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Senate committee hears bill to remove right of first refusal for certain schools on surplus district property
Summary
Senate Bill 49 would eliminate a preferential right of first refusal currently given to certain schools when Ohio school districts sell surplus property; sponsor said the change would broaden buyers, increase sale revenue and give districts more flexibility.
Senator Ingram, sponsor of Senate Bill 49, told the Senate Education Committee the bill would eliminate the existing right of first refusal that gives certain schools, including charter and private institutions, priority to purchase surplus district property. The sponsor said removing that right would "level the playing field," allow districts to consider a broader range of buyers and potentially increase revenue that can be reinvested into educational programs.
Committee members questioned the need for the change, noting that existing rights of first refusal often pass unsold property to the general public if eligible schools decline to buy within specified timeframes. The sponsor said the process can cause delays and that the current right can enable third-party investors or quasi-partners to acquire property on behalf of an eligible school, leaving the district unable to reclaim the property if the school later ceases operations. The sponsor offered to provide examples to committee members of problematic sales and said some districts, such as Cincinnati, have faced challenges when properties were bought by partners or investors.
The committee recorded the exchange as the first hearing on Senate Bill 49 and took no vote.
