Enact the ASSET Act

As Introduced

136th
General Assembly

Regular
Session
H. B. No. 785

2025-2026

Representatives Mathews, T., Hoops

To
amend sections 123.01, 123.17, and 5913.09 and to enact section
123.012 of the Revised Code
to
authorize the state to enter into an enhanced lease agreement, with a
private entity, to utilize unproductive and unused state real
property, to empower a board of trustees of a state university and
the Adjutant General to lease land, and to name this act the
Advancing Strategic State and Military Asset Efficiency and
Transformation (ASSET) Act.

BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section
1.
That
sections 123.01, 123.17, and 5913.09 be amended and section 123.012
of the Revised Code be enacted to read as follows:

Sec.
123.01.
(A)
The department of administrative services, in addition to those
powers enumerated in Chapters 124. and 125. of the Revised Code and
provided elsewhere by law,
the
board of trustees of a state university or college under division
(A)(5)(b) of this section, and the adjutant general under division
(A)(5)(c) of this section,
shall
exercise the following powers:

(1)
To prepare and suggest comprehensive plans for the development of
grounds and buildings under the control of a state agency;

(2)
To acquire, by purchase, gift, devise, lease, or grant, all real
estate required by a state agency, in the exercise of which power the
department may exercise the power of eminent domain, in the manner
provided by sections 163.01 to 163.22 of the Revised Code;

(3)
To erect, supervise, and maintain all public monuments and memorials
erected by the state, except where the supervision and maintenance is
otherwise provided by law;

(4)
To procure, by lease, storage accommodations for a state agency;

(5)
To lease or grant easements or licenses for unproductive and unused
lands or other property under the control of a state agency. Such
leases, easements, or licenses
shall
be executed for the state by the director of administrative services
and
may
be granted to any person or entity
,
shall be for

according to the following:

(a)
For
a
period not to exceed fifteen years
,
unless a longer period is authorized by division (A)(5) of this
section, and shall be executed for the state by the director of
administrative services. The director shall grant leases, easements,
or licenses of
;

(b)
For
university
land
,

for periods not to exceed
twenty-five
years for purposes approved by the respective university's board of
trustees wherein the uses are compatible with the uses and needs of
the university and may grant leases of university land for periods
not to exceed
forty
years
,
with a like or lesser renewal term,

for purposes approved by the respective university's board of
trustees
,
to public utilities as defined in section 4905.02 of the Revised Code
or described in section 4905.03 of the Revised Code

pursuant to section 123.17 of the Revised Code
.
The director may
,
or to other state agencies, political subdivisions, or tenants
pursuant to section 123.17 or 123.012 of the Revised Code or Chapter
3345. of the Revised Code;

(c)
For real property under the control of a state agency, for university
land, and for property under the custody of the adjutant general,
pursuant to section 123.012 of the Revised Code;

(d)
To
grant
,
with controlling board approval,

perpetual easements to public utilities, as defined in section
4905.02 of the Revised Code or described in section 4905.03 of the
Revised Code
,
or to other state agencies, political subdivisions, or tenants, under
section 123.17 or 123.012 of the Revised Code or Chapter 3345. Of the
Revised Code
.

(6)
To lease space for the use of a state agency;

(7)
To have general supervision and care of the storerooms, offices, and
buildings leased for the use of a state agency;

(8)
To exercise general custodial care of all real property of the state;

(9)
To assign and group together state offices in any city in the state
and to establish, in cooperation with the state agencies involved,
rules governing space requirements for office or storage use;

(10)
To lease for a period not to exceed forty years, pursuant to a
contract providing for the construction thereof under a
lease-purchase plan, buildings, structures, and other improvements
for any public purpose, and, in conjunction therewith, to grant
leases, easements, or licenses for lands under the control of a state
agency for a period not to exceed forty years. The lease-purchase
plan shall provide that at the end of the lease period, the
buildings, structures, and related improvements, together with the
land on which they are situated, shall become the property of the
state without cost.

(a)
Whenever any building, structure, or other improvement is to be so
leased by a state agency, the department shall retain either basic
plans, specifications, bills of materials, and estimates of cost with
sufficient detail to afford bidders all needed information or,
alternatively, all of the following plans, details, bills of
materials, and specifications:

(i)
Full and accurate plans suitable for the use of mechanics and other
builders in the improvement;

(ii)
Details to scale and full sized, so drawn and represented as to be
easily understood;

(iii)
Accurate bills showing the exact quantity of different kinds of
material necessary to the construction;

(iv)
Definite and complete specifications of the work to be performed,
together with such directions as will enable a competent mechanic or
other builder to carry them out and afford bidders all needed
information;

(v)
A full and accurate estimate of each item of expense and of the
aggregate cost thereof.

(b)
The department shall give public notice, in such newspaper, in such
form, and with such phraseology as the director of administrative
services prescribes, published once each week for four consecutive
weeks, of the time when and place where bids will be received for
entering into an agreement to lease to a state agency a building,
structure, or other improvement. The last publication shall be at
least eight days preceding the day for opening the bids. The bids
shall contain the terms upon which the builder would propose to lease
the building, structure, or other improvement to the state agency.
The form of the bid approved by the department shall be used, and a
bid is invalid and shall not be considered unless that form is used
without change, alteration, or addition. Before submitting bids
pursuant to this section, any builder shall comply with Chapter 153.
of the Revised Code.

(c)
On the day and at the place named for receiving bids for entering
into lease agreements with a state agency, the director of
administrative services shall open the bids and shall publicly
proceed immediately to tabulate the bids upon duplicate sheets. No
lease agreement shall be entered into until the bureau of workers'
compensation has certified that the person to be awarded the lease
agreement has complied with Chapter 4123. of the Revised Code, until,
if the builder submitting the lowest and best bid is a foreign
corporation, the secretary of state has certified that the
corporation is authorized to do business in this state, until, if the
builder submitting the lowest and best bid is a person nonresident of
this state, the person has filed with the secretary of state a power
of attorney designating the secretary of state as its agent for the
purpose of accepting service of summons in any action brought under
Chapter 4123. of the Revised Code, and until the agreement is
submitted to the attorney general and the attorney general's approval
is certified thereon. Within thirty days after the day on which the
bids are received, the department shall investigate the bids received
and shall determine that the bureau and the secretary of state have
made the certifications required by this section of the builder who
has submitted the lowest and best bid. Within ten days of the
completion of the investigation of the bids, the department shall
award the lease agreement to the builder who has submitted the lowest
and best bid and who has been certified by the bureau and secretary
of state as required by this section. If bidding for the lease
agreement has been conducted upon the basis of basic plans,
specifications, bills of materials, and estimates of costs, upon the
award to the builder the department, or the builder with the approval
of the department, shall appoint an architect or engineer licensed in
this state to prepare such further detailed plans, specifications,
and bills of materials as are required to construct the building,
structure, or improvement. The department shall adopt such rules as
are necessary to give effect to this section. The department may
reject any bid. Where there is reason to believe there is collusion
or combination among bidders, the bids of those concerned therein
shall be rejected.

(11)
To acquire by purchase, gift, devise, or grant and to transfer,
lease, or otherwise dispose of all real property required to assist
in the development of a conversion facility as defined in section
5709.30 of the Revised Code as that section existed before its repeal
by Amended Substitute House Bill 95 of the 125th general assembly;

(12)
To lease for a period not to exceed forty years, notwithstanding any
other division of this section, the state-owned property located at
408-450 East Town Street, Columbus, Ohio, formerly the state school
for the deaf, to a developer in accordance with this section.
"Developer," as used in this section, has the same meaning
as in section 123.77 of the Revised Code.

Such
a lease shall be for the purpose of development of the land for use
by senior citizens by constructing, altering, renovating, repairing,
expanding, and improving the site as it existed on June 25, 1982. A
developer desiring to lease the land shall prepare for submission to
the department a plan for development. Plans shall include provisions
for roads, sewers, water lines, waste disposal, water supply, and
similar matters to meet the requirements of state and local laws. The
plans shall also include provision for protection of the property by
insurance or otherwise, and plans for financing the development, and
shall set forth details of the developer's financial responsibility.

The
department may employ, as employees or consultants, persons needed to
assist in reviewing the development plans. Those persons may include
attorneys, financial experts, engineers, and other necessary experts.
The department shall review the development plans and may enter into
a lease if it finds all of the following:

(a)
The best interests of the state will be promoted by entering into a
lease with the developer;

(b)
The development plans are satisfactory;

(c)
The developer has established the developer's financial
responsibility and satisfactory plans for financing the development.

The
lease shall contain a provision that construction or renovation of
the buildings, roads, structures, and other necessary facilities
shall begin within one year after the date of the lease and shall
proceed according to a schedule agreed to between the department and
the developer or the lease will be terminated. The lease shall
contain such conditions and stipulations as the director considers
necessary to preserve the best interest of the state. Moneys received
by the state pursuant to this lease shall be paid into the general
revenue fund. The lease shall provide that at the end of the lease
period the buildings, structures, and related improvements shall
become the property of the state without cost.

(13)
To manage the use of space owned and controlled by the department by
doing all of the following:

(a)
Biennially implementing, by state agency location, a census of agency
employees assigned space;

(b)
Periodically in the discretion of the director of administrative
services:

(i)
Requiring each state agency to categorize the use of space allotted
to the agency between office space, common areas, storage space, and
other uses, and to report its findings to the department;

(ii)
Creating and updating a master space utilization plan for all space
allotted to state agencies. The plan shall incorporate space
utilization metrics.

(iii)
Conducting a cost-benefit analysis to determine the effectiveness of
state-owned buildings;

(iv)
Assessing the alternatives associated with consolidating the
commercial leases for buildings located in Columbus.

(c)
Commissioning a comprehensive space utilization and capacity study in
order to determine the feasibility of consolidating existing
commercially leased space used by state agencies into a new
state-owned facility.

(14)
To adopt rules to ensure that energy efficiency and conservation is
considered in the purchase of products and equipment, except motor
vehicles, by any state agency, department, division, bureau, office,
unit, board, commission, authority, quasi-governmental entity, or
institution. The department may require minimum energy efficiency
standards for purchased products and equipment based on federal
testing and labeling if available or on standards developed by the
department. When possible, the rules shall apply to the competitive
selection of energy consuming systems, components, and equipment
under Chapter 125. of the Revised Code.

(15)
To ensure energy efficient and energy conserving purchasing practices
by doing all of the following:

(a)
Identifying available energy efficiency and conservation
opportunities;

(b)
Providing for interchange of information among purchasing agencies;

(c)
Identifying laws, policies, rules, and procedures that should be
modified;

(d)
Monitoring experience with and the cost-effectiveness of this state's
purchase and use of motor vehicles and of major energy-consuming
systems, components, equipment, and products having a significant
impact on energy consumption by the government;

(e)
Providing technical assistance and training to state employees
involved in the purchasing process;

(f)
Working with the department of development to make recommendations
regarding planning and implementation of purchasing policies and
procedures that are supportive of energy efficiency and conservation.

(16)
To require all state agencies, departments, divisions, bureaus,
offices, units, commissions, boards, authorities, quasi-governmental
entities, institutions, and state institutions of higher education to
implement procedures to ensure that all of the passenger automobiles
they acquire in each fiscal year, except for those passenger
automobiles acquired for use in law enforcement or emergency rescue
work, achieve a fleet average fuel economy of not less than the fleet
average fuel economy for that fiscal year as the department shall
prescribe by rule. The department shall adopt the rule prior to the
beginning of the fiscal year, in accordance with the average fuel
economy standards established by federal law for passenger
automobiles manufactured during the model year that begins during the
fiscal year.

Each
state agency, department, division, bureau, office, unit, commission,
board, authority, quasi-governmental entity, institution, and state
institution of higher education shall determine its fleet average
fuel economy by dividing the total number of passenger vehicles
acquired during the fiscal year, except for those passenger vehicles
acquired for use in law enforcement or emergency rescue work, by a
sum of terms, each of which is a fraction created by dividing the
number of passenger vehicles of a given make, model, and year, except
for passenger vehicles acquired for use in law enforcement or
emergency rescue work, acquired during the fiscal year by the fuel
economy measured by the administrator of the United States
environmental protection agency, for the given make, model, and year
of vehicle, that constitutes an average fuel economy for combined
city and highway driving.

As
used in division (A)(16) of this section, "acquired" means
leased for a period of sixty continuous days or more, or purchased.

(17)
To correct legal descriptions or title defects, or release fractional
interests in real property, as necessary to cure title clouds
reflected in public records, including those resulting from boundary
disputes, ingress or egress issues, title transfers precipitated
through retirement of bond requirements, and the retention of
fractional interests in real estate otherwise disposed of in previous
title transfers.

(18)(a)
To, with controlling board approval, sell state-owned real property
that is not held for the benefit of an institution of higher
education and is appraised at not more than one hundred thousand
dollars by an independent third-party appraiser.

(b)
To sell state-owned real property that is held for the benefit of an
institution of higher education, provided all of the following are
true:

(i)
The board of trustees of the institution of higher education, or, in
the case of a university branch district, any other managing
authority, adopts a resolution approving the sale;

(ii)
The real property is appraised at not more than ten million dollars
by an independent third-party appraiser;

(iii)
The controlling board approves the sale.

Notwithstanding
any provision of law to the contrary, net proceeds from any
disposition of real property made pursuant to division (A)(18) of
this section shall, at the direction of the director of budget and
management, be credited to a fund or funds in the state treasury, or
to accounts held by an institution of higher education for purposes
to be determined by the institution.

As
used in division (A)(18) of this section, "institution of higher
education" has the same meaning as in section 3345.12 of the
Revised Code.

(B)
This section and section 125.02 of the Revised Code shall not
interfere with any of the following:

(1)
The power of the adjutant general to purchase military supplies, or
with the custody of the adjutant general of property leased,
purchased, or constructed by the state and used for military
purposes, or with the functions of the adjutant general as director
of state armories;

(2)
The power of the director of transportation in acquiring
rights-of-way for the state highway system, or the leasing of lands
for division or resident district offices, or the leasing of lands or
buildings required in the maintenance operations of the department of
transportation, or the purchase of real property for garage sites or
division or resident district offices, or in preparing plans and
specifications for and constructing such buildings as the director
may require in the administration of the department;

(3)
The power of the director of public safety and the registrar of motor
vehicles to purchase or lease real property and buildings to be used
solely as locations to which a deputy registrar is assigned pursuant
to division (B) of section 4507.011 of the Revised Code and from
which the deputy registrar is to conduct the deputy registrar's
business, the power of the director of public safety to purchase or
lease real property and buildings to be used as locations for
division or district offices as required in the maintenance of
operations of the department of public safety, and the power of the
superintendent of the state highway patrol in the purchase or leasing
of real property and buildings needed by the patrol, to negotiate the
sale of real property owned by the patrol, to rent or lease real
property owned or leased by the patrol, and to make or cause to be
made repairs to all property owned or under the control of the
patrol;

(4)
The power of the division of liquor control in the leasing or
purchasing of retail outlets and warehouse facilities for the use of
the division;

(5)
The power of the director of development to enter into leases of real
property, buildings, and office space to be used solely as locations
for the state's foreign offices to carry out the purposes of section
122.05 of the Revised Code;

(6)
The power of the director of environmental protection to enter into
environmental covenants, to grant and accept easements, or to sell
property pursuant to division (G) of section 3745.01 of the Revised
Code;

(7)
The power of the department of public safety under section 5502.01 of
the Revised Code to direct security measures and operations for the
Vern Riffe center and the James A. Rhodes state office tower. The
department of administrative services shall implement all security
measures and operations at the Vern Riffe center and the James A.
Rhodes state office tower as directed by the department of public
safety.

(C)
Purchases for, and the custody and repair of, buildings under the
management and control of the capitol square review and advisory
board, the opportunities for Ohioans with disabilities agency, the
bureau of workers' compensation, or the departments of public safety,
job and family services,
mental
health and addiction services
behavioral
health
,
developmental disabilities, and rehabilitation and correction;
buildings of educational and benevolent institutions under the
management and control of boards of trustees; and purchases or leases
for, and the custody and repair of, office space used for the
purposes of any agency of the legislative branch of state government
are not subject to the control and jurisdiction of the department of
administrative services.

An
agency of the legislative branch of state government that uses office
space in a building under the management and control of the
department of administrative services may exercise the agency's
authority to improve the agency's office space as authorized under
this division only if, upon review, the department of administrative
services concludes the proposed improvements do not adversely impact
the structural integrity of the building.

If
an agency of the legislative branch of state government, except the
capitol square review and advisory board, so requests, the agency and
the director of administrative services may enter into a contract
under which the department of administrative services agrees to
perform any services requested by the agency that the department is
authorized under this section to perform. In performing such
services, the department shall not use competitive selection. As used
in this division, "competitive selection" has the meaning
defined in section 125.01 of the Revised Code and includes any other
type of competitive process for the selection of persons producing or
dealing in the services to be provided.

(D)
Any instrument by which real property is acquired pursuant to this
section shall identify the agency of the state that has the use and
benefit of the real property as specified in section 5301.012 of the
Revised Code.

Sec.
123.012.
(A)
The department of administrative services, with controlling board
approval, may enter into an enhanced lease agreement, with a private
entity, in accordance with division (A)(5)(c) of section 123.01 of
the Revised Code. The agreement may permit the private entity to
utilize unproductive and unused state real property under the control
of a state agency or a university or under the custody of the
adjutant general. The agreement must set forth all of the following:

(1)
The authorized use of the land, which shall include one of the
following;

(a)
To conduct commercial activity;

(b)
To conduct research contemplated to advance a state economic
interest;

(c)
To support a public-private partnership for the purposes of divisions
(A)(1)(a) and (b) of this section.

(2)
The lease value;

(3)
Whether the lease payments will include in-kind services that benefit
the state, such as infrastructure improvements on the property;

(4)
Any construction, demolition, or redevelopment that will be completed
on the property under the lease agreement;

(5)
Any requirements deemed prudent by the director of administrative
services, or required by state and federal law, with respect to
development of state property, environmental review, security review,
public transparency, and fair market value assessment.

(B)
An enhanced lease agreement under this section shall not do either of
the following:

(1)
Specify a term in excess of ninety-nine years;

(2)
Authorize construction, demolition, or redevelopment on the property,
or authorize any commercial or research activity, that might
interfere with core government or military functions that may occur
on adjacent state property.

(C)
An enhanced lease agreement under this section shall provide that at
the end of the lease period the buildings, structures, and related
improvements, together with the land on which they are situated,
become the property of the state without cost.

Sec.
123.17.
(A)(1)

The

department

board

of

administrative
services
trustees
of a state university
may
lease land belonging to or under the control or jurisdiction of
a

the

state
university, not required nor to be required for use of the
university, to a developer
or
developers
in
accordance with this section.

(2)
The adjutant general may lease land belonging to or under the control
or jurisdiction of the adjutant general, not required nor to be
required for use of the Ohio organized militia, to a developer or
developers in accordance with this section.

"Developer,"
as used in this section, means a person, partnership, association,
corporation, or community improvement corporation established
pursuant to Chapter 1724. of the Revised Code who or which submits a
development plan to the
department

board
of trustees or the adjutant general
as
provided in this section and requests the
department

board
or adjutant general
to
enter into a lease.

Such
a
(B)
A
lease

of
university land
under
this section
shall
be for the purpose of development of the land by establishing,
constructing, altering, repairing, expanding,
and

or

improving
industrial, distribution, commercial,
or

retail,
residential, institutional, recreational, conservation,
research
,
or other types of

facilities. A developer desiring to lease land
of
the university
under
this section

for such development shall prepare and submit
to
the department of administrative services and
to
the board of trustees of the university

or the adjutant general

a plan for such development. Plans shall include provisions for
roads, streets, sewers, water lines, waste disposal, water supply,
and similar matters to meet the requirements of state and local laws.
The plans shall also include provision for protection of the property
by insurance or otherwise and plans for financing the development,
and shall set forth details of the developer's financial
responsibility.

(C)

The

department
of administrative services
state
university or the adjutant general
may
employ as employees or consultants, persons needed to assist it in
reviewing the development plans. Such persons may include attorneys,
financial experts, engineers, and other necessary experts. The

department
of administrative services
board
of trustees or the adjutant general
shall
review the development plans and may
enter
into a lease or instruct the department of administrative services to

enter
into a lease if
it

the
board or adjutant general
finds
that:

(A)
(1)

The best interests of the university
or
the Ohio organized militia
will
be promoted by entering into a lease with the developer.

(B)
(2)

The development plans are satisfactory.

(C)
(3)

The developer has established the developer's financial
responsibility and satisfactory plans for financing the development.

(D)
The
university

board
of trustees
,

approves
the lease.

A
lease may be entered into
the
adjutant general, or the department of administrative services if
requested by the board of trustees or the adjutant general, shall
enter into a lease
pursuant
to this section for

a term and

an annual rent agreed to between the
department

board
of trustees
and
the developer for a maximum term of forty years

and
,
which
may
be renewed for a like or lesser term. The lease shall contain a
provision that construction of buildings, structures, roads, and
other necessary facilities
shall
begin within one year after the date of the lease and
shall
proceed according to a schedule agreed to between the
department

board
of trustees or adjutant general
and
the developer or the lease will be terminated.

(E)

Moneys received by the state pursuant to such leases shall be paid
into the state treasury as an addition to the appropriation made to
the university
,
or as an addition to the appropriation made to the adjutant general,
as the case may be,

which has control or jurisdiction of the land or to which the land
belongs.

Sec.
5913.09.
(A)
The adjutant general is the custodian of all military and other
adjutant general's department property, both real and personal,
belonging to the state.

(B)
The adjutant general may make changes and improvements to military
and other adjutant general's department property as the needs of the
state and federal government and the exigencies of the service
require. All improvements made upon that property belonging to the
state, from moneys received either all or in part from the state or
federal government, or both, become the property of the state, except
as may be provided in an agreement and corresponding regulations by
which the United States contributes to the cost of an improvement.

(C)(1)
In accordance with applicable state and federal law and regulations,
the adjutant general, with the approval of the governor, may acquire
by purchase
,

lease, license, or otherwise, real and personal property necessary
for the purposes of the department.

(2)
In accordance with applicable state and federal law and regulations,
the adjutant general, with the approval of the attorney general, may
enter into contracts for the construction, repair, renovation,
maintenance, and operation of military or other adjutant general's
department property.

(3)
(3)(a)

In accordance with applicable state and federal law and regulations,
the adjutant general, with the approval of the governor, may lease or
exchange all or part of any military or other adjutant general's
department property or grant easements or licenses, if the lease,
exchange, easement, or license is advantageous to the state.

(b)
The adjutant general may authorize the director of administrative
services to lease property under the custody of the adjutant general
in accordance with section 123.012 or 123.17 of the Revised Code.

(4)
All real property of the adjutant general's department shall be sold
in accordance with section 5911.10 of the Revised Code.

(D)(1)
Except as otherwise provided in this section, all income from any
military or other adjutant general's department property of the
state, not made a portion of the company, troop, battery, detachment,
squadron, or other organization funds by regulations, shall be
credited to the funds for the operation and maintenance of the Ohio
organized militia, as the adjutant general directs, in accordance
with applicable state and federal law and regulations and the
agreements by which the United States contributes to the cost of
operation and maintenance of the Ohio national guard.

(2)
There is hereby created in the state treasury the camp Perry/buckeye
inn operations fund. The fund shall consist of all amounts received
as revenue from the rental of facilities located at the camp Perry
training site in Ottawa county and the buckeye inn at Rickenbacker
air national guard base in Franklin county, and all amounts received
from the use of the camp Perry training site and its facilities,
including shooting ranges. The moneys in the fund shall be used to
support the facility operations of the camp Perry clubhouse and the
buckeye inn. Investment earnings of the fund shall be credited to the
general revenue fund.

Section
2.
That
existing sections 123.01, 123.17, and 5913.09 of the Revised Code are
hereby repealed.

Section
3.
This
act shall be known as the Advancing Strategic State and Military
Asset Efficiency and Transformation (ASSET) Act.