Permits boards of education to lease certain school property to federally qualified health centers without bidding.

2024-2025 Regular Session Introduced by Vin Gopal and 1 co-sponsor

Allows school boards to lease property to FQHCs for a nominal fee without bidding; long leases require Education Commissioner approval; shared spaces must separate from students.

Passed Senate (Passed Both Houses) (25-11)

#schboards

Summary — S 3156

Title: Permits boards of education to lease certain school property to federally qualified health centers without bidding

Status: Passed Both Houses (Senate recorded as Passed 25-11). Introduced Nov 7, 2025; committee reports and amendments issued Sept 19, 2024 and Dec 15, 2025. Identical to Assembly Bill A4381 (1R). Takes effect immediately upon enactment.

Purpose and intent

The bill adds federally qualified health centers (FQHCs) to the list of public and nonprofit entities to which a local board of education in New Jersey may lease school property (including school buildings or tracts of land) for a nominal fee by private agreement — without advertisement for competitive bids. The intent is to enable easier, low‑cost placement of community health services on underutilized school property.

Key provisions

Amends section 1 of P.L.1978, c.91 (C.18A:20‑8.2) to explicitly include “a federally qualified health center” among the entities eligible to receive leases by private agreement for a nominal fee without public advertisement for bids.

Retains existing categories already exempted from bidding (federal/state government, municipalities, other school districts, volunteer fire/rescue companies, veterans’ organizations, certain nonprofits, etc.) and places FQHCs in that group.

Requires any lease longer than five years to be approved by the Commissioner of Education.

Adds a safeguard for joint occupancy: where a public school and an FQHC share a building, the FQHC must be located in a portion of the school building that is “separate and distinct” from areas where students may be present, to the extent permitted by federal law.

Boards may use electronic procurement/advertisement practices consistent with P.L.2018, c.156.

Who is affected

Local boards of education: gain authority to enter private, nominal‑fee leases with FQHCs without competitive bidding, subject to Commissioner approval for long‑term leases.

Federally qualified health centers: gain streamlined access to school property for delivery of health services to communities.

Students and school communities: could gain increased access to health services located on or near school property; schools must ensure separation of FQHC spaces from student‑occupied areas as required.

Taxpayers/local governments: potential for increased community health services on otherwise idle property; nominal fees may reduce direct revenue from leases but may produce public health benefits.

Limitations and procedural notes

The separation requirement for shared facilities is qualified by “to the extent permitted by federal law,” reflecting possible federal privacy/security/regulatory constraints.

Leases exceeding five years require state Commissioner of Education approval.

The bill takes effect immediately upon enactment.

Reported with committee technical amendments clarifying that the leases are by private agreement for a nominal fee without advertisement and adding the joint‑occupancy separation requirement.

Related/companion bills

Assembly Bill A4381 (1R) — identical companion in the Assembly.

Prior-session related measures: S8137, S3332; companion A2552.

This change aims to expand community access to primary and preventive care by making it administratively easier for FQHCs to occupy otherwise unused school property while preserving student safety and requiring oversight for longer leases.