As Introduced

136th General Assembly

Regular Session H. B. No. 545

2025-2026

Representatives Robinson, Tims

Cosponsors: Representatives Brent, Brewer, Brownlee, Piccolantonio, Lett, Rogers, Sims, Somani, Upchurch

To amend sections 3317.0212, 3327.01, and 3327.016; to enact new section 3327.021 and section 3317.071; and to repeal section 3327.021 of the Revised Code and to amend Sections 265.10, 265.300, 512.10, and 516.10 of H.B. 96 of the 136th General Assembly to enact the School Busing Improvement Act regarding transportation of students and to make an appropriation.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 3317.0212, 3327.01, and 3327.016 be amended and new section 3327.021 and section 3317.071 of the Revised Code be enacted to read as follows:

Sec. 3317.0212. (A) As used in this section:

(1) For fiscal years 2026 and 2027, "assigned bus" means a school bus used to transport qualifying riders.

(2) For fiscal years 2026 and 2027, "density" means the total riders per square mile of a school district.

(3) For fiscal years 2026 and 2027, "nontraditional ridership" means the average number of qualifying riders who are enrolled in a community school established under Chapter 3314. of the Revised Code, in a STEM school established under Chapter 3326. of the Revised Code, or in a nonpublic school and are provided school bus service by a school district during the first full week of October.

(4) "Qualifying riders" means the following:

(a) For fiscal years 2026 and 2027, resident students enrolled in preschool and regular education in grades kindergarten to twelve who are provided school bus service by a school district, including students with dual enrollment in a joint vocational school district or a cooperative education school district, and students enrolled in a community school, STEM school, or nonpublic school;

(b) For fiscal year 2028 and each fiscal year thereafter, students specified by the general assembly.

(5) "Qualifying ridership" means the following:

(a) For fiscal years 2026 and 2027, the greater of the average number of qualifying riders counted in the morning or counted in the afternoon who are provided school bus service by a school district during the first full week of October;

(b) For fiscal year 2028 and each fiscal year thereafter, a ridership determined in a manner specified by the general assembly.

(6) "Rider density" means the following:

(a) For fiscal years 2026 and 2027, the following quotient:

A school district's total number of qualifying riders/ the number of square miles in the district

(b) For fiscal year 2028 and each fiscal year thereafter, a number calculated in a manner determined by the general assembly.

(7) For fiscal years 2026 and 2027, "riders" means students enrolled in regular and special education in grades kindergarten through twelve who are provided school bus service by a school district, including students with dual enrollment in a joint vocational school district or a cooperative education school district, and students enrolled in a community school, STEM school, or nonpublic school.

(8) "School bus service" means a school district's transportation of qualifying riders in any of the following types of vehicles:

(a) School buses owned or leased by the district;

(b) School buses operated by a private contractor hired by the district;

(c) School buses operated by another school district or entity with which the district has contracted, either as part of a consortium for the provision of transportation or otherwise.

(B) Not later than the first day of November, for fiscal years 2026 and 2027, or a date determined by the general assembly, for fiscal year 2028 and each fiscal year thereafter, of each year, each city, local, and exempted village school district shall report to the department of education and workforce its qualifying ridership and any other information requested by the department. Subsequent adjustments to the reported numbers shall be made only in accordance with rules adopted by the department.

(C) The department shall calculate the statewide transportation cost per student as follows:

(1) Determine each city, local, and exempted village school district's transportation cost per student by dividing the district's total costs for school bus service in the previous fiscal year by its qualifying ridership in the previous fiscal year.

(2) After excluding districts that do not provide school bus service and the ten districts with the highest transportation costs per student and the ten districts with the lowest transportation costs per student, divide the aggregate cost for school bus service for the remaining districts in the previous fiscal year by the aggregate qualifying ridership of those districts in the previous fiscal year.

(D) The department shall calculate the statewide transportation cost per mile as follows:

(1) Determine each city, local, and exempted village school district's transportation cost per mile by dividing the district's total costs for school bus service in the previous fiscal year by its total number of miles driven for school bus service in the previous fiscal year.

(2) After excluding districts that do not provide school bus service and the ten districts with the highest transportation costs per mile and the ten districts with the lowest transportation costs per mile, divide the aggregate cost for school bus service for the remaining districts in the previous fiscal year by the aggregate miles driven for school bus service in those districts in the previous fiscal year.

(E) The department shall calculate each city, local, and exempted village school district's transportation base payment as follows:

(1) For fiscal years 2026 and 2027:

(a) Calculate the sum of the following:

(i) The product of the statewide transportation cost per student and the number of students counted in the district's qualifying ridership for the current fiscal year who are enrolled in the district;

(ii) 1.5 times the The statewide transportation cost per student times the number of students counted in the district's qualifying ridership for the current fiscal year who are enrolled in community schools established under Chapter 3314. of the Revised Code or STEM schools established under Chapter 3326. of the Revised Code times either of the following:

(I) For fiscal year 2026, 1.5;

(II) For fiscal year 2027, 2.0;

(iii) 2.0 times the The statewide transportation cost per student times the number of students counted in the district's qualifying ridership for the current fiscal year who are enrolled in nonpublic schools times either of the following:

(I) For fiscal year 2026, 2.0;

(II) For fiscal year 2027, 3.0.

(b) Calculate the sum of the following:

(i) The product of the statewide transportation cost per mile and the number of miles driven for school bus service as reported for qualifying riders for the current fiscal year who are enrolled in the district;

(ii) 1.5 times the statewide transportation cost per mile times the number of miles driven for school bus service as reported for qualifying riders for the current fiscal year who are enrolled in community schools or STEM schools;

(iii) 2.0 times the statewide transportation cost per mile times the number of miles driven for school bus service as reported for qualifying riders for the current fiscal year who are enrolled in nonpublic schools.

(c) Multiply the greater of the amounts calculated under divisions (E)(1)(a) and (b) of this section by the following:

(i) For fiscal year 2026, the greater of forty-five and eighty-three hundredths per cent or the district's state share percentage, as defined in section 3317.02 of the Revised Code;

(ii) For fiscal year 2027, the greater of fifty per cent or the district's state share percentage.

(2) For fiscal year 2028 and each fiscal year thereafter, an amount determined by the general assembly.

(F) For fiscal years 2026 and 2027, the department shall pay a district's efficiency adjustment payment in accordance with divisions (F)(1) to (3) of this section. For fiscal year 2028 and each fiscal year thereafter, the department shall pay a district's efficiency adjustment payment in a manner determined by the general assembly, if the general assembly authorizes such a payment to districts.

(1) The department annually shall establish a target number of qualifying riders per assigned bus for each city, local, and exempted village school district. The department shall use the data from the previous fiscal year in establishing the target number. The target number shall be based on the statewide median number of riders per assigned bus as adjusted to reflect the district's density in comparison to the density of all other districts. The department shall post on the department's web site each district's target number of riders per assigned bus and a description of how the target number was determined.

(2) The department shall determine each school district's efficiency index by dividing the district's number of riders per assigned bus by its target number of riders per assigned bus.

(3) The department shall determine each city, local, and exempted village school district's efficiency adjustment payment as follows:

(a) If the district's efficiency index is equal to or greater than 1.5, the efficiency adjustment payment shall be calculated according to the following formula:

0.15 X the district's transportation base payment calculated under division (E) of this section

(b) If the district's efficiency index is less than 1.5 but greater than or equal to 1.0, the efficiency adjustment payment shall be calculated according to the following formula:

{[(The district's efficiency index - 1) X 0.15]/0.5} X the district's transportation base payment calculated under division (E) of this section

(c) If the district's efficiency index is less than 1.0, the efficiency adjustment payment shall be zero.

(G) In addition to funds paid under divisions (E), (F), and (H) of this section, each city, local, and exempted village district shall receive in accordance with rules adopted by the department a payment for students transported by means other than school bus service and whose transportation is not funded under division (C) of section 3317.024 of the Revised Code. The rules shall include provisions for school district reporting of such students.

(H)(1) For purposes of division (H) of this section, a school district's "transportation supplement percentage" means the following:

(a) For fiscal years 2026 and 2027, the following quotient:

(28 – the district's rider density) / 100

If the result of the calculation for a district under division (H)(1)(a) of this section is less than zero, the district's transportation supplement percentage shall be zero.

(b) For fiscal year 2028 and each fiscal year thereafter, a percentage calculated in a manner determined by the general assembly.

(2) The department shall pay each district a transportation supplement calculated according to the following formula:

The district's transportation supplement percentage X the amount calculated for the district under division (E)(1)(b) of this section X 0.55

(I)(1) If a school district board and a community school governing authority elect to enter into an agreement under division (A) of section 3314.091 of the Revised Code, the department shall make payments to the community school according to the terms of the agreement for each student actually transported under division (C)(1) of that section. If a community school governing authority accepts transportation responsibility under division (B) of that section, the department shall make payments to the community school for each student actually transported or for whom transportation is arranged by the community school under division (C)(1) of that section, calculated as follows:

(a) For any fiscal year which the general assembly has specified that transportation payments to school districts be based on an across-the-board percentage of the district's payment for the previous school year, the per pupil payment to the community school shall be the following quotient:

(i) The total amount calculated for the school district in which the child is entitled to attend school for student transportation other than transportation of children with disabilities; divided by

(ii) The number of students included in the district's transportation ADM for the current fiscal year, as calculated under section 3317.03 of the Revised Code, plus the number of students enrolled in the community school not counted in the district's transportation ADM who are transported under division (B)(1) or (2) of section 3314.091 of the Revised Code.

(b) For any fiscal year which the general assembly has specified that the transportation payments to school districts be calculated in accordance with this section and any rules of the department implementing this section, the payment to the community school shall be the following:

(i) For fiscal years 2026 and 2027, either of the following:

(I) If the school district in which the student is entitled to attend school would have used a method of transportation for the student for which payments are computed and paid under division (E) of this section, 1.0 times the statewide transportation cost per student, as calculated in division (C) of this section;

(II) If the school district in which the student is entitled to attend school would have used a method of transportation for the student for which payments are computed and paid in a manner described in division (G) of this section, the amount that would otherwise be computed for and paid to the district.

(ii) For fiscal year 2028 and each fiscal year thereafter, an amount calculated in a manner determined by the general assembly.

The community school, however, is not required to use the same method to transport the student.

As used in this division, "entitled to attend school" means entitled to attend school under section 3313.64 or 3313.65 of the Revised Code.

(2) A community school shall be paid under division (I)(2) of this section only for students who are eligible as specified in section 3327.01 of the Revised Code and division (C)(1) of section 3314.091 of the Revised Code, and whose transportation to and from school is actually provided, who actually utilized transportation arranged, or for whom a payment in lieu of transportation is made by the community school's governing authority. To qualify for the payments, the community school shall report to the department, in the form and manner required by the department, data on the number of students transported or whose transportation is arranged, the number of miles traveled, cost to transport, and any other information requested by the department.

Sec. 3317.071. For any fiscal year that the general assembly has appropriated sufficient funds to operate the program, the department of education and workforce shall implement a program to distribute bus purchasing grants of not less than $45,000 to city, local, and exempted village school districts for the purpose of replacing the oldest and highest mileage buses in the state assigned to routes. The department shall collect annually age, mileage, and vehicle condition data from districts through its transportation data collection system.

Sec. 3327.01. Notwithstanding division (D) of section 3311.19 and division (D) of section 3311.52 of the Revised Code, this section and sections 3327.011, 3327.012, and 3327.02 of the Revised Code do not apply to any joint vocational or cooperative education school district.

In all city, local, and exempted village school districts where resident school pupils in grades kindergarten through eight live more than two miles from the school for which the director of education and workforce prescribes minimum standards pursuant to division (D) of section 3301.07 of the Revised Code and to which they are assigned by the board of education of the district of residence or to and from the nonpublic or community school which they attend, the board of education shall provide transportation for such pupils to and from that school except as provided in section 3327.02 of the Revised Code.

In all city, local, and exempted village school districts where pupil transportation is required under a career-technical plan approved by the department of education and workforce under section 3313.90 of the Revised Code, for any student attending a career-technical program operated by another school district, including a joint vocational school district, as prescribed under that section, the board of education of the student's district of residence shall provide transportation from the public high school operated by that district to which the student is assigned to the career-technical program.

In all city, local, and exempted village school districts, the board may provide transportation for resident school pupils in grades nine through twelve to and from the high school to which they are assigned by the board of education of the district of residence or to and from the nonpublic or community high school which they attend for which the director of education and workforce prescribes minimum standards pursuant to division (D) of section 3301.07 of the Revised Code.

A board of education shall not be required to transport elementary or high school pupils to and from a nonpublic or community school where such transportation would require more than thirty minutes of direct travel time as measured by school bus from the public school building to which the pupils would be assigned if attending the public school designated by the district of residence.

Where it is impractical to transport a pupil by school conveyance, a board of education may offer payment, in lieu of providing such transportation in accordance with section 3327.02 of the Revised Code.

A Except as provided in section 3327.016 of the Revised Code, a board of education shall provide transportation to students enrolled in a community school or nonpublic school in accordance with this section on each day in which that school is open for operation with students in attendance, regardless of whether the district's own schools are open for operation with students in attendance on that day. However, a board of education shall not be required to transport elementary or high school pupils to and from a nonpublic or community school on Saturday or Sunday, unless a board of education and a nonpublic or community school have an agreement in place to do so before the first day of July of the school year in which the agreement takes effect.

In all city, local, and exempted village school districts, the board shall provide transportation for all children who are so disabled that they are unable to walk to and from the school for which the director of education and workforce prescribes minimum standards pursuant to division (D) of section 3301.07 of the Revised Code and which they attend. In case of dispute whether the child is able to walk to and from the school, the health commissioner shall be the judge of such ability. In all city, exempted village, and local school districts, the board shall provide transportation to and from school or special education classes for mentally disabled children in accordance with standards adopted by the department of education and workforce.

When transportation of pupils is provided the conveyance shall be run on a time schedule that shall be adopted and put in force by the board not later than ten days after the beginning of the school term. The operator of every school bus or motor van owned and operated by any school district or educational service center or privately owned and operated under contract with any school district or service center in this state shall deliver students enrolled in preschool through twelfth grades to their respective public and nonpublic schools not sooner than thirty minutes prior to the beginning of school and to be available to pick them up not later than thirty minutes after the close of their respective schools each day. Further, operators shall not deliver students late to school.

The cost of any transportation service authorized by this section shall be paid first out of federal funds, if any, available for the purpose of pupil transportation, and secondly out of state appropriations, in accordance with regulations adopted by the department.

No transportation of any pupils shall be provided by any board of education to or from any school which in the selection of pupils, faculty members, or employees, practices discrimination against any person on the grounds of race, color, religion, or national origin.

A board of education shall provide transportation as a related service for all children with disabilities living in the school district who are enrolled in a nonpublic school if the school district is provided with supporting documentation from the child's individual education program developed pursuant to Chapter 3323. of the Revised Code or an individual service plan developed pursuant to section 5126.41 of the Revised Code.

Sec. 3327.016. (A) As used in this section, "eligible student" means a student entitled to transportation services from the city, local, or exempted village school district pursuant to section 3327.01 of the Revised Code.

(B) Each community school established under Chapter 3314. of the Revised Code or chartered nonpublic school shall establish the school's start and end times for a particular school year not later than the first day of April prior to that school year. Each community or chartered nonpublic school shall provide such start and end times to each city, local, or exempted village school district that the school expects will be responsible for providing transportation services to eligible students enrolled in the school for that school year.

Each city, local, or exempted village school district that receives start and end times for a chartered nonpublic school under this division shall establish tiers of windows of time that best work for the district in transporting the school's eligible students. If a chartered nonpublic school's start and end times fall within one of those tiers, the district shall notify the school of that fact. If a chartered nonpublic school's start and end times do not fall within one of those tiers, the district shall notify the school of that fact and provide the opportunity for the school to change its start and end times. If such school does not change its start and end times, the district is not required to transport the school's students to and from school.

(C) Each city, local, or exempted village school district that receives start and end times as prescribed from a community school under division (B) of this section, or receives start and end times from a chartered nonpublic school that fall within one of the tiers of windows of time under division (B) of this section, shall use those start and end times to develop a transportation plan, including transportation routes and schedules, for eligible students who enrolled in a the community or chartered nonpublic school and shall provide such transportation plan to the community or chartered nonpublic school within sixty days after receiving the information described in that division. If a school provides the start and end times to the school district after the first day of April but before the first day of July, the district shall attempt to provide a transportation plan to the school by the first day of August of that school year. For any eligible student who enrolls in a community school, or a chartered nonpublic school that has start and end times that fall within one of the tiers of windows of time under division (B) of this section, after the first day of July prior to that school year, a district shall develop a transportation plan, including transportation routes and schedules, for that student within fourteen business days of receiving a request for transportation services from the student's parent or guardian.

Sec. 3327.021. (A) The department of education and workforce shall monitor each city, local, or exempted village school district's compliance with sections 3327.01 and 3327.016 and division (B) of section 3327.017 of the Revised Code. Except as provided in division (B) of this section, if the department determines a consistent or prolonged period of noncompliance on the part of the school district to provide transportation as required under those sections, the department shall deduct from the district's payment for student transportation under Chapter 3317. of the Revised Code the daily amount of that payment, as computed by the department, for the number of students who did not receive the required transportation, including students who arrived to school late, under those sections for each day that the district is not in compliance.

(B) A school district shall not be penalized under this section if the department determines that extenuating circumstances caused the district's failure to comply. The department shall develop a process under which a district may submit information explaining the extenuating circumstances that led to its failure to comply and on how the department may determine that those circumstances caused the failure.

This section does not affect the authority of a school district to provide payment in lieu of transportation in accordance with section 3327.02 of the Revised Code.

Section 2. That existing sections 3317.0212, 3327.01, and 3327.016 of the Revised Code are hereby repealed.

Section 3. That section 3327.021 of the Revised Code is hereby repealed.

Section 4. That Sections 265.10, 265.300, 512.10, and 516.10 of H.B. 96 of the 136th General Assembly be amended to read as follows:

Sec. 265.10.

Sec. 265.300. FOUNDATION FUNDING - ALL STUDENTS

The foregoing appropriation item 200604, Foundation Funding - All Students, shall be used in conjunction with appropriation items 200550, Foundation Funding - All Students, and 200612, Foundation Funding - All Students, to distribute the amounts calculated for disadvantaged pupil impact aid under sections 3317.022 and 3317.16 of the Revised Code and the portions of the state share of the base cost calculated under those sections that are attributable to the staffing cost for the student wellness and success component of the base cost, as determined by the Department of Education and Workforce.

SCHOOL BUS PURCHASE

The foregoing appropriation item 200663, School Bus Purchase, shall be used to distribute bus purchasing grants to city, local, and exempted village school districts pursuant to section 3317.071 of the Revised Code. Notwithstanding any provision of law to the contrary, school bus purchase funds awarded in fiscal year 2027 may be used by recipients through fiscal year 2028.

Sec. 512.10. TRANSFERS OUT OF GENERAL REVENUE FUND

STATE MARKETING OFFICE FUND

On July 1, 2025, or as soon as possible thereafter, the Director of Budget and Management shall transfer up to $22,000,000 cash from the General Revenue Fund to the State Marketing Office Fund (Fund 5MJ0).

FOUNDATION FUNDING - ALL STUDENTS FUND

Notwithstanding any provision of law to the contrary, the Director of Budget and Management may transfer up to $600,000,000 cash, in each fiscal year, from the General Revenue Fund to the Foundation Funding - All Students Fund (Fund 5VS0).

SECOND CHANCE GRANT PROGRAM FUND

On July 1, 2025, or as soon as possible thereafter, the Director of Budget and Management shall transfer up to $4,000,000 cash from the General Revenue Fund to the Second Chance Grant Program Fund (Fund 5YD0).

MARCS ADMINISTRATION FUND

On July 1 of each fiscal year, or as soon as possible thereafter, the Director of Budget and Management may transfer up to $10,500,000 cash from the General Revenue Fund to the MARCS Administration Fund (Fund 5C20).

WILDLIFE FUND

On July 1 of each fiscal year, or as soon as possible thereafter, the Director of Budget and Management may transfer $500,000 cash from the General Revenue Fund to the Wildlife Fund (Fund 7015).

TRANSCRANIAL MAGNETIC STIMULATION FUND

On July 1 of each fiscal year, or as soon as possible thereafter, the Director of Budget and Management may transfer $5,000,000 cash from the General Revenue Fund to the Transcranial Magnetic Stimulation Fund (Fund 5VV0).

H2OHIO FUND

On July 1, 2025, or as soon as possible thereafter, the Director of Budget and Management may transfer $165,000,000 from the General Revenue Fund to the H2Ohio Fund (Fund 6H20).

OHIO MARITIME ASSISTANCE PROGRAM

On July 1, 2025, or as soon as possible thereafter, the Director of Budget and Management shall transfer $10,000,000 cash from the General Revenue Fund to the Ohio Maritime Assistance Fund (Fund 5QT0).

RESIDENTIAL DEVELOPMENT REVOLVING LOAN

On July 1, 2025, or as soon as possible thereafter, the Director of Budget and Management shall transfer $100,000,000 cash from the General Revenue Fund to the Residential Development Revolving Loan Fund (Fund 5CT1).

RURAL PRACTICE INCENTIVE FUND

On July 1, 2025, or as soon as possible thereafter, the Director of Budget and Management shall transfer $3,000,000 cash from the General Revenue Fund to the Rural Practice Incentive Fund (Fund 5ZD0).

EWARRANT LOCAL INTEGRATION FUND

On July 1, 2025, or as soon as possible thereafter, the Director of Budget and Management may transfer $750,000 cash from the General Revenue Fund to the eWarrant Local Integration Fund (Fund 5AZ1).

TARGETED ADDICTION PROGRAM FUND

On July 1, 2025, or as soon as possible thereafter, the Director of Budget and Management shall transfer $12,500,000 cash from the General Revenue Fund to the Targeted Addiction Program Fund (Fund 5TZ0).

On July 1, 2025, or as soon as possible thereafter, the Director of Budget and Management shall transfer $10,000,000 cash from the General Revenue Fund to the Medical Marijuana Control Fund (Fund 5SY0).

SCHOOL BUS PURCHASE FUND

On July 1, 2026, or as soon as possible thereafter, the Director of Budget and Management shall transfer $50,000,000 cash from the General Revenue Fund to the School Bus Purchase Fund (Fund 5VU0).

Sec. 516.10. CASH TRANSFERS AND ABOLISHMENT OF FUNDS

(A) On July 1, 2025, or as soon as possible thereafter, the Director of Budget and Management may transfer the cash balance from each of the funds as indicated in the table below to the fund also indicated in the table below. Upon completion of each transfer and on the effective date of its repeal by this actH.B. 96 of the 136th General Assembly, where applicable, the fund from which the cash balance was transferred is hereby abolished.

(B) The following funds are hereby abolished on the effective date of their repeal by this actH.B. 96 of the 136th General Assembly:

(C) On July 1, 2025, or as soon as possible thereafter, the Director of Budget and Management shall transfer the cash balance from each of the funds as indicated in the table below to the fund also indicated in the table below. Upon completion of each transfer and on the effective date of its repeal by this actH.B. 96 of the 136th General Assembly, where applicable, the fund from which the cash balance was transferred is hereby abolished.

(D) On July 1, 2025, or as soon as possible thereafter, the Director of Budget and Management may transfer the cash balance from each of the funds as indicated in the table below to the fund also indicated in the table below after any encumbrances in these funds are fully discharged. Upon completion of each transfer and on the effective date of its repeal by this act, where applicable, the fund from which the cash balance was transferred is hereby abolished.

Section 5. That existing Sections 265.10, 265.300, 512.10, and 516.10 of H.B. 96 of the 136th General Assembly are hereby repealed.

Section 6. This act shall be known as the School Busing Improvement Act.