SB 303 -- SCHOOL DISTRICT LEASE PURCHASE OF EQUIPMENT

SPONSOR:  Johnson (Relford)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Education-Elementary and Secondary by a vote of 22 to 0.

This bill permits school boards to purchase equipment and
furniture through lease purchase agreements with vendors.  If
the agreement results in district ownership of the leased
equipment, the lease must have an option that permits the
district a chance to terminate the agreement without penalty at
least once a year.  Such lease purchases are considered capital
outlay and are subject to the fund transfer restrictions of
Section 165.011, RSMo.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the lease purchase provisions
currently in statute are designed for major capital projects and
involve setting up a separate board that holds title until the
lease purchase is repaid.  This is a clumsy structure for
smaller capital projects such as the purchase of school buses,
copiers, and computers.

Testifying for the bill were Senator Johnson; Missouri School
Boards Association; School Administrators Coalition; and
Missouri State Teachers Association.

OPPONENTS:  There was no opposition voiced to the committee.

Becky DeNeve, Senior Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:47 am