Bill Text: NJ A5197 | 2018-2019 | Regular Session | Introduced


Bill Title: Authorizes board of education to lease certain property.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2019-03-18 - Introduced, Referred to Assembly Education Committee [A5197 Detail]

Download: New_Jersey-2018-A5197-Introduced.html

ASSEMBLY, No. 5197

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED MARCH 18, 2019

 


 

Sponsored by:

Assemblyman  RONALD S. DANCER

District 12 (Burlington, Middlesex, Monmouth and Ocean)

 

 

 

 

SYNOPSIS

     Authorizes board of education to lease certain property.  

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning the leasing of school property and supplementing chapter 20 of Title 18A of the New Jersey Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    a.  Notwithstanding the provisions of section 1 of P.L.1978, c.91 (C.18A:20-8.2) or any other section of law to the contrary, and except as otherwise provided pursuant to section 14 of P.L.2007, c.137 (C.18A:7G-45), whenever any board of education shall by resolution determine that any tract of land, whether there is a building thereon or not, is not necessary for school purposes, but which it does not desire to dispose of, the board may authorize the lease thereof for a term extending beyond the official life of the board, but which does not exceed any limit on the maximum term of a lease that may be established pursuant to law for lease agreements entered into by public entities; provided that the board awards the lease to the highest bidder after advertisement of the request for bids to lease in a newspaper published in the school district, or if none is published therein, then in a newspaper circulating in the district, a least once a week for two weeks prior to the date fixed for the receipt and opening of bids.

     b.    In the event that a board of education leases a tract of land pursuant to subsection a. of this section, on which there is situated a school building, the terms of the lease may authorize the lessee to demolish the school building and to compensate the school district for the value of the school building in accordance with any terms that may be included in the lease agreement.

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill authorizes a board of education to lease land on which there may, or may not be, a school building when the board determines that the land is not necessary for school purposes but the board does not want to dispose of it.  The lease may extend beyond the official life of the board but may not exceed any limit established pursuant to law on the maximum term of a lease that may be entered into by public entities.  The lease will be binding upon future boards of education provided that the current board of education awards the lease to the highest bidder after advertisement for bids to lease published in a newspaper at least once a week for two weeks prior to the date fixed for the receipt and opening of bids.

     The bill also provides that in the event that a board of education leases a tract of land on which a school building is located, the terms of the lease may authorize the lessee to demolish the school building and to compensate the school district for the value of the school building in accordance with any terms that may be included in the lease agreement.

     The purpose of this bill is to provide another avenue for school districts to realize a steady stream of revenue.  Under current law, a board of education may sell a tract of land or a school building which it has determined is no longer necessary for school purposes.  A board of education may also lease a tract of land or building if it does not wish to dispose of it due to the fact that it may be necessary for school purposes at some point in the future.  Currently any such lease that will be in excess of five years must be approved by the Commissioner of Education.  This bill will allow a board of education to lease rather than sell a tract of land that is no longer needed for school purposes.  The ability to lease the land will allow a school district to realize a steady stream of revenue over a period of years, which may be more advantageous to the district than absorbing a lump sum payment during one school budget year.

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