lease proposal, state where a copy of the lease proposal and the criteria for awarding the lease can be obtained, and provide the name and address of a person to whom interested parties may submit bids for the lease.

(3) The commissioner or designee reviews any commercial lease bid received based upon whether the rent meets or exceeds the prevailing rate established by the General Land Office, the published criteria, and any other factors deemed appropriate for any or all bids.

(4) The commissioner or designee submits for board approval all bids meeting the published criteria along with his or her recommended bid.

(5) Prior to the awarding any competitively bid lease that has a term exceeding five years, the board must be apprised of all bids received.

(6) The board may reject any and all bids submitted by the commissioner or designee.

(b) Public benefit lease. A public benefit lease, as defined, may be executed for nonsurplus real property in accordance with Texas Health and Safety Code, §533.087.

(1) Board's approval. The board may execute a public benefit lease and may reduce the rent and/or waive advertising and competitive bidding requirements.

(2) Commissioner's approval. The commissioner is authorized to execute a public benefit lease and to reduce the rent and/or waive advertising and competitive bidding requirements when:

(A) the duration of the proposed lease term does not exceed five years; and

(B) the prevailing market rate of the real property is less than $50,000.

(c) Proceeds. Proceeds from all leases are deposited to the credit of the department in the Texas capital trust fund and used in accordance with the Texas Health and Safety Code, §533.084(b), unless otherwise provided for by state or federal law.

Source Note: The provisions of this §351.101 adopted to be effective April 27, 2003, 28 TexReg 3347; transferred effective September 1, 2004, as published in the Texas Register September 17, 2004, 29 TexReg 9013