FINAL BILL REPORT

SB 6012

PARTIAL VETO

                               C 86 L 89

BYSenator Lee

Permitting the leasing of surplus school property.

Senate Committee on Education

House Committe on Education

SYNOPSIS AS ENACTED

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 districts are authorized to deposit money from the lease, rental, or occasional use of surplus school property in the debt service fund and/or the capital project fund if it was not used to cover the general maintenance, utility, insurance, or other costs associated with the lease or rental.

VOTES ON FINAL PASSAGE:

     Senate   40    6

     House 92  4 (House amended)

     Senate   41    2 (Senate concurred)

EFFECTIVE:July 23, 1989

Partial Veto Summary:  The provision was deleted that authorized school districts to enter into leases that did not require the recapture of school property.  (See VETO MESSAGE)