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Federal Register / Vol. 86, No. 124 / Thursday, July 1, 2021 / Rules and Regulations 48.4 What accounting standards will the Bureau use in monitoring the receipt, holding, and use of funds?

The Bureau will use applicable Federal financial accounting rules in monitoring the receipt, holding, and use of funds.
48.5 How does the Paperwork Reduction Act affect this part?

The collections of information in this part have been approved by the Office of Management and Budget under 44
U.S.C. 3501 et seq. and assigned OMB
Control Number 1076NEW and OMB
Control Number 10900009. Response is required to obtain a benefit. A Federal agency may not conduct or sponsor, and you are not required to respond to, a collection of information unless it displays a currently valid OMB Control Number.
Subpart BLeasing of Bureauoperated Facilities 48.101 Who may enter into a lease on behalf of a Bureau-operated school?

Only the Director or the Directors designee may enter into leases.
48.102 With whom may the Director enter into a lease?

The Director or designee may lease to public or private persons or entities who meet the requirements of this part that are applicable to leasing activities.
48.103

What facilities may be leased?

Any portion of a Bureau-operated school facility may be leased as long as the lease does not interfere with the normal operations of the Bureauoperated school, student body, or staff, and otherwise meets applicable requirements of this part.

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48.104 What standards will the Director use in determining whether to enter into a lease?

a The Director or designee will make the final decision regarding approval of a proposed lease. The Director or designee must ensure that the lease provides appropriate consideration that benefits the school and that the Head of the School where facilities are being leased has certified, after consultation with the school board or board of regents, that the lease meets the standards in paragraph b of this section.
b The lease must:
1 Comply with the mission of the school;
2 Conform to principles of good order and discipline;
3 Not interfere with existing or planned school activities or programs;

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4 Not interfere with school board staff and/or community access to the school;
5 Not allow contact or access to students inconsistent with applicable law;
6 Not result in any Bureau commitments after the lease expires;
and 7 Not compromise the safety and security of students and staff or damage facilities.
c The Directors or designees decision on a proposed lease is discretionary and is not subject to review or appeal under part 2 of this chapter or otherwise.
48.105 What provisions must a lease contain?

a All leases of Bureau-operated school facilities must identify at a minimum:
1 The facility, or portion thereof, being leased;
2 The purpose of the lease and authorized uses of the leased facility;
3 The parties to the lease;
4 The term of the lease, and any renewal term, if applicable;
5 The ownership of permanent improvements and the responsibility for constructing, operating, maintaining, and managing permanent improvements, and meeting due diligence requirements under 48.106;
6 Payment requirements and late payment charges, including interest;
7 That lessee will maintain insurance sufficient to cover negligence or intentional misconduct occurring on the leasehold; and 8 Any bonding requirements, as required in the discretion of the Director. If a performance bond is required, the lease must state that the lessee must obtain the consent of the surety for any legal instrument that directly affects their obligations and liabilities.
b All leases of Bureau-operated facilities must include, at a minimum, the following provisions:
1 There must not be any unlawful conduct, creation of a nuisance, illegal activity, or negligent use or waste of the leased premises;
2 The lessee must comply with all applicable laws, ordinances, rules, regulations, and other legal requirements;
3 The Bureau has the right, at any reasonable time during the term of the lease and upon reasonable notice to enter the leased premises for inspection and to ensure compliance; and 4 The Bureau may, at its discretion, treat as a lease violation any failure by the lessee to cooperate with a request to
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make appropriate records, reports, or information available for inspection and duplication.
c Unless the lessee would be prohibited by law from doing so, the lease must also contain the following provisions:
1 The lessee holds the United States harmless from any loss, liability, or damages resulting from the lessees, its invitees, and licensees use or occupation of the leased facility; and 2 The lessee indemnifies the United States against all liabilities or costs relating to the use, handling, treatment, removal, storage, transportation, or disposal of hazardous materials, or the release or discharge of any hazardous material from the leased premises that occurs during the lease term, regardless of fault with the exception that the lessee is not required to indemnify the United States for liability or cost arising from the United States negligence or willful misconduct 48.106 May a lessee construct permanent improvements under a lease?

a The lessee may construct permanent improvements under a lease of a Bureau-operated facility only if the lease contains the following provisions:
1 A description of the type and location of any permanent improvements to be constructed by the lessee and a general schedule for construction of the permanent improvements, including dates for commencement and completion of construction;
2 Specification of who owns the permanent improvements the lessee constructs during the lease term and specifies whether each specific permanent improvement the lessee constructs will:
i Remain on the leased premises, upon the expiration, cancellation, or termination of the lease, in a condition satisfactory to the Director, and become the property of the Bureau-operated school;
ii Be removed within a time period specified in the lease, at the lessees expense, with the leased premises to be restored as closely as possible to their condition before construction of the permanent improvements; or iii Be disposed of by other specified means.
3 Due diligence requirements that require the lessee to complete construction of any permanent improvements within the schedule specified in the lease or general schedule of construction, and a process for changing the schedule by mutual consent of the parties.

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