Bill > A5038

Introduced Session

This bill extends the period of time in which a board of education may execute certain: 1) leases with the federal government, the State, a political subdivision of the State, or any other individual or entity authorized to do business in the State; and 2) lease purchase agreements for improvements or additions to school buildings. Pursuant to current law, a board of education may lease a building from the federal government, the State, a political subdivision of the State, or any other individual or entity authorized to do business in the State. To execute the lease, certain conditions are required to be met, including a condition that any lease in excess of five years is to be approved by the Commissioner of Education and the Local Finance Board in the Department of Community Affairs. This bill instead requires commissioner and finance board approval only when the lease exceeds 20 years. Current law also requires commissioner approval in cases in which a board of education seeks to acquire improvements or additions to school buildings through lease purchase agreements. The agreements, however, are prohibited from exceeding five years and are to only be approved by the commissioner if any operating expenses related to the agreement can be included within the district's tax levy growth limitation and will not result in the need for approval of additional spending proposals to maintain existing instructional programs and extracurricular activities. This bill extends the current time limitation on these lease-purchase agreements to 20 years. All other existing statutory requirements in regard to these lease purchase agreements are maintained under the bill.

Committee Categories

Reginald Atkins (D)*,  Rosaura Bagolie (D)*,  Robert Karabinchak (D)*, 

Reported out of Assembly Committee, 2nd Reading (on 03/10/2025)

Official Document