Bill
SB 377
Establishes funding paths and priority access for Educational Service Centers to acquire/renovate facilities, plus new property-sale options and grants eligibility.
District/Session: Ohio, 136th General Assembly, Regular Session
Sponsor: Sen. Gavarone (co-sponsor: Sen. Theresa Gavarone)
Bill Number: S. B. No. 377
Requested Title: Regards school district property, educational service center facilities
Purpose and intent
- Create and expand state-level support for Educational Service Centers (ESCs) in Ohio.
- Clarify ESCs’ eligibility for grants and funding programs, and establish dedicated facilities programs and a revolving loan fund to assist ESCs with acquiring, constructing, or improving facilities.
- Modify the process by which school districts dispose of real property valued above $10,000 to include ESCs as potential purchasers, potentially reducing costs and facilitating ESC access to district facilities.
- Clarify and codify relationships between ESCs and school districts in terms of services, governance, and fiscal arrangements.
Key provisions and changes
1) Educational Regional Service System and ESC role (amendments to sections 3312.01, 3313.41, 3313.413, 3313.843)
- Establishes the educational regional service system to support state and regional education initiatives and improve school effectiveness and student achievement.
- Defines components: advisory councils, regional fiscal agents, educational service centers (ESCs), and information technology centers.
- ESCs may provide required services and may enter agreements for additional services (e.g., professional development, grants administration, recruitment/retention support, operating efficiency, etc.).
- ESCs must implement state or federally funded initiatives assigned by the General Assembly or the Department of Education and Workforce (ODEW).
- ESCs designated as fiscal agents for their region continue to operate within their territory.
- ESCs can participate in and receive support from grant programs for facility health, safety, and welfare (with ODEW ensuring eligibility).
- ESCs are considered school districts/LEAs for grant eligibility purposes.
- ESCs may engage in cooperative IT services and other arrangements; districts are not required to purchase ESC services, except that districts must obtain required services from the ESC serving its territory.
2) Voluntary sale of school district property (amendments to sections 3313.41, 3313.413)
- Modifies the right of first refusal for districts selling real or personal property valued over $10,000.
- If no community school, college-prep boarding school, or STEM school within the district offers to purchase, the district must offer the property to ESCs that share territory or have adjacent territory before proceeding to other buyers/purchasers.
- ESC governing boards must notify the district treasurer within 60 days of the district’s property offering.
- If more than one ESC expresses interest, a public auction is held limited to those ESCs; else, the property can be sold via private sale or public auction per existing rules.
- Adds ESCs to the list of entities to which districts may privately sell property exceeding $10,000 in value (in lieu of a public auction).
3) ESC facilities and financing programs (new sections 3318.80 and 3318.81)
- Establishes the Educational Service Center Facilities Assistance Program (ESC-FAP) under the Ohio Facilities Construction Commission (OFCC).
- OFCC may provide grants, loans, or a combination to ESCs for acquiring facilities used for operations or direct student services, including construction, reconstruction, repair, or additions.
- OFCC rules to cover eligibility, application, project prioritization, local cost share, and disbursement.
- Priority given to projects with local match (levies, donations, in-kind contributions, etc.).
- Establishes the Educational Service Center Revolving Loan Fund (ESC Revolving Loan Fund) in the state treasury.
- Fund supports deposit and loan guarantee programs to finance ESC facility acquisition/construction/renovation.
- Fund capitalization is to be provided by the General Assembly; investment earnings accrue to the fund.
- The Treasurer of State will adopt rules for administration.
- Fiscal and administrative notes indicate potential increases in OFCC program obligations and administrative costs, and that the revolving fund requires an appropriation before programs can operate.
4) Additional provisions
- Clarifies that ESCs can apply for state/federal grants focused on facility health, safety, and welfare, with OFCC ensuring ESC eligibility for such programs.
- Requires OFCC to publish project lists and prioritization criteria; annual reporting and rulemaking to implement ESC-FAP and the revolving loan fund.
- Ensures that participation rules and costs follow existing state procurement and bidding laws, with some exemptions for ESC-provisioned purchases when under agreement with an ESC.
Effective date and status
- Introduced and referred to committee on March 25, 2026.
- Contemplated to become effective upon enactment, with rules and initial administrative steps following passage.
Potential impact and considerations
Notes for readers
- The bill focuses on enabling ESCs to access new facilities funding and clarifying their role in property transactions and grant eligibility, with a view toward reducing duplication and improving efficiency in how education-related services and facilities are managed in Ohio.
Compiled from official sources — confirm details with the bill’s official record.
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