As Reported by the Senate Education Committee 1 122nd General Assembly 4 Regular Session Sub. H. B. No. 56 5 1997-1998 6 REPRESENTATIVES CALLENDER-GARDNER-PRENTISS-HARRIS-JONES-WHALEN- 8 METZGER-BATEMAN-SENATOR J. JOHNSON 9 11 A B I L L To amend sections 3316.06 and 3319.02 of the Revised 13 Code to permit a school board to enter into 15 administrative contracts with nonlicensed 16 employees who are considered to be supervisory or 17 management level employees for purposes of 18 collective bargaining, to permit a school 19 district that has been declared to be in a state 20 of fiscal emergency to issue, following approval 21 of the district voters of a new operating levy and approval of such school district's financial 22 planning and supervision commission, securities 23 not to exceed ten years for the purpose of restructuring or refinancing its outstanding debt 24 obligations, and to declare an emergency. 25 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 27 Section 1. That sections 3316.06 and 3319.02 of the 29 Revised Code be amended to read as follows: 31 Sec. 3316.06. (A) Within sixty days after the first 41 meeting of a school district financial planning and supervision commission, the commission shall adopt a financial recovery plan 42 regarding the school district for which the commission was 43 created. During the formulation of the plan, the commission 44 shall seek appropriate input from the school district board and 45 from the community. This plan shall contain the following: (1) Actions to be taken to: 47 2 (a) Eliminate all fiscal emergency conditions declared to 50 exist pursuant to division (B) of section 3316.03 of the Revised Code; (b) Satisfy any judgments, past due accounts payable, and 52 all past due and payable payroll and fringe benefits; 53 (c) Eliminate the deficits in all deficit funds; 55 (d) Restore to special funds any moneys from such funds 57 that were used for purposes not within the purposes of such 59 funds, or borrowed from such funds by the purchase of debt 60 obligations of the school district with the moneys of such funds, 61 or missing from the special funds and not accounted for, if any; 62 (e) Balance the budget, avoid future deficits in any 64 funds, and maintain on a current basis payments of payroll, 65 fringe benefits, and all accounts; 66 (f) Avoid any fiscal emergency condition in the future; 68 (g) Restore the ability of the school district to market 70 long-term general obligation bonds under provisions of law 71 applicable to school districts generally. 72 (2) The management structure that will enable the school 74 district to take the actions enumerated in division (A)(1) of 75 this section. The plan shall specify the level of fiscal and 76 management control that the commission will exercise within the 77 school district during the period of fiscal emergency, and shall 78 enumerate respectively, the powers and duties of the commission 79 and the powers and duties of the school board during that period. 80 The commission may elect to assume any of the powers and duties of the school board it considers necessary, including all powers 81 related to personnel, curriculum, and legal issues in order to 82 successfully implement the actions described in division (A)(1) 83 of this section. (3) The target dates for the commencement, progress upon, 86 and completion of the actions enumerated in division (A)(1) of 87 this section and a reasonable period of time expected to be 88 required to implement the plan. The commission shall prepare a 3 reasonable time schedule for progress toward and achievement of 90 the requirements for the plan, and the plan shall be consistent 91 with that time schedule. (4) The amount and purpose of any issue of debt 93 obligations that will be issued, together with assurances that 94 any such debt obligations that will be issued will not exceed 95 debt limits supported by appropriate certifications by the fiscal 96 officer of the school district and the county auditor. DEBT 97 OBLIGATIONS ISSUED PURSUANT TO SECTION 133.301 OF THE REVISED 98 CODE SHALL INCLUDE ASSURANCES THAT SUCH DEBT SHALL BE IN AN 99 AMOUNT NOT TO EXCEED THE AMOUNT CERTIFIED UNDER DIVISION (B) OF 100 SUCH SECTION. If the commission considers it necessary in order 103 to maintain or improve educational opportunities of pupils in the 104 school district, the plan may include a proposal to restructure or refinance outstanding debt obligations incurred by the board 105 UNDER SECTION 3313.483 OF THE REVISED CODE contingent upon the 107 approval, during the period of the fiscal emergency, by district voters of a tax levied under section 718.09, 718.10, 5705.194, 108 5705.21, or 5748.02 of the Revised Code, THAT IS NOT A RENEWAL OR 109 REPLACEMENT LEVY AND THAT WILL PROVIDE NEW OPERATING REVENUE. 110 Notwithstanding any provision of Chapter 133. or sections 112 3313.483 through 3313.4811 of the Revised Code, FOLLOWING THE REQUIRED APPROVAL OF THE DISTRICT VOTERS AND WITH THE APPROVAL OF 113 THE COMMISSION, THE SCHOOL DISTRICT MAY ISSUE SECURITIES TO 114 EVIDENCE the restructuring or refinancing. THOSE SECURITIES may 115 extend the original period for repayment, NOT TO EXCEED TEN YEARS 116 and may alter the frequency and amount of repayments, interest or 117 other financing charges, and other terms of agreements under 118 which the debt originally was contracted, at the discretion of 119 the commission, provided that any loans received pursuant to 120 section 3313.483 of the Revised Code shall be paid from funds the 121 district would otherwise receive under sections 3317.022 to 122 3317.025 of the Revised Code, as required under division (E)(3) of section 3313.483 of the Revised Code. THE SECURITIES ISSUED 123 4 FOR THE PURPOSE OF RESTRUCTURING OR REFINANCING THE DEBT SHALL BE 124 REPAID IN EQUAL PAYMENTS AND AT EQUAL INTERVALS OVER THE TERM OF 125 THE DEBT AND ARE NOT ELIGIBLE TO BE INCLUDED IN ANY SUBSEQUENT 126 PROPOSAL FOR THE PURPOSE OF RESTRUCTURING OR REFINANCING DEBT 127 UNDER THIS SECTION. (B) Any financial recovery plan may be amended subsequent 129 to its adoption. EACH FINANCIAL RECOVERY PLAN SHALL BE UPDATED 130 ANNUALLY. Sec. 3319.02. (A) As used in this section, "other 139 administrator" means any employee in a position for which a board 140 of education requires a license designated for being an 141 administrator, other than a superintendent, assistant 142 superintendent, principal, or assistant principal, issued under 143 section 3319.22 of the Revised Code OR ANY NONLICENSED EMPLOYEE 144 WHOSE JOB DUTIES ENABLE SUCH EMPLOYEE TO BE CONSIDERED AS EITHER 145 A "SUPERVISOR" OR A "MANAGEMENT LEVEL EMPLOYEE," AS DEFINED IN 146 SECTION 4117.01 OF THE REVISED CODE. (B) The board of education of each school district and the 148 governing board of an educational service center may appoint one 150 or more assistant superintendents and such other administrators 151 as are necessary. An assistant educational service center 152 superintendent or service center supervisor employed on a 153 part-time basis may also be employed by a local board as a 154 teacher. The board of each city, exempted village, and local 155 school district shall employ principals for all high schools and 156 for such other schools as the board designates, and those boards 157 may appoint assistant principals for any school that they 158 designate. (C) In educational service centers and in city and 160 exempted village school districts, assistant superintendents, 162 principals, assistant principals, and other administrators shall 163 only be employed or reemployed in accordance with nominations of 164 the superintendent except that a city or exempted village board 165 of education or the governing board of a service center, by a 166 5 three-fourths vote, may reemploy any assistant superintendent, 167 principal, assistant principal, or other administrator whom the 168 superintendent refuses to nominate after considering two nominees 169 for the position. In local school districts, assistant 170 superintendents, principals, assistant principals, and other 171 administrators shall only be employed or reemployed in accordance 172 with nominations of the superintendent of the service center of 173 which the local district is a part except that a local board of 174 education, by a majority vote, may reemploy any assistant 175 superintendent, principal, assistant principal, or other 176 administrator whom such superintendent refuses to nominate after 177 considering two nominees for the position. 178 The board of education or governing board shall execute a 180 written contract of employment with each assistant 182 superintendent, principal, assistant principal, and other 183 administrator it employs or reemploys. The term of such contract 184 shall not exceed three years except that in the case of a person 185 who has been employed as an assistant superintendent, principal, 186 assistant principal, or other administrator in the district or 187 center for three years or more, the term of the contract shall be 188 for not more than five years and, unless the superintendent of 189 the district recommends otherwise, not less than two years. If 190 the superintendent so recommends, the term of the contract of a 191 person who has been employed by the district or service center as 192 an assistant superintendent, principal, assistant principal, or 194 other administrator for three years or more may be one year, but 195 all subsequent contracts granted such person shall be for a term 196 of not less than two years and not more than five years. When a 197 teacher with continuing service status becomes an assistant 198 superintendent, principal, assistant principal, or other 199 administrator with the district or service center with which the 200 teacher holds continuing service status, the teacher retains such 202 status in the teacher's nonadministrative position as provided in 204 sections 3319.08 and 3319.09 of the Revised Code. 6 A board of education or governing board may reemploy an 206 assistant superintendent, principal, assistant principal, or 207 other administrator at any regular or special meeting held during 208 the period beginning on the first day of January of the calendar 209 year immediately preceding the year of expiration of the 210 employment contract and ending on the last day of March of the 211 year the employment contract expires. 212 Except by mutual agreement of the parties thereto, no 214 assistant superintendent, principal, assistant principal, or 215 other administrator shall be transferred during the life of a 217 contract to a position of lesser responsibility. No contract may be terminated or suspended by a board except pursuant to section 219 3319.16 or 3319.17 of the Revised Code. The salaries and 220 compensation prescribed by such contracts shall not be reduced by 221 a board unless such reduction is a part of a uniform plan 222 affecting the entire district or center. The contract shall 223 specify the employee's administrative position and duties, the 224 salary and other compensation to be paid for performance of 225 duties, the number of days to be worked, the number of days of 226 vacation leave, if any, and any paid holidays in the contractual 227 year. An assistant superintendent, principal, assistant 229 principal, or other administrator is, at the expiration of the 231 current term of employment, deemed reemployed at the same salary plus any increments that may be authorized by the board, unless 233 such employee notifies the board in writing to the contrary on or 234 before the first day of June, or unless such board, on or before 235 the last day of March of the year in which the contract of 236 employment expires, either reemploys such employee for a 237 succeeding term or gives written notice of its intention not to 239 reemploy the employee. The term of reemployment of a person 240 reemployed under this paragraph shall be one year, except that if 241 such person has been employed by the school district or service 242 center as an assistant superintendent, principal, assistant 243 7 principal, or other administrator for three years or more, the 244 term of reemployment shall be two years. 245 (D) Each board shall adopt procedures for the evaluation 248 of all assistant superintendents, principals, assistant 249 principals, and other administrators and shall evaluate such 250 employees in accordance with those procedures. The evaluation 251 based upon such procedures shall be considered by the board in 252 deciding whether to renew the contract of employment of an 253 assistant superintendent, principal, assistant principal, or other administrator. The evaluation shall measure each assistant 254 superintendent's, principal's, assistant principal's, and other 255 administrator's effectiveness in performing the duties included 256 in the job description and the evaluation procedures shall 257 provide for, but not be limited to, the following: 258 (1) Each assistant superintendent, principal, assistant 260 principal, and other administrator shall be evaluated annually 261 through a written evaluation process. 262 (2) The evaluation shall be conducted by the 264 superintendent or designee. 265 (3) In order to provide time to show progress in 267 correcting the deficiencies identified in the evaluation process 268 the completed evaluation shall be received by the employee at 270 least sixty days prior to any action by the board on the 271 employee's contract of employment. Termination or suspension of an assistant superintendent, 273 principal, assistant principal, or other administrator's contract 274 shall be pursuant to section 3319.16 or 3319.17 of the Revised 275 Code. 276 The establishment of an evaluation procedure shall not 278 create an expectancy of continued employment. Nothing in this 279 section shall prevent a board from making the final determination 281 regarding the renewal of or failure to renew the contract of any 282 assistant superintendent, principal, assistant principal, or 283 other administrator. 8 Before taking action to renew or nonrenew the contract of 285 an assistant superintendent, principal, assistant principal, or 286 other administrator under this section and prior to the last day 287 of March of the year in which such employee's contract expires, 288 the board shall notify each such employee of the date that the 290 contract expires and that the employee may request a meeting with 291 the board. Upon request by such an employee, the board shall 292 grant the employee a meeting in executive session to discuss the 293 reasons for considering renewal or nonrenewal of the contract. 294 (E) On nomination of the superintendent of a service 297 center a governing board may employ supervisors who shall be employed under written contracts of employment for terms not to 298 exceed five years each. Such contracts may be terminated by a 299 governing board pursuant to section 3319.16 of the Revised Code. 301 Any supervisor employed pursuant to this division may terminate 302 the contract of employment at the end of any school year after 303 giving the board at least thirty days' written notice prior to 304 such termination. On the recommendation of the superintendent 305 the contract or contracts of any supervisor employed pursuant to 306 this division may be suspended for the remainder of the term of 307 any such contract if there is a reduction of the number of 308 approved supervisory teacher units allocated to the service 309 center pursuant to division (D) of section 3317.05 of the Revised 310 Code, or pursuant to section 3319.17 of the Revised Code. 311 (F) A board may establish vacation leave for any 314 individuals employed under this section. Upon such an individual's separation from employment, a board that has such 315 leave may compensate such an individual at the individual's 316 current rate of pay for all lawfully accrued and unused vacation 318 leave credited at the time of separation, not to exceed the 319 amount accrued within three years before the date of separation. 320 In case of the death of an individual employed under this 321 section, such unused vacation leave as the board would have paid 322 to the individual upon separation under this section shall be 323 9 paid in accordance with section 2113.04 of the Revised Code, or 324 to the estate. 325 Section 2. That existing sections 3316.06 and 3319.02 of 327 the Revised Code are hereby repealed. 328 Section 3. This act is hereby declared to be an emergency 330 measure necessary for the immediate preservation of the public 331 peace, health, and safety. The reasons for such necessity are to 332 help facilitate the financial recovery of school districts 333 declared to be in a state of fiscal emergency and to restore essential contracting authority to school districts in time for 335 the next fiscal year. Therefore, this act shall go into 336 immediate effect.