SECTION 260:95-1-7. Lease documents for non-state owned space

(a)   Purpose. The purpose of the development of standard state leasing documents is to ensure uniformity and legality of leasing transactions in all non-state owned space.

(b)   General provisions.

(1)   The use of the forms, as developed by the Office of Management and Enterprise Services, is required by all agencies regardless of the size or dollar amount of the lease, unless otherwise authorized by the Office of Management and Enterprise Services.

(2)   No provisions to the State Leasing forms may be changed or non-standard terms or conditions added without prior authorization by the Office of Management and Enterprise Services.

(3)   The name of the state agency leasing the space shall be indicated as the responsible party (Lessee) on a lease. Neither an individual employee nor a division of an agency shall be indicated as the party leasing the space.

(4)   A lease shall be entered into with the party who has legal ownership of the property. A broker or property manager cannot be listed as the "Lessor" unless they have legal authority to represent the owner on the contract and have legal authority to receive rental payments on behalf of the owner. In such cases, written documentation of the delegation of authority shall be provided by the legal owner to be attached to the lease.

(5)   The agency director shall sign all lease related forms unless otherwise authorized by the Office of Management and Enterprise Services.

(6)   The agency shall prepare four original lease documents to be signed by the Lessor and the agency director. After the appropriate signatures are obtained from the building owner and the agency, all original contracts shall be submitted to the Office of Management and Enterprise Services for final authorization.

(7)   A lease is not fully executed until signed by the Lessor, the agency (Lessee), and the Office of Management and Enterprise Services.

(8)   Any reduction in the amount of space/rental rate, or the Office of Management and Enterprise Services ' authorized increase in the amount of space or the rental rate shall be made a part of the lease through a new lease agreement or an Addendum to the Lease.

(9)   If the effective date of a change of the terms and conditions of the lease coincides with a renewal period, a new Lease Agreement may be required.

(10)   If an agency wishes to terminate a lease, it shall provide a written notice to Lessor and copy the Director of Real Estate and Leasing Services no less than thirty days prior to the anticipated cancellation date of the lease. If the cancellation of a lease coincides with the termination date of a lease, the agency shall provide notification to the Lessor and the Director of Real Estate and Leasing Services of such action.

(11)   The State uses net usable square feet as the standard method of measurement.

(12)   The agency shall not exceed the fair rental prevailing in a community for comparable space nor the State's rental rate ceiling as set by the Office of Management and Enterprise Services.

(13)   No lease agreement shall contain an open rate, including Consumer Price Index, or rental escalation clauses unless authorized by the Office of Management and Enterprise Services.

(14)   State agencies may not pay rental deposits.

(15)   The State shall not be obligated to pay for any rent for any period prior to the time that the Space is occupied by the State.

(16)   The lease period shall not exceed one twelve month period; however, it does not have to end the last day of the fiscal period if that date would be less than one year.

(17)   The standard Lease Agreement and Renewal Agreement shall allow the agency (Lessee) the right to terminate the lease with thirty days written notification to the Lessor.

(18)   Requests for deviations from the standard lease term may be considered by the Office of Management and Enterprise Services when the agency may show programmatic necessity or financial advantage to be in the best interest of the State that would justify a longer or shorter lease term. The agency shall provide written justification to the Office of Management and Enterprise Services for any variance from the terms of the standard lease.

(19)   An agency may not lease space in which a state employee has a right of ownership or other financial interest in the property without express written authorization from the Governor.

(20)   An agency may not lease space from a current member of the Oklahoma State Legislature or a former member of the Oklahoma State Legislature who has been out of office less than two years.

(21)   A lease may be amended during its term with authorization by the Administrator of State Leasing so long as it is in the best interest of the State.

(22)   Any changes to the original Lease Agreement shall be pre-authorized by the Administrator of State Leasing before the agency initiates action to alter the lease.

(23)   If an increase in rental rate is a direct result of renovations required by the agency after initial occupancy of the space, a specified time limit in which the renovations shall be completed shall be included in the appropriate lease document.

(24)   If the costs for utility services (gas, electricity, or water/sewer) are not to be included in the rental rate, these services shall be separately metered for the space to be occupied by the State.

(25)   It shall be the responsibility of the building owner to notify the State of any transfer of ownership of the leased premises.

(26)   A Certificate of Non-Collusion shall be signed by all parties contracting for services with the State.

(27)   Leased space shall comply with all applicable federal, state and local laws, codes, ordinances, rules and regulations pertaining to health, safety, fire, and public welfare. All construction or renovation to space a state agency leases shall comply with applicable professional architectural and engineering laws.

(28)   The State Fire Marshal's office or local fire marshal's office shall inspect the facility to be leased prior to initial occupancy or renovation to existing space, and/or approve building plans for new construction, for compliance with the Life Safety Code, Fire Prevention Code, and National Fire Protection Association Standards. A written report, or floor plan, signed by the State Fire Marshal shall be obtained.

(29)   Prior to occupancy of non-state owned space, the proposed space shall be inspected by the State Department of Labor for the presence of friable asbestos containing materials, and written documentation of the inspection shall be obtained. In the event that friable asbestos containing materials are found to be present, the agency shall not be authorized to occupy said space unless a written exception request from the agency director or chief executive officer is authorized by the Office of Management and Enterprise Services.

(30)   The Lessor shall adhere to the requirements of the Oklahoma Occupational and Safety Standards Act of 1970.

(31)   The Lessor shall maintain general liability insurance to be no less than $1,000,000.00 per occurrence at all times during the lease or any renewal periods unless otherwise exempt by the Office of Management and Enterprise Services.

(32)   It is a Lessor's responsibility to ensure that the facility leased by the State complies with the American's with Disabilities Act of 1990 (Public Law 101-336) and all amendments and requirements imposed by the regulations issued pursuant to this act in so far as the requirements of the Act affects the agency.

(c)   Forms. Forms developed by the Office of Management and Enterprise Services shall be utilized in all leasing transactions in non-state owned buildings. Agencies shall adhere to the provisions of the forms and applicable instructions unless an exception is granted by the Office of Management and Enterprise Services.

[Source: Added at 31 Ok Reg 1502, eff 9-12-14]