                                 CODE OF VIRGINIA

AUTHORITY TO MODERNIZE PUBLIC SCHOOL LEASE AGREEMENTS (§ 22.1-141.2)

A. Prior to undertaking the design, construction, maintenance, and operation of
a new public school building or facility or the improvement or renovation of an
existing school building or facility, a local school board may evaluate whether
entering into a lease with a private entity will assist the school board in
meeting the standards set forth in &#xA7; 22.1-141.1.

B. In order to meet the design, construction, maintenance, and operation
standards set forth in &#xA7; 22.1-141.1, a school board may enter into a lease
with a private entity that may include the following: (i) design of the building
and facilities; (ii) construction of the building and facilities; (iii)
financing of the project as defined in &#xA7; 15.2-1815; (iv) operation of the
heating, cooling, and renewable energy systems, including interconnect
agreements with the regulated electric utility, maintenance of all such systems,
responding to comfort complaints, and any other operational or
maintenance-related issues during the lease term; and (v) such other terms as
mutually agreed upon by the local school board and the private entity. Such
lease may (a) be for the real property primarily used by the local school board
and owned by the private entity, (b) be a capital or operating lease, (c) be
exempt from real property taxation pursuant to subdivision (a)(1) of Article X,
Section 6 of the Constitution of Virginia, and (d) contain a covenant that the
rent shall not be reduced from the rent stated in the lease. Such lease shall
not exceed 35 years in duration. The Virginia Public Procurement Act (&#xA7;
2.2-4300 et seq.) or the Public-Private Education Facilities and Infrastructure
Act (&#xA7; 56-575.1 et seq.) shall apply to any lease agreement solicited by a
local school board pursuant to this section.

HISTORY: 2019, cc. 818, 819.