HLS 19RS-598 ORIGINAL 2019 Regular Session HOUSE BILL NO. 225 BY REPRESENTATIVE EDMONDS Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. SCHOOLS/CHARTER: Provides relative to the sale or transfer of charter school facilities financed through tax exempt bonds 1 AN ACT 2To amend and reenact R.S. 17:3982(B)(1), relative to charter schools; to provide relative to 3 the disposition of charter school facilities financed through tax exempt bonds; to 4 require such facilities to be offered to charter operators or local school boards prior 5 to public sale under certain circumstances; and to provide for related matters. 6Be it enacted by the Legislature of Louisiana: 7 Section 1. R.S. 17:3982(B)(1) is hereby amended and reenacted to read as follows: 8 ยง3982. Local school boards; duties; Orleans Parish School Board; immovable 9 property; sale or lease 10 * * * 11 B.(1)(a) Local school boards shall make available to chartering groups any 12 vacant school facilities or any facility slated to be vacant for lease or purchase up to 13 fair market value. In the case of a Type 2 charter school created as a result of a 14 conversion, the facility and all property within the existing school shall be made 15 available to that chartering group. In return for the use of the facility and its 16 contents, the chartering group shall pay a proportionate share of the local school 17 board's bonded indebtedness to be calculated in the same manner as set forth in R.S. 18 17:1990(C)(2)(a)(i). If such facilities were constructed at no cost to the local school 19 board, then such facilities including all equipment, books, instructional materials, 20 and furniture within such facilities shall be provided to the charter school at no cost. Page 1 of 2 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 19RS-598 ORIGINAL HB NO. 225 1 (b) If the owner of a charter school facility that was financed through tax 2 exempt bonds and for which all such bonds have been repaid wishes to dispose of 3 the facility, the owner shall, prior to advertising the sale, offer the facility as follows: 4 (i) First, the owner shall, in accordance with applicable law, offer to transfer 5 title to the facility to the charter operator. 6 (ii) If the charter operator declines, the owner shall next offer the facility to 7 the local school board, which may purchase the facility at fair market value as 8 determined by mutually agreed upon qualified appraiser. 9 (iii) Each entity to which such facility is offered shall be given sixty days to 10 exercise its option. 11 (iv) If the school is a Type 2 charter school, the local school board in whose 12 geographic boundaries the facility is located shall be given the option to purchase the 13 facility as provided in Item (ii) of this Subparagraph. 14 * * * DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] HB 225 Original 2019 Regular Session Edmonds Abstract: Requires charter school facilities financed through tax exempt bonds to be offered to charter operators or local school boards under certain circumstances. Present law requires local school boards to make available to chartering groups any vacant or slated-to-be-vacant school facility for lease or purchase up to fair market value. Provides that in the case of a Type 2 charter school created as a result of a conversion, the facility and all property within the existing school shall be made available to that chartering group. Requires the chartering group, in return for the use of the facility and its contents, to pay a proportionate share of the local school board's bonded indebtedness. Proposed law provides that if the owner of a charter school facility that was financed through tax exempt bonds and for which all such bonds have been repaid wishes to dispose of the facility, he shall, prior to advertising the sale, offer the facility to the charter operator. Provides that if the charter operator declines, the owner shall next offer such facility to the local school board for purchase. Provides that the charter operator and the school board shall each be given 60 days to exercise these options. (Amends R.S. 17:3982(B)(1)) Page 2 of 2 CODING: Words in struck through type are deletions from existing law; words underscored are additions.