SB 474 Summary

• Repeals and reenacts sections 177.011 and 177.088 of Missouri law regarding school property acquisition and financing arrangements.

• Allows educational institutions to enter into lease agreements with corporations (removes restriction to "not-for-profit" corporations) for acquisition, construction, and improvement of school facilities and equipment.

• Increases maximum initial lease term from one year to twenty years with no more than five successive one-year renewal options (previously twenty-five options), with corporation agreement to convey property back to institution with clear title.

• Allows school districts to enter into agreements with counties, cities, towns, or villages for acquisition, construction, and financing of school facilities, including joint ventures with shared costs and partial ownership arrangements.

• Specifies that funds received from selling or leasing property must be held separately in escrow, and establishes tax exemptions for corporation bonds and property used for educational purposes.