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Bill Summary · SB 417

Summary of SB 417 (Ohio, 136th General Assembly) – ASSET Act

Purpose and overall intent
- SB 417, titled the Advancing Strategic State and Military Asset Efficiency and Transformation (ASSET) Act, authorizes expanded use of private-sector arrangements to optimize state-owned, university-owned, and Adjutant General (military) property.
- The core idea is to enable enhanced lease agreements and development arrangements to utilize unproductive or idle land and buildings, while preserving eventual state ownership and control.

Key provisions and changes
- Enhanced lease agreements with private entities (new section 123.012)
- With controlling board approval, DAS may enter into an enhanced lease on unproductive/unused state real property.
- Authorized uses include:
- Commercial activity
- Research advancing a state economic interest
- Public-private partnerships that combine 1 and 2
- Terms and details the agreement must cover:
- Lease value
- Whether in-kind improvements or infrastructure would be provided by the private entity
- Any construction, demolition, or redevelopment planned
- Development requirements consistent with state/federal law, environmental review, security, transparency, and fair market value assessment
- Limitations:
- Lease term not to exceed 99 years
- Cannot authorize activities that would interfere with core government or military functions on adjacent property
- End of term: buildings and improvements revert to the state at no cost

  • State agency and university land leasing (revisions to 123.01, 123.17)

    • DAS, university boards, and the Adjutant General may lease or grant easements for unproductive lands, with terms aligned to the entity resource (state agencies, universities, or the Adjutant General).
    • Land leases may cover up to 25 years for university land (up to 40 years with renewal for utilities or other tenants) and up to 15 years for other state lands, with longer University-land terms allowed for public utilities or other state contracts.
    • Leases may support public utilities or other state needs under existing law (123.17 and related sections).

  • University and Adjutant General development leases (SB 417, 123.17)

    • Universities and the Adjutant General may lease land to developers to establish/expand industrial, commercial, residential, or other facilities.
    • Development plans must be approved by the university board or Adjutant General, with caselined timelines for construction.
    • Revenue from these leases goes to the respective university or Adjutant General appropriation.

  • Adjutant General property authority (Sec. 5913.09)

    • Clarifies and expands the Adjutant General’s authority to lease, improve, and manage property, with mechanisms to authorize leasing through the DAS, consistent with governing rules and governance.

  • Administrative and governance matters

    • Enhanced lease provisions require compliance with applicable laws, environmental and security reviews, and public transparency standards.
    • Provisions ensure that any private-use arrangements eventually transfer ownership of improvements to the state at no cost.

Administrative details
- Repeal and relocation: The act repeals existing sections 123.01, 123.17, and 5913.09 and replaces them with revised language under the ASSET framework.
- Known sponsor: Senator Gavarone (co-sponsor Theresa Gavarone).

Potential impact and considerations
- Creates structured pathways for public-private partnerships to activate underutilized state and university lands.
- Aims to improve infrastructure, stimulate economic development, and potentially reduce capital outlays by leveraging private investment.
- Maintains long-term state ownership of land and improvements, with a transfer of ownership to the state at the end of lease terms.
- Requires careful oversight to prevent conflicts with core government or military functions and to ensure transparency, fair market value, and appropriate environmental reviews.

Compiled from official sources — confirm details with the bill’s official record.

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