Amends TCA Title 49.

ON APRIL 4, 2022, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 2430, AS AMENDED. AMENDMENT #1 rewrites this bill and prohibits a county LEA from operating a school within the geographic boundaries of a municipal LEA, except as authorized in this amendment. Under this amendment: (1) A county LEA and a municipal LEA may enter into a written agreement that authorizes the county LEA to operate a school within the geographic boundaries of the municipal LEA. This amendment sets out in detail the requirements for such an agreement, which include that the term of the agreement may not exceed 13 years; (2) If a county LEA operates a school located within the geographic boundaries of a municipal LEA and the county LEA and municipal LEA do not enter into an agreement in accordance with this amendment before the beginning of the county LEA's next school year, or if such an agreement terminates or expires without renewal, then title to all real property and fixtures used by the county LEA for the operation of a school located within the geographic boundaries of the municipal LEA will immediately vest to the municipal LEA by operation of law. The director of schools for the municipal LEA must execute an affidavit evidencing transfer of title from the county LEA to the municipal LEA, or to the municipality in which the municipal LEA is located and must cause the affidavit to be recorded with the office of the register of deeds for the county in which the property is located; (3) A municipal LEA, or the municipality in which the municipal LEA is located, that receives title to all real property and fixtures pursuant to this amendment must reimburse the county LEA for: the fair market value of the land transferred to the municipal LEA or the municipality in which the municipal LEA is located, excluding any improvements; and the principal amount of any outstanding bonded indebtedness for the construction or renovation of improvements to the land, as of the date on which title is transferred. This amendment sets out in detail requirements governing the reimbursement. This amendment provides that if the proceeds of any outstanding bonded indebtedness were used by the county or the county LEA to pay the costs of constructing or renovating improvements for more than one property owned by the county or the county LEA, then the principal amount of the bonded indebtedness must be prorated based on the proportion that the actual construction costs for the improvements or renovations to the land bear to the total construction costs of all improvements funded by the bonded indebtedness used to fund the improvements or renovations to the land; (4) The land and any improvements acquired by the municipal LEA, or the municipality in which the municipal LEA is located, must be used for educational purposes. If the municipal LEA, or the municipality in which the municipal LEA is located, determines that it is in the community's best interest to sell the land or any improvements thereon during the 20-year period beginning on the date on which the affidavit evidencing transfer of title is recorded with the office of the register of deeds, then one half of the net proceeds must be divided equally between the municipal LEA, or the municipality in which the municipal LEA is located, as applicable, and the county LEA, less any payments made to the county LEA as provided in this amendment. This bill as amended will take effect July 1, 2023. ON APRIL 11, 2022, THE SENATE SUBSTITUTED HOUSE BILL 2430 FOR SENATE BILL 2315, ADOPTED AMENDMENT #2, AS AMENDED BY AMENDMENT #2 TO 2, AND RESET HOUSE BILL 2430, AS AMENDED. AMENDMENT #2, AS AMENDED, incorporates the provisions of House Amendment #1 with the following changes and additions: (1) Changes this bill's effective date from July 1, 2023, to January 1, 2023; (2) Adds to the authorization for a county LEA and a municipal LEA to enter into a written agreement that authorizes the county LEA to operate a school within the geographic boundaries of the municipal LEA. Under this amendment, a county LEA may operate a school located within the geographic boundaries of a municipal LEA if the municipal LEA and the county LEA operating a school located within the geographic boundaries of the municipal LEA enter into a written agreement prior to the start of the school year immediately following the creation of the municipal LEA or June 30, 2023, at 11:59 p.m., whichever is later. If the municipal LEA and the county LEA operating a school located within the geographic boundaries of the municipal LEA do not enter into a written agreement prior to the start of the school year immediately following the creation of the municipal LEA or June 30, 2023, at 11:59 p.m., whichever is later, then the municipal LEA, or the municipality in which the municipal LEA is located, receiving title to all real property and fixtures pursuant to this bill, will be required to enter into a written agreement with the county LEA to allow the county LEA to continue operating a school located within the geographic boundaries of the municipal LEA; (3) Changes the maximum length of the term of an agreement for a county to continue operating a school located within the boundaries of a municipal LEA from 13 years to four years; provided, that the county LEA and the municipal LEA may mutually agree at the conclusion of an initial four-year term to extend the agreement for an additional term of up to eight years; (4) Adds a requirement that an agreement for a county to continue operating a school located within the boundaries of a municipal LEA prohibit rent from being charged for the county LEA's operation of a school located within the geographic boundaries of the municipal LEA for the initial term of the agreement; (5) Adds a requirement that an agreement for a county to continue operating a school located within the boundaries of a municipal LEA establish that the county LEA is responsible for maintaining all improvements to the land for the term of the agreement, unless the parties to the agreement establish otherwise; (6) Adds a requirement that an agreement for a county to continue operating a school located within the boundaries of a municipal LEA establish that the county LEA is responsible for all utilities and operating expenses of a school located within the geographic boundaries of the municipal LEA that the county LEA operates under the agreement for the term of the agreement, unless the parties to the agreement establish otherwise; (7) Changes the timing for transfers of LEA property by operation of law under this bill. If a county LEA owns or operates a school located within the geographic boundaries of a municipal LEA on July 1 prior to the start of the school year immediately following the creation of the municipal LEA or June 30, 2023, at 11:59 p.m., whichever is later, then this amendment requires that title to all real property and fixtures used by the county LEA for the operation of a school located within the geographic boundaries of the municipal LEA immediately vests to the municipal LEA by operation of law; (8) Changes the requirement that the municipal LEA or municipality reimburse the county LEA in 15 annual installments. Under this amendment, at least 25 percent of the reimbursement due to the county LEA must be paid to the county LEA on the effective day of the transfer of title. The remainder of the reimbursement must be paid to the county LEA in eight annual installments; provided, that the municipality or municipal LEA may pay the amount due in one lump sum or in fewer and more frequent installments that eight annual installments; (9) Adds a definition of "fair market value" for purposes of determining the amount of reimbursement that will be due under this bill; (10) Specifies that the land and any improvements acquired by the municipal LEA, or the municipality in which the municipal LEA is located, must be used for "K-12 educational purposes", rather than "educational purposes" generally; and (11) Adds a requirement that, upon the expiration of a written agreement for a county to continue operating a school located within the boundaries of a municipal LEA, the municipal LEA must operate a school located within the geographic boundaries of the municipal LEA that was previously operated by the county LEA pursuant to the written agreement. ON APRIL 12, 2022, THE SENATE FURTHER CONSIDERED HOUSE BILL 2430, AND PASSED HOUSE BILL 2430, AS AMENDED. ON APRIL 13, 2022, THE SENATE RECALLED HOUSE BILL 2430. ON APRIL 14, 2022, THE HOUSE RETURNED HOUSE BILL 2430 TO THE SENATE. ON APRIL 21, 2022, THE SENATE LIFTED THE TABLING MOTION ON HOUSE BILL 2430, RECONSIDERED ITS ACTIONS IN ADOPTING AMENDMENT #2, WITHDREW AMENDMENT #2, ADOPTED AMENDENT #5, AND PASSED HOUSE BILL 2430, AS AMENDED. AMENDMENT #5 incorporates the provisions of Senate Amendment #2, as amended, and makes the following changes and additions: (1) Makes the prohibition against a county LEA operating a school located within the geographic boundaries of a municipal LEA effective July 1, 2023; (2) Changes the dates by which an agreement for a county LEA to continue operating a school located within the geographic boundaries of a municipal LEA from the later of "prior to the start of the school year immediately following the creation of the municipal LEA…or June 30, 2023, at 11:59 p.m." to the later of "July 1 prior to the start of the school year immediately following the creation of the municipal LEA…or January 1, 2023; (3) Clarifies that a written agreement voluntarily entered into between a county LEA and a municipal LEA under this bill does not have to include the eight terms outlined in the full text of this amendment. The eight terms will be mandatory for involuntary agreements, which will be required when the LEAs do not enter into an agreement by the deadlines stated in (2); (4) In the case of a written agreement voluntarily entered into between a county LEA and a municipal LEA under this bill, changes the date upon which title to all real property and fixtures used by the county LEA for the operation of a school located within the geographic boundaries of the municipal LEA will vest to the municipal LEA by operation of law from "immediately" to "the date on which the written agreement terminates or expires without renewal"; and (5) Adds that, upon the termination (or expiration) of a written agreement entered into between a county LEA and a municipal LEA under this bill, the municipal LEA will be required to operate a school located within the geographic boundaries of the municipal LEA that was previously operated by the county LEA pursuant to the written agreement.