Raleigh, N.C. — County governments and school districts would be able to sell or lease buildings for less than fair-market value to charter schools under a bill that cleared the Senate State and Local Government Committee Tuesday.

Sen. Warren Daniel, R-Burke, told committee members the bill was inspired by a situation in his district in which a county and a charter school had reached agreement to transfer a building.

"But they realized there was nothing in statute that allowed a governmental entity to transfer a property to a charter school for less than full consideration," Daniel said. 

Senate Bill 42 would allow – but not require – governments to give charter schools buildings or lease them buildings for less than fair-market value. A revision to the bill made Tuesday would require a charter school to offer any building it received as a gift or under favorable terms back to the government entity that made the deal under equivalent or better terms if the charter school decides to sell or go out of business. 

There was no objection to the bill expressed in committee, and it passed on a unanimous voice vote. It next goes to the full Senate.