Ohio Rev. Code » Chapter 3314
Ohio Revised Code

Ohio Rev. Code § 3314.074 (2026)

Distributing assets of school permanently closed

✓ current as of May 2026
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Effective:
October 3, 2023
Latest Legislation:
House Bill 33 - 135th General Assembly
PDF:
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Divisions (A) and (B) of this section apply only to the extent permitted under Chapter 1702. of the Revised Code.

(A) If any community school established under this chapter permanently closes and ceases its operation as a community school, the assets of that school shall be distributed first to the retirement funds of employees of the school, employees of the school, and private creditors who are owed compensation, and then any remaining funds shall be paid to the department of education and workforce for redistribution to the school districts in which the students who were enrolled in the school at the time it ceased operation were entitled to attend school under section 3313.64 or 3313.65 of the Revised Code. The amount distributed to each school district shall be proportional to the district's share of the total enrollment in the community school. For any community school that closes after fiscal year 2021, any remaining funds shall be paid to the department and deposited into the state general revenue fund.

(B) If a community school closes and ceases to operate as a community school and the school has received computer hardware or software from the former Ohio SchoolNet commission or the former eTech Ohio commission, such hardware or software shall be turned over to the department, which shall redistribute the hardware and software, to the extent such redistribution is possible, to school districts in conformance with the provisions of the programs as they were operated and administered by the former eTech Ohio commission.

(C) If the assets of the school are insufficient to pay all persons or entities to whom compensation is owed, the prioritization of the distribution of the assets to individual persons or entities within each class of payees may be determined by decree of a court in accordance with this section and Chapter 1702. of the Revised Code.

(D) A community school that engages in a merger or consolidation pursuant to division (B) of section 1702.41 of the Revised Code and becomes a single public benefit corporation shall not be required to distribute assets pursuant to divisions (A), (B), and (C) of this section, provided that the governing authority of the community school created by the merger or consolidation enters into a contract for sponsorship under section 3314.03 of the Revised Code with an entity rated "effective" or higher by the department pursuant to section 3314.016 of the Revised Code.

Last updated August 21, 2023 at 2:43 PM

Notes of Decisions
Cited in 6 cases, 2008–2020 · leading case: Sun Bldg. Ltd. P'ship v. Value Learning & Teaching Academy, Inc., 2017-Ohio-8727.
Sort: Relevance Newest Treatment
Sun Bldg. Ltd. P'ship v. Value Learning & Teaching Academy, Inc., 2017-Ohio-8727. · cites it 19× “Applying R.C. 3314.074, the trial court issued a final order of distribution, and gave preference to the employee claims over those of the Landlords.”
Ohio Cmty. Sch. Consultants, Ltd. v. Lincoln Preparatory Academy, Inc., 2020-Ohio-890. · cites it 8× “n Franklin County, Ohio," it subsequently references multiple lawsuits, stating that "decisions regarding the lawsuits cannot be made without the appointment of [Adams] as Receiver for [Lincoln Prep], giving him authority to resolve the one pending lawsuit and then distribute…”
Greater Heights Academy v. Zelman, 522 F.3d 678 (6th Cir. 2008). “Ohio Rev.Code § 3314.074(A). Additionally, community schools must be open to all residents with narrow exceptions and must be nonsectarian and non-discriminatory.”
State v. Facebook Payments Inc. (N.D. Ohio 2020). · cites it 10× “O.R.C. § 3314.074(A). Nowhere does the statute provide that school districts will, or are entitled to, receive a direct distribution from the funds of a closed community school.”
State ex rel. Atty. Gen. v. Lager, 2020-Ohio-3260. “2 We also note that pursuant to R.C. 3314.074(A), "[i]f any community school established under this chapter permanently closes and ceases its operation as a community school, the assets of that school shall be distributed first to the retirement funds of employees of the school,…”
Greater Hts Academy v. Zelman (6th Cir. 2008). “Ohio Rev. Code § 3314.074(A). Additionally, community schools must be open to all residents with narrow exceptions and must be nonsectarian and non-discriminatory.”
Ohio Rev. Code § 3314.074(A): 6 cases
Sun Bldg. Ltd. P'ship v. Value Learning & Teaching Academy, Inc., 2017-Ohio-8727. “Applying R.C. 3314.074, the trial court issued a final order of distribution, and gave preference to the employee claims over those of the Landlords.”
Greater Heights Academy v. Zelman, 522 F.3d 678 (6th Cir. 2008). “Ohio Rev.Code § 3314.074(A). Additionally, community schools must be open to all residents with narrow exceptions and must be nonsectarian and non-discriminatory.”
Ohio Cmty. Sch. Consultants, Ltd. v. Lincoln Preparatory Academy, Inc., 2020-Ohio-890. “n Franklin County, Ohio," it subsequently references multiple lawsuits, stating that "decisions regarding the lawsuits cannot be made without the appointment of [Adams] as Receiver for [Lincoln Prep], giving him authority to resolve the one pending lawsuit and then distribute…”
State v. Facebook Payments Inc. (N.D. Ohio 2020). “O.R.C. § 3314.074(A). Nowhere does the statute provide that school districts will, or are entitled to, receive a direct distribution from the funds of a closed community school.”
State ex rel. Atty. Gen. v. Lager, 2020-Ohio-3260. “2 We also note that pursuant to R.C. 3314.074(A), "[i]f any community school established under this chapter permanently closes and ceases its operation as a community school, the assets of that school shall be distributed first to the retirement funds of employees of the school,…”
Ohio Rev. Code § 3314.074(C): 1 case
Sun Bldg. Ltd. P'ship v. Value Learning & Teaching Academy, Inc., 2017-Ohio-8727. “Applying R.C. 3314.074, the trial court issued a final order of distribution, and gave preference to the employee claims over those of the Landlords.”
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