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As Introduced
136th
General Assembly
Regular
Session
S. B. No. 377
2025-2026
Senator Gavarone
To
amend sections 3312.01, 3313.41, 3313.413, and 3313.843 and to enact
sections 3318.80 and 3318.81 of the Revised Code
regarding
the sale of school district property and programs to support
educational service center facilities projects.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 3312.01, 3313.41, 3313.413,
and
3313.843 be amended and sections 3318.80
and
3318.81 of the Revised Code be enacted to read as follows:
Sec.
3312.01.
(A)
The educational regional service system is hereby established. The
system shall support state and regional education initiatives and
efforts to improve school effectiveness and student achievement.
Services, including special education and related services, shall be
provided under the system to school districts, community schools
established under Chapter 3314. of the Revised Code, and chartered
nonpublic schools.
It
is the intent of the general assembly that the educational regional
service system reduce the unnecessary duplication of programs and
services and provide for a more streamlined and efficient delivery of
educational services without reducing the availability of the
services needed by school districts and schools.
(B)
The educational regional service system shall consist of the
following:
(1)
The advisory councils and subcommittees established under sections
3312.03 and 3312.05 of the Revised Code;
(2)
A fiscal agent for each of the regions as configured under section
3312.02 of the Revised Code;
(3)
Educational service centers, information technology centers
established under section 3301.075 of the Revised Code, and other
regional education service providers.
(C)
Educational service centers shall provide the services that they are
specifically required to provide by the Revised Code and may enter
into agreements pursuant to section 3313.843, 3313.844, or 3313.845
of the Revised Code for the provision of other services, which may
include any of the following:
(1)
Assistance in improving student performance;
(2)
Services to enable a school district or school to operate more
efficiently or economically;
(3)
Professional development for teachers or administrators;
(4)
Assistance in the recruitment and retention of teachers and
administrators;
(5)
Applying for any state or federal grant on behalf of a school
district;
(6)
Any other educational, administrative, or operational services.
In
addition to implementing state and regional education initiatives and
school improvement efforts under the educational regional service
system, educational service centers shall implement state or
federally funded initiatives assigned to the service centers by the
general assembly or the department of education and workforce.
Any
educational service center selected to be a fiscal agent for its
region pursuant to section 3312.07 of the Revised Code shall continue
to operate as an educational service center for the part of the
region that comprises its territory.
(D)
An educational service center shall be considered a school district
or a local education agency for the purposes of eligibility in
applying for any state or competitive federal grant.
Educational
service centers are eligible to participate in and receive support
through any grant programs that are available to school districts and
focused on school facility health, safety, and welfare.
(E)
Information technology centers may enter into agreements for the
provision of services pursuant to section 3312.10 of the Revised
Code.
(F)
No school district, community school, or chartered nonpublic school
shall be required to purchase services from an educational service
center or information technology center in the region in which the
district or school is located, except that a local school district
shall receive any services required by the Revised Code to be
provided by an educational service center to the local school
districts in its territory from the educational service center in
whose territory the district is located.
Sec.
3313.41.
(A)
Except as provided in divisions (C), (D), and (F) of this section and
in sections 3313.412 and 3313.413 of the Revised Code, when a board
of education decides to dispose of real or personal property that it
owns in its corporate capacity and that exceeds in value ten thousand
dollars, it shall sell the property at public auction, after giving
at least thirty days' notice of the auction by publication in a
newspaper of general circulation in the school district, by
publication as provided in section 7.16 of the Revised Code, or by
posting notices in five of the most public places in the school
district in which the property, if it is real property, is situated,
or, if it is personal property, in the school district of the board
of education that owns the property. The board may offer real
property for sale as an entire tract or in parcels.
(B)
When the board of education has offered real or personal property for
sale at public auction at least once pursuant to division (A) of this
section, and the property has not been sold, the board may sell it at
a private sale. Regardless of how it was offered at public auction,
at a private sale, the board shall, as it considers best, sell real
property as an entire tract or in parcels, and personal property in a
single lot or in several lots.
(C)
If a board of education decides to dispose of real or personal
property that it owns in its corporate capacity and that exceeds in
value ten thousand dollars, it may sell the property to the adjutant
general; to any subdivision or taxing authority as respectively
defined in section 5705.01 of the Revised Code, township park
district, board of park commissioners established under Chapter 755.
of the Revised Code, or park district established under Chapter 1545.
of the Revised Code; to a wholly or partially tax-supported
university, university branch, or college; to a nonprofit institution
of higher education that has a certificate of authorization under
Chapter 1713. of the Revised Code; to the governing authority of a
chartered nonpublic school;
to
the governing board of an educational service center;
or
to the board of trustees of a school district library, upon such
terms as are agreed upon. The sale of real or personal property to
the board of trustees of a school district library is limited, in the
case of real property, to a school district library within whose
boundaries the real property is situated, or, in the case of personal
property, to a school district library whose boundaries lie in whole
or in part within the school district of the selling board of
education.
(D)
When a board of education decides to trade as a part or an entire
consideration, an item of personal property on the purchase price of
an item of similar personal property, it may trade the same upon such
terms as are agreed upon by the parties to the trade.
(E)
The president and the treasurer of the board of education shall
execute and deliver deeds or other necessary instruments of
conveyance to complete any sale or trade under this section.
(F)
When a board of education has identified a parcel of real property
that it determines is needed for school purposes, the board may, upon
a majority vote of the members of the board, acquire that property by
exchanging real property that the board owns in its corporate
capacity for the identified real property or by using real property
that the board owns in its corporate capacity as part or an entire
consideration for the purchase price of the identified real property.
Any exchange or acquisition made pursuant to this division shall be
made by a conveyance executed by the president and the treasurer of
the board.
(G)
When a school district board of education has property that the
board, by resolution, finds is not needed for school district use, is
obsolete, or is unfit for the use for which it was acquired, the
board may donate that property in accordance with this division if
the fair market value of the property is, in the opinion of the
board, two thousand five hundred dollars or less.
The
property may be donated to an eligible nonprofit organization that is
located in this state and is exempt from federal income taxation
pursuant to 26 U.S.C. 501(a) and (c)(3). Before donating any property
under this division, the board shall adopt a resolution expressing
its intent to make unneeded, obsolete, or unfit-for-use school
district property available to these organizations. The resolution
shall include guidelines and procedures the board considers to be
necessary to implement the donation program and shall indicate
whether the school district will conduct the donation program or the
board will contract with a representative to conduct it. If a
representative is known when the resolution is adopted, the
resolution shall provide contact information such as the
representative's name, address, and telephone number.
The
resolution shall include within its procedures a requirement that any
nonprofit organization desiring to obtain donated property under this
division shall submit a written notice to the board or its
representative. The written notice shall include evidence that the
organization is a nonprofit organization that is located in this
state and is exempt from federal income taxation pursuant to 26
U.S.C. 501(a) and (c)(3); a description of the organization's primary
purpose; a description of the type or types of property the
organization needs; and the name, address, and telephone number of a
person designated by the organization's governing board to receive
donated property and to serve as its agent. The written notice may be
submitted electronically to the board or its representative.
After
adoption of the resolution, the board shall continually post in the
board's office notice of its intent to donate school district
property that is unneeded, obsolete, or unfit for use to eligible
nonprofit organizations. If the school district maintains a web site
on the internet, the notice shall be posted continually at that web
site.
The
board or its representatives shall maintain a list of all nonprofit
organizations that notify the board or its representative of their
desire to obtain donated property under this division and that the
board or its representative determines to be eligible, in accordance
with the requirements set forth in this section and in the donation
program's guidelines and procedures, to receive donated property.
The
board or its representative also shall maintain a list of all school
district property the board finds to be unneeded, obsolete, or unfit
for use and to be available for donation under this division. The
list shall be posted continually in a conspicuous location in the
board's office, and, if the school district maintains a web site on
the internet, the list shall be posted continually at that web site.
An item of property on the list shall be donated to the eligible
nonprofit organization that first declares to the board or its
representative its desire to obtain the item unless the board
previously has established, by resolution, a list of eligible
nonprofit organizations that shall be given priority with respect to
the item's donation. Priority may be given on the basis that the
purposes of a nonprofit organization have a direct relationship to
specific school district purposes of programs provided or
administered by the board. A resolution giving priority to certain
nonprofit organizations with respect to the donation of an item of
property shall specify the reasons why the organizations are given
that priority.
Members
of the board shall consult with the Ohio ethics commission, and
comply with Chapters 102. and 2921. of the Revised Code, with respect
to any donation under this division to a nonprofit organization of
which a board member, any member of a board member's family, or any
business associate of a board member is a trustee, officer, board
member, or employee.
Sec.
3313.413.
(A)
As used in this section, "high-performing community school"
means a community school established under Chapter 3314. of the
Revise
Revised
Code
that meets any of the following conditions:
(1)
Except as provided for in division (A)(2) or (3) of this section, the
community school does both of the following:
(a)
The school has a higher performance index score than the school
district in which the school is located on the two most recent report
cards issued under section 3302.03 of the Revised Code.
(b)
The school either has a performance rating of four stars or higher
for progress on the most recent report card issued under section
3302.03 of the Revised Code or is a school described under division
(B)(1) of section 3314.35 of the Revised Code and did not receive a
rating for progress on the most recent report card.
(2)
If the community school serves only grades kindergarten through
three, the school received a performance rating of four stars or
higher for early literacy on its most recent report card issued under
section 3302.03 of the Revised Code.
(3)
If the community school has not commenced operations or has been in
operation for less than one school year, the school meets the
following conditions:
(a)
The school is replicating an operational and instructional model used
by a community school described in division (A)(1) or (2) of this
section.
(b)
The school either:
(i)
Has an operator that received an overall rating of three stars or
higher, or a "C" or higher, on its most recent performance
report published under section 3314.031 of the Revised Code;
(ii)
Does not have an operator and is sponsored by a sponsor that was
rated "exemplary" or "effective" on its most
recent evaluation conducted under section 3314.016 of the Revised
Code.
(B)
When a school district board of education decides to dispose of real
property it owns in its corporate capacity under section 3313.41 of
the Revised Code, the board shall first offer that property to the
governing authorities of all start-up community schools, the boards
of trustees of any college-preparatory boarding schools, and the
governing bodies of any STEM schools that are located within the
territory of the district. Not later than sixty days after the
district board makes the offer, interested governing authorities,
boards of trustees, and governing bodies shall notify the district
treasurer in writing of the intention to purchase the property.
The
district board shall give priority to the governing authorities of
high-performing community schools that are located within the
territory of the district.
(1)
If more than one governing authority of a high-performing community
school notifies the district treasurer of its intention to purchase
the property pursuant to division (B) of this section, the board
shall conduct a public auction in the manner required for auctions of
district property under division (A) of section 3313.41 of the
Revised Code. Only the governing authorities of high-performing
community schools that notified the district treasurer pursuant to
division (B) of this section are eligible to bid at the auction.
(2)
If no governing authority of a high-performing community school
notifies the district treasurer of its intention to purchase the
property pursuant to division (B) of this section, the board shall
then proceed with the offers from all other start-up community
schools, college-preparatory boarding schools, and STEM schools made
pursuant to that division. If more than one such entity notifies the
district treasurer of its intention to purchase the property pursuant
to division (B) of this section, the board shall conduct a public
auction in the manner required for auctions of district property
under division (A) of section 3313.41 of the Revised Code. Only the
entities that notified the district treasurer pursuant to division
(B) of this section are eligible to bid at the auction.
(3)
If no governing authority, board of trustees, or governing body
notifies the district treasurer of its intention to purchase the
property pursuant to division (B) of this section,
the
district shall then offer the property for sale to the governing
board of any educational service center that shares territory with
the district or that has territory that is adjacent to the district's
territory. Not later than sixty days after the district board makes
the offer, interested governing boards shall notify the district
treasurer in writing of the intention to purchase the property.
If
more than one governing board notifies the district treasurer of its
intention to purchase the property pursuant to division (B) of this
section, the district board shall conduct a public auction in the
manner required for auctions of district property under division (A)
of section 3313.41 of the Revised Code. Only the governing boards
that notified the district treasurer pursuant to division (B) of this
section are eligible to bid at the auction.
(4)
If no governing board notifies the district treasurer of its
intention to purchase the property pursuant to division (B) of this
section,
the
district may then offer the property for sale in the manner
prescribed under divisions (A) to (F) of section 3313.41 of the
Revised Code.
(C)
Notwithstanding anything to the contrary in sections 3313.41 and
3313.411 of the Revised Code, the purchase price of any real property
sold to any of the entities in accordance with division (B) of this
section shall not be more than the appraised fair market value of
that property as determined in an appraisal of the property that is
not more than one year old.
(D)
Not later than the first day of October of each year, the department
of education and workforce shall post in a prominent location on its
web site a list of schools that qualify as high-performing community
schools for purposes of this section and section 3313.411 of the
Revised Code.
Sec.
3313.843.
(A)
Notwithstanding division (D) of section 3311.52 of the Revised Code,
this section does not apply to any cooperative education school
district.
(B)(1)
The board of education of each city, exempted village, or local
school district with an average daily student enrollment of sixteen
thousand or less, reported for the district on the most recent report
card issued under section 3302.03 of the Revised Code, shall enter
into an agreement with the governing board of an educational service
center, under which the educational service center governing board
will provide services to the district.
(2)
The board of education of a city, exempted village, or local school
district with an average daily student enrollment of more than
sixteen thousand may enter into an agreement with the governing board
of an educational service center, under which the educational service
center governing board will provide services to the district.
(3)
Services provided under an agreement entered into under division
(B)(1) or (2) of this section shall be specified in the agreement,
and may include any of the following: supervisory teachers;
in-service and continuing education programs for district personnel;
curriculum services; research and development programs; academic
instruction for which the governing board employs teachers pursuant
to section 3319.02 of the Revised Code; assistance in the provision
of special accommodations and classes for students with disabilities;
or any other services the district board and service center governing
board agree can be better provided by the service center and are not
provided under an agreement entered into under section 3313.845 of
the Revised Code. Services included in the agreement shall be
provided to the district in the manner specified in the agreement.
The district board of education shall reimburse the educational
service center governing board pursuant to division (H) of this
section.
(C)
Any agreement entered into pursuant to this section shall be filed
with the department of education and workforce by the first day of
July of the school year for which the agreement is in effect.
(D)(1)
An agreement for services from an educational service center entered
into under this section may be terminated by the school district
board of education, at its option, by notifying the governing board
of the service center by March 1, 2012, or by the first day of
January of any odd-numbered year thereafter, that the district board
intends to terminate the agreement in that year, and that termination
shall be effective on the thirtieth day of June of that year. The
failure of a district board to notify an educational service center
of its intent to terminate an agreement by March 1, 2012, shall
result in renewal of the existing agreement for the following school
year. Thereafter, the failure of a district board to notify an
educational service center of its intent to terminate an agreement by
the first day of January of an odd-numbered year shall result in
renewal of the existing agreement for the following two school years.
(2)
If the school district that terminates an agreement for services
under division (D)(1) of this section is also subject to the
requirement of division (B)(1) of this section, the district board
shall enter into a new agreement with any educational service center
so that the new agreement is effective on the first day of July of
that same year.
(3)
If all moneys owed by a school district to an educational service
center under an agreement for services terminated under division
(D)(1) of this section have been paid in full by the effective date
of the termination, the governing board of the service center shall
submit an affidavit to the department certifying that fact not later
than fifteen days after the termination's effective date.
Notwithstanding anything in the Revised Code to the contrary, until
the department receives such an affidavit, it shall not make any
payments to any other educational service center with which the
district enters into an agreement under this section for services
that the educational service center provides to the district.
(E)
An educational service center may apply to any state or federal
agency for competitive grants. It may also apply to any private
entity for additional funds.
The
department shall ensure that educational service centers are eligible
to participate in any grant program that is available to school
districts and focused on school facility health, safety, and welfare.
(F)
Not later than January 1, 2014, each educational service center shall
post on its web site a list of all of the services that it provides
and the corresponding cost for each of those services.
(G)(1)
For purposes of calculating any state operating subsidy to be paid to
an educational service center for the operation of that service
center and any services required under Title XXXIII of the Revised
Code to be provided by the service center to a school district, the
service center's student count shall be the sum of the total student
counts of all the school districts with which the educational service
center has entered into an agreement under this section.
(2)
When a district enters into a new agreement with a new educational
service center, the department shall ensure that the state operating
subsidy for services provided to the district is paid to the new
educational service center and that the educational service center
with which the district previously had an agreement is no longer paid
a state operating subsidy for providing services to that district.
(H)
Pursuant to division (B) of section 3317.023 of the Revised Code, the
department annually shall deduct from each school district that
enters into an agreement with an educational service center under
this section, and pay to the service center, an amount equal to six
dollars and fifty cents times the school district's total student
count. The district board of education, or the district
superintendent acting on behalf of the district board, may agree to
pay an amount in excess of six dollars and fifty cents per student in
total student count. If a majority of the boards of education, or
superintendents acting on behalf of the boards, of the districts that
entered into an agreement under this section approve an amount in
excess of six dollars and fifty cents per student in total student
count, each district shall pay the excess amount to the service
center.
(I)(1)
An educational service center may enter into a contract to purchase
supplies, materials, equipment, and services, which may include those
specified in division (B) of this section or Chapter 3312. of the
Revised Code, or the delivery of such services, on behalf of a school
district or political subdivision that has entered into an agreement
with the service center under this section or section 3313.844,
3313.845, or 3313.846 of the Revised Code.
(2)
Purchases made by a school district or political subdivision that has
entered into an agreement with the service center as described in
this division are exempt from competitive bidding required by law for
the purchase of supplies, materials, equipment, or services. No
political subdivision shall make any purchase under this division
when the political subdivision has received bids for such purchase,
unless the same terms, conditions, and specifications at a lower
price can be made for such purchase under this division.
(J)
Any school district, community school, or STEM school that has
entered into an agreement with an educational service center under
this section or section 3313.844 or 3313.845 of the Revised Code
shall be in compliance with federal law and exempt from competitive
bidding requirements for personnel-based services pursuant to the
authority granted to the Ohio department of education and workforce
under federal law, provided the service center has met the following
conditions:
(1)
It is in compliance with division (F) of this section.
(2)
It has been designated "high performing" under rule of the
department.
(3)
It has been found to be substantially in compliance with audit rules
and guidelines in its most recent audit by the auditor of state.
(K)
For purposes of this section, a school district's "total student
count" means the average daily student enrollment reported on
the most recent report card issued for the district pursuant to
section 3302.03 of the Revised Code.
Sec.
3318.80.
(A)
As used in this section:
(1)
"Ohio facilities construction commission" has the same
meaning as in section 3318.01 of the Revised Code.
(2)
"Project" means a project to construct or acquire
facilities or to reconstruct or make additions to existing facilities
to be used for housing the applicable educational service center and
its functions.
(3)
"Acquisition of facilities" means constructing,
reconstructing, repairing, or making additions to facilities.
(B)
The educational service center facilities assistance program is
established. Under the program, the Ohio facilities construction
commission shall provide assistance to educational service centers
for the acquisition of facilities to be used for operations or direct
student services.
(C)
The commission shall adopt rules for the administration of the
program. The rules shall include:
(1)
Eligibility requirements for educational service centers to receive
assistance;
(2)
Application procedures;
(3)
Procedures for prioritizing projects;
(4)
Procedures for determining the local share of project costs;
(5)
Procedures for disbursing state funds.
(D)
The commission may provide assistance under this section in the form
of grants, loans, or a combination of grants and loans.
(E)
The commission shall give priority to projects that demonstrate a
local match through levy approval, building donation, land donation,
or other in-kind contributions.
Sec.
3318.81.
(A)
The educational service center revolving loan fund is created in the
state treasury. The fund shall consist of money appropriated to it by
the general assembly and any investment earnings on money in the
fund.
(B)
The treasurer of state may use the fund to support deposit programs
and loan guarantee programs for educational service centers to
finance the acquisition, construction, or renovation of facilities
used to provide direct student services.
(C)
The treasurer of state shall adopt rules necessary for the
implementation and administration of this section.
Section
2.
That
existing sections 3312.01, 3313.41, 3313.413,
and
3313.843 of the Revised Code are hereby repealed.