TRENTON, N.J. – New legislation introduced in the New Jersey Senate would allow local school boards to lease unused school property to federally qualified health centers (FQHCs) without going through the public bidding process. The bill, S3156, sponsored by Senators Vin Gopal (D-Monmouth) and Angela V. McKnight (D-Hudson), seeks to make it easier for communities to convert idle educational space into health service hubs.
Under current law, boards of education can lease land or school buildings that are no longer needed for classroom use but might be required again in the future. Those leases generally require public advertisement and competitive bidding, except for certain government entities and nonprofit organizations. The proposed change would add federally qualified health centers to that list, allowing districts to enter private agreements for a nominal fee.
The measure amends an existing statute enacted in 1978 that governs how boards of education handle non-instructional property. By extending the exemption, lawmakers intend to promote partnerships that provide affordable primary and preventive care within neighborhoods, particularly in underserved areas.
Expanding community-based healthcare options
Federally qualified health centers are nonprofit clinics designated by the federal government to deliver care regardless of a patient’s ability to pay. They often provide comprehensive medical, dental, behavioral, and preventive services. The bill’s sponsors say the change would give these centers opportunities to locate within communities that may not have space for new construction but have unused school buildings suitable for conversion.
The bill does not exclude abortion clinics or family planning services.
Boards of education would still need to pass a resolution declaring the property unnecessary for school purposes before leasing. Any agreement longer than five years would require approval from the Commissioner of Education. The bill also allows electronic advertising for lease requests if districts choose to continue using competitive bidding for other entities.
No-cost leases already allowed for nonprofits
Existing state law already allows schools to lease space without bidding to government agencies, volunteer fire and rescue squads, veterans’ groups, child care providers, senior organizations, and certain nonprofits, including licensed hospitals and homeless shelters. Adding FQHCs to that list would align healthcare access with other community services eligible for nominal leases.
Legislative intent and next steps
The bill was introduced on May 6 and referred to the appropriate legislative committee for review. If approved by both chambers and signed into law, it would take effect immediately, giving school districts the option to form long-term partnerships with health providers as soon as the measure is enacted.
Senator Gopal, whose Monmouth County district includes several coastal towns with limited access to local health facilities, said the legislation is intended to “make better use of public resources while expanding vital health services.” Senator McKnight added that the proposal “connects families to care in the very neighborhoods where their children learn.”