OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
S.B. 265 Bill Analysis
135th General Assembly
Click here for S.B. 265’s Fiscal Note
Version: As Introduced
Primary Sponsor: Sen. Ingram
Effective Date:
Holly Gilman, Attorney
SUMMARY
Permits a school district to sell property it owns in its corporate capacity valued over
$10,000 to community schools via a private sale without first offering the property at a
public auction.
Eliminates the requirement that a school district must offer to lease or sell certain unused
school facilities to community schools, STEM schools, and college-preparatory boarding
schools.
Eliminates the right of first refusal for community schools, STEM schools, and college-
preparatory boarding schools in the voluntary sale of school district real property.
Eliminates the option for a school district to prioritize the lease or sale of real property to
certain STEM schools.
Maintains a prohibition on community schools, STEM schools, and college-preparatory
boarding schools from selling real property acquired under the repealed involuntary sale
provision within five years after acquiring the property, unless sold to another community
school, STEM school, or college-preparatory boarding school.
DETAILED ANALYSIS
Voluntary sale of district property − community schools
Generally, continuing law requires a school district to offer real property that it owns in
its corporate capacity and that is valued over $10,000 at a public auction prior to selling it via a
private sale. As an exception to that requirement, the bill permits a school district to sell property
May 28, 2024
Office of Research and Drafting LSC Legislative Budget Office
directly to community schools via private sale. Under continuing law, similar exceptions exist for
certain prescribed public entities and chartered nonpublic schools.1
Eliminate right of first refusal to acquire school district property
The bill eliminates the following provisions of current law:
The requirement that a school district must offer to lease or sell certain unused school
facilities to all community schools, STEM schools, and college-preparatory boarding
schools located within the district, or, if the district chooses, to certain community schools
with plans to expand into the district.2
The requirement that a school district must grant a right of first refusal in the voluntary
sale of real property to all start-up community schools, STEM schools, and college-
preparatory boarding schools within that district. Community schools that meet the
statutory definition of “high-performing” are granted priority in such transactions.3
The option for a school district to prioritize the sale or lease of real property to a STEM
school over all other potential buyers, if that STEM school meets certain statutory
requirements.4
These provisions are explained in greater detail under “Background” below.
Prohibition on reselling property
The bill maintains a prohibition on community schools, STEM schools, and college-
preparatory boarding schools that acquired real property under the involuntary sale provision
repealed by the bill from selling that property within five years of acquiring it, unless the property
is being sold or transferred to another community school, STEM school, or college-preparatory
boarding school.5
Background
Involuntary lease or sale of unused school facilities
Current law requires a school district with real property that has been used for school
operations since July 1, 1998, but has not been used for that purpose for one year or any school
building that has been used for direct academic instruction but less than 60% of the building was
used for that purpose in the preceding school year, to offer to lease or sell that property or
building to community schools, college-preparatory boarding schools, and STEM schools located
within the district. Community schools that meet the statutory definition of “high-performing”
must be given priority in such transactions. Districts also may offer the property to existing
1 R.C. 3313.41(C).
2 Repealed R.C. 3313.411.
3 Repealed R.C. 3313.413.
4 Repealed R.C. 3313.412.
5 New R.C. 3313.411. Similar to Repealed R.C. 3313.411(E).
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As Introduced
Office of Research and Drafting LSC Legislative Budget Office
community schools located outside the district, if those schools have plans, stipulated in their
contracts with their sponsors, to relocate to the district.6
“High-performing” community schools
For this purpose and for voluntary sales as described below, the law defines a “high-
performing community school” as one that either:
1. Received a grade of “A,” “B,” or “C” for the performance index score or a performance
rating of three stars or higher for achievement − or has increased its performance index
score for the previous three years, and received a grade of “A” or “B” for the value-added
progress dimension or a performance rating of four stars or higher for progress on its
most recent state report card rating; or
2. If it serves only grades K through 3, has either received a grade of “A” or “B” for making
progress in literacy on its most recent report card or a performance rating of four stars or
higher for early literacy; or
3. If it is a dropout recovery school, received a rating of “exceeds standards” on its most
recent report card.7
Right of first refusal in a voluntary sale
As mentioned above, continuing law establishes procedures a school district must follow
when it voluntarily decides to sell real property valued in excess of $10,000. Generally, those
procedures require offering the property by public auction and then by private sale if it does not
sell when offered at auction. A district may sell the property directly to certain prescribed public
entities and chartered nonpublic schools.8
However, prior to offering the property under any of those procedures, a district must
extend a right of first refusal to start-up community schools, college-preparatory boarding
schools, and STEM schools located within the district. Under this provision, the district must
notify such schools of the property’s availability and give them 60 days to provide a written notice
of their interest in the property. Again, priority must be given to “high-performing” community
schools. If more than one eligible school expresses interest in the property, the district must
conduct an auction among those interested schools.9
Limited sale or lease to a STEM school
A school district may offer for sale or lease any parcel of real property directly to the
governing body of a STEM school without offering it under any other manner described above, if
all of the following conditions apply:
6 Repealed R.C. 3313.411.
7 Repealed R.C. 3313.413(A).
8 R.C. 3313.41(A) to (C).
9 Repealed R.C. 3313.413.
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As Introduced
Office of Research and Drafting LSC Legislative Budget Office
1. The district offered right of first refusal to community schools prior to June 30, 2011, but
the offer was not accepted. (College-preparatory schools and STEM schools were not
included in the right of first refusal provision at that time.)
2. The district has decided again to dispose of it by sale or lease.
3. The STEM school, to which the real property is sold or leased, was approved for operation
between October 1 and December 31, 2012.10
HISTORY
Action Date
Introduced 05-08-24
ANSB0265IN-135/ts
10 Repealed R.C. 3313.412.
P a g e |4 S.B. 265
As Introduced
Statutes affected: As Introduced: 3313.41, 3318.08, 5705.10, 3313.411, 3313.412, 3313.413