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As Introduced
136th
General Assembly
Regular
Session
S. B. No. 49
2025-2026
Senator Ingram
A
BILL
To
amend sections 3313.41, 3318.08, and 5705.10; to enact new section
3313.411; and to repeal sections 3313.411, 3313.412, and 3313.413 of
the Revised Code
to
eliminate the right of first refusal for certain schools in the
acquisition of school district real property.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 3313.41, 3318.08, and 5705.10 be amended and new section
3313.411 of the Revised Code be enacted to read as follows:
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
or a community school established under Chapter 3314. of the Revised
Code
;
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.
3313.411.
(A)
Except as provided in division (B) of this section, the governing
authority of a community school, the board of trustees of a
college-preparatory boarding school, or the governing body of a STEM
school shall not sell any property purchased under division (B) of
section 3313.411 of the Revised Code as it existed prior to the
effective date of this section within five years of purchasing that
property.
(B)
The governing authority, board of trustees, or governing body may
sell a property purchased under division (B) of section 3313.411 of
the Revised Code as it existed prior to the effective date of this
section within five years of the purchase, only if the governing
authority, board of trustees, or governing body sells or transfers
that property to another governing authority, board of trustees, or
governing body.
Sec.
3318.08.
Except
in the case of a joint vocational school district that receives
assistance under sections 3318.40 to 3318.45 of the Revised Code, if
the requisite favorable vote on the election is obtained, or if the
school district board has resolved to apply the proceeds of a
property tax levy or the proceeds of an income tax, or a combination
of proceeds from such taxes, as authorized in section 3318.052 of the
Revised Code, the Ohio facilities construction commission, upon
certification to it of either the results of the election or the
resolution under section 3318.052 of the Revised Code, shall enter
into a written agreement with the school district board for the
construction and sale of the project. In the case of a joint
vocational school district that receives assistance under sections
3318.40 to 3318.45 of the Revised Code, if the school district board
of education and the school district electors have satisfied the
conditions prescribed in division (D)(1) of section 3318.41 of the
Revised Code, the commission shall enter into an agreement with the
school district board for the construction and sale of the project.
In either case, the agreement shall include, but need not be limited
to, the following provisions:
(A)
The sale and issuance of bonds or notes in anticipation thereof, as
soon as practicable after the execution of the agreement, in an
amount equal to the school district's portion of the basic project
cost, including any securities authorized under division (J) of
section 133.06 of the Revised Code and dedicated by the school
district board to payment of the district's portion of the basic
project cost of the project; provided, that if at that time the
county treasurer of each county in which the school district is
located has not commenced the collection of taxes on the general
duplicate of real and public utility property for the year in which
the controlling board approved the project, the school district board
shall authorize the issuance of a first installment of bond
anticipation notes in an amount specified by the agreement, which
amount shall not exceed an amount necessary to raise the net bonded
indebtedness of the school district as of the date of the controlling
board's approval to within five thousand dollars of the required
level of indebtedness for the preceding year. In the event that a
first installment of bond anticipation notes is issued, the school
district board shall, as soon as practicable after the county
treasurer of each county in which the school district is located has
commenced the collection of taxes on the general duplicate of real
and public utility property for the year in which the controlling
board approved the project, authorize the issuance of a second and
final installment of bond anticipation notes or a first and final
issue of bonds.
The
combined value of the first and second installment of bond
anticipation notes or the value of the first and final issue of bonds
shall be equal to the school district's portion of the basic project
cost. The proceeds of any such bonds shall be used first to retire
any bond anticipation notes. Otherwise, the proceeds of such bonds
and of any bond anticipation notes, except the premium and accrued
interest thereon, shall be deposited in the school district's project
construction fund. In determining the amount of net bonded
indebtedness for the purpose of fixing the amount of an issue of
either bonds or bond anticipation notes, gross indebtedness shall be
reduced by moneys in the bond retirement fund only to the extent of
the moneys therein on the first day of the year preceding the year in
which the controlling board approved the project. Should there be a
decrease in the tax valuation of the school district so that the
amount of indebtedness that can be incurred on the tax duplicates for
the year in which the controlling board approved the project is less
than the amount of the first installment of bond anticipation notes,
there shall be paid from the school district's project construction
fund to the school district's bond retirement fund to be applied
against such notes an amount sufficient to cause the net bonded
indebtedness of the school district, as of the first day of the year
following the year in which the controlling board approved the
project, to be within five thousand dollars of the required level of
indebtedness for the year in which the controlling board approved the
project. The maximum amount of indebtedness to be incurred by any
school district board as its share of the cost of the project is
either an amount that will cause its net bonded indebtedness, as of
the first day of the year following the year in which the controlling
board approved the project, to be within five thousand dollars of the
required level of indebtedness, or an amount equal to the required
percentage of the basic project costs, whichever is greater. All
bonds and bond anticipation notes shall be issued in accordance with
Chapter 133. of the Revised Code, and notes may be renewed as
provided in section 133.22 of the Revised Code.
(B)
The transfer of such funds of the school district board available for
the project, together with the proceeds of the sale of the bonds or
notes, except premium, accrued interest, and interest included in the
amount of the issue, to the school district's project construction
fund;
(C)
For all school districts except joint vocational school districts
that receive assistance under sections 3318.40 to 3318.45 of the
Revised Code, the following provisions as applicable:
(1)
If section 3318.052 of the Revised Code applies, the earmarking of
the proceeds of a tax levied under section 5705.21 of the Revised
Code for general permanent improvements or under section 5705.218 of
the Revised Code for the purpose of permanent improvements, or the
proceeds of a school district income tax levied under Chapter 5748.
of the Revised Code, or the proceeds from a combination of those two
taxes, in an amount to pay all or part of the service charges on
bonds issued to pay the school district portion of the project and an
amount equivalent to all or part of the tax required under division
(B) of section 3318.05 of the Revised Code;
(2)
If section 3318.052 of the Revised Code does not apply, one of the
following:
(a)
The levy of the tax authorized at the election for the payment of
maintenance costs, as specified in division (B) of section 3318.05 of
the Revised Code;
(b)
If the school district electors have approved a continuing tax for
general permanent improvements under section 5705.21 of the Revised
Code and that tax can be used for maintenance, the earmarking of an
amount of the proceeds from such tax for maintenance of classroom
facilities as specified in division (B) of section 3318.05 of the
Revised Code;
(c)
If, in lieu of the tax otherwise required under division (B) of
section 3318.05 of the Revised Code, the commission has approved the
transfer of money to the maintenance fund in accordance with section
3318.051 of the Revised Code, a requirement that the district board
comply with the provisions of that section. The district board may
rescind the provision prescribed under division (C)(2)(c) of this
section only so long as the electors of the district have approved,
in accordance with section 3318.063 of the Revised Code, the levy of
a tax for the maintenance of the classroom facilities acquired under
the district's project and that levy continues to be collected as
approved by the electors.
(D)
For joint vocational school districts that receive assistance under
sections 3318.40 to 3318.45 of the Revised Code, provision for
deposit of school district moneys dedicated to maintenance of the
classroom facilities acquired under those sections as prescribed in
section 3318.43 of the Revised Code;
(E)
Dedication of any local donated contribution as provided for under
section 3318.084 of the Revised Code, including a schedule for
depositing such moneys applied as an offset of the district's
obligation to levy the tax described in division (B) of section
3318.05 of the Revised Code as required under division (D)(2) of
section 3318.084 of the Revised Code;
(F)
Ownership of or interest in the project during the period of
construction, which shall be divided between the commission and the
school district board in proportion to their respective contributions
to the school district's project construction fund;
(G)
Maintenance of the state's interest in the project until any
obligations issued for the project under section 3318.26 of the
Revised Code are no longer outstanding;
(H)
The insurance of the project by the school district from the time
there is an insurable interest therein and so long as the state
retains any ownership or interest in the project pursuant to division
(F) of this section, in such amounts and against such risks as the
commission shall require; provided, that the cost of any required
insurance until the project is completed shall be a part of the basic
project cost;
(I)
The certification by the director of budget and management that funds
are available and have been set aside to meet the state's share of
the basic project cost as approved by the controlling board pursuant
to either section 3318.04 or division (B)(1) of section 3318.41 of
the Revised Code;
(J)
Authorization of the school district board to advertise for and
receive construction bids for the project, for and on behalf of the
commission, and to award contracts in the name of the state subject
to approval by the commission;
(K)
Provisions for the disbursement of moneys from the school district's
project account upon issuance by the commission or the commission's
designated representative of vouchers for work done to be certified
to the commission by the treasurer of the school district board;
(L)
Disposal of any balance left in the school district's project
construction fund upon completion of the project;
(M)
Limitations upon use of the project or any part of it so long as any
obligations issued to finance the project under section 3318.26 of
the Revised Code are outstanding;
(N)
Provision for vesting the state's interest in the project to the
school district board when the obligations issued to finance the
project under section 3318.26 of the Revised Code are outstanding;
(O)
Provision for deposit of an executed copy of the agreement in the
office of the commission;
(P)
Provision for termination of the contract and release of the funds
encumbered at the time of the conditional approval, if the proceeds
of the sale of the bonds of the school district board are not paid
into the school district's project construction fund and if bids for
the construction of the project have not been taken within such
period after the execution of the agreement as may be fixed by the
commission;
(Q)
A provision that requires the school district to adhere to a
facilities maintenance plan approved by the commission;
(R)
Provision that all state funds reserved and encumbered to pay the
state share of the cost of the project and the funds provided by the
school district to pay for its share of the project cost, including
the respective shares of the cost of a segment if the project is
divided into segments, be spent on the construction and acquisition
of the project or segment simultaneously in proportion to the state's
and the school district's respective shares of that basic project
cost as determined under section 3318.032 of the Revised Code or, if
the district is a joint vocational school district, under section
3318.42 of the Revised Code. However, if the school district
certifies to the commission that expenditure by the school district
is necessary to maintain the federal tax status or tax-exempt status
of notes or bonds issued by the school district to pay for its share
of the project cost or to comply with applicable temporary investment
periods or spending exceptions to rebate as provided for under
federal law in regard to those notes or bonds, the school district
may commit to spend, or spend, a greater portion of the funds it
provides during any specific period than would otherwise be required
under this division.
(S)
A provision stipulating that the commission may prohibit the district
from proceeding with any project if the commission determines that
the site is not suitable for construction purposes. The commission
may perform soil tests in its determination of whether a site is
appropriate for construction purposes.
(T)
A provision stipulating that, unless otherwise authorized by the
commission, any contingency reserve portion of the construction
budget prescribed by the commission shall be used only to pay costs
resulting from unforeseen job conditions, to comply with rulings
regarding building and other codes, to pay costs related to design
clarifications or corrections to contract documents, and to pay the
costs of settlements or judgments related to the project as provided
under section 3318.086 of the Revised Code;
(U)
A provision stipulating that for continued release of project funds
the school district board shall comply with
sections
section
3313.41
,
3313.411, and 3313.413
of the Revised Code throughout the project and shall notify the
department of education and workforce and the Ohio community school
association when the board plans to dispose of facilities by sale
under that section;
(V)
A provision stipulating that the commission shall not approve a
contract for demolition of a facility until the school district board
has complied with
sections
section
3313.41
,
3313.411,
and 3313.413
of the Revised Code relative to that facility, unless demolition of
that facility is to clear a site for construction of a replacement
facility included in the district's project.
Sec.
5705.10.
(A)
All revenue derived from the general levy for current expense within
the ten-mill limitation, from any general levy for current expense
authorized by vote in excess of the ten-mill limitation, and from
sources other than the general property tax, unless its use for a
particular purpose is prescribed by law, shall be paid into the
general fund.
(B)
All revenue derived from general or special levies for debt charges,
whether within or in excess of the ten-mill limitation, which is
levied for the debt charges on serial bonds, notes, or certificates
of indebtedness having a life less than five years, shall be paid
into the bond retirement fund; and all such revenue which is levied
for the debt charges on all other bonds, notes, or certificates of
indebtedness shall be paid into the sinking fund.
(C)
All revenue derived from a special levy shall be credited to a
special fund for the purpose for which the levy was made.
(D)
Except as otherwise provided by resolution adopted pursuant to
section 3315.01 of the Revised Code, all revenue derived from a
source other than the general property tax and which the law
prescribes shall be used for a particular purpose, shall be paid into
a special fund for such purpose. Except as otherwise provided by
resolution adopted pursuant to section 3315.01 of the Revised Code or
as otherwise provided by section 3315.40 of the Revised Code, all
revenue derived from a source other than the general property tax,
for which the law does not prescribe use for a particular purpose,
including interest earned on the principal of any special fund,
regardless of the source or purpose of the principal, shall be paid
into the general fund.
(E)
All proceeds from the sale of public obligations or fractionalized
interests in public obligations as defined in section 133.01 of the
Revised Code, except premium and accrued interest, shall be paid into
a special fund for the purpose of such issue, and any interest and
other income earned on money in such special fund may be used for the
purposes for which the indebtedness was authorized or may be credited
to the general fund or other fund or account as the taxing authority
authorizes and used for the purposes of that fund or account. The
premium and accrued interest received from such sale shall be paid
into the sinking fund or the bond retirement fund of the subdivision.
(F)
Except as provided in divisions (G) and (H) of this section, if a
permanent improvement of the subdivision is sold, the amount received
from the sale shall be paid into the sinking fund, the bond
retirement fund, or a special fund for the construction or
acquisition of permanent improvements; provided that the proceeds
from the sale of a public utility shall be paid into the sinking fund
or bond retirement fund to the extent necessary to provide for the
retirement of the outstanding indebtedness incurred in the
construction or acquisition of such utility. Proceeds from the sale
of property other than a permanent improvement shall be paid into the
fund from which such property was acquired or is maintained or, if
there is no such fund, into the general fund.
(G)
A township that has a population greater than fifteen thousand
according to the most recent federal decennial census and that has
declared one or more improvements in the township to be a public
purpose under section 5709.73 of the Revised Code may pay proceeds
from the sale of a permanent improvement of the township into its
general fund if both of the following conditions are satisfied:
(1)
The township fiscal officer determines that all foreseeable public
infrastructure improvements, as defined in section 5709.40 of the
Revised Code, to be made in the township in the ten years immediately
following the date the permanent improvement is sold will have been
financed through resolutions adopted under section 5709.73 of the
Revised Code on or before the date of the sale. The fiscal officer
shall provide written certification of this determination for the
township's records.
(2)
The permanent improvement being sold was financed entirely from
moneys in the township's general fund.
(H)
If a board of education of a school district disposes of real
property under section 3313.41
,
3313.411, or 3313.413
of the Revised Code, the proceeds received on or after September 29,
2013, from the sale shall be used for either of the following
purposes:
(1)
The retirement of any debt that was incurred by the district with
respect to that real property. Proceeds in excess of the funds
necessary to retire that debt may be paid into the school district's
capital and maintenance fund and used only to pay for the costs of
nonoperating capital expenses related to technology infrastructure
and equipment to be used for instruction and assessment.
(2)
Payment into a special fund for the construction or acquisition of
permanent improvements.
(I)
Money paid into any fund shall be used only for the purposes for
which such fund is established.
Section
2.
That
existing sections 3313.41, 3318.08, and 5705.10 of the Revised Code
are hereby repealed.
Section
3.
That
sections 3313.411, 3313.412, and 3313.413 of the Revised Code are
hereby repealed.