HB 2640 — school districts; leases; termination; nonrenewal

*corrected*House Fifty-seventhEngrossed Legislatureschool Firstdistricts; Regular Session COMMITTEE ON EDUCATION HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B.

2640leases; (Reference to printed bill) Amendment instruction key:

[GREENtermination; UNDERLINING IN BRACKETS] indicates text added to statute or previously enacted session law.

[Greennonrenewal underliningState inof brackets]Arizona indicatesHouse textof addedRepresentatives toFifty-seventh newLegislature sessionFirst lawRegular orSession textHOUSE restoringBILL existing2640 law.AN ACT AMENDING SECTIONS 15-119 AND 15-1102, ARIZONA REVISED STATUTES;

[GREENRELATING STRIKEOUTTO INSCHOOL BRACKETS]LEASES. indicates new text removed from statute or previously enacted session law.

[Green(TEXT strikeoutOF inBILL brackets]BEGINS indicatesON textNEXT removedPAGE) from- existingi statute,- previouslyH.B. enacted session law or new session law.

<<Green2640 carets>>Be indicateit aenacted sectionby addedthe toLegislature of the bill.State of Arizona:

<<Green strikeout in carets>> indicates a section removed from the bill.

The bill as proposed to be amended is reprinted as follows:

[AA CHARTER SCHOOL OR ITS CHARTER AUTHORIZER THAT IS LEASING A BUILDING FROM A SCHOOL DISTRICT OR THAT IS THE MOST RECENT LESSEE OF A VACANT BUILDING THAT IS OWNED BY A SCHOOL DISTRICT HAS THE RIGHT OF FIRST REFUSAL TO PURCHASE THE BUILDING IF THE SCHOOL HouseDISTRICT AmendmentsDECIDES toTO H.B.SELL THE BUILDING.

2640 DISTRICT DECIDES TO SELL THE BUILDING.] A school district may not accept an offer for the sale or lease of the vacant building or partially used building from a potential buyer or lessee that is less than an offer from a charter school or private school.

This section does not require the owner of a building on the list to sell or lease the building or a portion of the building to a charter school, to any other school or to any other prospective buyer or tenant, except that the owner of a building on the list may not withdraw the property from sale or lease solely because a charter school or private school is the highest bidder [OROR EXERCISES ITS RIGHT OF FIRST REFUSAL PURSUANT TO THIS SUBSECTION].SUBSECTION.

1.- 1 - H.B.

2640 1.

Buildings that are used for career and technical education, special education services, OR preschool programs, schools that have been open for fewer than five years or magnet schools are not considered partially used buildings for the purposes of this section, except that -2-this Houseexemption Amendmentsmay not be applied to H.B.more than twenty-five percent of a district's school buildings.

2640 this exemption may not be applied to more than twenty-five percent of a district's school buildings.

<<Sec.Sec.

The governing board, or the superintendent or chief administrative officer with the approval of the governing board, may expend- the2 proceeds- fromH.B. the sale or lease of school property for the payment of any outstanding bonded indebtedness of the school district or for the reduction of school district taxes.

2640 expend the proceeds from the sale or lease of school property for the payment of any outstanding bonded indebtedness of the school district or for the reduction of school district taxes.

The total sum of the proceeds from the sale of school property executed before July 1, 2016[,2016, for the total sum of the proceeds from the sale of property to a school]school or the total sum of the proceeds from the lease of school property to persons or entities other than schools for more than one year:

From and after June 30, 2016, proceeds from the sale of school property that exceed [oneone hundred thousand dollars]dollars [$100,000]$100,000 per sales transaction to persons or entities other than schools may not be expended for maintenance and operation and may be expended for capital outlay in any amount.

For the total sum of the proceeds from the sale of school property executed before July 1, 2016[,2016, for the total sum of the proceeds from the sale of property to a school]school or for the total sum of the -3-proceeds Housefrom Amendmentsthe lease of school property to H.B.persons or entities other than schools for more than one year:

2640 proceeds from the lease of school property to persons or entities other than schools for more than one year:

From and after June 30, 2016, for proceeds from the sale of school property that exceed [oneone hundred thousand dollars]dollars [$100,000]$100,000 per sales transaction to persons or entities other than schools:

(b)- At3 least- thirty-eightH.B. percent of the sales proceeds shall be used for the payment of any outstanding bonded indebtedness of the school district or for the reduction of school district taxes.

2640 (b) At least thirty-eight percent of the sales proceeds shall be used for the payment of any outstanding bonded indebtedness of the school district or for the reduction of school district taxes.

[TheThe payment of]of [PAY]PAY any outstanding bonded indebtedness of the school district that is payable from the levy of taxes on property within the school district.

-4-G. House Amendments to H.B.

2640 G.

[4.4.

SALES OF SCHOOL PROPERTY TO OTHER SCHOOLS.]SCHOOLS, H.INCLUDING CHARTER AUTHORIZERS.

AH. lease of school property for less than one year that includes an automatic lease renewal resulting in a total lease duration that exceeds one year is considered a lease for more than one year for the purposes of this section.

A lease of school property for less than one year that includes an automatic lease renewal resulting in a total lease duration that - 4 - H.B.

2640 exceeds one year is considered a lease for more than one year for the purposes of this section.

For the purposes of this section, "capital outlay" means unrestricted capital outlay as prescribed in section 15-903, subsection C.>>C. Sec.

Sec.

Retroactivity [ThisSection act] [Section 15-119, Arizona Revised Statutes, as amended by this act,]act, applies retroactively to from and after January 1, 2025.

Enroll- and5 engross- to conform Amend title to conform And, as so amended, it do pass MATT GRESS CHAIRMAN 2640EDUCATION.docx 02/12/2025 08:30 AM C:

VS/ra -5-