CHAPTER 2167. LEASE OF SPACE FOR STATE AGENCIES

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GOVERNMENT CODE

TITLE 10. GENERAL GOVERNMENT

SUBTITLE D. STATE PURCHASING AND GENERAL SERVICES

CHAPTER 2167. LEASE OF SPACE FOR STATE AGENCIES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 2167.001. APPLICABILITY. (a) This chapter applies to:

(1) office space;

(2) warehouse space;

(3) laboratory space;

(4) storage space exceeding 1,000 gross square feet;

(5) boat storage space;

(6) aircraft hangar space other than hangar space and adjacent

space leased by the State Aircraft Pooling Board at

Austin-Bergstrom International Airport and operated for the

purpose of providing air transportation services for the State of

Texas;

(7) vehicle parking space; and

(8) a combination of those kinds of space.

(b) This chapter does not apply to:

(1) radio antenna space;

(2) residential space for a Texas Department of Mental Health

and Mental Retardation program;

(3) residential space for a Texas Youth Commission program;

(4) space to be used for less than one month for meetings,

conferences, conventions, seminars, displays, examinations,

auctions, or similar purposes;

(5) district office space for members of the legislature;

(6) space used by the Texas Workforce Commission;

(7) residential property acquired by the Texas Department of

Housing and Community Affairs or the Texas State Affordable

Housing Corporation that is offered for sale or rental to

individuals and families of low or very low income or families of

moderate income;

(8) except as provided by Section 2167.007, classroom and

instructional space for an institution of higher education; or

(9) space leased by the Texas Veterans Commission to administer

the veterans employment services program.

Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1,

1995. Amended by Acts 1997, 75th Leg., ch. 980, Sec. 2, eff.

Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1286, Sec. 1, eff. June

18, 1999; Acts 2003, 78th Leg., ch. 309, Sec. 4.01, eff. June 18,

2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1385, Sec. 9, eff. June 19, 2009.

Sec. 2167.0011. DEFINITION. In this chapter, "commission" means

the Texas Facilities Commission.

Added by Acts 2007, 80th Leg., R.S., Ch.

937, Sec. 1.32, eff. September 1, 2007.

Sec. 2167.002. PREREQUISITES FOR LEASING SPACE. The commission

may lease space for a state agency in accordance with this

chapter and the agency's specifications if:

(1) state-owned space is not otherwise available to the agency;

and

(2) the agency has verified it has money available to pay for

the lease.

Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1,

1995.

Sec. 2167.0021. BEST VALUE STANDARD FOR LEASE OF SPACE. (a)

The commission shall lease space for the use of a state agency on

the basis of obtaining the best value for the state.

(b) The commission shall adopt rules establishing guidelines for

the determination of best value in a lease contract. In

determining the best value, the commission may consider:

(1) the cost of the lease contract;

(2) the condition and location of lease space;

(3) utility costs;

(4) access to public transportation;

(5) parking availability;

(6) security;

(7) telephone service availability;

(8) indicators of probable lessor performance under the

contract, such as the lessor's financial resources and the

lessor's experience;

(9) compliance with the architectural barriers law, Article

9102, Revised Statutes; and

(10) other relevant factors.

space from the offeror that offers the space at the lowest cost

if the commission determines that doing so obtains the best value

for the state.

Added by Acts 2001, 77th Leg., ch. 1422, Sec. 10.01, eff. Sept.

1, 2001.

Sec. 2167.003. FIRST CONSIDERATION TO HISTORIC STRUCTURE. (a)

In leasing space for the use of a state agency, the commission or

the private brokerage or real estate firm assisting the

commission shall give first consideration to a building that is

designated as a historic structure under Section 442.001 or to a

building that has been designated a landmark by a local governing

authority, if:

(1) the building meets requirements and specifications; and

(2) the cost is not substantially higher than the cost for other

available buildings that meet requirements and specifications.

(b) When it considers leasing space for a state agency, the

commission or the private brokerage or real estate firm assisting

the commission shall notify each individual and organization that

is:

(1) on a list furnished to the commission by the Texas

Historical Commission under Section 442.005; and

(2) in the county in which the commission is considering leasing

space.

Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1,

1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 17.08(b),

eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 1422, Sec. 10.02,

eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 309, Sec. 4.07(1),

eff. June 18, 2003.

Sec. 2167.004. LEASING SPACE FOR HEALTH AND HUMAN SERVICES

AGENCIES. (a) Notwithstanding any other provision of this

chapter or of Subchapter C, Chapter 2165, the commission 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 office space for the agency.

(b) Repealed by Acts 2003, 78th Leg., ch. 309, Sec. 4.07(2).

meaning assigned by Section 531.001.

Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1,

1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 17.09(a),

eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1460, Sec. 3.12,

eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 309, Sec. 4.07(2),

eff. June 18, 2003.

Sec. 2167.005. DELEGATION OF AUTHORITY TO STATE AGENCIES. (a)

The commission may delegate to a state agency, including an

institution of higher education, the authority to enter into

lease contracts for space.

(b) Any reports on the lease contracts made under this delegated

authority shall be required annually.

in another report to be made by the institution of higher

education to another state agency, the commission, the agency

receiving the other report, and the institution of higher

education shall enter into a memorandum of understanding

concerning the information to be reported in order to enable the

institution of higher education to provide the required

information in the most cost-effective manner taking into account

the costs to each affected agency.

(d) The commission may revoke a delegation of authority made

under this section.

Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1,

1995. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 17.10(a),

eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 188, Sec. 4.02,

eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1422, Sec. 10.03,

eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 309, Sec. 4.02,

eff. June 18, 2003.

Sec. 2167.0051. CLASSROOM AND INSTRUCTIONAL SPACE. (a) 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, Article

9102, Revised Statutes.

(b) An institution of higher education may lease classroom and

instructional space through competitive bidding in accordance

with Section 2167.053 or through competitive sealed proposals in

accordance with Section 2167.054 or may negotiate for that space

on making a determination that competition is not available and

shall include provisions to obtain a lease contract for classroom

and instructional space in accordance with Section 2167.055.

Added by Acts 1999, 76th Leg., ch. 1286, Sec. 2, eff. June 18,

1999.

Sec. 2167.006. ELIMINATION OF BARRIERS TO PERSONS WITH

DISABILITIES IN LEASED BUILDINGS. (a) The commission may not

enter a lease contract under this chapter unless it complies with

the architectural barriers law, Article 9102, Revised Statutes.

(b) A state agency, including an institution of higher

education, may not enter a lease contract under Section 2167.005

unless the agency complies with the architectural barriers law,

Article 9102, Revised Statutes.

Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1,

1995. Amended by Acts 2001, 77th Leg., ch. 1422, Sec. 10.04, eff.

Sept. 1, 2001.

Sec. 2167.007. LEASING SERVICES TO STATE AGENCIES. (a) This

chapter does not prohibit the commission from providing leasing

services to a state agency otherwise excluded from its

requirements.

(b) Services performed under Subsection (a) are not subject to

the interagency cooperation law, Chapter 771.

billings to assure the recovery of the cost of providing services

under Subsection (a) and may submit, after the close of each

month, a purchase voucher or journal voucher to an agency for

which services were provided.

Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1,

1995. Amended by Acts 2003, 78th Leg., ch. 309, Sec. 4.03, eff.

June 18, 2003.

Sec. 2167.008. RULES. The commission shall adopt rules

necessary to administer this chapter.

Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1,

1995.

Sec. 2167.009. CONSIDERATION TO MILITARY INSTALLATION. In

leasing space for the use of a state agency, the commission or

the private brokerage or real estate firm assisting the

commission shall give consideration to a federally owned or

operated military installation or facility.

Added by Acts 2003, 78th Leg., ch. 149, Sec. 8, eff. May 27,

2003.

SUBCHAPTER B. PROCEDURES FOR LEASING SPACE; LEASE CONTRACT

Sec. 2167.051. LEASING SPACE FROM ANOTHER GOVERNMENTAL ENTITY.

Space may be leased:

(1) through an interagency contract from another state agency;

(2) through a negotiated contract from:

(A) the federal government;

(B) a political subdivision, including a county, municipality,

school district, water or irrigation district, hospital district,

council of governments, or regional planning commission;

building that is completely owned, directly or indirectly, by the

retirement system; or

(D) a children's advocacy center established under Subchapter E,

Chapter 264, Family Code.

Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1,

1995. Amended by Acts 1997, 75th Leg., ch. 341, Sec. 1, eff.

Sept. 1, 1997.

Sec. 2167.052. LEASING SPACE FROM PRIVATE SOURCE. (a) Space

may be leased from a private source through:

(1) competitive bidding;

(2) competitive sealed proposals under Section 2167.054; or

(3) direct negotiation.

(b) The commission may negotiate for space on making a written

determination that competition is not available.

provides the best value for the state.

Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1,

1995. Amended by Acts 2001, 77th Leg., ch. 1422, Sec. 10.05, eff.

Sept. 1, 2001.

Sec. 2167.053. LEASING SPACE THROUGH COMPETITIVE BIDDING. (a)

When space is leased through competitive bidding, the commission

shall determine the bid that provides the best value for the

state after considering moving costs, the cost of time lost in

moving, the cost of telecommunications services, and other

relevant factors.

(b) The commission shall send to the leasing state agency:

(1) a copy of all bids received; and

(2) the commission's recommended award.

factors, the leasing state agency's opinion is that the bid

selected by the commission is not the bid that provides the best

value for the state, it may file with the commission a written

recommendation that the award be made to a bidder other than the

commission's recommended bidder. The leasing state agency's

recommendation must contain the agency's justification for its

recommendation and a complete explanation of all factors it

considered.

(d) The commission shall fully consider the leasing state

agency's recommendation and, if it does not agree, shall notify

the agency of its disagreement in writing. The leasing state

agency and the commission shall attempt to agree on the award.

(e) If the commission and the leasing state agency do not agree

within 30 days, all bids and pertinent documents shall be sent to

the governor. The governor shall designate the bidder to which

the award shall be made.

Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1,

1995. Amended by Acts 2001, 77th Leg., ch. 1422, Sec. 10.06, eff.

Sept. 1, 2001.

Sec. 2167.054. LEASING SPACE THROUGH COMPETITIVE SEALED

PROPOSALS. (a) The commission may lease space using competitive

sealed proposals.

(b) The commission shall solicit proposals by publishing a

notice of request for proposals in:

(1) the Texas Register; and

(2) a newspaper of general circulation in the county in which

the space is to be leased.

does not disclose the contents of the proposal during the process

of negotiating with competing offerors.

(d) As provided in a request for proposals and under rules

adopted by the commission, the commission may discuss acceptable

or potentially acceptable proposals with offerors to assess an

offeror's ability to meet the solicitation requirements and to

obtain the most advantageous lease contract for the state. The

commission may invite a leasing state agency to participate in

discussions and negotiations conducted under this section. After

receiving a proposal but before making an award, the commission

may permit the offeror to revise the proposal to obtain the best

final proposal.

(e) The commission may not disclose information derived from

proposals submitted from competing offerors in conducting

discussions under Subsection (d).

(f) The commission shall provide each offeror whose proposal

meets the minimum requirements in the request for proposals a

reasonable opportunity to discuss and revise its proposal.

(g) The commission shall make a written award of a lease to the

offeror whose proposal provides the best value for the state,

considering price and the evaluation factors in the request for

proposals. The commission shall state in writing in the contract

file the reasons for which an award is made.

(h) The commission shall refuse all proposals if it determines

that none of the proposals is acceptable.

(i) If the competitive sealed proposal procedure for leasing

space is used by a state agency that has been delegated leasing

authority under Section 2167.005, the agency shall follow the

procedures outlined by this section and any rules adopted by the

commission.

Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1,

1995. Amended by Acts 2001, 77th Leg., ch. 1422, Sec. 10.07, eff.

Sept. 1, 2001; Acts 2003, 78th Leg., ch. 309, Sec. 4.04, eff.

June 18, 2003.

Sec. 2167.0541. USE OF PRIVATE FIRMS TO OBTAIN SPACE. (a) The

commission may contract with one or more private brokerage or

real estate firms to assist the commission in obtaining lease

space for state agencies on behalf of the commission under this

chapter.

(b) A private brokerage or real estate firm with which the

commission contracts under Subsection (a) may assist the

commission in leasing facilities under this chapter.

billings to recover the costs of contracting with a private

brokerage or real estate firm under Subsection (a).

Added by Acts 2001, 77th Leg., ch. 1422, Sec. 10.08, eff. Sept.

1, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

223, Sec. 1, eff. May 27, 2005.

Sec. 2167.055. CONTRACT FOR LEASE OF SPACE. (a) In a contract

by the commission for the lease of space under this chapter, the

state, acting through the commission, is the lessee.

(b) A lease contract entered into under Section 2167.053 or

2167.054 must reflect the provisions contained in the invitation

for bids or request for proposals, the successful bid or

proposal, and the award of the contract.

(1) provide for an original term that does not exceed 10 years;

and

(2) include options to renew for as many terms that do not

exceed 10 years each as the commission considers to be in the

state's best interest.

(d) A lease contract that does not contain an option to renew

may, on agreement of the parties, be renewed under terms to which

all parties to the contract agree.

(e) A lease contract is contingent on the availability of money

appropriated by the legislature to pay for the lease.

(f) The obligation of the lessor to provide lease space and of

the commission to accept the space is binding on the execution of

the lease contract.

Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1,

1995. Amended by Acts 2001, 77th Leg., ch. 1422, Sec. 10.09, eff.

Sept. 1, 2001; Acts 2003, 78th Leg., ch. 309, Sec. 4.05, eff.

June 18, 2003.

Sec. 2167.056. OPTION TO PURCHASE. (a) If the commission

considers it advisable, the commission may lease space for a

state agency under a contract that contains an option for the

commission to purchase the space subject to the legislature's

appropriation of money for the purchase.

(b) A lease contract containing the option must indicate:

(1) the amount that will accumulate and be credited toward the

purchase at various times during the lease term; and

(2) the purchase price of the property at the beginning of each

fiscal biennium during the lease term.

Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1,

1995.

SUBCHAPTER C. COMMISSION AND STATE AGENCY POWERS AND DUTIES

RELATED TO LEASED SPACE

Sec. 2167.101. CERTIFICATION OF AVAILABLE MONEY. A state agency

occupying space leased under this chapter shall certify to the

commission, at least 60 days before the beginning of each fiscal

biennium during the lease term, that money is available to pay

for the lease until the end of the next fiscal biennium.

Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1,

1995. Amended by Acts 2003, 78th Leg., ch. 309, Sec. 4.06, eff.

June 18, 2003.

Sec. 2167.102. REMEDIAL ACTION AGAINST LESSOR. (a) When a

state agency occupying leased space is aware of circumstances

that require remedial action against the lessor, the agency shall

notify the commission.

(b) The commission may investigate the circumstances and the

lessor's performance under the contract.

assist the commission in protecting the state's interest under a

lease contract.

Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1,

1995.

Sec. 2167.103. RECORDS. To efficiently maintain a space

management system, the commission shall maintain records of the

amount and cost of space under lease by the commission and may

collect other information that it considers necessary. A state

agency shall cooperate with the commission in securing this

information.

Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1,

1995.

Sec. 2167.104. SUBLEASE TO CHILD CARE PROVIDER. (a) Subject to

restrictions imposed by a lease or other enforceable contract,

the commission, at the request of the occupying agency, shall

sublease part of a space leased under this chapter to a child

care provider for the operation of a child care facility.

(b) Chapter 663 applies to the establishment and operation of

the child care facility, except as provided by this section.

regarding child care facilities in state-owned buildings and

potential child care facility sites in state-owned buildings

under Chapter 663, 2165, or 2166.

(d) The occupying agency and the commission may agree to:

(1) procedures relating to the selection of the child care

provider;

(2) granting some preference in enrollment to children of

officers and employees of the occupying state agency; and

(3) any other matter regarding the operation of the child care

facility.

(e) The commission shall sublease space under this section to a

child care provider approved by the commission under Chapter 663

at a rate set by the commission.

(f) In leasing space under this chapter, the commission shall,

whenever possible, enter into a lease contract that allows for

subleasing space to a child care provider.

Added by Acts 1995, 74th Leg., ch. 41, Sec. 1, eff. Sept. 1,

1995. Amended by Acts 2001, 77th Leg., ch. 761, Sec. 13, eff.

Sept. 1, 2001.

Sec. 2167.105. REPORT ON NONCOMPLIANCE. If the commission

determines that a state agency has not complied with the

commission's rules or with other state law related to leasing

requirements, the commission shall report the noncompliance to

the members of the state agency's governing body and to the

governor, lieutenant governor, and speaker of the house of

representatives. The commission shall include in its report an

estimate of the fiscal impact resulting from the noncompliance.

Added by Acts 2001, 77th Leg., ch. 1422, Sec. 10.10, eff. Sept.

1, 2001.

State Codes and Statutes

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