SB 377

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  1
  3313.843 and to enact sections 3318.80 and  2
  3318.81 of the Revised Code regarding the sale  3
  of school district property and programs to  4
  support educational service center facilities  5
  projects.  6
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
     Section 1. That sections 3312.01, 3313.41, 3313.413, and  7
3313.843 be amended and sections 3318.80 and 3318.81 of the  8
Revised Code be enacted to read as follows:  9
     Sec. 3312.01. (A) The educational regional service system  10
is hereby established. The system shall support state and  11
regional education initiatives and efforts to improve school  12
effectiveness and student achievement. Services, including  13
special education and related services, shall be provided under  14
the system to school districts, community schools established  15
under Chapter 3314. of the Revised Code, and chartered nonpublic  16
schools.  17
     It is the intent of the general assembly that the  18
educational regional service system reduce the unnecessary  19
duplication of programs and services and provide for a more  20
S. B. No. 377  Page 2
As Introduced
streamlined and efficient delivery of educational services  21
without reducing the availability of the services needed by  22
school districts and schools.  23
       (B) The educational regional service system shall consist  24
of the following:  25
       (1) The advisory councils and subcommittees established  26
under sections 3312.03 and 3312.05 of the Revised Code;  27
       (2) A fiscal agent for each of the regions as configured  28
under section 3312.02 of the Revised Code;  29
       (3) Educational service centers, information technology  30
centers established under section 3301.075 of the Revised Code,  31
and other regional education service providers.  32
       (C) Educational service centers shall provide the services  33
that they are specifically required to provide by the Revised  34
Code and may enter into agreements pursuant to section 3313.843,  35
3313.844, or 3313.845 of the Revised Code for the provision of  36
other services, which may include any of the following:  37
       (1) Assistance in improving student performance;  38
       (2) Services to enable a school district or school to  39
operate more efficiently or economically;  40
       (3) Professional development for teachers or  41
administrators;  42
       (4) Assistance in the recruitment and retention of  43
teachers and administrators;  44
       (5) Applying for any state or federal grant on behalf of a  45
school district;  46
       (6) Any other educational, administrative, or operational  47
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As Introduced
services.  48
       In addition to implementing state and regional education  49
initiatives and school improvement efforts under the educational  50
regional service system, educational service centers shall  51
implement state or federally funded initiatives assigned to the  52
service centers by the general assembly or the department of  53
education and workforce.  54
       Any educational service center selected to be a fiscal  55
agent for its region pursuant to section 3312.07 of the Revised  56
Code shall continue to operate as an educational service center  57
for the part of the region that comprises its territory.  58
       (D) An educational service center shall be considered a  59
school district or a local education agency for the purposes of  60
eligibility in applying for any state or competitive federal  61
grant.  62
       Educational service centers are eligible to participate in  63
and receive support through any grant programs that are  64
available to school districts and focused on school facility  65
health, safety, and welfare.  66
       (E) Information technology centers may enter into  67
agreements for the provision of services pursuant to section  68
3312.10 of the Revised Code.  69
       (F) No school district, community school, or chartered  70
nonpublic school shall be required to purchase services from an  71
educational service center or information technology center in  72
the region in which the district or school is located, except  73
that a local school district shall receive any services required  74
by the Revised Code to be provided by an educational service  75
center to the local school districts in its territory from the  76
S. B. No. 377  Page 4
As Introduced
educational service center in whose territory the district is  77
located.  78
       Sec. 3313.41. (A) Except as provided in divisions (C),  79
(D), and (F) of this section and in sections 3313.412 and  80
3313.413 of the Revised Code, when a board of education decides  81
to dispose of real or personal property that it owns in its  82
corporate capacity and that exceeds in value ten thousand  83
dollars, it shall sell the property at public auction, after  84
giving at least thirty days' notice of the auction by  85
publication in a newspaper of general circulation in the school  86
district, by publication as provided in section 7.16 of the  87
Revised Code, or by posting notices in five of the most public  88
places in the school district in which the property, if it is  89
real property, is situated, or, if it is personal property, in  90
the school district of the board of education that owns the  91
property. The board may offer real property for sale as an  92
entire tract or in parcels.  93
       (B) When the board of education has offered real or  94
personal property for sale at public auction at least once  95
pursuant to division (A) of this section, and the property has  96
not been sold, the board may sell it at a private sale.  97
Regardless of how it was offered at public auction, at a private  98
sale, the board shall, as it considers best, sell real property  99
as an entire tract or in parcels, and personal property in a  100
single lot or in several lots.  101
       (C) If a board of education decides to dispose of real or  102
personal property that it owns in its corporate capacity and  103
that exceeds in value ten thousand dollars, it may sell the  104
property to the adjutant general; to any subdivision or taxing  105
authority as respectively defined in section 5705.01 of the  106
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As Introduced
Revised Code, township park district, board of park  107
commissioners established under Chapter 755. of the Revised  108
Code, or park district established under Chapter 1545. of the  109
Revised Code; to a wholly or partially tax-supported university,  110
university branch, or college; to a nonprofit institution of  111
higher education that has a certificate of authorization under  112
Chapter 1713. of the Revised Code; to the governing authority of  113
a chartered nonpublic school; to the governing board of an  114
educational service center; or to the board of trustees of a  115
school district library, upon such terms as are agreed upon. The  116
sale of real or personal property to the board of trustees of a  117
school district library is limited, in the case of real  118
property, to a school district library within whose boundaries  119
the real property is situated, or, in the case of personal  120
property, to a school district library whose boundaries lie in  121
whole or in part within the school district of the selling board  122
of education.  123
       (D) When a board of education decides to trade as a part  124
or an entire consideration, an item of personal property on the  125
purchase price of an item of similar personal property, it may  126
trade the same upon such terms as are agreed upon by the parties  127
to the trade.  128
       (E) The president and the treasurer of the board of  129
education shall execute and deliver deeds or other necessary  130
instruments of conveyance to complete any sale or trade under  131
this section.  132
       (F) When a board of education has identified a parcel of  133
real property that it determines is needed for school purposes,  134
the board may, upon a majority vote of the members of the board,  135
acquire that property by exchanging real property that the board  136
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owns in its corporate capacity for the identified real property  137
or by using real property that the board owns in its corporate  138
capacity as part or an entire consideration for the purchase  139
price of the identified real property. Any exchange or  140
acquisition made pursuant to this division shall be made by a  141
conveyance executed by the president and the treasurer of the  142
board.  143
       (G) When a school district board of education has property  144
that the board, by resolution, finds is not needed for school  145
district use, is obsolete, or is unfit for the use for which it  146
was acquired, the board may donate that property in accordance  147
with this division if the fair market value of the property is,  148
in the opinion of the board, two thousand five hundred dollars  149
or less.  150
       The property may be donated to an eligible nonprofit  151
organization that is located in this state and is exempt from  152
federal income taxation pursuant to 26 U.S.C. 501(a) and (c)(3).  153
Before donating any property under this division, the board  154
shall adopt a resolution expressing its intent to make unneeded,  155
obsolete, or unfit-for-use school district property available to  156
these organizations. The resolution shall include guidelines and  157
procedures the board considers to be necessary to implement the  158
donation program and shall indicate whether the school district  159
will conduct the donation program or the board will contract  160
with a representative to conduct it. If a representative is  161
known when the resolution is adopted, the resolution shall  162
provide contact information such as the representative's name,  163
address, and telephone number.  164
       The resolution shall include within its procedures a  165
requirement that any nonprofit organization desiring to obtain  166
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donated property under this division shall submit a written  167
notice to the board or its representative. The written notice  168
shall include evidence that the organization is a nonprofit  169
organization that is located in this state and is exempt from  170
federal income taxation pursuant to 26 U.S.C. 501(a) and (c)(3);  171
a description of the organization's primary purpose; a  172
description of the type or types of property the organization  173
needs; and the name, address, and telephone number of a person  174
designated by the organization's governing board to receive  175
donated property and to serve as its agent. The written notice  176
may be submitted electronically to the board or its  177
representative.  178
       After adoption of the resolution, the board shall  179
continually post in the board's office notice of its intent to  180
donate school district property that is unneeded, obsolete, or  181
unfit for use to eligible nonprofit organizations. If the school  182
district maintains a web site on the internet, the notice shall  183
be posted continually at that web site.  184
       The board or its representatives shall maintain a list of  185
all nonprofit organizations that notify the board or its  186
representative of their desire to obtain donated property under  187
this division and that the board or its representative  188
determines to be eligible, in accordance with the requirements  189
set forth in this section and in the donation program's  190
guidelines and procedures, to receive donated property.  191
       The board or its representative also shall maintain a list  192
of all school district property the board finds to be unneeded,  193
obsolete, or unfit for use and to be available for donation  194
under this division. The list shall be posted continually in a  195
conspicuous location in the board's office, and, if the school  196
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district maintains a web site on the internet, the list shall be  197
posted continually at that web site. An item of property on the  198
list shall be donated to the eligible nonprofit organization  199
that first declares to the board or its representative its  200
desire to obtain the item unless the board previously has  201
established, by resolution, a list of eligible nonprofit  202
organizations that shall be given priority with respect to the  203
item's donation. Priority may be given on the basis that the  204
purposes of a nonprofit organization have a direct relationship  205
to specific school district purposes of programs provided or  206
administered by the board. A resolution giving priority to  207
certain nonprofit organizations with respect to the donation of  208
an item of property shall specify the reasons why the  209
organizations are given that priority.  210
       Members of the board shall consult with the Ohio ethics  211
commission, and comply with Chapters 102. and 2921. of the  212
Revised Code, with respect to any donation under this division  213
to a nonprofit organization of which a board member, any member  214
of a board member's family, or any business associate of a board  215
member is a trustee, officer, board member, or employee.  216
       Sec. 3313.413. (A) As used in this section, "high-  217
performing community school" means a community school  218
established under Chapter 3314. of the Revise Revised Code that  219
meets any of the following conditions:  220
       (1) Except as provided for in division (A)(2) or (3) of  221
this section, the community school does both of the following:  222
       (a) The school has a higher performance index score than  223
the school district in which the school is located on the two  224
most recent report cards issued under section 3302.03 of the  225
Revised Code.  226
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        (b) The school either has a performance rating of four  227
stars or higher for progress on the most recent report card  228
issued under section 3302.03 of the Revised Code or is a school  229
described under division (B)(1) of section 3314.35 of the  230
Revised Code and did not receive a rating for progress on the  231
most recent report card.  232
        (2) If the community school serves only grades  233
kindergarten through three, the school received a performance  234
rating of four stars or higher for early literacy on its most  235
recent report card issued under section 3302.03 of the Revised  236
Code.  237
        (3) If the community school has not commenced operations  238
or has been in operation for less than one school year, the  239
school meets the following conditions:  240
        (a) The school is replicating an operational and  241
instructional model used by a community school described in  242
division (A)(1) or (2) of this section.  243
        (b) The school either:  244
        (i) Has an operator that received an overall rating of  245
three stars or higher, or a "C" or higher, on its most recent  246
performance report published under section 3314.031 of the  247
Revised Code;  248
        (ii) Does not have an operator and is sponsored by a  249
sponsor that was rated "exemplary" or "effective" on its most  250
recent evaluation conducted under section 3314.016 of the  251
Revised Code.  252
        (B) When a school district board of education decides to  253
dispose of real property it owns in its corporate capacity under  254
section 3313.41 of the Revised Code, the board shall first offer  255
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that property to the governing authorities of all start-up  256
community schools, the boards of trustees of any college-  257
preparatory boarding schools, and the governing bodies of any  258
STEM schools that are located within the territory of the  259
district. Not later than sixty days after the district board  260
makes the offer, interested governing authorities, boards of  261
trustees, and governing bodies shall notify the district  262
treasurer in writing of the intention to purchase the property.  263
       The district board shall give priority to the governing  264
authorities of high-performing community schools that are  265
located within the territory of the district.  266
       (1) If more than one governing authority of a high-  267
performing community school notifies the district treasurer of  268
its intention to purchase the property pursuant to division (B)  269
of this section, the board shall conduct a public auction in the  270
manner required for auctions of district property under division  271
(A) of section 3313.41 of the Revised Code. Only the governing  272
authorities of high-performing community schools that notified  273
the district treasurer pursuant to division (B) of this section  274
are eligible to bid at the auction.  275
       (2) If no governing authority of a high-performing  276
community school notifies the district treasurer of its  277
intention to purchase the property pursuant to division (B) of  278
this section, the board shall then proceed with the offers from  279
all other start-up community schools, college-preparatory  280
boarding schools, and STEM schools made pursuant to that  281
division. If more than one such entity notifies the district  282
treasurer of its intention to purchase the property pursuant to  283
division (B) of this section, the board shall conduct a public  284
auction in the manner required for auctions of district property  285
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under division (A) of section 3313.41 of the Revised Code. Only  286
the entities that notified the district treasurer pursuant to  287
division (B) of this section are eligible to bid at the auction.  288
       (3) If no governing authority, board of trustees, or  289
governing body notifies the district treasurer of its intention  290
to purchase the property pursuant to division (B) of this  291
section, the district shall then offer the property for sale to  292
the governing board of any educational service center that  293
shares territory with the district or that has territory that is  294
adjacent to the district's territory. Not later than sixty days  295
after the district board makes the offer, interested governing  296
boards shall notify the district treasurer in writing of the  297
intention to purchase the property.  298
       If more than one governing board notifies the district  299
treasurer of its intention to purchase the property pursuant to  300
division (B) of this section, the district board shall conduct a  301
public auction in the manner required for auctions of district  302
property under division (A) of section 3313.41 of the Revised  303
Code. Only the governing boards that notified the district  304
treasurer pursuant to division (B) of this section are eligible  305
to bid at the auction.  306
       (4) If no governing board notifies the district treasurer  307
of its intention to purchase the property pursuant to division  308
(B) of this section, the district may then offer the property  309
for sale in the manner prescribed under divisions (A) to (F) of  310
section 3313.41 of the Revised Code.  311
       (C) Notwithstanding anything to the contrary in sections  312
3313.41 and 3313.411 of the Revised Code, the purchase price of  313
any real property sold to any of the entities in accordance with  314
division (B) of this section shall not be more than the  315
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appraised fair market value of that property as determined in an  316
appraisal of the property that is not more than one year old.  317
       (D) Not later than the first day of October of each year,  318
the department of education and workforce shall post in a  319
prominent location on its web site a list of schools that  320
qualify as high-performing community schools for purposes of  321
this section and section 3313.411 of the Revised Code.  322
       Sec. 3313.843. (A) Notwithstanding division (D) of section  323
3311.52 of the Revised Code, this section does not apply to any  324
cooperative education school district.  325
       (B)(1) The board of education of each city, exempted  326
village, or local school district with an average daily student  327
enrollment of sixteen thousand or less, reported for the  328
district on the most recent report card issued under section  329
3302.03 of the Revised Code, shall enter into an agreement with  330
the governing board of an educational service center, under  331
which the educational service center governing board will  332
provide services to the district.  333
       (2) The board of education of a city, exempted village, or  334
local school district with an average daily student enrollment  335
of more than sixteen thousand may enter into an agreement with  336
the governing board of an educational service center, under  337
which the educational service center governing board will  338
provide services to the district.  339
       (3) Services provided under an agreement entered into  340
under division (B)(1) or (2) of this section shall be specified  341
in the agreement, and may include any of the following:  342
supervisory teachers; in-service and continuing education  343
programs for district personnel; curriculum services; research  344
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As Introduced
and development programs; academic instruction for which the  345
governing board employs teachers pursuant to section 3319.02 of  346
the Revised Code; assistance in the provision of special  347
accommodations and classes for students with disabilities; or  348
any other services the district board and service center  349
governing board agree can be better provided by the service  350
center and are not provided under an agreement entered into  351
under section 3313.845 of the Revised Code. Services included in  352
the agreement shall be provided to the district in the manner  353
specified in the agreement. The district board of education  354
shall reimburse the educational service center governing board  355
pursuant to division (H) of this section.  356
       (C) Any agreement entered into pursuant to this section  357
shall be filed with the department of education and workforce by  358
the first day of July of the school year for which the agreement  359
is in effect.  360
       (D)(1) An agreement for services from an educational  361
service center entered into under this section may be terminated  362
by the school district board of education, at its option, by  363
notifying the governing board of the service center by March 1,  364
2012, or by the first day of January of any odd-numbered year  365
thereafter, that the district board intends to terminate the  366
agreement in that year, and that termination shall be effective  367
on the thirtieth day of June of that year. The failure of a  368
district board to notify an educational service center of its  369
intent to terminate an agreement by March 1, 2012, shall result  370
in renewal of the existing agreement for the following school  371
year. Thereafter, the failure of a district board to notify an  372
educational service center of its intent to terminate an  373
agreement by the first day of January of an odd-numbered year  374
shall result in renewal of the existing agreement for the  375
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following two school years.  376
       (2) If the school district that terminates an agreement  377
for services under division (D)(1) of this section is also  378
subject to the requirement of division (B)(1) of this section,  379
the district board shall enter into a new agreement with any  380
educational service center so that the new agreement is  381
effective on the first day of July of that same year.  382
       (3) If all moneys owed by a school district to an  383
educational service center under an agreement for services  384
terminated under division (D)(1) of this section have been paid  385
in full by the effective date of the termination, the governing  386
board of the service center shall submit an affidavit to the  387
department certifying that fact not later than fifteen days  388
after the termination's effective date. Notwithstanding anything  389
in the Revised Code to the contrary, until the department  390
receives such an affidavit, it shall not make any payments to  391
any other educational service center with which the district  392
enters into an agreement under this section for services that  393
the educational service center provides to the district.  394
       (E) An educational service center may apply to any state  395
or federal agency for competitive grants. It may also apply to  396
any private entity for additional funds.  397
       The department shall ensure that educational service  398
centers are eligible to participate in any grant program that is  399
available to school districts and focused on school facility  400
health, safety, and welfare.  401
       (F) Not later than January 1, 2014, each educational  402
service center shall post on its web site a list of all of the  403
services that it provides and the corresponding cost for each of  404
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those services.  405
       (G)(1) For purposes of calculating any state operating  406
subsidy to be paid to an educational service center for the  407
operation of that service center and any services required under  408
Title XXXIII of the Revised Code to be provided by the service  409
center to a school district, the service center's student count  410
shall be the sum of the total student counts of all the school  411
districts with which the educational service center has entered  412
into an agreement under this section.  413
       (2) When a district enters into a new agreement with a new  414
educational service center, the department shall ensure that the  415
state operating subsidy for services provided to the district is  416
paid to the new educational service center and that the  417
educational service center with which the district previously  418
had an agreement is no longer paid a state operating subsidy for  419
providing services to that district.  420
       (H) Pursuant to division (B) of section 3317.023 of the  421
Revised Code, the department annually shall deduct from each  422
school district that enters into an agreement with an  423
educational service center under this section, and pay to the  424
service center, an amount equal to six dollars and fifty cents  425
times the school district's total student count. The district  426
board of education, or the district superintendent acting on  427
behalf of the district board, may agree to pay an amount in  428
excess of six dollars and fifty cents per student in total  429
student count. If a majority of the boards of education, or  430
superintendents acting on behalf of the boards, of the districts  431
that entered into an agreement under this section approve an  432
amount in excess of six dollars and fifty cents per student in  433
total student count, each district shall pay the excess amount  434
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to the service center.  435
       (I)(1) An educational service center may enter into a  436
contract to purchase supplies, materials, equipment, and  437
services, which may include those specified in division (B) of  438
this section or Chapter 3312. of the Revised Code, or the  439
delivery of such services, on behalf of a school district or  440
political subdivision that has entered into an agreement with  441
the service center under this section or section 3313.844,  442
3313.845, or 3313.846 of the Revised Code.  443
       (2) Purchases made by a school district or political  444
subdivision that has entered into an agreement with the service  445
center as described in this division are exempt from competitive  446
bidding required by law for the purchase of supplies, materials,  447
equipment, or services. No political subdivision shall make any  448
purchase under this division when the political subdivision has  449
received bids for such purchase, unless the same terms,  450
conditions, and specifications at a lower price can be made for  451
such purchase under this division.  452
       (J) Any school district, community school, or STEM school  453
that has entered into an agreement with an educational service  454
center under this section or section 3313.844 or 3313.845 of the  455
Revised Code shall be in compliance with federal law and exempt  456
from competitive bidding requirements for personnel-based  457
services pursuant to the authority granted to the Ohio  458
department of education and workforce under federal law,  459
provided the service center has met the following conditions:  460
       (1) It is in compliance with division (F) of this section.  461
       (2) It has been designated "high performing" under rule of  462
the department.  463
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       (3) It has been found to be substantially in compliance  464
with audit rules and guidelines in its most recent audit by the  465
auditor of state.  466
       (K) For purposes of this section, a school district's  467
"total student count" means the average daily student enrollment  468
reported on the most recent report card issued for the district  469
pursuant to section 3302.03 of the Revised Code.  470
       Sec. 3318.80. (A) As used in this section:  471
       (1) "Ohio facilities construction commission" has the same  472
meaning as in section 3318.01 of the Revised Code.  473
       (2) "Project" means a project to construct or acquire  474
facilities or to reconstruct or make additions to existing  475
facilities to be used for housing the applicable educational  476
service center and its functions.  477
       (3) "Acquisition of facilities" means constructing,  478
reconstructing, repairing, or making additions to facilities.  479
       (B) The educational service center facilities assistance  480
program is established. Under the program, the Ohio facilities  481
construction commission shall provide assistance to educational  482
service centers for the acquisition of facilities to be used for  483
operations or direct student services.  484
       (C) The commission shall adopt rules for the  485
administration of the program. The rules shall include:  486
       (1) Eligibility requirements for educational service  487
centers to receive assistance;  488
       (2) Application procedures;  489
       (3) Procedures for prioritizing projects;  490
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       (4) Procedures for determining the local share of project  491
costs;  492
       (5) Procedures for disbursing state funds.  493
       (D) The commission may provide assistance under this  494
section in the form of grants, loans, or a combination of grants  495
and loans.  496
       (E) The commission shall give priority to projects that  497
demonstrate a local match through levy approval, building  498
donation, land donation, or other in-kind contributions.  499
       Sec. 3318.81. (A) The educational service center revolving  500
loan fund is created in the state treasury. The fund shall  501
consist of money appropriated to it by the general assembly and  502
any investment earnings on money in the fund.  503
       (B) The treasurer of state may use the fund to support  504
deposit programs and loan guarantee programs for educational  505
service centers to finance the acquisition, construction, or  506
renovation of facilities used to provide direct student  507
services.  508
       (C) The treasurer of state shall adopt rules necessary for  509
the implementation and administration of this section.  510
       Section 2. That existing sections 3312.01, 3313.41,  511
3313.413, and 3313.843 of the Revised Code are hereby repealed.  512