Senate Bill 554 Summary

• Creates new authority for local school boards to enter into capital leases (up to 40 years) for school buildings and facilities, in addition to existing operating leases, allowing private developers to finance, design, construct, and manage facilities.

• Establishes "build-to-suit capital leases" for construction projects exceeding $300,000, requiring local board and county commissioner approval, public notice, and compliance with competitive bidding and minority business participation requirements.

• Prohibits nonsubstitution clauses in capital leases, ensures no deficiency judgments or pledges of taxing power, and allows transfer of property ownership to local government at lease end.

• Allows school boards to enter into predevelopment agreements with private developers for site selection, land acquisition, and design services prior to executing full capital leases.

• Requires State Board of Education to make fast-track charter school replication decisions within 120 days of application submission, eliminating planning year requirements for qualifying high-performing charter schools.