Closed schools; revise certain provisions regarding repurposing of.

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To: Education
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Blount, Butler, Norwood

COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 2515

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
AUTHORIZE A SCHOOL BOARD TO APPROVE ALTERNATIVE USES, CONSISTENT 15
WITH SECTION 37-7-473, FOR PROPERTY CONVEYED OR LEASED; TO REQUIRE 16
THE INSTRUMENT CONVEYING OR LEASING THE PROPERTY TO INCLUDE 17
PROCEDURES FOR SEEKING AND OBTAINING BOARD APPROVAL FOR 18
ALTERNATIVE USES NOT SPECIFIED IN THE INSTRUMENT; TO BRING FORWARD 19
SECTION 37-7-473, MISSISSIPPI CODE OF 1972, FOR THE PURPOSE OF 20
POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES. 21
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 22
SECTION 1. Section 37-28-61, Mississippi Code of 1972, is 23
amended as follows: 24
37-28-61. (1) A charter school has a right of first refusal 25
to purchase or lease at or below fair market value a closed public 26
school facility or property or unused portions of a closed public 27
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school facility or property in the school district in which the 28
charter school is located if the school district decides to sell 29
or lease the public school facility or property. If a conversion 30
charter school application is successful, the local school 31
district owning the conversion charter school's facility must 32
offer to lease or sell the building to the conversion charter 33
school at or below fair market value. In order to exercise its 34
right of first refusal under this subsection, a charter school 35
must purchase or lease the school property within twelve (12) 36
months of the closure of the public school facility or property, 37
as indicated by resolution of the school board duly spread on its 38
minutes. After the twelve (12) months have elapsed, the charter 39
school shall have no right of first refusal under this subsection; 40
however, nothing in this subsection shall impair any rights of a 41
charter school under a contract for purchase or lease of the 42
property entered with the district during the twelve-month period. 43
(2) A charter school may negotiate and contract at or below 44
fair market value with a school district, state institution of 45
higher learning, public community or junior college, or any other 46
public or for-profit or nonprofit private entity for the use of a 47
facility for a school building. 48
(3) Public entities, including, but not limited to, 49
libraries, community service organizations, museums, performing 50
arts venues, theatres, cinemas, churches, community and junior 51
colleges, colleges and universities, may provide space to charter 52
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schools within their facilities under their preexisting zoning and 53
land use designations. 54
SECTION 2. Section 37-7-455, Mississippi Code of 1972, is 55
amended as follows: 56
37-7-455. (1) Any land, buildings or other property that is 57
not used for school purposes and which is not needed in the 58
operation of the schools of the district may be sold in the manner 59
established in this section * * *. Within the first six (6) 60
months of the closure of the public school facility or property, 61
as indicated by resolution of the school board duly spread on its 62
minutes, no purchase or lease agreement with any entity other than 63
a charter school located in the school district may be entered, 64
unless each such charter school has notified the school board that 65
it is not exercising its right of first refusal on the property, 66
as provided under Section 37-28-61. Except as otherwise provided 67
in subsections (2) and (3) of this section, all such land, 68
buildings or other property shall be sold only after the receipt 69
of sealed bids therefor after the time and place of making such 70
sale has been duly advertised in some newspaper having a general 71
circulation in the county in which the property is located once 72
each week for three (3) consecutive weeks with the first 73
publication to be made not less than fifteen (15) days prior to 74
the date upon which such bids are to be received and opened. The 75
property shall be sold to the highest and best bidder for cash, 76
but the school board shall have the right to reject any and all 77
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bids. If the property is not sold pursuant to such advertisement, 78
the school board, by resolution, may set a date for an open 79
meeting of the school board to be held within sixty (60) days 80
after the date upon which the bids were opened. At the meeting 81
held pursuant to such resolution, the school board may sell by 82
auction the property for a consideration not less than the highest 83
sealed bid previously received pursuant to the advertisement. At 84
the meeting, any interested party may bid for cash, and the 85
property shall be sold to the highest and best bidder for cash, 86
but the school board shall have the right to reject any and all 87
bids. The school board may require a written confirmation of bids 88
received at such called meeting before selling the property at 89
auction, but it shall not be necessary that sealed bids be 90
received before conducting the auction. 91
(2) As an alternative to the procedures established under 92
subsection (1) of this section, the school board of a school 93
district may elect, in its discretion, to sell by public auction 94
any property, other than real property or buildings of the school 95
district, which is not used for school or related school purposes 96
and not needed in the operation of the schools, according to the 97
procedure in Section 17-25-25, except as otherwise provided under 98
Section 37-7-459. 99
(3) As an alternative to the procedures established under 100
subsection (1) or (2) of this section, the county board of 101
education of a county having a population in excess of ten 102
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thousand (10,000) according to the 2000 decennial census and in 103
which U.S. Highway 45 intersects with Mississippi Highway 16, may 104
elect, in its discretion, to transfer and sell the buildings of 105
the school district and the real property upon which the buildings 106
are located which are not used as school facilities or for 107
school-related purposes and not needed in the operation of the 108
schools, after advertising for and receiving competitive bids for 109
the sale of such property. If any bid is offered by a nonprofit 110
501(c)(3) entity which has made substantial improvements to the 111
buildings, the fair market value of the improvements shall be 112
deemed to be consideration for, a part of, the bid offered by the 113
entity. In this case, the school board shall enter a finding on 114
its minutes that the nonprofit entity has made substantial 115
improvements to the property and the property is no longer needed 116
for school district purposes. 117
(4) When the sale of such property is authorized and 118
approved by the school board, the president of the school board 119
shall be authorized and empowered to execute a conveyance of the 120
property upon the terms and for the consideration fixed by the 121
board. The school board shall reserve unto the district all oil, 122
gas and minerals in, on or under the land, and all proceeds 123
derived from royalties upon the reserved mineral interests shall 124
be used as provided by Section 37-7-457. 125
SECTION 3. Section 37-7-477, Mississippi Code of 1972, is 126
amended as follows: 127
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37-7-477. (1) Unless a school board retains a partial 128
interest, or undivided interest or other ownership interest in the 129
school property being conveyed, any instrument conveying or 130
leasing any school property under * * * Sections 37-7-471 through 131
37-7-483, shall provide that the title to such property 132
shall * * * revert to the school district, if such property shall 133
cease to be used for the purpose for which it is conveyed or 134
leased, or for an alternative purpose approved by the school board 135
at the time of the proposed conveyance or lease. Consistent with 136
Section 37-7-473, the school board shall have broad discretion as 137
to the alternative purposes for which such property may be used 138
and may include any such purpose in the instrument conveying or 139
leasing the property. Moreover, the instrument shall include the 140
procedures that must be followed by the grantee or lessee to 141
present any alternative use not specified in the instrument to the 142
school board for consideration and to obtain board approval for 143
such use. The school board may approve such alternative use if 144
the board finds and determines, by resolution duly spread on its 145
minutes, that the school property is not needed for school or 146
related purposes, and that the proposed alternative use is 147
authorized by Section 37-7-473. Said instrument shall also 148
contain the condition that the grantee or lessee shall keep and 149
maintain said property in a good state of repair and shall keep 150
said property insured in a reasonable amount against loss by fire, 151
windstorm and other hazards. Upon breach of any of said 152
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conditions, the school board shall have the right of reentry upon 153
said property as for condition broken and shall have the power and 154
authority to bring and maintain such actions as shall be necessary 155
and appropriate for such purpose in its own name. However, the 156
provisions of this section shall not be mandatory in the event 157
that the school board retains a partial interest, or undivided 158
interest or other ownership interest in the school property being 159
conveyed. 160
(2) * * * Subsection (1) of this section shall not be 161
applicable to any transaction of acquisition by the United States, 162
by purchase, condemnation, conveyance or otherwise of any school 163
property or any other real property possessed by the state as 164
authorized by Section 3-5-1. 165
SECTION 4. Section 37-7-473, Mississippi Code of 1972, is 166
brought forward as follows: 167
37-7-473. School buildings, land, property and related 168
facilities may be sold, conveyed, leased or otherwise disposed of 169
under Sections 37-7-471 through 37-7-483, to any charter school, 170
to any group of persons, to any association, club or corporation, 171
or to any county, municipality or other political subdivision, to 172
be used as a charter school facility, to be used as a civic, 173
community, recreational or youth center, or to be used by any 174
county or district fair association in connection with its 175
activities, or to be used for church purposes, or to be used as a 176
library or other public building, or to be used as a factory or 177
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ST: Closed schools; revise certain provisions
regarding repurposing of.
otherwise in connection with an industrial enterprise, or to be 178
used as part of a residential, mixed-use or other development 179
activity to stimulate economic development activities within the 180
district, or to enhance property values within the district, or to 181
be used for any similar or related purpose or activity. 182
SECTION 5. This act shall take effect and be in force from 183
and after July 1, 2026. 184