SENATE BILL REPORT

HB 1229

As of March 28, 2003

Title: An act relating to teacher cottages in second class school districts.

Brief Description: Authorizing teachers' cottages in second class school districts.

Sponsors: Representatives Quall, Cox, Haigh, Tom, McDermott, Talcott, Hunter, Ruderman and Rockefeller.

Brief History:

Committee Activity: Education: 4/2/03.

SENATE COMMITTEE ON EDUCATION

Staff: Susan Mielke (786-7422)

Background: State law permits school boards to purchase real property for any school district purpose and also permits the sale or rental of school district real property. The income from the sale or rental of district property must first be deposited in the district's general fund to recover any costs associated with the rental or sale of that property. Any additional income must then be deposited in the district's debt service fund and/or its capital projects fund.

State law also permits second class school districts, with an enrollment of 300 students or less, to provide housing for the school district superintendent. The school district must charge rent in an amount at least equal to the amount of real property tax if the housing were not exempt from the tax (because owned by the school district). Additionally, state law requires second class school districts to build school houses and teachers' cottages when directed to do so by a vote of the district.

Second-class school districts are defined in statute as those school districts with less than 2,000 students. There are approximately 144 second-class high school districts and 48 second-class districts which do not operate high schools.

Summary of Bill: The board of directors for a second-class school district is authorized to construct teachers' cottages without first obtaining a vote of the district. The board may construct the cottages with funds from the district's capital projects fund or general fund. Any income derived from the cottages, including rental or sale of the cottage, may be deposited into the district's general fund, debt service fund, and/or capital projects fund.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: Ninety days after adjournment of session in which bill is passed.