SENATE BILL REPORT

SB 6681

BYSenator Lee

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

Senate Committee on Education

Senate Hearing Date(s):January 30, 1990; January 31, 1990

Majority Report:     That Substitute Senate Bill No. 6681 be substituted therefor, and the substitute bill do pass.

     Signed by Senators Bailey, Chairman; Lee, Vice Chairman; Bender, Benitz, Gaspard, Murray, Rinehart.

Senate Staff:Leslie Goldstein (786-7424)

                February 1, 1990

AS REPORTED BY COMMITTEE ON EDUCATION, JANUARY 31, 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 boards of directors to enter into long-term leases of school district property is clarified.  A lease of property that has been so permanently altered as to preclude its future use for a school is not required to contain a provision which would permit the recapture of the leased or rented surplus property for school purposes.

EFFECT OF PROPOSED SUBSTITUTE:

Situations where school districts would not have to include a recapture clause are restricted to:  (1) the land being permanently altered to preclude the possible use of the property to house students; and (2) the use of the surrounding property has so heavily impacted the school property that use of the property to house students would no longer be appropriate.

Appropriation:  none

Revenue:   none

Fiscal Note:    none requested

Senate Committee - Testified:   PRO:  Mary Cline, Jerry Heigh, Highline School District; Dwayne Slate, Washington State School Directors Association