Stricken language would be deleted from and underlined language would be added to present law. *TNL020* 02/11/2025 8:39:01 AM TNL020 State of Arkansas 1 95th General Assembly A Bill 2 Regular Session, 2025 SENATE BILL 215 3 4 By: Senator J. Bryant 5 By: Representative B. McKenzie 6 7 For An Act To Be Entitled 8 AN ACT TO AMEND THE PERMISSIBLE USES FOR REAL ESTATE 9 DONATED BY A PUBLIC SCHOOL DISTRICT; TO AMEND THE 10 ARKANSAS PUBLIC SCHOOL ACADEMIC FACILITIES PROGRAM 11 ACT; AND FOR OTHER PURPOSES. 12 13 14 Subtitle 15 TO AMEND THE PERMISSIBLE USES FOR REAL 16 ESTATE DONATED BY A PUBLIC SCHOOL 17 DISTRICT; AND TO AMEND THE ARKANSAS 18 PUBLIC SCHOOL ACADEMIC FACILITIES 19 PROGRAM ACT. 20 21 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22 23 SECTION 1. Arkansas Code § 6 -21-108(b), concerning the donation of 24 real property by a public school district, is amended to read as follows: 25 (b)(1) If the board of directors for a school district determines that 26 real property owned or controlled by the school district is not required for 27 the present or future needs of the school district and that the donation of 28 the real property would serve a beneficial educational service for the 29 citizens of the school district, then the school district may donate real 30 property to an open-enrollment public charter school, a publicly supported 31 institution of higher education, a technical institute, a community college, 32 a not-for-profit organization, a county, a city, an incorporated town, or any 33 entity thereof for the following limited purposes: 34 (A) Having the real property preserved, improved, 35 upgraded, rehabilitated, or enlarged by the donee; 36 SB215 2 02/11/2025 8:39:01 AM TNL020 (B) Providing an open-enrollment public charter school, a 1 publicly supported institution of higher education, a technical institute, or 2 a community college with the donated property in which to hold classes; or 3 (C)(i) Providing community programs and beneficial 4 educational services, social enrichment programs, or after -school programs. 5 (ii) Real property donated to an open -enrollment 6 public charter school, a publicly supported institution of higher education, 7 a technical institute, or a community college under this subdivision 8 (b)(1)(C) shall be used exclusively and entirely only for community programs 9 and beneficial educational services, social enrichment programs, or after -10 school programs. 11 (iii) The provision of housing or another similar 12 program or benefit shall not qualify as a community program or beneficial 13 educational service, social enrichment program, or after -school program under 14 this subdivision (b)(1)(C). 15 (2) A school district may donate the fee simple title and 16 absolute interest in real property, without any reservations or restrictions 17 to the real property, to an open-enrollment public charter school, a publicly 18 supported institution of higher education, a technical institute, a community 19 college, a not-for-profit organization, a county, a city, an incorporated 20 town, or any entity thereof. 21 (3) If two (2) years after the effective date of consolidation 22 the real property of the consolidated school district is not used by the 23 school district for educational purposes and has not been sold, preserved, 24 leased, or donated, the school district board of directors shall make the 25 real property available to an open-enrollment public charter school, a 26 publicly supported institution of higher education, a technical institute, a 27 community college, a not -for-profit organization, a county, a city, an 28 incorporated town, or any entity thereof, by donation or low -cost long-term 29 lease, for the following limited purposes: 30 (A) Having the real property preserved, improved, 31 upgraded, rehabilitated, or enlarged by the donee; 32 (B) Providing an open-enrollment public charter school, a 33 publicly supported institution of higher education, a technical institute, or 34 a community college with the donated property in which to hold classes; or 35 (C)(i) Providing community programs and beneficial 36 SB215 3 02/11/2025 8:39:01 AM TNL020 educational services, social enrichment programs, or after -school programs. 1 (ii) Real property donated to an open -enrollment 2 public charter school, a publicly supported institution of higher education, 3 a technical institute, or a community college under this subdivision 4 (b)(3)(C) shall be used exclusively and entirely only for community programs 5 and beneficial educational services, social enrichment programs, or after -6 school programs. 7 (iii) The provision of housing or another similar 8 program or benefit shall not qualify as a community program or beneficial 9 educational service, social enrichment program, or after -school program under 10 this subdivision (b)(3)(C). 11 12 SECTION 2. Arkansas Code § 6 -21-803(13), concerning the definition of 13 "public school facility" under the Arkansas Public School Academic Facilities 14 Program Act, is amended to read as follows: 15 (13) “Public school facility” means any public school building 16 or space, including related areas such as improved or unimproved real 17 property or the physical plant and grounds, that is used for any purpose, 18 including, without limitation: 19 (A) An extracurricular activity; 20 (B) An organized physical activity course as defined in § 21 6-16-137; 22 (C) Prekindergarten education; 23 (D) District administration; or 24 (E) Delivery of instruction to public school students that 25 is an integral part of an adequate education as described in § 6 -20-2302; 26 27 SECTION 3. Arkansas Code § 6 -21-803(17), concerning the definition of 28 "unused or underutilized public school facility" under the Arkansas Public 29 School Academic Facilities Program Act, is amended to read as follows: 30 (17) “Unused or underutilized public school facility” means a 31 public school facility , academic facility, or other improved or unimproved 32 real property that: 33 (A) As a whole or in a significant portion, is not being 34 used for a public educational, academic, extracurricular, or administrative 35 purpose and the nonuse or underutilization threatens the integrity or purpose 36 SB215 4 02/11/2025 8:39:01 AM TNL020 of the public school facility or other real property as a public education 1 facility; and 2 (B) As of August 1, 2017, is Is not subject to: 3 (i) A lease to a third party for fair market value; 4 or 5 (ii) An executed offer to purchase by a third party 6 for fair market value. 7 8 SECTION 4. Arkansas Code § 6 -21-806(a)(7)(A), concerning the required 9 report from a school district to the Division of Public School Academic 10 Facilities and Transportation regarding unused or underutilized public school 11 facilities in each public school district under the Academic Facilities 12 Master Plan Program, is amended to read as follows: 13 (7)(A) Submit a report to the division by February 1 January 31 14 of each year that identifies: 15 (i) All unused or underutilized public school 16 facilities in the school district; and 17 (ii) The unused or underutilized public school 18 facilities, if any, that are designated in the district's facilities master 19 plan to be reused, renovated, or demolished as part of a specific committed 20 project or planned new construction project. 21 22 SECTION 5. Arkansas Code § 6 -21-815(c)(1), concerning the lease or 23 purchase of a school district's unused or underutilized public school 24 facilities, is amended to read as follows: 25 (c)(1) Except as otherwise provided in this section, a school district 26 shall make unused or underutilized public school facilities available for 27 lease or purchase for no more than fair market value to any open-enrollment 28 public charter school located within the geographical boundaries of the 29 school district before the school district may donate unused or underutilized 30 public school facilities as authorized under § 6 -21-108. 31 32 SECTION 6. Arkansas Code § 6 -21-816(a)(1), concerning requirements to 33 sell or lease unused or underutilized public school facilities, is amended to 34 read as follows: 35 (a)(1)(A) Except as otherwise provided in this section, if a school 36 SB215 5 02/11/2025 8:39:01 AM TNL020 district determines that any public school facility , academic facility, or 1 other real property is no longer needed for school purposes or is unused or 2 underutilized, the school district may sell , donate, or lease the public 3 school facility, academic facility, or other real property in accordance with 4 §§ 6-13-103 and 6-13-620 and this subchapter. 5 (B) A school district shall notify the division regarding 6 the unused or underutilized public school facility under subdivision 7 (a)(1)(A) of this section before it may sell, donate, or lease the public 8 school facility, academic facility, or other real property under subdivision 9 (a)(1)(A) of this section. 10 11 SECTION 7. Arkansas Code § 6 -21-816(b)(1)(A), concerning an open -12 enrollment public charter school's right of first refusal to purchase or 13 lease an unused or underutilized public school facility, is amended to read 14 as follows: 15 (b)(1)(A) If a school district decides to sell, lease, or otherwise 16 transfer ownership of an academic facility, a public school facility, an 17 unused or underutilized public school facility, or other real property 18 belonging to the school district, an open-enrollment public charter school 19 located within the school district's boundaries shall have a right of first 20 refusal to purchase or lease the academic facility, public school facility, 21 unused or underutilized public school facility, or other real property 22 belonging to the school district for fair market value. 23 24 SECTION 8. Arkansas Code § 6 -21-816(b)(3), concerning a school 25 district's authority to sell, lease, or otherwise transfer a public school 26 facility, is amended to read as follows: 27 (3) Subject to the priority list under subdivision (b)(1)(C) of 28 this section, nothing in this subchapter shall be construed to delay or limit 29 the authority of a school district to sell, lease, or otherwise transfer a 30 public school facility , an academic facility, an unused or underutilized 31 public school facility, or other real property to a an open-enrollment public 32 charter school on terms agreed to by the school district and open-enrollment 33 public charter school. 34 35 SECTION 9. Arkansas Code § 6 -21-816(h), concerning a school district 36 SB215 6 02/11/2025 8:39:01 AM TNL020 or public charter school that fails to comply with requirement related to the 1 sale or lease of public school facilities, is amended to read as follows: 2 (h)(1) The rules promulgated under this section and the Code of Ethics 3 for Arkansas Educators shall include a provision that requires a school 4 district to list immediately school district property as unused or 5 underutilized upon the school district's determination that a public school 6 facility or other real property belonging to the school district is no longer 7 necessary for school district purposes or is unused or underutilized. 8 (2) The division may classify: 9 (A) Classify a school district that fails to comply with 10 this section as being in academic facilities distress under § 6 -21-811; and 11 (B) Recommend to the State Board of Education whether a 12 school district that fails to comply with this section should be placed on 13 Accredited — Cited Status. 14 (3) A school district superintendent may be subject to sanctions 15 under the Code of Ethics for Arkansas Educators if the school district 16 superintendent fails to comply with this section. 17 (2)(4) The authorizer may take action under § 6 -23-105 on the 18 charter of a public charter school that fails to comply with this section. 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36