As Passed by the Senate 1
122nd General Assembly 4
Regular Session Am. Sub. H. B. No. 56 5
1997-1998 6
REPRESENTATIVES CALLENDER-GARDNER-PRENTISS-HARRIS-JONES-WHALEN- 8
METZGER-BATEMAN-SENATORS J. JOHNSON-GARDNER 9
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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
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(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
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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 116
YEARS, and may alter the frequency and amount of repayments, 118
interest or other financing charges, and other terms of 119
agreements under which the debt originally was contracted, at the 120
discretion of the commission, provided that any loans received 121
pursuant to section 3313.483 of the Revised Code shall be paid 122
from funds the district would otherwise receive under sections
3317.022 to 3317.025 of the Revised Code, as required under 123
division (E)(3) of section 3313.483 of the Revised Code. THE 124
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SECURITIES ISSUED FOR THE PURPOSE OF RESTRUCTURING OR REFINANCING 125
THE DEBT SHALL BE REPAID IN EQUAL PAYMENTS AND AT EQUAL INTERVALS 126
OVER THE TERM OF THE DEBT AND ARE NOT ELIGIBLE TO BE INCLUDED IN 127
ANY SUBSEQUENT PROPOSAL FOR THE PURPOSE OF RESTRUCTURING OR
REFINANCING DEBT UNDER THIS SECTION. 128
(B) Any financial recovery plan may be amended subsequent 130
to its adoption. EACH FINANCIAL RECOVERY PLAN SHALL BE UPDATED 131
ANNUALLY.
Sec. 3319.02. (A) As used in this section, "other 140
administrator" means any employee in a position for which a board 141
of education requires a license designated for being an 142
administrator, other than a superintendent, assistant 143
superintendent, principal, or assistant principal, issued under 144
section 3319.22 of the Revised Code OR ANY NONLICENSED EMPLOYEE 145
WHOSE JOB DUTIES ENABLE SUCH EMPLOYEE TO BE CONSIDERED AS EITHER 146
A "SUPERVISOR" OR A "MANAGEMENT LEVEL EMPLOYEE," AS DEFINED IN 147
SECTION 4117.01 OF THE REVISED CODE.
(B) The board of education of each school district and the 149
governing board of an educational service center may appoint one 151
or more assistant superintendents and such other administrators 152
as are necessary. An assistant educational service center 153
superintendent or service center supervisor employed on a 154
part-time basis may also be employed by a local board as a 155
teacher. The board of each city, exempted village, and local 156
school district shall employ principals for all high schools and 157
for such other schools as the board designates, and those boards 158
may appoint assistant principals for any school that they 159
designate.
(C) In educational service centers and in city and 161
exempted village school districts, assistant superintendents, 163
principals, assistant principals, and other administrators shall 164
only be employed or reemployed in accordance with nominations of 165
the superintendent except that a city or exempted village board 166
of education or the governing board of a service center, by a 167
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three-fourths vote, may reemploy any assistant superintendent, 168
principal, assistant principal, or other administrator whom the 169
superintendent refuses to nominate after considering two nominees 170
for the position. In local school districts, assistant 171
superintendents, principals, assistant principals, and other 172
administrators shall only be employed or reemployed in accordance 173
with nominations of the superintendent of the service center of 174
which the local district is a part except that a local board of 175
education, by a majority vote, may reemploy any assistant 176
superintendent, principal, assistant principal, or other 177
administrator whom such superintendent refuses to nominate after 178
considering two nominees for the position. 179
The board of education or governing board shall execute a 181
written contract of employment with each assistant 183
superintendent, principal, assistant principal, and other 184
administrator it employs or reemploys. The term of such contract 185
shall not exceed three years except that in the case of a person 186
who has been employed as an assistant superintendent, principal, 187
assistant principal, or other administrator in the district or 188
center for three years or more, the term of the contract shall be 189
for not more than five years and, unless the superintendent of 190
the district recommends otherwise, not less than two years. If 191
the superintendent so recommends, the term of the contract of a 192
person who has been employed by the district or service center as 193
an assistant superintendent, principal, assistant principal, or 195
other administrator for three years or more may be one year, but 196
all subsequent contracts granted such person shall be for a term 197
of not less than two years and not more than five years. When a 198
teacher with continuing service status becomes an assistant 199
superintendent, principal, assistant principal, or other 200
administrator with the district or service center with which the 201
teacher holds continuing service status, the teacher retains such 203
status in the teacher's nonadministrative position as provided in 205
sections 3319.08 and 3319.09 of the Revised Code.
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A board of education or governing board may reemploy an 207
assistant superintendent, principal, assistant principal, or 208
other administrator at any regular or special meeting held during 209
the period beginning on the first day of January of the calendar 210
year immediately preceding the year of expiration of the 211
employment contract and ending on the last day of March of the 212
year the employment contract expires. 213
Except by mutual agreement of the parties thereto, no 215
assistant superintendent, principal, assistant principal, or 216
other administrator shall be transferred during the life of a 218
contract to a position of lesser responsibility. No contract may
be terminated or suspended by a board except pursuant to section 220
3319.16 or 3319.17 of the Revised Code. The salaries and 221
compensation prescribed by such contracts shall not be reduced by 222
a board unless such reduction is a part of a uniform plan 223
affecting the entire district or center. The contract shall 224
specify the employee's administrative position and duties, the 225
salary and other compensation to be paid for performance of 226
duties, the number of days to be worked, the number of days of 227
vacation leave, if any, and any paid holidays in the contractual 228
year.
An assistant superintendent, principal, assistant 230
principal, or other administrator is, at the expiration of the 232
current term of employment, deemed reemployed at the same salary
plus any increments that may be authorized by the board, unless 234
such employee notifies the board in writing to the contrary on or 235
before the first day of June, or unless such board, on or before 236
the last day of March of the year in which the contract of 237
employment expires, either reemploys such employee for a 238
succeeding term or gives written notice of its intention not to 240
reemploy the employee. The term of reemployment of a person 241
reemployed under this paragraph shall be one year, except that if 242
such person has been employed by the school district or service 243
center as an assistant superintendent, principal, assistant 244
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principal, or other administrator for three years or more, the 245
term of reemployment shall be two years. 246
(D) Each board shall adopt procedures for the evaluation 249
of all assistant superintendents, principals, assistant 250
principals, and other administrators and shall evaluate such 251
employees in accordance with those procedures. The evaluation 252
based upon such procedures shall be considered by the board in 253
deciding whether to renew the contract of employment of an 254
assistant superintendent, principal, assistant principal, or
other administrator. The evaluation shall measure each assistant 255
superintendent's, principal's, assistant principal's, and other 256
administrator's effectiveness in performing the duties included 257
in the job description and the evaluation procedures shall 258
provide for, but not be limited to, the following: 259
(1) Each assistant superintendent, principal, assistant 261
principal, and other administrator shall be evaluated annually 262
through a written evaluation process. 263
(2) The evaluation shall be conducted by the 265
superintendent or designee. 266
(3) In order to provide time to show progress in 268
correcting the deficiencies identified in the evaluation process 269
the completed evaluation shall be received by the employee at 271
least sixty days prior to any action by the board on the 272
employee's contract of employment.
Termination or suspension of an assistant superintendent, 274
principal, assistant principal, or other administrator's contract 275
shall be pursuant to section 3319.16 or 3319.17 of the Revised 276
Code. 277
The establishment of an evaluation procedure shall not 279
create an expectancy of continued employment. Nothing in this 280
section shall prevent a board from making the final determination 282
regarding the renewal of or failure to renew the contract of any 283
assistant superintendent, principal, assistant principal, or 284
other administrator.
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Before taking action to renew or nonrenew the contract of 286
an assistant superintendent, principal, assistant principal, or 287
other administrator under this section and prior to the last day 288
of March of the year in which such employee's contract expires, 289
the board shall notify each such employee of the date that the 291
contract expires and that the employee may request a meeting with 292
the board. Upon request by such an employee, the board shall 293
grant the employee a meeting in executive session to discuss the 294
reasons for considering renewal or nonrenewal of the contract. 295
(E) On nomination of the superintendent of a service 298
center a governing board may employ supervisors who shall be
employed under written contracts of employment for terms not to 299
exceed five years each. Such contracts may be terminated by a 300
governing board pursuant to section 3319.16 of the Revised Code. 302
Any supervisor employed pursuant to this division may terminate 303
the contract of employment at the end of any school year after 304
giving the board at least thirty days' written notice prior to 305
such termination. On the recommendation of the superintendent 306
the contract or contracts of any supervisor employed pursuant to 307
this division may be suspended for the remainder of the term of 308
any such contract if there is a reduction of the number of 309
approved supervisory teacher units allocated to the service 310
center pursuant to division (D) of section 3317.05 of the Revised 311
Code, or pursuant to section 3319.17 of the Revised Code. 312
(F) A board may establish vacation leave for any 315
individuals employed under this section. Upon such an
individual's separation from employment, a board that has such 316
leave may compensate such an individual at the individual's 317
current rate of pay for all lawfully accrued and unused vacation 319
leave credited at the time of separation, not to exceed the 320
amount accrued within three years before the date of separation. 321
In case of the death of an individual employed under this 322
section, such unused vacation leave as the board would have paid 323
to the individual upon separation under this section shall be 324
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paid in accordance with section 2113.04 of the Revised Code, or 325
to the estate. 326
Section 2. That existing sections 3316.06 and 3319.02 of 328
the Revised Code are hereby repealed. 329
Section 3. This act is hereby declared to be an emergency 331
measure necessary for the immediate preservation of the public 332
peace, health, and safety. The reasons for such necessity are to 333
help facilitate the financial recovery of school districts 334
declared to be in a state of fiscal emergency and to restore
essential contracting authority to school districts in time for 336
the next fiscal year. Therefore, this act shall go into 337
immediate effect.