HOUSE BILL REPORT

SB 6012

BYSenator Lee

Permitting the leasing of surplus school property.

House Committe on Education

Majority Report:  Do pass with amendments.  (17)

      Signed by Representatives Peery, Chair; G. Fisher, Vice Chair; Brumsickle, Cole, Dorn, Fuhrman, Holland, Horn, Jones, Phillips, Pruitt, Rasmussen, Rayburn, Schoon, Valle, Walker and K. Wilson.

House Staff:Susan Patrick (786-7111)

AS PASSED HOUSE APRIL 5, 1989

BACKGROUND:

School district boards of directors are authorized to permit the lease, rental or occasional use of surplus school property.  Boards of directors are also authorized to sell real property.  Net proceeds from the rental or sale of surplus school property are deposited in the school district's capital projects fund.

Some school districts have entered into long-term leases of surplus school property with the property being used for condominiums or office buildings.  Other school district boards of directors would like to be able to manage their property profitably and in the best interests of the school districts but are concerned about whether the statutes clearly grant authority to enter into long-term leases.

SUMMARY:

The authority of school district boards of directors to enter into long-term leases of school district property is clarified.  Leases need not contain a provision permitting the recapture of the leased or rented surplus property should such property be needed for school purposes in the future.  School directors may deposit money derived from the lease, rental, or occasional use of surplus property into the districts' debt service fund and/or capital projects fund.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Senator Eleanor Lee; Kathy Hand, Washington State School Directors' Association; and Mary Cline, Highline School Board.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Currently, school districts may lease surplus properties so long as the property can be recaptured as there is a need for the space.  In some districts more revenue can be generated from surplus property if it can be permanently modified and a long term lease given to the tenant.  Although some districts have entered into such long term agreements, there appears to be a need for statutory authorization of long term leases without a recapture provision.

House Committee - Testimony Against:      None Presented.