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To: Education
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representatives Yates, Nelson
HOUSE BILL NO. 1395
(As Sent to Governor)
AN ACT TO AMEND SECTION 37-28-61, MISSISSIPPI CODE OF 1972, 1
TO LIMIT TO 12 MONTHS THE RIGHT OF FIRST REFUSAL OF A CHARTER 2
SCHOOL TO PURCHASE OR LEASE CLOSED PUBLIC SCHOOL PROPERTY IN THE 3
SCHOOL DISTRICT IN WHICH THE CHARTER SCHOOL IS LOCATED; TO SPECIFY 4
THAT THIS PROVISION SHALL NOT IMPAIR ANY RIGHTS OF A CHARTER 5
SCHOOL UNDER A CONTRACT FOR PURCHASE OR LEASE OF THE PROPERTY 6
ENTERED WITH THE DISTRICT DURING THE TWELVE-MONTH PERIOD; TO AMEND 7
SECTION 37-7-455, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT, 8
WITHIN THE FIRST SIX MONTHS OF THE CLOSURE OF THE PUBLIC SCHOOL 9
FACILITY OR PROPERTY, NO PURCHASE OR LEASE AGREEMENT WITH ANY 10
ENTITY OTHER THAN A CHARTER SCHOOL LOCATED IN THE DISTRICT MAY BE 11
ENTERED, UNLESS EACH SUCH CHARTER SCHOOL HAS NOTIFIED THE SCHOOL 12
BOARD THAT IT IS NOT EXERCISING ITS RIGHT OF FIRST REFUSAL ON THE 13
PROPERTY; TO AMEND SECTION 37-7-477, MISSISSIPPI CODE OF 1972, TO 14
PROVIDE THAT LEASED SCHOOL PROPERTY SHALL REVERT BACK TO THE 15
SCHOOL DISTRICT WHEN THE PROPERTY CEASES TO BE USED FOR THE 16
PURPOSES IT WAS ORIGINALLY LEASED OR FOR AN ALTERNATIVE PURPOSE 17
APPROVED BY THE SCHOOL BOARD AT THE TIME THAT THE ORIGINAL 18
INSTRUMENT OF CONVEYANCE WAS EXECUTED; TO PRESCRIBE THE PROCEDURES 19
TO BE ADHERED TO IN ORDER TO EFFECTUATE AN ALTERNATIVE USE TO BE 20
STIPULATED IN THE ORIGINAL INSTRUMENT OF CONVEYANCE, WHICH MUST BE 21
ACTED UPON THE SCHOOL BOARD BY RESOLUTION DULY ADOPTED AND SPREAD 22
UPON ITS MINUTES; AND FOR RELATED PURPOSES. 23
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 24
SECTION 1. Section 37-28-61, Mississippi Code of 1972, is 25
amended as follows: 26
37-28-61. (1) A charter school has a right of first refusal 27
to purchase or lease at or below fair market value a closed public 28
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school facility or property or unused portions of a closed public 29
school facility or property in the school district in which the 30
charter school is located if the school district decides to sell 31
or lease the public school facility or property. If a conversion 32
charter school application is successful, the local school 33
district owning the conversion charter school's facility must 34
offer to lease or sell the building to the conversion charter 35
school at or below fair market value. In order to exercise its 36
right of first refusal under this subsection, a charter school 37
must purchase or lease the school property within twelve (12) 38
months of the closure of the public school facility or property, 39
as indicated by resolution of the school board duly spread on its 40
minutes. After the twelve (12) months have elapsed, the charter 41
school shall have no right of first refusal under this subsection; 42
however, nothing in this subsection shall impair any rights of a 43
charter school under a contract for purchase or lease of the 44
property entered with the district during the twelve-month period. 45
(2) A charter school may negotiate and contract at or below 46
fair market value with a school district, state institution of 47
higher learning, public community or junior college, or any other 48
public or for-profit or nonprofit private entity for the use of a 49
facility for a school building. 50
(3) Public entities, including, but not limited to, 51
libraries, community service organizations, museums, performing 52
arts venues, theatres, cinemas, churches, community and junior 53
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colleges, colleges and universities, may provide space to charter 54
schools within their facilities under their preexisting zoning and 55
land use designations. 56
SECTION 2. Section 37-7-455, Mississippi Code of 1972, is 57
amended as follows: 58
37-7-455. (1) Any land, buildings or other property that is 59
not used for school purposes and which is not needed in the 60
operation of the schools of the district may be sold in the manner 61
established in this section * * *. Within the first six (6) 62
months of the closure of the public school facility or property, 63
as indicated by resolution of the school board duly spread on its 64
minutes, no purchase or lease agreement with any entity other than 65
a charter school located in the school district may be entered, 66
unless each such charter school has notified the school board that 67
it is not exercising its right of first refusal on the property, 68
as provided under Section 37-28-61. Except as otherwise provided 69
in subsections (2) and (3) of this section, all such land, 70
buildings or other property shall be sold only after the receipt 71
of sealed bids therefor after the time and place of making such 72
sale has been duly advertised in some newspaper having a general 73
circulation in the county in which the property is located once 74
each week for three (3) consecutive weeks with the first 75
publication to be made not less than fifteen (15) days prior to 76
the date upon which such bids are to be received and opened. The 77
property shall be sold to the highest and best bidder for cash, 78
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but the school board shall have the right to reject any and all 79
bids. If the property is not sold pursuant to such advertisement, 80
the school board, by resolution, may set a date for an open 81
meeting of the school board to be held within sixty (60) days 82
after the date upon which the bids were opened. At the meeting 83
held pursuant to such resolution, the school board may sell by 84
auction the property for a consideration not less than the highest 85
sealed bid previously received pursuant to the advertisement. At 86
the meeting, any interested party may bid for cash, and the 87
property shall be sold to the highest and best bidder for cash, 88
but the school board shall have the right to reject any and all 89
bids. The school board may require a written confirmation of bids 90
received at such called meeting before selling the property at 91
auction, but it shall not be necessary that sealed bids be 92
received before conducting the auction. 93
(2) As an alternative to the procedures established under 94
subsection (1) of this section, the school board of a school 95
district may elect, in its discretion, to sell by public auction 96
any property, other than real property or buildings of the school 97
district, which is not used for school or related school purposes 98
and not needed in the operation of the schools, according to the 99
procedure in Section 17-25-25, except as otherwise provided under 100
Section 37-7-459. 101
(3) As an alternative to the procedures established under 102
subsection (1) or (2) of this section, the county board of 103
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education of a county having a population in excess of ten 104
thousand (10,000) according to the 2000 decennial census and in 105
which U.S. Highway 45 intersects with Mississippi Highway 16, may 106
elect, in its discretion, to transfer and sell the buildings of 107
the school district and the real property upon which the buildings 108
are located which are not used as school facilities or for 109
school-related purposes and not needed in the operation of the 110
schools, after advertising for and receiving competitive bids for 111
the sale of such property. If any bid is offered by a nonprofit 112
501(c)(3) entity which has made substantial improvements to the 113
buildings, the fair market value of the improvements shall be 114
deemed to be consideration for, a part of, the bid offered by the 115
entity. In this case, the school board shall enter a finding on 116
its minutes that the nonprofit entity has made substantial 117
improvements to the property and the property is no longer needed 118
for school district purposes. 119
(4) When the sale of such property is authorized and 120
approved by the school board, the president of the school board 121
shall be authorized and empowered to execute a conveyance of the 122
property upon the terms and for the consideration fixed by the 123
board. The school board shall reserve unto the district all oil, 124
gas and minerals in, on or under the land, and all proceeds 125
derived from royalties upon the reserved mineral interests shall 126
be used as provided by Section 37-7-457. 127
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SECTION 3. Section 37-7-477, Mississippi Code of 1972, is 128
amended as follows: 129
37-7-477. (1) Unless a school board retains a partial 130
interest, or undivided interest or other ownership interest in the 131
school property being conveyed, any instrument conveying or 132
leasing any school property under * * * Sections 37-7-471 through 133
37-7-483, shall provide that the title to such property 134
shall * * * revert to the school district, if such property shall 135
cease to be used for the purpose for which it * * * was originally 136
conveyed or leased or for an alternative purposed approved by the 137
school board at the time of the proposed conveyance or lease in 138
accordance with this section. If any alternative use of the 139
school property is allowed, the instrument of conveyance shall 140
include procedures that must be followed requiring the grantee or 141
lessee to present the alternative use to the school board for 142
consideration and to obtain school board approval for the 143
alternative use specified therein. The school board may approve 144
the alternative use if the board finds and makes a determination, 145
by resolution duly adopted and lawfully spread upon its minutes 146
that: (a) the school property is not needed for school or related 147
purposes, and (b) the proposed alternative use is an authorized 148
use allowed by Section 37-7-473. Said instrument shall also 149
contain the condition that the grantee or lessee shall keep and 150
maintain said property in a good state of repair and shall keep 151
said property insured in a reasonable amount against loss by fire, 152
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ST: School districts; revise certain provisions
regarding sale or lease of unused property.
windstorm and other hazards. Upon breach of any of said 153
conditions, the school board shall have the right of reentry upon 154
said property as for condition broken and shall have the power and 155
authority to bring and maintain such actions as shall be necessary 156
and appropriate for such purpose in its own name. However, the 157
provisions of this section shall not be mandatory in the event 158
that the school board retains a partial interest, or undivided 159
interest or other ownership interest in the school property being 160
conveyed. 161
(2) * * * Subsection (1) of this section shall not be 162
applicable to any transaction of acquisition by the United States, 163
by purchase, condemnation, conveyance or otherwise of any school 164
property or any other real property possessed by the state as 165
authorized by Section 3-5-1. 166
SECTION 4. This act shall take effect and be in force from 167
and after July 1, 2026. 168