S-0948.1

SUBSTITUTE SENATE BILL 5181

BySenate Early Learning & K-12 Education (originally sponsored by Senators Honeyford and King)

AN ACT Relating to providing school districts serving low-income communities with flexibility in financing their facilities; adding a new section to chapter 28A.320 RCW; adding a new section to chapter 28A.335 RCW; adding a new section to chapter 39.36 RCW; and creating new sections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 2. A new section is added to chapter 28A.320 RCW to read as follows:

(1) School districts may create partnerships and limited liability companies, and enter into leases, loans, and other agreements with public or private entities, including partnership agreements and limited liability company agreements, to finance school facilities within their boundaries utilizing: (1) The federal new markets tax credit program under 26 U.S.C. Sec. 45D or its successor statute; (2) the federal rehabilitation tax credit program under 26 U.S.C. Sec. 47 or its successor statute; and (3) any other similar federal tax credit program.

(2) Any construction contracts financed under this section must comply with all state laws and rules applicable to any other public school construction project, including, but not limited to:

(a) Public bidding of construction contracts;

(b) Payment of prevailing wages;

(c) Apprenticeship requirements;

(d) Energy efficiency and clean building requirements; and

(e) Health and safety requirements.

(3) Prior to closing on any financing under this section, the school board must approve the financing, and the closing documents must be accompanied by an attorney's attestation to the following:

(a) The financing complies with the provisions of this act, the Washington state Constitution, and applicable state law;

(b) The school district is empowered to execute the financing and closing documents; and

(c) The financing and closing documents are enforceable by their terms.

NEW SECTION.  Sec. 3. A new section is added to chapter 28A.335 RCW to read as follows:

Nothing in RCW 28A.335.170 or 28A.335.040 through 28A.335.070 precludes school district boards of directors from leasing for the term required by the financing or otherwise transferring or encumbering real property, provided fee simple title is retained by the school district, in order to participate in: (1) The federal new markets tax credit program under 26 U.S.C. Sec. 45D or its successor statute; (2) the federal rehabilitation tax credit program under 26 U.S.C. Sec. 47 or its successor statute; or (3) any other similar federal tax credit program.

NEW SECTION.  Sec. 4. A new section is added to chapter 39.36 RCW to read as follows:

(1) This chapter does not apply to any lease, sublease, lease-purchase, or similar agreement affecting any real or personal property owned by a district and directly related to a school district's participation in: (1) The federal new markets tax credit program under 26 U.S.C. Sec. 45D or its successor statute; (2) the federal rehabilitation tax credit program under 26 U.S.C. Sec. 47 or its successor statute; or (3) similar federal tax credit programs.

(2) Any computation of indebtedness under this chapter shall exclude the amount of any such lease, lease-purchase, or similar agreement described under subsection (1) of this section.

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