The purpose of this act is to assist in the financing of school district facilities by clarifying how school districts may fully participate in the federal new markets tax credit, federal rehabilitation tax credit program, and similar federal tax credit programs.
This section adds a new section to an existing chapter 28A.320. Here is the modified chapter for context.
School districts may create partnerships and limited liability companies, and enter into leases, loans, and other agreements with public or private entities, including partnership agreements and limited liability company agreements, to finance school facilities within their boundaries utilizing: (1) The federal new markets tax credit program under 26 U.S.C. Sec. 45D or its successor statute; (2) the federal rehabilitation tax credit program under 26 U.S.C. Sec. 47 or its successor statute; and (3) any other similar federal tax credit program.
Any construction contracts financed under this section must comply with all state laws and rules applicable to any other public school construction project, including, but not limited to:
Public bidding of construction contracts;
Payment of prevailing wages;
Apprenticeship requirements;
Energy efficiency and clean building requirements; and
Health and safety requirements.
Prior to closing on any financing under this section, the school board must approve the financing, and the closing documents must be accompanied by an attorney's attestation to the following:
The financing complies with the provisions of this act, the Washington state Constitution, and applicable state law;
The school district is empowered to execute the financing and closing documents; and
The financing and closing documents are enforceable by their terms.
This section adds a new section to an existing chapter 28A.335. Here is the modified chapter for context.
Nothing in RCW 28A.335.170 or 28A.335.040 through 28A.335.070 precludes school district boards of directors from leasing for the term required by the financing or otherwise transferring or encumbering real property, provided fee simple title is retained by the school district, in order to participate in: (1) The federal new markets tax credit program under 26 U.S.C. Sec. 45D or its successor statute; (2) the federal rehabilitation tax credit program under 26 U.S.C. Sec. 47 or its successor statute; or (3) any other similar federal tax credit program.
This section adds a new section to an existing chapter 39.36. Here is the modified chapter for context.
This chapter does not apply to any lease, sublease, lease-purchase, or similar agreement affecting any real or personal property owned by a district and directly related to a school district's participation in: (1) The federal new markets tax credit program under 26 U.S.C. Sec. 45D or its successor statute; (2) the federal rehabilitation tax credit program under 26 U.S.C. Sec. 47 or its successor statute; or (3) similar federal tax credit programs.
Any computation of indebtedness under this chapter shall exclude the amount of any such lease, lease-purchase, or similar agreement described under subsection (1) of this section.
The authority granted by this act is additional and supplemental to any other authority of any school district. This act may not be construed to imply that any of the power or authority granted in this act was not available to any school district under prior law. Any previous actions consistent with this act are ratified and confirmed.
The office of the superintendent of public instruction must promptly amend any existing rules that are incompatible with the provisions and intent of this act.
If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.