(1) "Leveraged leasing agreement" means an agreement or a series of agreements between the state and a private person under which:

(a) In exchange for monetary consideration paid in a lump sum when the lease closes, the state leases a qualified state capital asset to a private person for a term of sufficient length to allow the private person to depreciate the asset for federal income tax purposes under the federal "Internal Revenue Code of 1986", as amended, or any successor provision thereto, and retains a right to cancel the lease in exchange for specified consideration;

(b) The private person subleases the qualified state capital asset back to the state pursuant to a sublease contract that:

(I) Is for a term shorter than the term of the lease;

(II) Gives the private person leasehold rights in the asset; and

(III) Requires an amount of the monetary consideration paid in a lump sum to the state when the lease closes that is adequate to meet all lease payments to be made by the state under the terms of the sublease contract to be deposited into a specified account established pursuant to the sublease contract as adequate cash reserves pledged irrevocably for sublease payments in all future fiscal years; and

(c) The state retains the right to the use of the qualified state capital asset for the duration of the term of the sublease.

(2) "Qualified state capital asset" or "asset" means qualified technological equipment as defined by section 168 (i)(2)(A) of the federal "Internal Revenue Code of 1986", as amended, or any successor provision thereto.