HOUSE BILL REPORT

SSB 6681

BYSenate Committee on Education (originally sponsored by Senator Lee)

Changing provisions relating to the lease or rental of surplus real property owned by a school district.

House Committe on Education

Majority Report:  Do pass as amended.  (14)

      Signed by Representatives Peery, Chair; G. Fisher, Vice Chair; Betrozoff, Ranking Republican Member; Brumsickle, Cole, Dorn, P. King, Phillips, Pruitt, Rasmussen, Rayburn, Schoon, Walker and K. Wilson.

House Staff:Robert Butts (786-7841)

AS PASSED HOUSE FEBRUARY 27, 1990

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 board of directors to enter into long-term leases of school district property is modified.

School districts do not have to include a lease provision that allows the district to recapture the leased property if the property is located near an international airport and the property has been altered and impacted to an extent that it is no longer suitable for use as a school.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Senator Lee, prime sponsor; Mary Cline, Highline School District; and Larry Swift, Washington State School Directors' Association.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    This bill will allow a school district with property that is no longer suitable for school uses to enter into long-term property leases.  For some properties, long-term leases are financially more beneficial to the district compared to selling the property.

House Committee - Testimony Against:      None.