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Section 14.26 Property Acquisitions. <br />Department funds must not be used to purchase buildings or real property. Any costs related to the <br />initial acquisition of the buildings or real property are not allowable. <br />Section 14.27 Disposition of Property. <br />Contractor shall follow the procedures in the American Hospital Association's (AHA's) "Estimated <br />Useful Lives of Depreciable Hospital Assets" in disposing, at any time during or after the Contract <br />term, of equipment purchased with the Department funds, except when federal or state statutory <br />requirements supersede or when the equipment requires licensure or registration by the state, or when <br />the acquisition price of the equipment is equal to or greater than $5,000. All other equipment not <br />listed in the AHA reference (other than equipment that requires licensure or registration or that has an <br />acquisition cost equal to or greater than $5,000) will be controlled by the requirements of UGMS. If, <br />prior to the end of the useful life, any item of equipment is no longer needed to perform services <br />under this Contract, or becomes inoperable, or if the equipment requires licensure or registration or <br />had an acquisition price equal to or greater than $5,000, Contractor shall request disposition approval <br />and instructions in writing from the contract manager assigned to the Program Attachment. After an <br />item reaches the end of its useful life, Contractor shall ensure that disposition of any equipment is in <br />accordance with Generally Accepted Accounting Principles, and any applicable federal guidance. <br />Section 14.28 Closeout of Equipment. <br />At the end of the term of a Program Attachment that has no additional renewals or that will not be <br />renewed (Closeout) or when a Program Attachment is otherwise terminated, Contractor shall submit <br />to the contract manager assigned to the Program Attachment, an inventory of equipment purchased <br />with Department funds and request disposition instructions for such equipment. All equipment <br />purchased with Department funds must be secured by Contractor at the time of Closeout or <br />termination of the Program Attachment and must be disposed of according to the Department's <br />disposition instructions, which may include return of the equipment to DSHS or transfer of <br />possession to another DSHS contractor, at Contractor's expense. <br />Section 14.29 Assets as Collateral Prohibited. <br />Contractors on a cost reimbursement payment method shall not encumber equipment purchased with <br />Department funds without prior written approval from the Department. <br />ARTICLE XV GENERAL TERMS <br />Section 15.01 Assignment. <br />Contractor shall not transfer, assign, or sell its interest, in whole or in part, in this Contract, or in any <br />equipment purchased with funds from this Contract, without the prior written consent of the <br />Department. <br />Section 15.02 Lobbying. <br />Contractor shall comply with Tex. Gov. Code § 556.0055, which prohibits contractors who receive <br />state funds from using those funds to pay lobbying expenses. Further, Contractor shall not use funds <br />paid under this Contract, either directly or indirectly, to support the enactment, repeal, modification, <br />or adoption of any law, regulation or policy at any level of government, or to pay the salary or <br />General Provisions (Core Subrecipient) 2015 (July 1, 2014) 33 <br />