Senate Bill 2515

(As Passed the Senate)

AN ACT TO AMEND SECTION 37-28-61, MISSISSIPPI CODE OF 1972, TO LIMIT TO 12 MONTHS THE RIGHT OF FIRST REFUSAL OF A CHARTER SCHOOL TO PURCHASE OR LEASE CLOSED PUBLIC SCHOOL PROPERTY IN THE SCHOOL DISTRICT IN WHICH THE CHARTER SCHOOL IS LOCATED; TO SPECIFY THAT THIS PROVISION SHALL NOT IMPAIR ANY RIGHTS OF A CHARTER SCHOOL UNDER A CONTRACT FOR PURCHASE OR LEASE OF THE PROPERTY ENTERED WITH THE DISTRICT DURING THE TWELVE-MONTH PERIOD; TO AMEND SECTION 37-7-455, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT, WITHIN THE FIRST SIX MONTHS OF THE CLOSURE OF THE PUBLIC SCHOOL FACILITY OR PROPERTY, NO PURCHASE OR LEASE AGREEMENT WITH ANY ENTITY OTHER THAN A CHARTER SCHOOL LOCATED IN THE DISTRICT MAY BE ENTERED, UNLESS EACH SUCH CHARTER SCHOOL HAS NOTIFIED THE SCHOOL BOARD THAT IT IS NOT EXERCISING ITS RIGHT OF FIRST REFUSAL ON THE PROPERTY; TO AMEND SECTION 37-7-477, MISSISSIPPI CODE OF 1972, TO AUTHORIZE A SCHOOL BOARD TO APPROVE ALTERNATIVE USES, CONSISTENT WITH SECTION 37-7-473, FOR PROPERTY CONVEYED OR LEASED; TO REQUIRE THE INSTRUMENT CONVEYING OR LEASING THE PROPERTY TO INCLUDE PROCEDURES FOR SEEKING AND OBTAINING BOARD APPROVAL FOR ALTERNATIVE USES NOT SPECIFIED IN THE INSTRUMENT; TO BRING FORWARD SECTION 37-7-473, MISSISSIPPI CODE OF 1972, FOR THE PURPOSE OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 37-28-61, Mississippi Code of 1972, is amended as follows:

37-28-61. (1) A charter school has a right of first refusal to purchase or lease at or below fair market value a closed public school facility or property or unused portions of a closed public school facility or property in the school district in which the charter school is located if the school district decides to sell or lease the public school facility or property. If a conversion charter school application is successful, the local school district owning the conversion charter school's facility must offer to lease or sell the building to the conversion charter school at or below fair market value. In order to exercise its right of first refusal under this subsection, a charter school must purchase or lease the school property within twelve (12) months of the closure of the public school facility or property, as indicated by resolution of the school board duly spread on its minutes. After the twelve (12) months have elapsed, the charter school shall have no right of first refusal under this subsection; however, nothing in this subsection shall impair any rights of a charter school under a contract for purchase or lease of the property entered with the district during the twelve-month period.

(2) A charter school may negotiate and contract at or below fair market value with a school district, state institution of higher learning, public community or junior college, or any other public or for-profit or nonprofit private entity for the use of a facility for a school building.

(3) Public entities, including, but not limited to, libraries, community service organizations, museums, performing arts venues, theatres, cinemas, churches, community and junior colleges, colleges and universities, may provide space to charter schools within their facilities under their preexisting zoning and land use designations.

SECTION 2. Section 37-7-455, Mississippi Code of 1972, is amended as follows:

37-7-455. (1) Any land, buildings or other property that is not used for school purposes and which is not needed in the operation of the schools of the district may be sold in the manner established in this section * * *. Within the first six (6) months of the closure of the public school facility or property, as indicated by resolution of the school board duly spread on its minutes, no purchase or lease agreement with any entity other than a charter school located in the school district may be entered, unless each such charter school has notified the school board that it is not exercising its right of first refusal on the property, as provided under Section 37-28-61. Except as otherwise provided in subsections (2) and (3) of this section, all such land, buildings or other property shall be sold only after the receipt of sealed bids therefor after the time and place of making such sale has been duly advertised in some newspaper having a general circulation in the county in which the property is located once each week for three (3) consecutive weeks with the first publication to be made not less than fifteen (15) days prior to the date upon which such bids are to be received and opened. The property shall be sold to the highest and best bidder for cash, but the school board shall have the right to reject any and all bids. If the property is not sold pursuant to such advertisement, the school board, by resolution, may set a date for an open meeting of the school board to be held within sixty (60) days after the date upon which the bids were opened. At the meeting held pursuant to such resolution, the school board may sell by auction the property for a consideration not less than the highest sealed bid previously received pursuant to the advertisement. At the meeting, any interested party may bid for cash, and the property shall be sold to the highest and best bidder for cash, but the school board shall have the right to reject any and all bids. The school board may require a written confirmation of bids received at such called meeting before selling the property at auction, but it shall not be necessary that sealed bids be received before conducting the auction.

(2) As an alternative to the procedures established under subsection (1) of this section, the school board of a school district may elect, in its discretion, to sell by public auction any property, other than real property or buildings of the school district, which is not used for school or related school purposes and not needed in the operation of the schools, according to the procedure in Section 17-25-25, except as otherwise provided under Section 37-7-459.

(3) As an alternative to the procedures established under subsection (1) or (2) of this section, the county board of education of a county having a population in excess of ten thousand (10,000) according to the 2000 decennial census and in which U.S. Highway 45 intersects with Mississippi Highway 16, may elect, in its discretion, to transfer and sell the buildings of the school district and the real property upon which the buildings are located which are not used as school facilities or for school-related purposes and not needed in the operation of the schools, after advertising for and receiving competitive bids for the sale of such property. If any bid is offered by a nonprofit 501(c)(3) entity which has made substantial improvements to the buildings, the fair market value of the improvements shall be deemed to be consideration for, a part of, the bid offered by the entity. In this case, the school board shall enter a finding on its minutes that the nonprofit entity has made substantial improvements to the property and the property is no longer needed for school district purposes.

(4) When the sale of such property is authorized and approved by the school board, the president of the school board shall be authorized and empowered to execute a conveyance of the property upon the terms and for the consideration fixed by the board. The school board shall reserve unto the district all oil, gas and minerals in, on or under the land, and all proceeds derived from royalties upon the reserved mineral interests shall be used as provided by Section 37-7-457.

SECTION 3. Section 37-7-477, Mississippi Code of 1972, is amended as follows:

37-7-477. (1) Unless a school board retains a partial interest, or undivided interest or other ownership interest in the school property being conveyed, any instrument conveying or leasing any school property under * * * ~~the provisions of~~ Sections 37-7-471 through 37-7-483, shall provide that the title to such property shall * * * ~~automatically~~ revert to the school district, if such property shall cease to be used for the purpose for which it is conveyed or leased, or for an alternative purpose approved by the school board at the time of the proposed conveyance or lease. Consistent with Section 37-7-473, the school board shall have broad discretion as to the alternative purposes for which such property may be used and may include any such purpose in the instrument conveying or leasing the property. Moreover, the instrument shall include the procedures that must be followed by the grantee or lessee to present any alternative use not specified in the instrument to the school board for consideration and to obtain board approval for such use. The school board may approve such alternative use if the board finds and determines, by resolution duly spread on its minutes, that the school property is not needed for school or related purposes, and that the proposed alternative use is authorized by Section 37-7-473. Said instrument shall also contain the condition that the grantee or lessee shall keep and maintain said property in a good state of repair and shall keep said property insured in a reasonable amount against loss by fire, windstorm and other hazards. Upon breach of any of said conditions, the school board shall have the right of reentry upon said property as for condition broken and shall have the power and authority to bring and maintain such actions as shall be necessary and appropriate for such purpose in its own name. However, the provisions of this section shall not be mandatory in the event that the school board retains a partial interest, or undivided interest or other ownership interest in the school property being conveyed.

(2) * * * ~~The provisions of~~ Subsection (1) of this section shall not be applicable to any transaction of acquisition by the United States, by purchase, condemnation, conveyance or otherwise of any school property or any other real property possessed by the state as authorized by Section 3-5-1.

SECTION 4. Section 37-7-473, Mississippi Code of 1972, is brought forward as follows:

37-7-473. School buildings, land, property and related facilities may be sold, conveyed, leased or otherwise disposed of under Sections 37-7-471 through 37-7-483, to any charter school, to any group of persons, to any association, club or corporation, or to any county, municipality or other political subdivision, to be used as a charter school facility, to be used as a civic, community, recreational or youth center, or to be used by any county or district fair association in connection with its activities, or to be used for church purposes, or to be used as a library or other public building, or to be used as a factory or otherwise in connection with an industrial enterprise, or to be used as part of a residential, mixed-use or other development activity to stimulate economic development activities within the district, or to enhance property values within the district, or to be used for any similar or related purpose or activity.

SECTION 5. This act shall take effect and be in force from and after July 1, 2026.