Legislature debates bill to let Guam Department of Education lease underused school property

Senator Joseph Augustine moved to place Bill 70-38 COR in the third-reading file and discussed a measure that would add a new section to Title 17, Art. 1, Ch. 3 of the Guam Code to authorize the Guam Department of Education (GDE) to lease property within its jurisdiction.

The bill’s author said the measure would let GDE convert underused or vacant school properties to long-term leases and use proceeds to fund repairs and capital improvements. "This legislation is straightforward in its intent, but far reaching in its potential to help strengthen our education system and serve our community for years to come," Augustine said on the floor.

The measure, as described on the floor, would: allow leasing of subject property when a school cannot be repurposed to alleviate double sessions; set a floor so leases to charter schools or government entities be no less than 60% of appraised property value; allow lease payments to come from legislative appropriations or existing funds; create a procurement team consisting of the GDE superintendent, the chief financial officer and three Board of Education members; and add the DOE chief procurement officer as an ex officio member to provide technical procurement assistance. The bill would also direct revenue from leases into a fund separate and apart from the general fund and require Board of Education approval to expend that money for school reinvestment.

Supporters on the floor said the leasing authority could generate recurring revenue to address maintenance backlogs. The Ranking Member from Pago Bay said leasing surplus space "could literally generate revenue and ... reinvest into maintaining or improving existing facilities and educational programs," and emphasized that those funds should be kept in a dedicated DOE account rather than being commingled with the general fund.

Other senators raised implementation questions. A senator from the Bergdahl delegation said the bill goes beyond existing Public Law 23-67 (which authorizes short-term facility rental fees) by permitting longer-term leases and questioned how the measure treats public versus private lessees and who owns the underlying land in some cases. That senator pressed for regulations requiring licensed appraisals, limits so lessees do not impair instructional capacity for at least three school years, and clearer procurement expertise on the approval team; she offered an amendment requiring GDE to establish fees and regulations pursuant to the Administrative Adjudication Act.

No final floor vote on the bill was recorded during the session. The author asked the body to set the measure aside until after the next bill; the presiding officer reported no objection and the bill was set aside to be taken up later in the day.

Clarifying details discussed on the record include the 60% floor for lease pricing, the proposed procurement-team membership (GDE superintendent, chief financial officer, three Board of Education members, plus DOE chief procurement officer as ex officio), and the requirement that lease revenue be deposited into a fund separate from the general fund and expended only with Board approval. The bill’s text as read on the floor referenced adding "new section 3135 to Article 1, Chapter 3, Title 17, Guam Code." The bill’s public-law context includes Public Law 23-67, which the author cited as prior, narrower authority for short-term facility rentals.

Ending: The bill remained set aside at the close of the session’s discussion; sponsors said they will return with the amended language and any floor amendments after related business is completed.