NASHVILLE — A bill affecting the ownership and operation of four Memphis-Shelby County Schools, including three in Germantown, passed the Tennessee Senate’s education committee Wednesday afternoon.

The legislation sponsored by Sen. Brian Kelsey, R-Germantown, could soon head to the Senate floor for a vote, but still needs approval from a House Education Committee. The bill gained approvals from all senators on the committee except Sen. Raumesh Akbari, D-Memphis, resulting in an 8-1 vote.

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The amended bill affects Germantown’s namesake schools: Germantown Elementary, Germantown Middle and Germantown High schools, commonly known as the 3Gs. It also affects Lucy Elementary in Millington, but the discussion around the legislation has centered on the Germantown schools. As part of a federal settlement when the municipal school districts were established, Germantown didn’t get the schools bearing their name.

Currently the law only affects to the six municipal districts in Shelby County due to the establishment of the suburban districts. But Kelsey said other parts of the state could create municipal districts. Tony Thompson, MSCS lobbyist, said that’s not the case.

The bill would codify an attorney general opinion stating one district cannot operate within the boundaries of another school system.

“Under current law Germantown cannot authorize Shelby County to be in Germantown,” said John Farris, a lobbyist representing the suburb. “That’s why we need the bill. …. Shelby County should not be in Germantown today.”

Germantown Mayor Mike Palazzolo reminded senators they asked the issue be settled at the local level, but after 13 meetings no such agreement was reached, due to “political will.” He said the bill allows MSCS to operate within Germantown’s city limits and the boundaries of GMSD.

Palazzolo said the buildings are “needed for long-term future growth” as Germantown expects significant residential activity despite a recent study that expects little growth in the district. A demographer said the new homes will likely attract few children.

“Their student population is going down because young people aren’t moving into a wealthier suburb,” Thompson said.

GMSD would pay for the schools if it ever gained control of them. The amendment approved before the bill’s consideration in committee, asks a county school board and municipal school board to work together and enter a written agreement if a county school is going to operate within a municipal district’s boundaries. If they don’t, the municipal school board gains control of the schools.

The land must be used for educational purposes unless GMSD’s board decides it is in the community’s best interest to sell the buildings.

“They could do that the very next day,” Thompson warned senators.

Due to outdated features and significant deferred maintenance issues, Palazzolo said it is possible the buildings be demolished and a new building built later.

“We have no intent to sell the properties,” Palazzolo said, noting he intends the buildings remain used for educational purposes.

However, what qualifies as educational purposes is unclear as it’s not defined in the bill, Akbari noted.

Akbari noted her main concern had been ensuring the students’ education is not disrupted. Palazzolo confirmed students may matriculate out over time, and it is a priority to not interfere with their learning. He expected MSCS would want to continue to operate inside those facilities, but expects the buildings be owned by Germantown.

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Thompson said there are many special programs the 3Gs offer. He said if students are able to go there, the state shouldn’t take those opportunities away. 

The amendment passed a House subcommittee Tuesday. The legislation gives the municipal superintendent the responsibility of executing and recording an affidavit with the register of deeds.

Locally, that would mean the boards of education from both Germantown Municipal School District and Memphis Shelby County Schools would enter a written agreement if Shelby County were continuing to operate inside Germantown Elementary, Germantown Middle and Germantown High. The agreement cannot exceed 13 years, according to the legislation. If it expires, without renewal or if an agreement is not reached before the start of the 2023-24 academic year, the property would be transferred to GMSD upon Germantown Superintendent Jason Manuel’s execution and recording of the affidavit.

The agreement must:

• Set the time frame
• Specify the grades taught at each school
• Describe the school zone for each school
• Comply with existing laws about interlocal agreements and municipal districts
• Be approved by both boards

The amendment also asks the municipal school district — in this case GMSD — to pay the county system for the schools if it acquires them. Rep. Mark White’s House bill doesn’t address that. The municipal board would be responsible for paying fair market value for the land and the base amount of any outstanding debt service as it relates to renovations and improvements. The amount would be paid in 15-year installments beginning one year after the affidavit is recorded. 

Germantown had five schools when it opened in 2013. Since then, the district has addressed its capacity needs by opening Forest Hill Elementary School in 2019 and working on an addition to Houston Middle School. A recent study showed the district’s enrollment is forecasted to remain steady through at least 2031.

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Legislators aimed to settle the 3G matter in 2021, but pulled the bill in hopes the two school districts would settle the matter. Palazzolo met with White and MSCS leaders but GMSD was never invited to meetings. 

The amendment wouldn’t become law until July 2023, giving the boards more time to work on an agreement. 

In a House subcommittee Tuesday, White, R-Memphis, acknowledged the buildings are aging and might to be knocked down.

White said after 13 meetings with Palazzolo and MSCS officials, both parties said they want the bill to move forward.

“My client in no way has said they want the bill passed,” Thompson, the lobbyist for MSCS told the House subcommittee.

John Ragan, R-Oak Ridge, pointed out Tennessee’s constitution says legislators may not pass anything “impairing a contract.” The state’s legal counsel told him they believe a federal court settlement qualifies as a contract.

Palazzolo sat on the front row during the House subcommittee, although he did not make any remarks. Thompson said he doesn’t know Palazzolo but he knows the 3Gs are a political issue.

“My client isn’t afraid to go to courthouse,” Thompson said, adding legal action costs taxpayers. 

“That’s time and money that should be spent educating kids,” Akbari said after the senate committee meeting.