S-0347.1
SENATE BILL 5181
State of Washington | 67th Legislature | 2021 Regular Session |
BySenators Honeyford and King
Read first time 01/13/21.Referred to Committee on Early Learning & K-12 Education.
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. 1. The purpose of this act is to assist in the financing of school district facilities by clarifying how school districts may fully participate in the federal new markets tax credit, federal rehabilitation tax credit program, and similar federal tax credit programs.
NEW SECTION. Sec. 2. A new section is added to chapter
28A.320 RCW to read as follows:
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.
NEW SECTION. Sec. 3. A new section is added to chapter
28A.335 RCW to read as follows:
Nothing in RCW
28A.335.040 through
28A.335.070 precludes school district boards of directors from leasing or otherwise transferring or encumbering real property 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.
NEW SECTION. Sec. 5. The authority granted by this act is additional and supplemental to any other authority of any school district. This act may not be construed to imply that any of the power or authority granted in this act was not available to any school district under prior law. Any previous actions consistent with this act are ratified and confirmed.
NEW SECTION. Sec. 6. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.
--- END ---