As Introduced
136th General Assembly
Regular Session S. B. No. 173
2025-2026
Senators Schaffer, Brenner
To amend section 3311.06 of the Revised Code
regarding school district territory annexations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 3311.06 of the Revised Code be
amended to read as follows:
Sec. 3311.06. (A) As used in this section:
(1) "Annexation" and "annexed" mean annexation for
municipal purposes under sections 709.02 to 709.37 of the
Revised Code.
(2) "Annexed territory" means territory that has been
annexed for municipal purposes to a city served by an urban
school district, but on September 24, 1986, has not been
transferred to the urban school district.
(3) "Urban school district" means a city school district
with an average daily membership for the 1985-1986 school year
in excess of twenty thousand that is the school district of a
city that contains annexed territory.
(4) "Annexation agreement" means an agreement entered into
under division (F) of this section that has been approved by the
state board of education or an agreement entered into prior to
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September 24, 1986, that meets the requirements of division (F)
of this section and has been filed with the state board.
(5) "Megaproject" has the same meaning as in section
122.17 of the Revised Code.
(B) The territory included within the boundaries of a
city, local, exempted village, or joint vocational school
district shall be contiguous except where a natural island forms
an integral part of the district, where the state board of
education authorizes a noncontiguous school district, as
provided in division (E)(1) of this section, or where a local
school district is created pursuant to section 3311.26 of the
Revised Code from one or more local school districts, one of
which has entered into an agreement under section 3313.42 of the
Revised Code.
(C)(1) When all of the territory of a school district is
annexed to a city or village, such territory thereby becomes a
part of the city school district or the school district of which
the village is a part, and the legal title to school property in
such territory for school purposes shall be vested in the board
of education of the city school district or the school district
of which the village is a part.
(2) When Except as provided in division (C)(3) of this
section, when the territory so annexed to a city or village
comprises part but not all of the territory of a school
district, the said territory becomes part of the city school
district or the school district of which the village is a part
only upon approval by the state board of education, unless the
district in which the territory is located is a party to an
annexation agreement with the city school district.
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Any urban school district that has not entered into an
annexation agreement with any other school district whose
territory would be affected by any transfer under this division
and that desires to negotiate the terms of transfer with any
such district shall conduct any negotiations under division (F)
of this section as part of entering into an annexation agreement
with such a district.
Any school district, except an urban school district,
desiring state board approval of a transfer under this division
shall make a good faith effort to negotiate the terms of
transfer with any other school district whose territory would be
affected by the transfer. Before the state board may approve any
transfer of territory to a school district, except an urban
school district, under this section, it must receive the
following:
(a) A resolution requesting approval of the transfer,
passed by at least one of the school districts whose territory
would be affected by the transfer;
(b) Evidence determined to be sufficient by the state
board to show that good faith negotiations have taken place or
that the district requesting the transfer has made a good faith
effort to hold such negotiations;
(c) If any negotiations took place, a statement signed by
all boards that participated in the negotiations, listing the
terms agreed on and the points on which no agreement could be
reached.
(3) Except as provided in division (C)(4) of this section,
when the territory so annexed to a city comprises part but not
all of the territory of a school district, such territory
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becomes a part of the city school district serving the annexing
city if all of the following apply:
(a) A majority of the annexing city's residents live in
the city school district serving that city.
(b) The annexed territory is located in an unincorporated
area in a county in which a megaproject is located.
(c) The school district from which the territory is being
annexed objects to the acceptance of students for any new homes
constructed within the annexed area.
Transfers of territory under division (C)(3) of this
section occur without the approval of the city school district
serving the annexing city or the state board of education and
take effect for the school year following the annexation.
(4) Division (C)(3) of this section does not apply to
annexations of territory that meet both of the following:
(a) The annexed territory is fully subdivided and approved
by all applicable city and county agencies for residential
property.
(b) At least twenty per cent of the annexed territory
consists of regularly occupied, fully constructed houses that
have been transferred from the builder to individuals in arm's
length transactions.
(D) The state board of education shall adopt rules
governing negotiations held by any school district except an
urban school district pursuant to division (C)(2) of this
section. The rules shall encourage the realization of the
following goals:
(1) A discussion by the negotiating districts of the
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present and future educational needs of the pupils in each
district;
(2) The educational, financial, and territorial stability
of each district affected by the transfer;
(3) The assurance of appropriate educational programs,
services, and opportunities for all the pupils in each
participating district, and adequate planning for the facilities
needed to provide these programs, services, and opportunities.
Districts involved in negotiations under such rules may
agree to share revenues from the property included in the
territory to be transferred, establish cooperative programs
between the participating districts, and establish mechanisms
for the settlement of any future boundary disputes.
(E)(1) If territory annexed after September 24, 1986, is
part of a school district that is a party to an annexation
agreement with the urban school district serving the annexing
city, the transfer of such territory shall be governed by the
agreement. If the agreement does not specify how the territory
is to be dealt with, the boards of education of the district in
which the territory is located and the urban school district
shall negotiate with regard to the transfer of the territory
which shall be transferred to the urban school district unless,
not later than ninety days after the effective date of municipal
annexation, the boards of education of both districts, by
resolution adopted by a majority of the members of each board,
agree that the territory will not be transferred and so inform
the state board of education.
If territory is transferred under this division the
transfer shall take effect on the first day of July occurring
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not sooner than ninety-one days after the effective date of the
municipal annexation. Territory transferred under this division
need not be contiguous to the district to which it is
transferred.
(2) Territory annexed prior to September 24, 1986, by a
city served by an urban school district shall not be subject to
transfer under this section if the district in which the
territory is located is a party to an annexation agreement or
becomes a party to such an agreement not later than ninety days
after September 24, 1986. If the district does not become a
party to an annexation agreement within the ninety-day period,
transfer of territory shall be governed by division (C)(2) of
this section. If the district subsequently becomes a party to an
agreement, territory annexed prior to September 24, 1986, other
than territory annexed under division (C)(2) of this section
prior to the effective date of the agreement, shall not be
subject to transfer under this section.
(F) An urban school district may enter into a
comprehensive agreement with one or more school districts under
which transfers of territory annexed by the city served by the
urban school district after September 24, 1986, shall be
governed by the agreement. Such agreement must provide for the
establishment of a cooperative education program under section
3313.842 of the Revised Code in which all the parties to the
agreement are participants and must be approved by resolution of
the majority of the members of each of the boards of education
of the school districts that are parties to it. An agreement may
provide for interdistrict payments based on local revenue growth
resulting from development in any territory annexed by the city
served by the urban school district.
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An agreement entered into under this division may be
altered, modified, or terminated only by agreement, by
resolution approved by the majority of the members of each board
of education, of all school districts that are parties to the
agreement, except that with regard to any provision that affects
only the urban school district and one of the other districts
that is a party, that district and the urban district may modify
or alter the agreement by resolution approved by the majority of
the members of the board of that district and the urban
district. Alterations, modifications, terminations, and
extensions of an agreement entered into under this division do
not require approval of the state board of education, but shall
be filed with the board after approval and execution by the
parties.
If an agreement provides for interdistrict payments, each
party to the agreement, except any school district specifically
exempted by the agreement, shall agree to make an annual payment
to the urban school district with respect to any of its
territory that is annexed territory in an amount not to exceed
the amount certified for that year under former section 3317.029
of the Revised Code as that section existed prior to July 1,
1998; except that such limitation of annual payments to amounts
certified under former section 3317.029 of the Revised Code does
not apply to agreements or extensions of agreements entered into
on or after June 1, 1992, unless such limitation is expressly
agreed to by the parties. The agreement may provide that all or
any part of the payment shall be waived if the urban school
district receives its payment with respect to such annexed
territory under former section 3317.029 of the Revised Code and
that all or any part of such payment may be waived if the urban
school district does not receive its payment with respect to
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such annexed territory under such section.
With respect to territory that is transferred to the urban
school district after September 24, 1986, the agreement may
provide for annual payments by the urban school district to the
school district whose territory is transferred to the urban
school district subsequent to annexation by the city served by
the urban school district.
(G) In the event territory is transferred from one school
district to another under this section, an equitable division of
the funds and indebtedness between the districts involved shall
be made under the supervision of the state board of education
and that board's decision shall be final. Such division shall
not include funds payable to or received by a school district
under Chapter 3317. of the Revised Code or payable to or
received by a school district from the United States or any
department or agency thereof. In the event such transferred
territory includes real property owned by a school district, the
state board of education, as part of such division of funds and
indebtedness, shall determine the true value in money of such
real property and all buildings or other improvements thereon.
The board of education of the school district receiving such
territory shall forthwith pay to the board of education of the
school district losing such territory such true value in money
of such real property, buildings, and improvements less such
percentage of the true value in money of each school building
located on such real property as is represented by the ratio of
the total enrollment in day classes of the pupils residing in
the territory transferred enrolled at such school building in
the school year in which such annexation proceedings were
commenced to the total enrollment in day classes of all pupils
residing in the school district losing such territory enrolled
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at such school building in such school year. The school district
receiving such payment shall place the proceeds thereof in its
sinking fund or bond retirement fund.
(H) The state board of education, before approving such
transfer of territory, shall determine that such payment has
been made and shall apportion to the acquiring school district
such percentage of the indebtedness of the school district
losing the territory as is represented by the ratio that the
assessed valuation of the territory transferred bears to the
total assessed valuation of the entire school district losing
the territory as of the effective date of the transfer, provided
that in ascertaining the indebtedness of the school district
losing the territory the state board of education shall
disregard such percentage of the par value of the outstanding
and unpaid bonds and notes of said school district issued for
construction or improvement of the school building or buildings
for which payment was made by the acquiring district as is equal
to the percentage by which the true value in money of such
building or buildings was reduced in fixing the amount of said
payment.
(I) No transfer of school district territory or division
of funds and indebtedness incident thereto, pursuant to the
annexation of territory to a city or village shall be completed
in any other manner than that prescribed by this section
regardless of the date of the commencement of such annexation
proceedings, and this section applies to all proceedings for
such transfers and divisions of funds and indebtedness pending
or commenced on or after October 2, 1959.
(J) Notwithstanding anything to the contrary in the
Revised Code, including section 3311.24 of the Revised Code, and
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any annexation agreement or any other agreement, beginning on
the effective date of this amendment September 29, 2017, until
October 1, 2021, no school district that is a party to an
annexation agreement shall transfer territory that is or will be
used for nonresidential purposes to another school district that
is a party to the annexation agreement without the approval of
the boards of education of each of the school districts after
the effective date of this amendment September 29, 2017, unless
the school district territory of one of those boards of
education overlaps with a new community authority created prior
to January 1, 1993, under Chapter 349. of the Revised Code.
Section 2. That existing section 3311.06 of the Revised
Code is hereby repealed.
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